Once transaction is held to be genuine merely because it has been entered into with a motive to avoid tax, it would not become a colourable devise and consequently earn any disqualification
Tribunal was not right in law in holding that the transactions for purchase and sale of 25 lacs units called ‘US-64’ of the assessee with the Bank, after holding that those transactions were genuine, were (a) not bona fide transactions, (b) entered into with a motive to avoid liability for tax etc.
HIGH COURT OF PUNJAB & HARYANA
Porrits & Spencer (Asia) Ltd.
v.
CIT
ITA No. 10 of 2004 (O&M)
March 31, 2010
