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“commercial substance”

GAARSection 97Section 97140 judgments

The decision most relied on for commercial substance is 277(D- E) and CIT v. U.P. State Industrial Development Corporation (225 ITR 703), cited in 49 judgments on BharatTax.

Leading authorities on commercial substance

277(D- E) and CIT v. U.P. State Industrial Development Corporation
225 ITR 703 · 1997 · Supreme Court
49
citing judgments

The ordinary principles of commercial accounting should be applied for ascertaining profits and gains, provided they do not contradict the Income-tax Act.

Killick Nixon Ltd. v. Deputy Commissioner of Income-tax
20 Taxmann.com 703 · 2012 · High Court
20
citing judgments

Transactions lacking commercial substance, such as circular share transactions designed to generate artificial capital losses, are not genuine and may be disregarded by tax authorities.

Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax v. Provincial Farmers (P) Ltd.
108 ITR 219 · High Court
16
citing judgments

The true nature of a transaction is determined by the substance of the transaction itself, not merely by the nomenclature used in the books of accounts. Payments made for the expansion of an existing business into new geographical areas before commercial exploitation are not necessarily loans or advances but can be considered trading transactions.

Judgments citing commercial substance

Essar Com Limited, Mauritius vs. ACIT, Circle 1(2)(2), New Delhi

ITA 339/DEL/2022[2012-13]Status: DisposedITAT Delhi30 Jun 2025AY 2012-13

Bench: Shri Satbeer Singh Godara & Shris.Rifaur Rahman

For Appellant: Shri Percy Pardiwala, Sr. AdvocateFor Respondent: Shri N. Venkatraman, ASG
Section 250Section 253Section 6(3)

under Article 13(4) of the tax treaty on the transfer of shares in an Indian company; 46 ITA Nos.339 & 340/Del/2022 The assessee lacked commercial substance and was a colourabledevice. 170.1 Accordingly, the action of the AO in charging the capital gains to tax is confirmed. Grounds No.2 ... ECOM deciding the application of the impugned shares 6.13Infographics of Frequent changes in holding] Para 30 (page 86-88) ECL structure devoid of commercial substance Para 30 (page 82-85) ECOM 6.14/Settlement of tax dispute before the AAR on| Para 31 (page 89-90) ECL 01.07.2011 through deed

Income Tax Officer Ward-1 Himatnagar, Himatnagar vs. Kalidas Jivabhai Patel, Himatnagar

In the result the appeal filed by the Revenue is dismissed and the Cross-Objection filed by the assessee is dismissed as not pressed

ITA 934/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad18 Jun 2025AY 2017-18

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.934/Ahd/2024 िनधा"रण वष" /Assessment Year : 2017-18 The Income Tax Officer, Kalidas Jivabhai Patel, Ward-1, बनाम/ Asian Parivar, V/S. Himatnagar. Nr. Mahakali Mandir Road, Himatnagar-383001. "थायी लेखा सं./Pan: Accpp5913D & C.O No.18/Ahd/2024 In आयकर अपील सं /Ita No.934/Ahd/2024 िनधा"रण वष" /Assessment Year : 2017-18 Kalidas Jivabhai Patel, The Income Tax Officer, Asian Parivar, बनाम/ Ward-1, V/S. Nr. Mahakali Mandir Road, Himatnagar. Himatnagar-383001. "थायी लेखा सं./Pan: Accpp5913D

For Appellant: Shri Vartik Chokshi with Shri Biren Shah, ARsFor Respondent: Shri Durga Dutt, CIT-DR
Section 143(1)Section 144BSection 147Section 148Section 148ASection 69

orders and corresponding purchase orders were executed on the stock exchange within microseconds, which, in his view, clearly indicated a pre-arranged transaction lacking commercial substance. Upon further examination of the fund movement, the Assessing Officer recorded that immediately upon receipt of Rs. 14.30 crore from sale of shares, Shri

M/S. Super Shiv Shakti Minchem Pvt. Ltd., Jodhpur vs. ITO, Ward-3, Bhilwara

In the result, both the above appeals filed by the Assessee are dismissed

ITA 21/JODH/2018[2009-10]Status: DisposedITAT Jodhpur17 Jun 2025AY 2009-10

Bench: SHRI. LALIET KUMAR (Judicial Member), DR. MITHA LAL MEENA (Accountant Member)

