The Commissioner Of Income Tax-1 v. The West Coast Paper Mills Ltd

1 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.389 OF 2008 The Commissioner of Income Tax-1....Appellant vs. The West Coast Paper Mills Ltd....Respondent. --- Mr.R.B.Upadhyay, for Appellant. Mr.Dastoor, Sr.Advocate with Mr.A.K.Jasani, forRespondent. CORAM: D.K.DESHMUKH & J.P.DEVADHAR, JJ. DATED: 16[th] October,2008. P.C.:- 1.Heard the learned Counsel appearing for boththe sides. The case of the appellant before theTribunal was that the transactions of buy back oflease equipments and granting lease of that equipments to various boards, were sham transactionsentered into only for the purpose of claiming benefitof 100% depreciation. The Tribunal has consideredthat aspect of the matter in the light of thematerial on record and has recorded the finding thatit is not a sham and bogus transaction. One of thegrounds considered for recording that finding is thatwhen the other party is a statutory body the questionof evasion of tax does not arise, and therefore,according to the Tribunal, inference of collusioncannot be drawn. Hence, no question of law arises. (D.K.DESHMUKH, J.) (J.P.DEVADHAR, J.)