1970 (4) TMI 26 - SC - Income Tax

Claim made by the assessee for allowance of the amounts alleged to have been paid to the D.C.P.M. and BUA Ltd. as compensation for breach of the agreements of the selling agency and the managing agency - No question of law arises - assessee s appeal is dismissed

Summary

The Supreme Court dismissed the appeal in a case involving Shapurji Broacha Mills Ltd. The court found that the agreements and resolutions made by the assessee were designed to extract large sums of money free of income tax, deeming them as "sham and colourable" transactions. The claim for allowance of amounts paid as compensation was disallowed. The appeal was dismissed with costs.