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2018 (4) TMI 406 - HC - Income TaxAllowing compensation paid to sister concern - whether merely making payments which are recorded in the books does not prove the genuineness of the transaction being for the purpose of business ? - Held that:- It found that, receipt of amount of compensation was reflected in the Profit & Loss Account of the sister concern. Besides, the particulars of the transaction which formed the basis of the compensation having been produced before the lower authorities. It also found that the sister concern had offered the aforesaid amount of ₹ 7.57 lakhs for tax. Consequently, it allowed the Appeal of the respondent, assessee by holding that the payment of compensation/brokerage was made for the purpose of business. - Decided in favour of assessee Appeal admitted on the substantial question of law at Sr. no.2 - Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in allowing the addition made by the Assessing Officer of Short Term Capital Gain and treating it as speculative transaction without appreciating the fact that it was not the nature of transaction but the existence of transaction which needed to be proved?
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