High Court of Punjab and HaryanaITA/19/2001dismissed

M/S Sharman Udyog P.Ltd. v. Commissioner Of Income Tax,Ldh

2020-02-19Mr. Justice Ajay Tewari,Mr. Justice Avneesh Jhingan6 pages

!"#$%& ''(( % )!! !* & +'

! " #$%$&'

#() *''+(,-./+'$ #'0$+11$((+&'

#+2$%03+'/0, $&*# '+&-*&45&%$(+&-

%#*-0*+%6*&-$# +&-05,5&*# '+&-*&45&%$(

#'0$#$.$&5$ ,--./.0 / 0$+%%$%%$$*%*&+11$+(5&-$# $/'*& '0$&/8$ +9/', 7:

#%0#', '0$ 7/'

;+4+*&%''0$#-$#-+'$-

1+%%$-<='0$&/8$+911$((+'$#*<5&+(,0+&-*4+#0$&/0 : %0#', '0$#*<5&+( ;1+#'(=+((6*&4'0$+11$+( '0$#$.$&5$((6*&4 %5<%'+&'*+(>5$%'*&% (+60+.$<$$&/(+*8$-*&'0$+11$+(

?:+; !0$'0$#*&'0$ +/'%+&-/*#/58%'+&/$% '0$/+%$,'0$ #-$#%&&$95#$%@+&-@A+#$($4+((=%5%'+*&+<($B :<;

!0$'0$#*&'0$ +/'%+&-/*#/58%'+&/$% '0$/+%$,'0$ +%%$%%$$*%$&'*'($-'/0+#4$+##$+#% -$1#$/*+'*&-5$ '+/0+&4$*&'0$8$'0- 1#.*-*&4-$1#$/*+'*&

$+#(*$#=$+#%''0$1# *'+&-(%%+//5&' '0$/5##$&'

=$+# #'0$15#1%$ /815'*&4<)1# *'C%D@ '0$/'B :/;

!0$'0$# *& '0$ +/'% +&- /*#/58%'+&/$% '0$ /+%$, ?)# *'E #15#1%$% $/'*&D@ /'

0+%'<$/+(/5(+'$- #+##*.*&4+''0$%+*- *45#$0+-' <$6#)$-5'+%1$#%/0$-5($" '0$81+&*$%/'

+&-&'+%1$#'0$&/8$+9/'+&-'0$&/8$+9 5($%B :-;

!0$'0$#*&'0$ +/'%+&-/*#/58%'+&/$% '0$/+%$& /##$/'*&'$#1#$'+'*& $/'*&D@ /' -$'$#8*&*&4'0$?)# *'E,'0$+11$((+&'0+-1'*& '+-1'-$1#$/*+'*&#+'$%1#$%/#*<$-*&'0$&/8$+9 5($%, 7 *& 1#$ $#$&/$ ' '0$ #+'$% 1#$%/#*<$- *& /0$-5($F" '0$81+&*$%/', D7 :$;

!0$'0$#*&'0$ +/'%+&-/*#/58%'+&/$% '0$/+%$,'0$ 8$+&*&4 ?)# *'E+11$+#*&4*& $/'*&D@

'0$ /', *% ($4+((= /##$/' *& .*$6

?<)($' & +9+'*& 81+&*$%E *%%5$- <= *#$/'#+'$ &/8$+9, +&-5<(*/$(+'*&%, $6$(0*B :

;

!0$'0$# $'@

<5%*&$%% (%% # 5&+<%#<$- -$1#$/*+'*& 60*/0$.$# *% ($%% 5&-$# (+5%$ *.

$91(+&+'*&'%5<%$/'*&:; $/'*&D@/+&&(= <$*&#$%1$/' -$1#$/*+'*&+(#$+-=1#.*-$- #*&'0$ #$($.+&'+%%$%%8$&'=$+#+%1$#'0$/81+&*$%+/'#/+&

A '0$ +%%$%%$$ /0%$ '0$ #$.*%$- 8$'0- # /(+*8*&4 5&+<%#<$--$1#$/*+'*& '0$$+#(*$#=$+#%BE 6$.$#, 60*($ +#45*&4 '0$ 8+''$#, +#458$&'% 0+.$ <$$& +--#$%%$-6*'0#$4+#-'>5$%'*&%:<;+&-:/;60*/065(-/.$#'0$$&'*#$ /&'#.$#%=*&'0$1#$%$&'+11$+( 0$#$($.+&' +/'%+#$'0+''0$+11$((+&'@/81+&=6+%$&4+4$- *&8+&5 +/'5#$ 6.$&(+<$(%0$#$'5#& #'0$+%%$%%8$&'=$+# G @

