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“lifting of corporate veil”

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The decision most relied on for lifting of corporate veil is McDowell & Co. Ltd. v. CTO (154 ITR 148), cited in 741 judgments on BharatTax.

Leading authorities on lifting of corporate veil

McDowell & Co. Ltd. v. CTO
154 ITR 148 · 1985 · Supreme Court
741
citing judgments

The Supreme Court held that while legitimate tax planning is permissible, transactions structured as a "colourable device" or "subterfuge" solely to avoid tax are impermissible. It mandates a judicial shift to look beyond the form to the substance of a transaction, allowing the lifting of the corporate veil in tax evasion arrangements.

CIT v. Kundan Investment Ltd.
263 ITR 626 · 2003 · High Court
62
citing judgments

An assessee must prove the identity of the subscribers to share capital, their creditworthiness, and the genuineness of the transaction for cash credits under section 68. Establishing identity alone is insufficient, and the Income Tax Officer can lift the corporate veil to ascertain the reality of the transaction.

CIT v. Active Traders (P.) Ltd.
214 ITR 583 · 1995 · High Court
55
citing judgments

When a sum is credited on account of share capital or share premium, the assessee must establish the existence, identity, genuineness, and creditworthiness of the share applicants, going beyond mere submission of documents. The Assessing Officer has the power to investigate and lift the corporate veil to ascertain the bonafides of such transactions.

CIT v. Sahu Investment Mutual Benefit Co Ltd.
396 ITR 595 · 2017 · High Court
12
citing judgments

The doctrine of 'lifting the corporate veil' is not applied as a matter of course and requires cogent and compelling reasons with detailed factual investigation. Payments made to related parties cannot be disallowed without proving they were not for bonafide reasons.

Judgments citing lifting of corporate veil

Assistant Commissioner of Income Tax-16(1), Mumbai vs. Viacom18 Media Private Limited, Mumbai

ITA 5658/MUM/2024[2013-14]Status: DisposedITAT Mumbai15 Oct 2025AY 2013-14

Bench: Shri Narender Kumar Choudhry & Ms. Padmavathy S

For Respondent: Shri Nimesh Vora, Ld. Adv
Section 115JSection 143(1)Section 143(2)Section 143(3)Section 250

asset l.e. UKM and UKTV are one and the same. This point is. elaborately discussed in the earlier paragraphs which talk about lifting of corporate veil. As discussed above the assessee- company claim of substantial depreciation, is nothing short of a colourable device in the name of "Non-compete

Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

ITA 901/DEL/2017[2012-13]Status: DisposedITAT Delhi08 Oct 2025AY 2012-13

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri G.C. Srivastava, Spl. Counsel for the Department
Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 14ASection 32Section 35Section 43B

transaction in unlisted shares itself is questionable; or (ii) the transfer of unlisted shares is related to an issue pertaining to lifting of corporate veil; or (iii) the transfer of unlisted shares is made along with the control and management of underlying business. and the Assessing Officer would take appropriate

M/S Maruti Suzuki India Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and

ITA 287/DEL/2016[2011-12]Status: DisposedITAT Delhi08 Oct 2025AY 2011-12

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri G.C. Srivastava, Spl. Counsel for the Department
Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 14ASection 35Section 43B

transaction in unlisted shares itself is questionable; or (ii) _ the transfer of unlisted shares is related to an issue pertaining to lifting of corporate veil; or (iii) the transfer of unlisted shares is made along with the control and management of underlying business. and the Assessing Officer would take appropriate ... transaction in unlisted shares itself is questionable; or (ii) the transfer of unlisted shares is related to an issue pertaining to lifting of corporate veil: or (iii) the transfer of unlisted shares is made along with the control and management of underlying business.” 38 7. The AO, in the present

DCIT, New Delhi vs. M/S. Maruti Suzuki India Ltd., New Delhi

In the result, all the three appeals of the assessee are allowed as indicated above and the appeal of Revenue is partly allowed