For Appellant: Shri Goutam Chand Baid, C.AFor Respondent: Shri Karni Dan, Addl. CIT (Sr. D.R)
Section 147Section 148Section 6Section 68Section 69C

prove genuineness when the transaction defies economic logic. Similarly, in Raj Bhandari v. CIT, the Hon’ble Calcutta High Court emphasized that transactions lacking commercial substance or business purpose raise a higher 7 evidentiary burden on the assessee. This position was later affirmed by the Hon’ble Supreme Court, thereby ... entry operators, and are routed through dubious entities, mere submission of standard documents cannot legitimize them. The assessee must demonstrate the complete chain of commercial substance and provide a credible rationale for the transaction — which is glaringly absent in the present case. 21. In conclusion, considering the totality of facts

M/S. Super Shiv Shakti Minchem Pvt. Ltd., Jodhpur vs. ITO, Ward-3, Bhilwara

In the result, both the above appeals filed by the Assessee are dismissed

ITA 20/JODH/2018[2008-09]Status: DisposedITAT Jodhpur17 Jun 2025AY 2008-09

Bench: SHRI. LALIET KUMAR (Judicial Member), DR. MITHA LAL MEENA (Accountant Member)

For Appellant: Shri Goutam Chand Baid, C.AFor Respondent: Shri Karni Dan, Addl. CIT (Sr. D.R)
Section 147Section 148Section 6Section 68Section 69C

prove genuineness when the transaction defies economic logic. Similarly, in Raj Bhandari v. CIT, the Hon’ble Calcutta High Court emphasized that transactions lacking commercial substance or business purpose raise a higher 7 evidentiary burden on the assessee. This position was later affirmed by the Hon’ble Supreme Court, thereby ... entry operators, and are routed through dubious entities, mere submission of standard documents cannot legitimize them. The assessee must demonstrate the complete chain of commercial substance and provide a credible rationale for the transaction — which is glaringly absent in the present case. 21. In conclusion, considering the totality of facts

Milacron India Private Limited, Ahmedabad vs. The Dy. CIT, Circle-2(1)(1), Ahmedabad

The appeal of the assessee is allowed

ITA 2201/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad21 May 2025AY 2021-22

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2021-22 Milacron India Pvt.Ltd. The Dcit, Cir.2(1)(1) Plot No.93/2 & 91/4 Vs Ahmedabad. Phase-1,Gidc Vatva, Ahmedabad. Pan : Aabcc 0881 D

For Appellant: Shri Prathvi Raj Meena, CIT-DR
Section 143(3)Section 144C(1)Section 144C(5)Section 270ASection 92BSection 92C

constitute a separate international transaction, the appropriate method of evaluating the arm’s length nature is through a holistic adjustment that reflects the commercial substance of the tested party’s operating cycle, which the assessee has already undertaken. The AR further submitted that the benchmarking of international transactions undertaken

The ACIT, Circle-2(1)(1), Ahmedabad vs. M/S. Intas Pharmaceuticals Ltd., Ahmedabad

Accordingly, this ground raised by the Revenue is dismissed

ITA 281/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

rightly disallowed in the assessment order. The DR submitted that the entire transaction was intra-group and lacked ITA No.281 and 222/Ahd/2021 25 commercial substance, as the amalgamating company, ILPL, was wholly owned and controlled by the assessee-company. It was pointed out that there was no real cash outflow ... facts have been thoroughly verified, the legal position is supported by binding precedents, and the Revenue has failed to demonstrate that the transaction lacks commercial substance or that the claim falls afoul of any specific bar under the Act. All the revised grounds of appeal raised by the Revenue stand

Intas Pharmaceuticals Ltd., Ahmedabad vs. The DCIT, Circle-2(1)(1), Ahmedabad

Accordingly, this ground raised by the Revenue is dismissed

ITA 222/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

rightly disallowed in the assessment order. The DR submitted that the entire transaction was intra-group and lacked ITA No.281 and 222/Ahd/2021 25 commercial substance, as the amalgamating company, ILPL, was wholly owned and controlled by the assessee-company. It was pointed out that there was no real cash outflow ... facts have been thoroughly verified, the legal position is supported by binding precedents, and the Revenue has failed to demonstrate that the transaction lacks commercial substance or that the claim falls afoul of any specific bar under the Act. All the revised grounds of appeal raised by the Revenue stand