6+% *($-%06*&4 &*( *&/8$0$/+%$6+%'+)$&51*&%/#5'*&=0$ %%$%%*&4

*/$#.*-$#-$#-+'$- G -*%+((6$-'0$-$1#$/*+'*& /(+*8$-<='0$+11$((+&'+%1$#'0$1#.*%*&% '0$ 7/'+&-&/8$ +95($%, 7 :

#%0#', '0$5($% ;0$11$((+'$5'0#*'=1+#'(= +((6$-'0$+11$+(+&--*#$/'$-'0$%%$%%*&4

*/$#'/815'$1# *'

5&-$# $/'*&D '0$ 7/'<=+((6*&4-$1#$/*+'*&+%1#.*-$- 5&-$#'0$ 7/'+&-'0$5($%'6+% 5#'0$#0$(-'0+'-$-5/'*&& +//5&' 5&+<%#<$--$1#$/*+'*&<$+(%+((6$-$$(*&4+44#*$.$-,'0$ #$.$&5$1#$ $##$-'0$+11$+(0$#*<5&+(.*-$#-$#-+'$-

1+#'(=+((6$-'0$+11$+( '0$#$.$&5$+&- 0$(-'0+'-$1#$/*+'*&+% 1#.*-$-5&-$#'0$81+&*$%/', D7:

#%0#', '0$ D7/'

;*%'<$ +((6$-+&-'0$+%%$%%$$*%&'$&'*'($-'/0+#4$+##$+#% -$1#$/*+'*&' 1# *'+&-(%%+//5&',0$&/$'0$1#$%$&'+11$+( %#$4+#-%>5$%'*&:/;,%*8*(+#>5$%'*&0+%<$$&+&%6$#$-<= 5%*&AH

0##1$2&%)!! !*$( -$/*-$-&D

*& +.5#

+%%$%%$$ !*'0#$4+#-'>5$%'*&:<;,($+#&$-/5&%$( #'0$+11$((+&'

+#45$-'0+''0$8+''$#*%/.$#$-<='0$-$/*%*& '0$ 51#$8$5#'*&

H '((&%)!! !3* 4

1 + 67 $+#&$-/5&%$( #'0$#$.$&5$6+%&'*&+1%*'*&'-*%15'$ '0+''0$ 51#$8$5#'*&'((&81'2-$+('6*'0'0$ *%%5$*&.(.$-60*($-$+(*&46*'0>5$%'*&:*; #+8$-*&'0+'/+%$ J5$%'*&:*;<$ #$'0$ 51#$8$5#',<#*$ +/'%+%&'$- '0$%+*->5$%'*&+&-'0$/&/(5%*&+#$#$1#-5/$-<$(6

?912 :*;+&+&%%$%%*&4

*/$#60*($+%%$%%*&4+/81+&= *&/8$'+9 5&-$# $/'*&D '0$&/8$+9/'

>5$%'*& '0$ /##$/'&$%% '0$ 1# *' +&- (%% +//5&'

1#$1+#$- <= '0$ +%%$%%$$ /81+&= +&- /$#'* *$- <= '0$ %'+'5'#=+5-*'#% '0$/81+&=+%0+.*&4<$$&1#$1+#$- *&+//#-+&/$6*'0'0$#$>5*#$8$&'% +#'%+&-

/0$-5($"''0$81+&*$%/'B : 0$+%%$%%$$/81+&=60*($-$'$#8*&*&4*'%&$'1# *' '0$#$($.+&'+//5&'*&4=$+#0+%1#.*-$- #+##$+#%

-$1#$/*+'*&*&*'%1# *'+&-(%%+//5&'60*/0+//#-*&4 ''0$$.$&5$*%&'*&+//#-+&/$6*'0+#'+&-

/0$-5($"''0$81+&*$%/', D7:'0$ 81+&*$% /'

