https://www.taxtmi.com/caselaws?id=279447 Separate business concerns can be clubbed with the main firm only if the Revenue proves they are benami or non-genuine; common premises, shared employees, or management by themselves are insufficient. On the facts noted, the concerns had separate existence, identifiable capital and profits, and the stock and cash were explained from their own books, so clubbing of income and denial of registration were rejected. Once their independent existence was accepted, inter-firm interest was treated as a genuine commercial transaction and the disallowance was deleted. A lump sum gross profit addition based only on suspicion, without specific defects in the books or vouchers, was also found unsustainable. en-us Wed, 26 Apr 1995 00:00:00 +0530 Mon, 18 Mar 2019 10:50:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279447 Separate business concerns can be clubbed with the main firm only if the Revenue proves they are benami or non-genuine; common premises, shared employees, or management by themselves are insufficient. On the facts noted, the concerns had separate existence, identifiable capital and profits, and the stock and cash were explained from their own books, so clubbing of income and denial of registration were rejected. Once their independent existence was accepted, inter-firm interest was treated as a genuine commercial transaction and the disallowance was deleted. A lump sum gross profit addition based only on suspicion, without specific defects in the books or vouchers, was also found unsustainable. Case-Laws Income Tax Wed, 26 Apr 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279447