https://www.taxtmi.com/caselaws?id=27251 The High Court of Bombay ruled in favor of the assessee in a case concerning the disallowance of consideration money for purchasing sugarcane from a firm in which the assessee was a partner. The Court held that the Revenue could not disallow the excess payment solely based on the relationship between the parties and the price exceeding the floor price set by the government. The Court emphasized that unless a transaction is proven to be sham or not bona fide, taxing authorities cannot disregard figures in the books of account. The Revenue was directed to pay the costs of the reference to the assessee. en-us Thu, 20 Sep 1984 00:00:00 +0530 Thu, 11 Feb 2010 16:55:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27251 The High Court of Bombay ruled in favor of the assessee in a case concerning the disallowance of consideration money for purchasing sugarcane from a firm in which the assessee was a partner. The Court held that the Revenue could not disallow the excess payment solely based on the relationship between the parties and the price exceeding the floor price set by the government. The Court emphasized that unless a transaction is proven to be sham or not bona fide, taxing authorities cannot disregard figures in the books of account. The Revenue was directed to pay the costs of the reference to the assessee. Case-Laws Income Tax Thu, 20 Sep 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27251