Mere Incorporation Of Investing Companies Under Companies Act Not Enough To Prove Genuineness Of Share Transactions: Calcutta High Court

The Calcutta High Court has ruled that the "mere incorporation of investing companies" under the Companies Act is "not enough to prove the genuineness of share transactions." The court's decision, which came in a case of tax evasion, found that the taxpayer had failed to prove the genuineness of the share transactions. The ruling reinforces the tax authorities' power to look beyond mere corporate formalities to uncover sham transactions.