| Originally posted by : Pavan Jain S | ||
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I have a reservation as regards the approval of central govt in case of transactions in cash at prevailing market prices. The proviso mentioned in sub sec (2) acts as a rider to clause (b) meaning thereby that in case the company regularly trades in such goods and the value exceeds Rs. 5,000, approval of BM and CG is required. As regards the transaction which are of the nature mentioned in (a) of sub sec (2), the proviso do not apply. This opinion is based on the premise that CG approval is not required when the transactions are at cash [no risk of bad debt - siphoning off of funds] and at prevailing market prices [no transfer pricing]. In my view, CG approval is not required even if the value of contract exceeds Rs. 5,000 provided clause (a) of sub sec (2) of section 297 is satisfied. |
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Can anybody provide a supporting Case Law to Mr. Pavan's view?
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