ACIT, Central Circle-1, Thane vs. Nakul Markhedkar, Thane

ITA 786/MUM/2025[2015-16]Status: DisposedITAT Mumbai30 Apr 2025AY 2015-16

Bench: Shri Saktijit Dey, Vp & Ms Padmavathy S, Am

For Respondent: Shri Rakesh Ranjan - Sr. DR
Section 132Section 153ASection 56(2)(vii)

have any substantial commercial purpose other than obtaining tax benefit or tax evasion. The basic criteria for determining whether an arrangement lacks commercial substance or not are the period or time for which the arrangement exists, the fact that an exit route is provided by the arrangement ... perusal of this, the transactions entered by the assessee clearly lack commercial substance. Hence, it is a sham transaction. 6.12 While reaching to the above conclusion, the assessing officer relied on following case-laws: McDowell and Company Ltd., vs. Commercial Tax Officer, 154 ITR 148 (SC) The judgement

ACIT, Central Circle-1, Thane vs. Nakul Markhedkar, Thane

ITA 785/MUM/2025[2016-17]Status: DisposedITAT Mumbai30 Apr 2025AY 2016-17

Bench: Shri Saktijit Dey, Vp & Ms Padmavathy S, Am

For Respondent: Shri Rakesh Ranjan - Sr. DR
Section 132Section 153ASection 56(2)(vii)

have any substantial commercial purpose other than obtaining tax benefit or tax evasion. The basic criteria for determining whether an arrangement lacks commercial substance or not are the period or time for which the arrangement exists, the fact that an exit route is provided by the arrangement ... perusal of this, the transactions entered by the assessee clearly lack commercial substance. Hence, it is a sham transaction. 6.12 While reaching to the above conclusion, the assessing officer relied on following case-laws: McDowell and Company Ltd., vs. Commercial Tax Officer, 154 ITR 148 (SC) The judgement

Pradeep Wig, New Delhi vs. ACIT Central Circle-5, New Delhi

The appeals of the Revenue are dismissed

ITA 406/DEL/2021[2012-13]Status: DisposedITAT Delhi29 Apr 2025AY 2012-13

Bench: Shri M. Balaganesh & Shri Anubhav Sharma

discussion, it is held that the appellant created the arrangement of registering CCL and EEL in BVI to obtain tax benefit. The arrangement lacks commercial substance and has been carried out in a manner which is not ordinarily employed for bona fide purposes. The apparent is not the real. Under

Shyam Realties, Ahmedabad vs. The Dy. CIT, Cirlce-2(2)(1), Ahmedabad

In the result, both the appeals of the assessee are dismissed

ITA 1388/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2018-19

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita Nos.1387/Ahd/2024 & 1388/Ahd/2024 िनधा"रण वष" /Assessment Years : 2017-18 & 2018-19 Shyam Realities The Dy.Cit, बनाम/ Tejendra Arcade Circle-2(2)(1) V/S. Ganji Farak Mill Compound Ahmedabad – 380 015 Rakhiyal Cross Road Rakhiyal, Ahmedabad – 380 021 (Gujarat) "थायी लेखा सं./Pan: Abvfs 2603 M (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee By : Shri Bandish Soparkar, Ar Revenue By : Shri Atul Pandey, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 23/04/2025 घोषणा की तारीख /Date Of Pronouncement: 28/04/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: These Two Appeals Filed By The Assessee For Assessment Years (Ays) 2017–18 & 2018–19 Are Directed Against The Respective Appellate Orders Passed By The Ld. Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre (Nfac), New Delhi [Hereinafter Referred To As “Cit(A)”], Dated 27.06.2024. In The Impugned Orders, The Ld. Cit(A) Confirmed The Disallowance Of Interest On Unsecured Loans To The Extent Of Rs.36,69,000/- For A.Y. 2017–18 & Rs.38,94,295/- For A.Y. 2018–19, As Originally Disallowed By

For Appellant: Shri Bandish Soparkar, ARFor Respondent: Shri Atul Pandey, Sr.DR
Section 269SSection 68

bring on record evidence of repayment of the loans, even years after their receipt, reinforces the Revenue’s contention that the alleged loans lack commercial substance. A genuine business liability is typically reflected in either repayment schedules, confirmations, or servicing of debt—none of which have been demonstrated

Shyam Realties, Ahmedabad vs. The Dy. CIT, Cirlce-2(2)(1), Ahmedabad

In the result, both the appeals of the assessee are dismissed

ITA 1387/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad28 Apr 2025AY 2017-18

