https://www.taxtmi.com/caselaws?id=203543 A lease transaction involving computers and accessories was treated as a colourable device where the assessee bought the assets, resold them in the same year at the same price without profit, and then shortly entered into a lease arrangement. The transaction was found to be only constructive or on paper, with no physical movement of goods and no satisfactory explanation for the sequence of dealings. The court noted that the essential elements of a valid sale, including transfer of ownership for price, were not established. On that basis, the lease was held to be not genuine and the disallowance of lease rentals was justified. en-us Wed, 27 Apr 2011 00:00:00 +0530 Mon, 23 Mar 2026 09:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203543 A lease transaction involving computers and accessories was treated as a colourable device where the assessee bought the assets, resold them in the same year at the same price without profit, and then shortly entered into a lease arrangement. The transaction was found to be only constructive or on paper, with no physical movement of goods and no satisfactory explanation for the sequence of dealings. The court noted that the essential elements of a valid sale, including transfer of ownership for price, were not established. On that basis, the lease was held to be not genuine and the disallowance of lease rentals was justified. Case-Laws Income Tax Wed, 27 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203543