Addl. CIT v. Bahri Bros. (P) Ltd.

154 ITR 244High Court1985#1543 most cited

What is Addl. CIT v. Bahri Bros. (P) Ltd. authority for?

If loans are provided by account payee cheques, this establishes the identification of parties and fulfills the borrower's burden of proof under Section 68 of the Income Tax Act.

73

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2011 to 2026.

Also referred to as

Addl. CIT v. Bahri Bros. (P) Ltd. · Section 68 · cash credits · account payee cheques · identification of parties · discharge of burden · creditworthiness · genuineness of transaction

Sections most often in play

Section 68Section 115BBESection 132(1)Section 139Section 143(2)Section 143(3)Section 144Section 145(3)

Issues it is cited on

principal officercreditworthiness of the creditorsource of sourcenational faceless assessment centreaddition u/s 68admission of additional evidenceshare application moneyentry operatorsection 69crule 46asection 40afaceless assessment

Judgments citing Addl. CIT v. Bahri Bros. (P) Ltd.

M/S Manish Finlease (P) Ltd, Patna vs. ITO, Ward-2(1), Patna

ITA 25/PAT/2019[2010-11]Status: DisposedITAT Patna09 Aug 2019AY 2010-11

Bench: Shri Chandra Mohan Garg & Laxmi Prasad Sahuassessment Year : 2010-2011 Manish Finlease Pvt Ltd., Vs. Ito, Ward 2(1), Patna Chandi House Exhibition Road, Patna Pan/Gir No.Aaccm 6252 B (Appellant) .. ( Respondent) Assessee By : Shri A.K.Rastogi & Rakesh Kumar, Ars Revenue By : Shri Indrajeet Singh, Dr Date Of Hearing : 20/06/ 2019 Date Of Pronouncement : 09/08/ 2019 O R D E R Per Bench This Is An Appeal Filed By The Assessee Against The Order Of The Cit(A)-1, Patna Dated 27.9.2018 For The Assessment Year 2010-2011. 2. The Appeal Filed By The Assessee Is Delayed By 51 Days. The Assessee Has Filed Application For Condonation Of Delay Stating The Reasons For Not Filing The Appeal In Time Before The Tribunal. After Hearing The Submissions Of The Parties, We Are Satisfied That The Assessee Had A Bonafide Reason For Not Filing The Appeal In Time. Therefore, We Condone The Delay & Proceed To Decide The Appeal Of The Assessee On Merits.

For Appellant: Shri A.K.Rastogi & Rakesh Kumar, ARsFor Respondent: Shri Indrajeet Singh, DR
Section 133(6)Section 143(2)Section 143(3)Section 147Section 148(1)Section 68

…d and affirmation of such finding by the CIT(A) is contrary to the evidences / material already on record. It is respectfully submitted that the case of the appellant is squarely covered by the judgment of the jurisdictional High Court in the case reported in 154 ITR 244 (Pat) - ACIT Vs Bahri Brothers wherein their lordships have held as under : "In the instant case, the transaction were completed through account payee cheque. The creditors gave the amount in question to the assessee by account payee cheque which were encashed by the assessee through his own Bank. Not only this, the assessee has also submitted th…

Vijay Aggarwal, Delhi vs. ITO, Ward- 48(5), New Delhi

In the result, all the appeals of different assessees are partly allowed

ITA 1077/DEL/2019[2010-11]Status: DisposedITAT Delhi30 May 2019AY 2010-11

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahuassessment Year: 2010-11

Section 147Section 148Section 56(2)(vii)Section 68

…a Ahmad & Co. v. CIT vi. 103 ITR 344 at 349-350 ( Patna) Saraogi Credit Corporation v CIT vii. 59 ITR 632 at 636 (Assam) TolaRam Daga v cIT viii. 49 ITR 273 at 279 (Mad) S. Hastimal v CIT ix. 151 ITR 150 at 156-157 (Pat) Addl. CIT, Bihar v Hanuman Aggarwal x. 154 ITR 244 at 247 (Pat) Addl CIT v Bahri Bros. (P) Lt xi. 264 ITR 254 at 261-266 (Gau) Nemichand Kothari v. CIT xii. 280 ITR 512 at 518 (Guj) Murlidhar Lahorimal Vs. CIT xiii. [2008] 219 CTR (Raj.) 571 at 577 Labh Chand Bohra v. ITO xiv. 256 ITR 360 at 369 (Guj) DCIT Vs Rohini Builders It is necessary to state that these loans are interest bearing loan an…

M/S Bihari Lal Malpani, Kolkata vs. ITO, Ward 43(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 527/KOL/2017[2013-14]Status: DisposedITAT Kolkata05 Apr 2019AY 2013-14

Bench: Shri Aby. T. Varkey & Shri M. Balaganeshi.T.A. No.527/Kol/2017 (Assessment Year 2013-14) M/S Bihari Lal Malpani Ito, Ward-43(1), Kolkata. -Vs- [Pan :Adupm 6438 R]

