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2012 (8) TMI 485 - AT - Income TaxDisallowance of TDR transaction on account of inflated sales - transaction claimed to have been entered by the assessee with a sister concern - Held that:- Assessee had purchased TDR from KHPL, its sister concern, who has claimed the purchase of TDR from original vendor company and finally sold by assessee resulting in profit of Rs. 3,59,750/- which is claimed to be offered for tax and not disputed by Revenue - sister concern has claimed to have paid tax @ 30% on profit from above transaction which has not been disputed on behalf of revenue, thus in case KHPL has suffered tax, then it cannot be said that tax planning device adopted by assessee by inflating its purchase price of TDR. As decided in CIT Vs. Indo Saudi Services (Travel) Pvt. Ltd. [2008 (8) TMI 208 - BOMBAY HIGH COURT] if sister concern with whom transaction was entered was also assessed to tax in such situation no disallowance has to be made u/s. 40A(2) in respect of the payment made to the relatives and sister concern where there was no attempt to evade tax - in favour of assessee.
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