https://www.taxtmi.com/caselaws?id=32695 Commission paid to sister concerns and marketing and sales promotion s were treated as non-genuine where the recipient entities had substantially common partners and close relatives, and the arrangement appeared to replace one concern with another for the same activities. In the absence of satisfactory material showing independent services beyond the assessee's business, the payments were viewed as a mechanism to divert business profits to concerns controlled by the same persons. The court applied the substance-over-form principle and treated the arrangement as a colourable device lacking commercial substance, so the disallowance was upheld and section 40(b) was rightly invoked. en-us Wed, 07 Jan 2009 00:00:00 +0530 Sun, 06 Feb 2011 05:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32695 Commission paid to sister concerns and marketing and sales promotion s were treated as non-genuine where the recipient entities had substantially common partners and close relatives, and the arrangement appeared to replace one concern with another for the same activities. In the absence of satisfactory material showing independent services beyond the assessee's business, the payments were viewed as a mechanism to divert business profits to concerns controlled by the same persons. The court applied the substance-over-form principle and treated the arrangement as a colourable device lacking commercial substance, so the disallowance was upheld and section 40(b) was rightly invoked. Case-Laws Income Tax Wed, 07 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32695