9911796707
TMI Blog2006 (10) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... ent by RPAD was returned by the postal authorities with the remark "Left". It may also be mentioned that on earlier occasions also the notice of hearing was not responded to by the assessee. We, therefore, proceed to dispose of the appeals ex parte after hearing the learned Departmental Representative and on the basis of the material available on record. 3. The learned Departmental Representative vehemently supported the findings of the Assessing Officer. According to him the assessee has used the facade of the company for escapement of the tax liabilities. In the interest of justice the facts of the case should be looked into and the order of the Assessing Officer must be restored. 4. The facts of the case are that the assessee is a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it is empowered to lease its property. At this stage, it may be mentioned that the assessee has not produced any of these papers before us. It is claimed that there is a Tripartite Agreement dated 15-6-1982 between the assessee, its members and Ahmednagar Sahakari Co-op. Bank Ltd. The said 17 stalls were given to the bank on lease for a period of 10 years on the terms and conditions contained in the agreement. The compensation was fixed @ Rs. 7 per sq. ft. out of which Re. 1 as to be paid to the company for paying municipal taxes and maintenance charges and Rs. 6 was to be paid to its members on pro rata basis. The said compensation was initially to be adjusted against the deposit of Rs. 20 lakhs and interest thereon paid by the bank. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 603 (SC); Calcutta Tramways Co. Ltd. v. CWT [1972] 86 ITR 133 (SC). The doctrine that a corporation has a separate legal entity of its own is firmly rooted in common law as held in Andhra Pradesh State Road Transport Corpn. v. ITO [1964] 52 ITR 524 (SC). It is true that from the juristic point of view a company is a legal personality entirely distinct from its members and the company is capable to enjoying right and being subjected to duties, which are not the same as those enjoyed or borne by its members. But in certain exceptional cases the Court is entitled to lift the veil of corporate entity and to pay regard to the economic realities behind the legal facade. The court has power to disregard the corporate entity if it is used for tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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