Case Law Details
The Commissioner of Income Tax (Appeals), Ludhiana, vide order dated 30.09.2009 set aside the addition made by the Assessing Officer. Such order was affirmed by the Tribunal vide its order dated 22.08.2012. The learned Tribunal has found that the sister concerns have paid tax at the rate of 33.6% as compared to 30.6% paid by the assessee. It was also held that the Assessing Officer made addition solely on the ground that the assessee has charged less sale price from the sister concerns as compared to the non-sister concerns. The provisions of Section 90-A of the Act could not have been invoked as no payment has been made to the sister concerns for any item of expenditure, which the assessee might have claimed as revenue expenditure. The Tribunal found that a tax payer can manage his affairs to reduce tax liability within the frame work of law and that the sale of goods at a lesser price to the sister concerns than to the non-sister concerns, does not violate any provision of law.
HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
ITA No. 27 of 2013 (O&M) Date of decision: 02.04.2013
Commissioner of Income Tax-I Ludhiana
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