Section 10(38)Section 143(3)Section 68

…or of scripts with a view to claim loss in share trading business and thereby reducing the taxable income and tax liability. This proposition is supported by the judgment of the Patna High Court in the case of Additional CIT v. Bahri Brothers Pvt. Ltd. (1985) 154 ITR 244 and the judgment of the Supreme Court of India in the case of CIT v. Orissa Corporation Pvt. Ltd. (1986) 159 ITR 78 (SC). Thus the appellant having discharged the burden, it is the Revenue which had to verify the genuineness of the transaction and the primarily in case AO did not discharge the burden which had shifted on him and had just mechanic…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S. Agrasen Agro Industries Private Limited, Kota

ITA 1205/JPR/2018[2011-12]Status: DisposedITAT Jaipur27 Mar 2019AY 2011-12
Section 143(3)Section 153Section 153ASection 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S. Agrasen Agro Industries Private Limited, Kota

ITA 1188/JPR/2018[2010-11]Status: DisposedITAT Jaipur27 Mar 2019AY 2010-11
Section 143(3)Section 153Section 153ASection 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

M/S. Agrasen Agro Industries Private Limited, Kota vs. Deputy Commissioner of Income Tax, Central Circle, Kota

ITA 1053/JPR/2018[2010-11]Status: DisposedITAT Jaipur27 Mar 2019AY 2010-11
Section 143(3)Section 153Section 153ASection 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

ACIT, Circle - 34, Kolkata vs. M/S. Eastern Distributors, Kolkata

In the result, appeal of the revenue is dismissed

ITA 1442/KOL/2017[2014-15]Status: DisposedITAT Kolkata15 Mar 2019AY 2014-15

Bench: Sri J. Sudhakar Reddy & Sri S. S. Viswanethra Ravi) Assessment Year: 2014-15 Assistant Commissioner Of Income Tax, Circle-34, Kolkata……......……………...................Appellant Vs. M/S. Eastern Distributors Pvt. Ltd…..…….......................…..……………….…...……..................Respondent 3, Mangoe Lane Kolkata – 700 001 [Pan : Aadfe 5901 B]

Section 131Section 133(6)Section 143(3)Section 250

…explanation could not be rejected on the ground of disability of the revenue to ascertain further facts. There was no evidence to hold that the said amount of credit was the assessee's income from undisclosed source. Addl. CIT v. Bahri Bros. ( P.) Ltd. [1985] 154 ITR 244 (Pat.) was also cited. In this case, two deposits in the account of the assessee were claimed to have been obtained on loan. The assessee established that the amount had been paid by an account payee cheque. The assessee also established that it had repaid the amounts also by account payee cheques with interest and brokerage. Subsequent letters a…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1211/JPR/2018[2013-14]Status: DisposedITAT Jaipur12 Feb 2019AY 2013-14
Section 132Section 153Section 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1099/JPR/2018[2016-17]Status: DisposedITAT Jaipur12 Feb 2019AY 2016-17
Section 132Section 153Section 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1098/JPR/2018[2015-16]Status: DisposedITAT Jaipur12 Feb 2019AY 2015-16
Section 132Section 153Section 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1097/JPR/2018[2014-15]Status: DisposedITAT Jaipur12 Feb 2019AY 2014-15
Section 132Section 153Section 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1096/JPR/2018[2012-13]Status: DisposedITAT Jaipur12 Feb 2019AY 2012-13
Section 132Section 153Section 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

M/S Oriental Power Cables Ltd., Kota vs. Deputy Commissioner of Income Tax, Central Circle, Kota

ITA 1028/JPR/2018[2015-16]Status: DisposedITAT Jaipur12 Feb 2019AY 2015-16
Section 132Section 153Section 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

M/S Oriental Power Cables Ltd., Kota vs. Deputy Commissioner of Income Tax, Central Circle, Kota

ITA 1027/JPR/2018[2014-15]Status: DisposedITAT Jaipur12 Feb 2019AY 2014-15
Section 132Section 153Section 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act. Even otherwise, there is no adverse finding of any investigation conducted…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Baran Roller Flour Mills Pvt. Ltd., Kota

ITA 1207/JPR/2018[2011-12]Status: DisposedITAT Jaipur11 Jan 2019AY 2011-12
For Appellant: Shri Vijay Goyal (CA)For Respondent: Shri Varinder Mehta (CIT) fu/kZkfjrh dh vksj ls@
Section 14ASection 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to 18 ITA No. 1206(4)/JP/2018 M/s. Baran Roller Flour Mills Pvt. Ltd., Kota. identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act.…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Baran Roller Flour Mills Pvt. Ltd., Kota

ITA 1206/JPR/2018[2010-11]Status: DisposedITAT Jaipur11 Jan 2019AY 2010-11
For Appellant: Shri Vijay Goyal (CA)For Respondent: Shri Varinder Mehta (CIT) fu/kZkfjrh dh vksj ls@
Section 14ASection 68