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita Nos.1387/Ahd/2024 & 1388/Ahd/2024 िनधा"रण वष" /Assessment Years : 2017-18 & 2018-19 Shyam Realities The Dy.Cit, बनाम/ Tejendra Arcade Circle-2(2)(1) V/S. Ganji Farak Mill Compound Ahmedabad – 380 015 Rakhiyal Cross Road Rakhiyal, Ahmedabad – 380 021 (Gujarat) "थायी लेखा सं./Pan: Abvfs 2603 M (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee By : Shri Bandish Soparkar, Ar Revenue By : Shri Atul Pandey, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 23/04/2025 घोषणा की तारीख /Date Of Pronouncement: 28/04/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: These Two Appeals Filed By The Assessee For Assessment Years (Ays) 2017–18 & 2018–19 Are Directed Against The Respective Appellate Orders Passed By The Ld. Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre (Nfac), New Delhi [Hereinafter Referred To As “Cit(A)”], Dated 27.06.2024. In The Impugned Orders, The Ld. Cit(A) Confirmed The Disallowance Of Interest On Unsecured Loans To The Extent Of Rs.36,69,000/- For A.Y. 2017–18 & Rs.38,94,295/- For A.Y. 2018–19, As Originally Disallowed By

For Appellant: Shri Bandish Soparkar, ARFor Respondent: Shri Atul Pandey, Sr.DR
Section 269SSection 68

bring on record evidence of repayment of the loans, even years after their receipt, reinforces the Revenue’s contention that the alleged loans lack commercial substance. A genuine business liability is typically reflected in either repayment schedules, confirmations, or servicing of debt—none of which have been demonstrated

Maharashtra Cricket Association, Pune vs. ACIT(E), Pune

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 975/PUN/2024[2012-13]Status: DisposedITAT Pune11 Apr 2025AY 2012-13

Bench: Shri Manish Borad & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.1387 & 975/Pun/2024 धििाारण वर्ा / Assessment Years : 2011-12 & 2012-13 Maharashtra Cricket Association, Acit(E), Pune Gahunje Stadium, At Post Gahunje, Thehsil-Maval, Pune-412101 Vs. Pan : Aaatm2192D अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee By : Shri C.H. Naniwadekar & Kiran Sanmane Department By : Shri Amol Khairnar Date Of Hearing : 16-01-2025 Date Of 11-04-2025 Pronouncement : आदेश / Order Per Astha Chandra, Jm : Two Appeals Filed By The Assessee Are Directed Against The Two Separate Orders Dated 22.04.2024 & 12.03.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)”] Pertaining To Assessment Years (“Ays”) 2011-12 & 2012-13. Since The Issue(S) Involved Are Identical, These Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Shri C.H. Naniwadekar &For Respondent: Shri Amol Khairnar
Section 11Section 2(15)

gratuitous payment given by BCCI to MCA for furtherance of the charitable activities of the Assessee Trust and there is no commercial substance hidden in the same. Even the Assessee Trust has not hosted any International Cricket Match during the year under consideration; still it has received the subsidy, which

Maharashtra Cricket Association, Pune vs. ACIT(E), Pune

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 1387/PUN/2024[2011-12]Status: DisposedITAT Pune11 Apr 2025AY 2011-12

Bench: Shri Manish Borad & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.1387 & 975/Pun/2024 धििाारण वर्ा / Assessment Years : 2011-12 & 2012-13 Maharashtra Cricket Association, Acit(E), Pune Gahunje Stadium, At Post Gahunje, Thehsil-Maval, Pune-412101 Vs. Pan : Aaatm2192D अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee By : Shri C.H. Naniwadekar & Kiran Sanmane Department By : Shri Amol Khairnar Date Of Hearing : 16-01-2025 Date Of 11-04-2025 Pronouncement : आदेश / Order Per Astha Chandra, Jm : Two Appeals Filed By The Assessee Are Directed Against The Two Separate Orders Dated 22.04.2024 & 12.03.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)”] Pertaining To Assessment Years (“Ays”) 2011-12 & 2012-13. Since The Issue(S) Involved Are Identical, These Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Shri C.H. Naniwadekar &For Respondent: Shri Amol Khairnar
Section 11Section 2(15)

gratuitous payment given by BCCI to MCA for furtherance of the charitable activities of the Assessee Trust and there is no commercial substance hidden in the same. Even the Assessee Trust has not hosted any International Cricket Match during the year under consideration; still it has received the subsidy, which

M/S. Diach Chemicals & Pigments Pvt. Ltd., Howrah vs. D.C.I.T., Central Circle - 4(2), Kolkata