ITA 1024/DEL/2016[2011-12]Status: DisposedITAT Delhi08 Oct 2025AY 2011-12

Bench: Shris.Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri G.C. Srivastava, Spl. Counsel for the Department
Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 14ASection 32Section 35Section 43B

transaction in unlisted shares itself is questionable; or (ii) the transfer of unlisted shares is related to an issue pertaining to lifting of corporate veil; or (iii) the transfer of unlisted shares is made along with the control and management of underlying business. and the Assessing Officer would take appropriate

Super Cassettes Industries Private Limited, Delhi vs. DCIT Central Circle 3, Delhi

ITA 7/DEL/2024[2017-18]Status: DisposedITAT Delhi25 Sept 2025AY 2017-18

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Super Cassettes Industries Private Limited, Delhi vs. DCIT Central Circle-3, Delhi

ITA 51/DEL/2024[2018-19]Status: DisposedITAT Delhi25 Sept 2025AY 2018-19

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Dy. Commissioner of Income Tax, Central Circle - 3, New Delhi, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 326/DEL/2024[2019-20]Status: DisposedITAT Delhi25 Sept 2025AY 2019-20

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Dy. Commissioner of Income Tax, Central Circle - 3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 281/DEL/2024[2019-20]Status: DisposedITAT Delhi25 Sept 2025AY 2019-20

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Dy. Commissioner of Income Tax, Central Circle-3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 280/DEL/2024[2018-19]Status: DisposedITAT Delhi25 Sept 2025AY 2018-19

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Dy. Commissioner of Income Tax, Central Circle-3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 279/DEL/2024[2017-18]Status: DisposedITAT Delhi25 Sept 2025AY 2017-18

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Dy. Commissioner of Income Tax, Central Circle - 3, New Delhi, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 273/DEL/2024[2018-19]Status: DisposedITAT Delhi25 Sept 2025AY 2018-19

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Dy. Commissioner of Income Tax, Central Circle - 3, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 272/DEL/2024[2017-18]Status: DisposedITAT Delhi25 Sept 2025AY 2017-18

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Super Cassettes Industries Private Limited, Delhi vs. DCIT Central Circle 03, Delhi

ITA 271/DEL/2024[2019-20]Status: DisposedITAT Delhi25 Sept 2025AY 2019-20

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Deputy Commissioner of Income Tax, Central Circle-03, New Delhi, Delhi vs. Luv Ranjan, Ghaziabad

ITA 1845/DEL/2024[2019-20]Status: DisposedITAT Delhi25 Sept 2025AY 2019-20

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Deputy Commissioner of Income Tax, Central Circle 3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 2951/DEL/2023[2016-17]Status: DisposedITAT Delhi25 Sept 2025AY 2016-17

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Deputy Commissioner of Income Tax, Central Circle 3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 2950/DEL/2023[2015-16]Status: DisposedITAT Delhi25 Sept 2025AY 2015-16

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Deputy Commissioner of Income Tax, Central Circle 3, New Delhi, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 2756/DEL/2023[2016-17]Status: DisposedITAT Delhi25 Sept 2025AY 2016-17

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Super Cassettes Industries Pvt Ltd, Delhi vs. DCIT Central Circle-3, Delhi

ITA 2714/DEL/2023[2016-17]Status: DisposedITAT Delhi25 Sept 2025AY 2016-17

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Super Cassettes Industries Pvt Ltd, New Delhi vs. DCIT Central Circle-3, Delhi

ITA 2713/DEL/2023[2015-16]Status: DisposedITAT Delhi25 Sept 2025AY 2015-16

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income

Deputy Commissioner of Income Tax, Central Circle- 03, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 2702/DEL/2023[2015-16]Status: DisposedITAT Delhi25 Sept 2025AY 2015-16

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

having its own independent existence and therefore its income cannot be taxed in the hands of SCIPL is not acceptable. The concept of lifting the corporate veil disregards separate identity of the company and looks behind true owners or real person who are in control of the company. Whenever ... dishonest use is made to the legal entity like BDML, the tax authorities can always lift the corporate veil to go to the root of the transaction. In the present case BDML did not do any business except for helping the assessee to evade tax to divert licensing income