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2007 (10) TMI 297 - HC - Income TaxBogus Transaction purchase of sugar payment of additional price to sugarcane growers - The assessee has decided to enhance the sugarcane price but has also unilaterally decided to credit the sum to the share deduction account, which was subsequently utilised for allotment of shares to the members. This unilateral act of the society is an indicator to the fact that the deduction claimed by the assessee was not purely a simple transaction of purchase of sugarcane and fixation of the price after the end of the previous year. The additional price is in excess of the price fixed by the Cane Commissioner for the crushing season held that - the action of the assessee was not bona fide and this device was employed to avoid payment of dues to the exchequer. The findings recorded by the Tribunal are findings of fact and do not give rise to any question of law much less a substantial question of law deduction not allowed.
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