In the result, both the appeals of the assessee are allowed

ITA 1643/KOL/2024[2021-2022]Status: DisposedITAT Kolkata20 Dec 2024AY 2021-2022

Bench: Shri Sanjay Garg, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri S.M. Surana &For Respondent: Shri Prakash Nath Barnwal, DR
Section 132Section 142(1)Section 143(3)Section 147Section 148Section 148A

done with a sole intention of avoiding tax liability and that the transactions were independently verified to be nothing but ‘round trip financing lacking commercial substance and not for bonafide purposes’. This finding is clearly well beyond what is contained in the notice issued under Section 148A(b) and could

M/S. Diach Chemicals & Pigments Pvt. Ltd., Howrah vs. D.C.I.T., Central Circle - 4(2), Kolkata

In the result, both the appeals of the assessee are allowed

ITA 1642/KOL/2024[2018-2019]Status: DisposedITAT Kolkata20 Dec 2024AY 2018-2019

Bench: Shri Sanjay Garg, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri S.M. Surana &For Respondent: Shri Prakash Nath Barnwal, DR
Section 132Section 142(1)Section 143(3)Section 147Section 148Section 148A

done with a sole intention of avoiding tax liability and that the transactions were independently verified to be nothing but ‘round trip financing lacking commercial substance and not for bonafide purposes’. This finding is clearly well beyond what is contained in the notice issued under Section 148A(b) and could

Tricentis Gmbh, Austria vs. The Deputy Commissioner of Income-Tax, International-Tax, Delhi

In the result, appeals are allowed, as indicated above

ITA 3526/DEL/2023[2021-2022]Status: DisposedITAT Delhi06 Nov 2024AY 2021-2022

Bench: BEFORESHRI SAKTIJIT DEY (Vice President), SHRI S. RIFAUR RAHMAN (Accountant Member)

Section 143(2)Section 143(3)Section 144Section 144B

developing and selling various testing software. Thus, he submitted, the allegation of the Departmental Authorities that the assessee was set up without any commercial substance and only for deriving treaty benefits is 8 | P a g e ITA Nos.2705 & 3526/Del/2023 a baseless allegation, without being backed by any evidence ... 28th August, 2024 (Delhi High Court) 14. Proceeding further, he submitted, the departmental authorities have completely misdirected themselves while holding that the assessee lacks commercial substance and has been formed in Austria to avoid payment of genuine tax liability in India, USA and Austria. He submitted, the assessee has been

Tricentis Gmbh, Austria vs. The Deputy Commissioner of Income-Tax

In the result, appeals are allowed, as indicated above

ITA 2705/DEL/2023[2020-21]Status: DisposedITAT Delhi06 Nov 2024AY 2020-21

Bench: BEFORESHRI SAKTIJIT DEY (Vice President), SHRI S. RIFAUR RAHMAN (Accountant Member)

Section 143(2)Section 143(3)Section 144Section 144B

developing and selling various testing software. Thus, he submitted, the allegation of the Departmental Authorities that the assessee was set up without any commercial substance and only for deriving treaty benefits is 8 | P a g e ITA Nos.2705 & 3526/Del/2023 a baseless allegation, without being backed by any evidence ... 28th August, 2024 (Delhi High Court) 14. Proceeding further, he submitted, the departmental authorities have completely misdirected themselves while holding that the assessee lacks commercial substance and has been formed in Austria to avoid payment of genuine tax liability in India, USA and Austria. He submitted, the assessee has been

ITO-41(4)(1), Mumbai, Bandra (East) vs. Chirania Trading LLP, Goregaon (East)

ITA 993/MUM/2024[2014-15]Status: DisposedITAT Mumbai30 Oct 2024AY 2014-15

Bench: SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Jay BhansaliFor Respondent: Shri H. M. Bhatt/Shri Raj Singh
Section 10(38)Section 143(3)Section 68

worth of KDJH was negligible and the share prices have been artificially rigged to reach an unusual high. (e) The purchase/sale transactions lacked commercial substance, being artificially structured transactions, entered into with the sole purpose of evading taxes and introducing unaccounted cash into books. 10.5. In view of the above

ITO-41(4)(1), Mumbai, Bandra (East) vs. Chirania Trading LLP, Goregaon (East)

ITA 992/MUM/2024[2015-16]Status: DisposedITAT Mumbai30 Oct 2024AY 2015-16

Bench: SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Jay BhansaliFor Respondent: Shri H. M. Bhatt/Shri Raj Singh
Section 10(38)Section 143(3)Section 68

worth of KDJH was negligible and the share prices have been artificially rigged to reach an unusual high. (e) The purchase/sale transactions lacked commercial substance, being artificially structured transactions, entered into with the sole purpose of evading taxes and introducing unaccounted cash into books. 10.5. In view of the above