Amounts received/paid between the taxpayer and group companies...

Amounts received/paid between the taxpayer and group companies for purchase/sale of timeshare weeks were held to be commercial transactions, supported by consideration and indirect tax payment, and therefore not "loans or advances" attracting deemed dividend under s. 2(22)(e); the addition was deleted and the revenue's ground failed. Commission expenditure was allowed since the taxpayer furnished adequate particulars and there was no evidence of cash-back or off-book payments; disallowance merely for non-confirmation by parties was rejected and the revenue's ground failed. Depreciation on capitalised timeshare weeks was sustained as forming part of the building block/cost of improvement, consistently accepted in later years; the revenue's ground failed. Ad hoc disallowance of foreign travel was set aside for lack of basis, and the revenue's ground failed. An assessment framed on a non-existing amalgamated entity was held void for lack of jurisdiction, not curable under s. 292B, and was set aside. - ITAT