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TMI Blog2015 (1) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... is a bonafide one, the taxing authority cannot take into account the market price of those goods, ignoring the real price fetched to ascertain the profit from the transaction. An assessee can so arrange his affairs as to minimize his tax burden". The authorities were not justified in adding the income, taking the difference between the price at which the rice bran is purchased and rice bran is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed additional sale price without any basis and consequently recorded a perverse finding? 3. The assessee purchased 139.24 MT of rice bran from M/s. Nicko Agro Industries, Omalur for a total sum of ₹ 5,41,695/-. The average purchase price comes to ₹ 3,890/- per MT. During the same year, the assessee sold 408.495 MT of rice bran to M/s. Nicko Agro Industries for a sum of ₹ 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as an additional income of the assessee and taxed. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals), who too dismissed the appeal. The second appeal preferred by the Assessee also met the same fate. That is how the assessee is before this Court. 4. We have heard the learned counsel appearing for the parties. The Apex Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eption in this rule is, if the goods fall under Section 40(A)(2a) where there exists a relationship as set-out in the said provision between the parties. It is not the case of the Department that though the shops are adjoining each other, they are related in any manner. That provision is not invoked. 7. In the light of the aforesaid statement of law, the authorities were not justified in adding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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