Akbar, an assessed, was a wealthy man earning huge income by way of dividend and

interest. He formed three Private Companies and agreed with each to hold a bloc of

investment as an agent for them. The dividend and interest income received by the

companies was handed back to Akbar as a pretended loan. This way, Akbar divided

his income into three parts in a bid to reduce his tax liability.

Decide, for what purpose the three companies were established? Whether the legal

personality of all the three companies may be disregarded.