Disallowance U/s. 13 cannot be made for Transaction between related parties at ALP

CIT Vs Ramdoot Prasad Sewa Samiti (Rajasthan High Court) brief facts are that respondent-assessee is a trust registered under Section 12AA of the Act and had claimed exemption under the Act for assessment year 2012­-13. The return filed by the assessee-trust was taken under scrutiny by the assessing officer. During such assessment the assessing officer noticed that the assessee had made total purchases of raw materials worth Rs.12.24 crores (rounded off) out of which purchases of Rs.9 crores were made from M/s Pawansut Trading Company Pvt. Ltd. Upon further scrutiny it was found that the one ...