…orthiness and genuineness of transactions is established. There is no gain saying that the onus squarely lies on the appellant to prove the identity, creditworthiness and genuineness of the cash credits. In the case of Addl. CIT v. Bahri Bros. (P) Ltd. [1985] 154 ITR 244 (Pat), the Hon'ble Patna High Court has held "if the loans are given by an account paying cheque, it amounts to 18 ITA No. 1206(4)/JP/2018 M/s. Baran Roller Flour Mills Pvt. Ltd., Kota. identification of the parties and discharge of burden by the borrower." In view of the above, it is clear that Appellant discharged its burden u/s 68 of the Act.…

DCIT, Central Circle-5(1), Kolkata vs. M/S Prb Securities Pvt.Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 211/KOL/2017[2013-14]Status: DisposedITAT Kolkata05 Dec 2018AY 2013-14

Bench: Hon’Ble Shri A T Varkey, Jm & Shri M.Balaganesh, Am] I.T.A No. 211/Kol/2017 Assessment Year : 2013-14 Dcit, Circle-5(1), Kolkata -Vs- M/S Prb Securities Pvt. Ltd. [Pan: Aabcp 5425 G ] (Appellant) (Respondent)

For Appellant: Shri Saurabh Kumar, Addl. CIT Sr. DRFor Respondent: Shri Manish Tiwari, AR
Section 143(3)

…or of scripts with a view to claim loss in share trading business and thereby reducing the taxable income and tax liability. This proposition is supported by the judgment of the Patna High Court in the case of Additional CIT v. Bahri Brothers Pvt. Ltd. (1985) 154 ITR 244 and the judgment of the Supreme Court of India in the case of CIT v. Orissa Corporation Pvt. Ltd. (1986) 159 ITR 78 (SC). Thus the appellant having discharged the burden, it is the Revenue which had to verify the genuineness of the transaction and the primarily in case AO did not discharge the burden which had shifted on him and had just mechanic…

The J.K. Trust Bombay, Mumbai vs. CIT (E), Mumbai

The appeal of the assessee is allowed

ITA 3769/MUM/2017[2012-13]Status: DisposedITAT Mumbai25 Jul 2018AY 2012-13

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2012-13 M/S The J. K. Trust Cit (Exemption) Bombay, R. No.617, 6Th Floor, बनाम/ New Hind House, Piramal Chambers, Vs. Narottam Morrjee Marg, Lalbaug, Ballard Estate, Mumbai-400012 Mumbai-400001

Section 11Section 263

…for the proposition that no adverse inference can be drawn merely because that elaborate discussion is not made in the assessment order. He also referred to the judgment of the Hon’ble Patna High Court in the case of Addl. CIT v. Bahri Bros. (P.) Ltd. [1985] 154 ITR 244 and the judgment of the Hon’ble Gujarat High Court in the case of Dy. CIT v. Rohini Builders [2002] 256 ITR 360 for the proposition that if the loan is received by cheque, then the onus upon the assessee is said to be discharged and, therefore, it could not be said, in the present case, that proper enquiry was not made. He also relied on the judg…

Maharashtra Airport Development, Mumbai vs. Pr CIT 3, Mumbai

The appeal of the assessee is allowed

ITA 3741/MUM/2016[2011-12]Status: DisposedITAT Mumbai18 Jul 2018AY 2011-12

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year: 2011-12 M/S Maharashtra Airport Pr. Cit-3, Development Company 612, 6Th Floor, बनाम/ Ltd. Aayakar Bhavan, Vs. 8Th Floor, World Trade M. K. Road, Centre, Tower No.1, Mumbai-400020 Cuffe Parade, Mumbai-400005 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aadcm9623M

Section 148Section 154Section 263Section 80I

…for the proposition that no adverse inference can be drawn merely because that elaborate discussion is not made in the assessment order. He also referred to the judgment of the Hon’ble Patna High Court in the case of Addl. CIT v. Bahri Bros. (P.) Ltd. [1985] 154 ITR 244 and the judgment of the Hon’ble Gujarat High Court in the case of Dy. CIT v. Rohini Builders [2002] 256 ITR 360 for the proposition that if the loan is received by cheque, then the onus upon the assessee is said to be discharged and, therefore, it could not be said, in the present case, that proper enquiry was not made. He also relied on the judg…

Principal Commissioner of Income Tax - 7 vs. Bikram Singh

The appeal is allowed in the above terms

ITA/55/2017HC Delhi25 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 68

…), CIT v. Shiv Dhooti Pearls and Investment Ltd. 237 TAXMAN 104 (hereafter `Shivdhooti') and Dwarkadhish (supra), Sarogi Credit Corporation vs. CIT 103 ITR 344, Additional Commissioner of Income Tax vs. Hanuman Agarwal 151 ITR 150, Addl CIT vs. Bahri Bros.(P) 154 ITR 244, CIT vs. Ram Narain Goel [1997] 224 ITR 180, Smt. Neelamben Gopaldas Agrawal vs. ITO [2015] 57 taxmann.com 176 (Guj), to submit that it is settled law that the source of the source need not be explained. 22. Mr. C. S. Aggarwal further urges that findings of fact ought not to be interfered with at this stage and the question whether the credits we…