Sham Transaction cannot be alleged if other party is a statutory body

Star Chemicals (Bom) Pvt. Ltd. Vs DCIT (ITAT Mumbai) Undisputedly, the assessee company has sold three energy saving devices for Rs.88,50,000/- in A.Y. 2003-04 and in the computation of income entire amount of Rs.88,50,000/- was offered as deemed capital gains under section 50 of the Act. Tribunal in A.Y. 2003-04 while overturning the findings returned by the AO and the Ld. CIT(A) held that the sale of three energy saving devices are rightly taxed as deemed capital gain under section 50 of the Act. It is also not in dispute that this is first year of claiming depreciation by the assessee. It i...