Vijay Mallya Falls Foul (Again) Of High Court For "Diverting Funds"

CIT vs. Punjab Breweries Ltd (Punjab & Haryana High Court)

Tribunal’s order not dealing with finding of “sham” transaction is “perverse”

The AO disallowed payments made by the assessee to M/s Blue Chip & Co towards “C&F handling charges” on the ground that the transactions were a “sham” and intended to provide interest-free funds to Vijay Mallya & his wife Samira Mallya. This was confirmed by the CIT (A) though the Tribunal allowed the claim on the ground that a similar issue had been allowed in the earlier years. On appeal by the department, HELD reversing the Tribunal:

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