1996 (9) TMI 37 - HC - Income Tax

Summary

The High Court of Madhya Pradesh upheld the addition of Rs. 7,51,740 to the income of a partnership firm engaged in manufacturing, as the iron scrap purchased was found to be from undisclosed sources, not from the claimed supplier in Jabalpur. The court ruled that no deduction towards the cost of such scrap used in the manufacturing process was allowed. The Tribunal's decision was affirmed, stating that the transaction was sham, and no question of law was involved.