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2017 (5) TMI 263 - HC - Income TaxDiversion of business funds to an associate concern without interest - Tribunal held that the assessee failed to point out any service having been rendered by the associate company to the assessee firm - Held that:- We do not find that the Tribunal arrived at the conclusions on basis of surmises and conjectures, but the Tribunal noticed that an agreement between the assessee and M/s Singhal’s Resourcing and Marketing Pvt. Ltd. was there and further that the profit and loss account of M/s Singhal’s Resourcing and Marketing Pvt. Ltd. discloses that it incurred revenue expenditure for giving the said service, but except that no other material was available and the assessee was not at all in position to express even about the services which were availed. The Tribunal after examining all aspects of the matter held that the assessee failed to establish the factum of having service from M/s Singhal’s Resourcing and Marketing Pvt. Ltd. and while doing so also observed that the agreement may be a device adopted to ignore the tax liability. Pertinent to notice that the assessee and M/s Singhal’s Resourcing and Marketing Pvt. Ltd. though are separately assessed to tax, but are closely knitted concerns and the partners are either close relatives or the same persons. In entirety, we do not find any wrong with the findings arrived by the Income Tax Appellate Tribunal. We find force in the argument advanced by learned counsel that the appeal as a matter of fact is having no substantial question of law. - Decided against assessee.
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