https://www.taxtmi.com/caselaws?id=28944 The High Court held that the assessee-firm was not entitled to registration for the assessment year 1972-73 as it did not actually come into existence for business purposes. Transactions were deemed collusive for the assessment year 1973-74 due to artificiality and lack of genuine cash flow. The new firm formed by partners' wives was also found to be not genuine, lacking real business activities. Interest paid to the Financing Corporation was disallowed as a deduction since the firm was not genuine. The court ruled in favor of the Revenue, emphasizing the need for actual business activities to establish firm genuineness. en-us Tue, 10 Jul 1979 00:00:00 +0530 Mon, 08 Mar 2010 17:36:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28944 The High Court held that the assessee-firm was not entitled to registration for the assessment year 1972-73 as it did not actually come into existence for business purposes. Transactions were deemed collusive for the assessment year 1973-74 due to artificiality and lack of genuine cash flow. The new firm formed by partners' wives was also found to be not genuine, lacking real business activities. Interest paid to the Financing Corporation was disallowed as a deduction since the firm was not genuine. The court ruled in favor of the Revenue, emphasizing the need for actual business activities to establish firm genuineness. Case-Laws Income Tax Tue, 10 Jul 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28944