TMI Blog2004 (4) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... rection was given that M/s. Nav Instalments will be treated as the financer of the truck. ( 4. ) In para 4 of the petition it is stated that the petitioner has handed over the truck in question to M/s. Nav Instalments, and has now nothing to do with the truck, and is not liable to pay the taxes in respect of the truck. ( 5. ) Learned counsel for the petitioner has submitted that the road tax should be realized from M/s. Nav Instalments, and not the petitioner, which is a different legal entity. ( 6. ) The petitioner M/s. Nand Auto Hire Purchase Private Ltd. is a private limited company whose Managing Director is Sri Vishnu Bhagwan Agrawal. The same Sri Vishnu Bhagwan Agrawal is also the managing partner of a firm called M/s. Nav In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues against the company. Hence this principle was created so as to encourage businessmen to take risks and set up industries and business, and it has played a historical role in helping industrialization. However, this principle was not made to help tax evaders. As observed by the Supreme Court in Delhi Development Authority v. Skipper Construction Co. (P.) Ltd., AIR 1996 SC 2005 (vide para 28): The concept of corporate entity was evolved to encourage and promote trade and commerce, but not to commit illegalities or to defraud people. Where, therefore, the corporate character is employed for the purpose of committing illegality or for defrauding others, the Court would ignore the corporate character and will look at the reality behind t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y about the personality of the corporation may be confined more and more. ( 13. ) Thus the Supreme Court itself has stated that with the passage of time the exceptions to the rule of corporate personality can grow in number to meet the new requirements, and these exceptions have an expanding horizon. ( 14. ) The aforesaid decisions have been followed by this Court in a Division Bench decision in Civil Misc. Writ Petition No. 37833 of 2002, Sanjay Kumar Gupta v. District Magistrate, Fatehpur decided on 24-9-2002 : (reported in 2002 (2) All CJ 1520). ( 15. ) The doctrine of piercing or lifting of the veil of corporate personality marks a change in the attitude that the law had originally adopted towards the concept of the separate en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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