https://www.taxtmi.com/caselaws?id=56411 Independent partnership concerns cannot be disregarded or clubbed with a main firm merely because they share premises, employees, or family participation; positive evidence is required to prove that they are sham or benami entities and that their income ly belongs to the main concern. On the facts noted, the sister concerns were treated as genuine and separately assessable, so refusal of registration or continuation of registration was not sustained. Once that finding stood, inter-firm interest could not be disallowed as a mere book adjustment, and a lump-sum gross profit addition was unjustified where purchases, sales, and stock records were supported and no specific defect in the accounts was shown. en-us Wed, 26 Apr 1995 00:00:00 +0530 Sun, 06 Feb 2011 03:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56411 Independent partnership concerns cannot be disregarded or clubbed with a main firm merely because they share premises, employees, or family participation; positive evidence is required to prove that they are sham or benami entities and that their income ly belongs to the main concern. On the facts noted, the sister concerns were treated as genuine and separately assessable, so refusal of registration or continuation of registration was not sustained. Once that finding stood, inter-firm interest could not be disallowed as a mere book adjustment, and a lump-sum gross profit addition was unjustified where purchases, sales, and stock records were supported and no specific defect in the accounts was shown. Case-Laws Income Tax Wed, 26 Apr 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56411