2017 (7) TMI 1005

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....URABLE MR.JUSTICE AKIL KURESHI) 1. The Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 03.01.2017 raising following questions for our consideration: "(A) Whether the Appellate Tribunal has erred in holding that the assessee and M/s Blue Gems BVBA are not Associated Enterprise within the meaning of section 92A of the Income Tax Act, 1961? (....

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....es from M/s. Blue Gems BVBA. The partners of the firm are three brothers viz. Shri Piyush M. Shah, Mukesh M. Shah, Dilip M. Shah and their wifes/son, together holding the entire partnership stake. The fourth brother Nareshkumar Shah, along with his wife Surekhaben Shah and his son Mitesh Shah control the entire share holding of M/s Blue Gems BVBA, the fourth brother and his son being directors of ....

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....y M/s. Blue Gems does not either manufacture or process any articles. It merely purchases rough diamonds from the international markets and supplies to the assessee. Clause (j) would apply when an enterprise is controlled by an individual. In the present case, both the enterprises are partnership firms. There is nothing to suggest that they are controlled by any individuals. Clause (l) would of co....