HIGH COURT OF KARNATAKA

1. Khadar Basha v. Assistant Commissioner of Income-tax, Circle-1

Section 40A(2) of the Income-tax Act, 1961 – Business disallowance – Excessive or unreasonable payments (Sale of goods at lessor price) – Assessment year 2004-05 – Whether where assessee sold rice bran at a price lessor than its purchase price, assessing authority was not justified in making addition taking difference between price at which rice bran was purchased and price at which rice bran was sold without pointing out any relationship as set out in section 40A(2) between parties – Held, yes [In favour of assessee]