Pr. Commissioner Of vs Shri Harmindar Singh Bhatia
2023 Latest Caselaw 8706 MP

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                                       IN THE HIGH COURT OF MADHYA PRADESH
                                                    AT JABALPUR
                                                        ITA No. 252 of 2022
                                           (PR. COMMISSIONER OF Vs SHRI HARMINDAR SINGH BHATIA)

                           Dated : 14-06-2023
                                 Shri Siddharth Sharma - Advocate for the appellant.

                                 I.A. No. 14439/2022 application for condonation of delay of 3 days is
                           taken up. For the reasons stated in the application aforesaid I.A. is allowed,
                           delay is condoned.
                                 Also I.A. No. 727/2023 application for exemption from filing certified

                           copy of the impugned order is considered and for the reasons stated therein is
                           allowed especially when the c.c. is filed in ITA No. 247/2022 which is pending
                           consideration before this Court.
                                 Appeal seems arguable therefore is admitted for hearing on following
                           substantial questions of law -

                                       1. "Whether, on the facts and within the legal spectrum of the
                                case, the ITAT erred in deleting the addition of Rs. 7,56,07,095/-
                                made by the Assessing Officer on the grounds of appellant's share of
                                profit derived by various syndicates maintaining that share of profit is

                                taxable in the hands of syndicate and not in the hands of the assessee
                                as per the extant provisions of the Income Tax Act, 1961? "

                                       2. Whether, on the facts and within the legal spectrum of the
                                case, ITAT erred in deleting the above addition without appreciating
                                that such syndicate did not have any PAN and that they were not
                                filing statutory tax returns from A.Y. 2010-2011 A.Y. 20116-17, fully
                                establishing mens rea on the part of the assessee and taxing share of
Signature Not Verified
Signed by: AKANKSHA
MAURYA
Signing time: 19-06-2023
16:20:52
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                                 profits of such colourable devices (syndicates) in the hands of the
                                 assessee in all practicality in the spirit of the 'doctrine of lifting of
                                 corporate veil in larger public interest also not appreciating       the
                                 judgment of the Hon'ble Supreme Court in the case of Mcdowell &
                                 Co. Ltd. Vs Commercial Tax Officer 154 ITR 148 wherein the
                                 Hon'ble Apex Court held that colourable devices cannot be used for
                                 tax evasion in the garb of tax planning? "

                                  Issue notice to the respondents on payment of P.F. within seven working

days, failing which this appeal shall stand dismissed without further reference to this Court.

List for final hearing.

                             (SHEEL NAGU)                                     (AVANINDRA KUMAR SINGH)
                                 JUDGE                                                 JUDGE

                           Akm

Signature Not Verified Signed by: AKANKSHA MAURYA Signing time: 19-06-2023 16:20:52