In Brief
The Supreme Court upheld the Income Tax Authorities' right to assess rental income in the hands of the assessee (Maneklal Agarwal) where he had leased property to family members at artificially low rates, who then sub-leased at much higher rates. The Court found this was a scheme to artificially reduce the assessee's taxable income. However, the judgment noted that taxing the same income at both the assessee's and family members' hands would constitute double taxation, leaving the family members entitled to seek relief in separate proceedings.
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