In Brief
Ganapathy & Co., a Bangalore-based firm, appealed against the High Court of Karnataka's reversal of the Income Tax Appellate Tribunal's decisions allowing three tax deductions. The Supreme Court upheld the High Court, affirming: (1) disallowance of service charges to Universal Trading Company for lack of proof of services rendered in the relevant year; (2) disallowance of alleged film business losses as a sham transaction designed to avoid tax; and (3) disallowance of a donation to Aparna Ashram because the assessee failed to produce required compliance certificate. The Court clarified that the High Court did not exceed its reference jurisdiction by merely re-emphasizing admitted facts; the Tribunal remains the final fact-finder.
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