2011-VIL-13-SC-DT

Supreme Court of India

CIVIL APPEAL NO.5470 OF 2011 To 5475 of 2011

Date: 15.07.2011

DIRECTOR OF INCOME TAX

Vs

M/s TRANSMARINE CORP.

BENCH

HON'BLE THE CHIEF JUSTICE , MR  K.S. PANICKER RADHAKRISHNAN AND MR. SWATANTER KUMAR

JUDGMENT

Heard learned counsel on both sides. Leave granted. The impugned order of the High Court is perfunctory. The case of the Commissioner of Income-Tax vs. J.K. Investors (Bombay) Ltd., reported in 248 ITR 723 (Bom) needs to be seen in the light of the facts of this case.There are facts which are required to be examined. Though they have been duly examined by the Tribunal, there is no reference to those facts in the judgment of the High Court. Whether rent was understated? Whether rent was brought down by interest free deposit, bank guarantees etc.?Whether  the entire arrangement stood entered to evade taxes? Whether the arrangement was a sham? The impugned order is, accordingly, set aside and the matters are  remitted to the High Court for de novo consideration on the facts as also on law. The civil appeals are, accordingly, allowed. No order as to costs.

 

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