;$&/$,'0$+%%$%%*&4

*/$#60*($/&%*-$#*&4'0$ /+%$ '0$+%%$%%$$/81+&=5&-$# $/'*&D@ '0$ /' #$/815'$-'0$%+*-1# *' +&-(%%+//5&' '0$ /81+&=%+%'$9/(5-$'0$1#.*%*&%8+-$ #+##$+#%

-$1#$/*+'*&0$%+*-+/'*& '0$+%%$%%*&4

*/$#*&

D >5$%'*&*&4'0$/##$/'&$%% '0$+//5&'%8+*&'+*&$-<= '0$/81+&=6+%/0+(($&4$-<='0$/81+&=<$ #$'0$ &/8$ +9 11$((+'$ #*<5&+( :

'0$ '#*<5&+( ; 60*/0 +8&4'0$#'0*&4%0$(-'0+''0$+%%$%%*&4

*/$#0+%& +5'0#*'='#$1$&'0$+//5&'% +/81+&=60*/0*% /$#'* *$-<='0$+5-*'#% '0$/81+&=+%0+.*&4<$$& 8+*&'+*&$- *& +//#-+&/$ 6*'0 '0$ 1#.*%*&% '0$ 81+&*$%/'+&-60*/0+//5&'0+%<$$&+//$1'$-*&'0$ $&$#+( $$'*&4 '0$ 81+&= +% 6$(( +% <= '0$ $4*%'#+# 81+&*$%0*%.*$6 '0$'#*<5&+(6+%&'

+//$1'$-<='0$*405#'60*/00$(-'0+''0$+%%$%%*&4

*/$#0+%'0$+5'0#*'='$9+8*&$60$'0$#'0$+//5&'%

'0$/81+&=0+.$<$$&8+*&'+*&$-*&+//#-+&/$6*'0'0$ #$>5*#$8$&' 5<@%$/'*&:; $/'*&D@+&-*& '0+'1#/$%%* 0$ *&-%'0+''0$+//5&'% '0$/81+&=+#$ &'*&+//#-+&/$6*'0'0$1#.*%*&% '0$81+&*$% /', 0$ /5(- 8+)$ '0$ &$/$%%+#= /0+&4$% <$ #$ 1#/$$-*&4 ' +%%$%% '0$ /81+&= # '+9 5&-$# '0$ 91(+&+'*&' $/'*&D@ '0$/' )(

0$#$ #$,6$+#$ '0$1*&*&,'0$+%%$%%*&4

*/$#60*($ /815'*&4'0$*&/8$5&-$# $/'*&D@0+%&(='0$ 16$# $9+8*&*&4 60$'0$# '0$ <)% +//5&' +#$ /$#'* *$%<='0$+5'0#*'*$%5&-$#'0$81+&*$%/'+% 0+.*&4<$$&1#1$#(=8+*&'+*&$-*&+//#-+&/$6*'0'0$ 81+&*$%/' 0$+%%$%%*&4

*/$#'0$#$+ '$#0+%'0$

7 (*8*'$- 16$# 8+)*&4 *&/#$+%$% +&- #$-5/'*&% +% 1#.*-$- #*&'0$91(+&+'*&''0$%+*-%$/'*&15'*' -*

$#$&'(=, '0$ +%%$%%*&4

*/$# -$% &' 0+.$ '0$ 25#*%-*/'*&'4<$0*&-'0$&$'1# *'%06&*&'0$1# *'

+&- (%% +//5&' $9/$1' ' '0$ $9'$&' 1#.*-$- *& '0$ 91(+&+'*&' $/'*&D@E &.*$6 '0$+<.$,>5$%'*&:<;*%+&%6$#$-*& +.5# '0$ +%%$%%$$ 0$ 8+''$# *% #$8+&-$- <+/) ' '0$ %%$%%*&4

*/$# ' /815'$'0$*&/8$5&-$# $/'*&D '0$ 7/'*&+//#-+&/$6*'0 (+6 +#'*$%'0#540'0$*#/5&%$(+#$-*#$/'$-'+11$+#<$ #$'0$ %%$%%*&4

*/$#&DH

0$+11$+(*%-*%1%$- +//#-*&4(= 1,--./.02 1/;-<+2 /"

0-/"

0- $<#5+#= ,

8) !0$'0$#%1$+)*&4C#$+%&$-

$%C !0$'0$##$1#'+<($

$%C