LIFTING OF CORPORATE VEIL
Dealings involving funds transfer to near and dear ones need to be looked into with care and caution and necessary inferences drawn if there are abnormalities attaching to such transactions.
Siddho Mal & Sons Vs CIT (Del) 122 ITR 839
CIT Vs Shekhawai Rajputana Trading Co.(P) Ltd. (Cal) 236 ITR 950
Workmen, Associated Rubber Industry Ltd. Vs Associated Rubber Industry Ltd. (SC) 157 ITR 77
Union of India & Ors. Vs Playworld Electronics P. Ltd. & Anr. (SC) 184 ITR 308
CIT Vs Indian Express Newspapers (Madurai) P. Ltd. (Mad) 238 ITR 70
Colourable devices are not part of tax planning
McDowell and Co. Ltd. Vs Commercial Tax officer (SC) 154 ITR 148
Assessee having deposit with company – At the instance of assessee credit transferred to a firm constituted by assessee's children – Return of sum by firm to company – company again transfer it to assessee's children – Not general loan transaction – Interest on deposits taxable in assessee's hands
S.P. Jaiswal etc. Vs CIT (SC) 224 ITR 619
IT Authorities are not bound to recognise a firm merely because the firm has been registered under the Partnership Act. If ITO finds on investigation that number of firms carrying on business under different names really belong to one and the same group of persons, he can hold it as not a genuine firm.
Ladhu Ram Taparia Vs CIT (SC) 44 ITR 521
