Assessee-Companies Registered in Sikkim and carrying on business there as agents in cardamom and agricultural products. Commission earned in Sikkim during period prior to extension of Act to Sikkim. Assessee failing to produce evidence to prove genuineness of commission received in Sikkim. Summons issued to persons claimed to have paid commission to assessee not Complied with. Findings that inordinate amount of commission claimed to have been earned, that there were no employees or expenses incurred at Sikkim, and that there was round tripping of funds from Delhi into bank accounts at Sikkim to claim exemption in Sikkim. Burden of proof not discharged. Assessee liable to tax in India. (AY. 1987-88 to 1989-90). (AY. 1987-88 to 1989-90)
Mansarovar Commercial Pvt. Ltd. v. CIT (2023) 453 ITR 661 / 293 Taxman 312 / 332 CTR 137 / 224 DTR 305 (SC) Editorial: Decision of Delhi High Court, affirmed, CIT v. Mansarovar Commercial Pvt. Ltd (Delhi)(HC) (2016) 134 DTR 105 / 287 CTR 28 (Delhi)(HC). Editorial : Review petition is dismissed , Mansarovar Commercial Pvt. Ltd. v. CIT (2023)453 ITR 661/ 293 Taxman 312 / 332 CTR 137/ 224 DTR 305 (SC)
S. 37(1) : Business expenditure-Commission-Residence-Company-Control And Management-Assessee-Companies Registered In Sikkim – Burden not discharged -Round tripping of funds -Liable to tax in India. [S. 2(35), 5, 6(3)(ii), 131, 142(1), 143(2), 148, 234A, 282]