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2009 (3) TMI 509 - DELHI HIGH COURTOffences and prosecution- Evasion of tax- The petitioner is the Managing Director of the company. The company was engaged in the business of manufacture and sale of carbon steel strips. It filed its return by showing nil income. The return of income as well as verification signed by MD. Company shown heavy expenses. The company was asked to explain why there was steep increase in the expenses. The company explained that it had paid Rs. 29,46,422 to HSP towards the work of annealing and pickling of steel slabs at the rate of Rs 2500 per metric tonn. The assessing officer held that company could not have paid more than 500 per metric tonn to HSP, for the processing work done by latter. The Commissioner (Appeal) upheld this order. Tribunal dismiss the revenue appeal and partly allow assessee’s appeal. Held that- if the issue whether the amount paid by the company to HSP was reasonable or not admitted of more than one point of view, as was evident from the orders of the Assessing Officer and the Tribunal, then certainly the essential ingredient of section 276C(1) of the Act of a deliberate intent on the part of the company to evade the payment of income tax could not be said to exist in the present case.
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