In the absence of any cogent evidence to show that the transaction was not genuine, the amounts received by an intermediary cannot be assessed in the hands of the assessee

By TG Team Income Tax Judiciary August 3, 2011

TaxGuru Citation: 2011 taxguru.in 703
Case Name: Sahney Kirk wood Pvt. Ltd. Vs ACIT (Bombay High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Bombay High Court

Sahney Kirk wood Pvt. Ltd. Vs ACIT (Bombay High Court)- In the absence of any cogent evidence to show that the transaction was not genuine, the amounts received by an intermediary cannot be assessed in the hands of the assessee. In the present case, save and except the fact that one of the directors of the assessee company was also a director in Minicon, there is nothing on record to show that the transaction between the assessee and Minicon is a sham transaction. In these circumstances, in our opinion, the decision of the Tribunal in holding that the amounts received by Minicon on account of letting out the premises were liable to be assessed in the hands of the assessee on the ground that the transaction between the assessee and Minicon was a sham and bogus transaction cannot be accepted.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

INCOME TAX APPEAL NO. 1501 OF 2007

AND

INCOME TAX APPEAL NO.1509 OF 2007
AND

INCOME TAX APPEAL NO.15 15 OF 2007
AND

INCOME TAX APPEAL NO.15 16 OF 2007
AND

INCOME TAX APPEAL NO. 1517 OF 2007.

Sahney Kirk-wood Private Limited Vs Additional Commissioner of Income tax

CORAM : J.P. Devadhar & A.A. Sayed, JJ.

DATE : 29^th July, 2011.

P.C.: