Aravali Trading Co. v. ITO

8 DTR 199High Court2008#1599 most cited

What is Aravali Trading Co. v. ITO authority for?

An assessee discharges their onus under Section 68 for cash credits by proving the identity of the creditor, the genuineness of the transaction, and the creditor's creditworthiness. The assessee is not required to prove the source of the creditor's funds ('source of source'), unless evidence suggests the money originated from the assessee itself.

71

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2017 to 2026.

Also referred to as

Aravali Trading Co v ITO · Section 68 · cash credits · unexplained cash credit · assessee's onus · burden of proof · identity of creditor · genuineness of transaction · creditworthiness of creditor · source of source · banking channels

Also reported as

187 Taxmann 33820 Taxmann.com 441

Sections most often in play

Section 68Section 142(1)Section 143(3)Section 250Section 133(6)Section 131Section 143(1)Section 143(2)

Issues it is cited on

source of sourcecreditworthiness of the creditoraddition u/s 68admission of additional evidencegenuineness of the transactionshare application moneysundry creditorsrule 46achange of opinionunexplained cash creditsection 131section 68

Judgments citing Aravali Trading Co. v. ITO

M/S Kota Dall Mill, Kota vs. Deputy Commissioner of Income Tax, Central Circle, Kota

ITA 997/JPR/2018[2010-11]Status: DisposedITAT Jaipur31 Dec 2018AY 2010-11
For Appellant: Shri Vijay Goyal & Shri Gulshan Agarwal (CAs)For Respondent: Shri Varinder Mehta (CIT)
Section 132Section 143(3)Section 153ASection 153B(1)(b)Section 68

…ir ITR, Bank statement, Balance Sheets which proved the identity, creditworthiness and genuineness of the transaction. In support of his contention, he has relied upon the judgment of Hon’ble Jurisdictional High Court in case of Aravali Trading Co. vs. ITO, 8 DTR 199 (Raj.) and submitted that the Hon’ble High Court has held that once the existence of creditor is proved and such person owns the credit, the assessee’s onus stand discharged and the assessee is not required to prove the source from which the creditor could have acquired the money deposited with him. Even otherwise, when the loan creditor was sub…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Kota Dall Mill, Kota

ITA 1057/JPR/2018[2010-11]Status: DisposedITAT Jaipur31 Dec 2018AY 2010-11
For Appellant: Shri Vijay Goyal & Shri Gulshan Agarwal (CAs)For Respondent: Shri Varinder Mehta (CIT)
Section 132Section 143(3)Section 153ASection 153B(1)(b)Section 68

…ir ITR, Bank statement, Balance Sheets which proved the identity, creditworthiness and genuineness of the transaction. In support of his contention, he has relied upon the judgment of Hon’ble Jurisdictional High Court in case of Aravali Trading Co. vs. ITO, 8 DTR 199 (Raj.) and submitted that the Hon’ble High Court has held that once the existence of creditor is proved and such person owns the credit, the assessee’s onus stand discharged and the assessee is not required to prove the source from which the creditor could have acquired the money deposited with him. Even otherwise, when the loan creditor was sub…

M/S Kota Dall Mill, Kota vs. Deputy Commissioner of Income Tax, Central Circle, Kota

ITA 999/JPR/2018[2012-13]Status: DisposedITAT Jaipur28 Dec 2018AY 2012-13
For Appellant: Shri Vijay Goyal & Shri Gulshan Agarwal (CAs)For Respondent: Shri Varinder Mehta (CIT)
Section 132Section 143(3)Section 153ASection 153B(1)(b)Section 68

…ir ITR, Bank statement, Balance Sheets which proved the identity, creditworthiness and genuineness of the transaction. In support of his contention, he has relied upon the judgment of Hon’ble Jurisdictional High Court in case of Aravali Trading Co. vs. ITO, 8 DTR 199 (Raj.) and submitted that the Hon’ble High Court has held that once the existence of creditor is proved and such person owns the credit, the assessee’s onus stand discharged and the assessee is not required to prove the source from which the creditor could have acquired the money deposited with him. Even otherwise, when the loan creditor was sub…

Shri Arpit Mamodia, Jaipur vs. Income Tax Officer, Jaipur

In the result, the appeal of the assessee is dismissed

ITA 625/JPR/2017[2012-13]Status: DisposedITAT Jaipur27 Apr 2018AY 2012-13
For Appellant: Shri S.L. Gupta, CAFor Respondent: Smt. Poonam Rai, DCIT-DR
Section 68

…EED NOT BE PROVED. 9 Shri Arpit Mamodia vs ITO, Ward-4(5), Jaipur The issue under consideration in this appeal is squarely covered by the judgment of the Hon'ble Rajasthan High in the case o M/s Aravali Trading Co. Vs. Income Tax Officer reported at (2008) 8 DTR 199,…. Hence. it is now a well established law that in case of loan transactions, source of source need not be proved. Once the identity, capacity and genuineness of a loan transaction is proved by the assessee, the primary onus which lay upon him is discharged and is shifted on the revenue. The assessee need not to prove the source ofsourceoftheloantr…

Gemorioum, Jaipur vs. ITO, Jaipur

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 378/JPR/2014[2010-11]Status: DisposedITAT Jaipur28 Feb 2018AY 2010-11
For Appellant: Shri Rohan Sogani (CA)For Respondent: Smt. Poonam Rai, (DCIT)
Section 145(3)Section 68

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jkWo] U;kf;d lnL; ,oa Jh HkkxpUn] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 378/JP/2014 fu/kZkj.k o"kZ@Assessment Year : 2010-11. cuke M/s. Gemorium, The Income Tax Officer, Vs. 1969, Dhabhaiji Ka Khura, Ward 5(1), Ramganj Bazar, Jaipur. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AACFG 7515 N vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Rohan Sogani (CA) jktLo dh vksj ls@ Revenue by : Smt. Poonam Rai, (DCI…

M/S. Globus Projects Pvt. Ltd., New Delhi vs. DCIT, Faridabad

In the result all the three appeals filed by the assesses are allowed

ITA 2491/DEL/2017[2012-13]Status: DisposedITAT Delhi30 Nov 2017AY 2012-13

Bench: Shri H.S.Sidhu & Shri Prashant Maharishim/S. Globus Projects Private Ltd, Vs. Dcit, Unit No. 5D, 5Th Floor, Assets Aria Central Circle-1, Signature Offices, Jw Marriott Hotel, Faridabad Asset Area-4, Delhi Aerocity Hospitality District, New Delhi Pan:Aaccg5308E (Appellant) (Respondent) Bestech Hospitalities Pvt. Ltd, Vs. Dcit, Unit No. 5D, 5Th Floor, Assets Aria Central Circle-1, Signature Offices, Jw Marriott Hotel, Faridabad Asset Area-4, Delhi Aerocity Hospitality District, New Delhi Pan:Aaccg5308E (Appellant) (Respondent) Bestech India Pvt. Ltd, Vs. Dcit, Unit No. 5D, 5Th Floor, Assets Aria Central Circle-1, Signature Offices, Jw Marriott Hotel, Faridabad Asset Area-4, Delhi Aerocity Hospitality District, New Delhi Pan:Aaccg5308E (Appellant) (Respondent)

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Smt Aparna Karan, CIT DR
Section 131Section 132Section 133ASection 153ASection 153A(1)(b)Section 153CSection 263

…ount, PAN of subscribers to the shares ..ere furnished by the assessee and payments were made by cheques, was jstified in deleting addition under section 68. The Hon‟ble High Court of Rajasthan in the case of ARAVALI TRADING CO. VS. INCOME TAX OFFICER {(2008) 8 DTR 199) held “Once the existence of the creditors is proved and such persons own the credits which are found in the books of the assessee, the assessee‟s onus stands discharged and the latter is not further required to prove the source from which the creditors could have acquired the money deposited with him either in terms of sec.68 or on general princip…

M/S. Bestech India Pvt. Ltd., New Delhi vs. DCIT, Faridabad

In the result all the three appeals filed by the assesses are allowed

ITA 2485/DEL/2017[2012-13]Status: DisposedITAT Delhi30 Nov 2017AY 2012-13

Bench: Shri H.S.Sidhu & Shri Prashant Maharishim/S. Globus Projects Private Ltd, Vs. Dcit, Unit No. 5D, 5Th Floor, Assets Aria Central Circle-1, Signature Offices, Jw Marriott Hotel, Faridabad Asset Area-4, Delhi Aerocity Hospitality District, New Delhi Pan:Aaccg5308E (Appellant) (Respondent) Bestech Hospitalities Pvt. Ltd, Vs. Dcit, Unit No. 5D, 5Th Floor, Assets Aria Central Circle-1, Signature Offices, Jw Marriott Hotel, Faridabad Asset Area-4, Delhi Aerocity Hospitality District, New Delhi Pan: Aaccb2540F (Appellant) (Respondent) Bestech India Pvt. Ltd, Vs. Dcit, Unit No. 5D, 5Th Floor, Assets Aria Central Circle-1, Signature Offices, Jw Marriott Hotel, Faridabad Asset Area-4, Delhi Aerocity Hospitality District, New Delhi Pan: Aabcb6551B (Appellant) (Respondent)

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Smt Aparna Karan, CIT DR
Section 131Section 132Section 133ASection 153ASection 153A(1)(b)Section 153CSection 263

…ount, PAN of subscribers to the shares ..ere furnished by the assessee and payments were made by cheques, was jstified in deleting addition under section 68. The Hon‟ble High Court of Rajasthan in the case of ARAVALI TRADING CO. VS. INCOME TAX OFFICER {(2008) 8 DTR 199) held “Once the existence of the creditors is proved and such persons own the credits which are found in the books of the assessee, the assessee‟s onus stands discharged and the latter is not further required to prove the source from which the creditors could have acquired the money deposited with him either in terms of sec.68 or on general princip…

Radhey Ram Godara, Jaipur vs. ITO, Jaipur

In the result, appeal of the assessee is partly allowed for Statistical purposes

ITA 349/JPR/2016[2008-09]Status: DisposedITAT Jaipur29 Nov 2017AY 2008-09
For Appellant: Shri Shrawan Kumar Gupta, AdvocateFor Respondent: Shri R.A. Verma, Addl.CIT -DR
Section 143(2)Section 143(3)Section 234A

…xplain the source of loan- Burden on the asssessee in such cases does not extend to prove the source of the creditor from where he made the advance to the assessee. 25 Shri Radhey Ram Godara vs ITO, Ward- 3(5), Jaipur Also refer Aravali Trading Co. v/s ITO 8 DTR 199 held that once the existence of the creditors is proved and such persons own the credits which are found in the books of the assessee, the assessee's onus stand discharged and the latter is not further required to prove the sources from which the creditors could have acquired the money deposited with him and, therefore the addition u/s 68 cannot be…

Income Tax Officer, Ward- Bhiwadi vs. Shri Satish Kumar, Alwar

In the result, appeal of the revenue is partly allowed for statistical

ITA 637/JPR/2017[2012-13]Status: DisposedITAT Jaipur22 Nov 2017AY 2012-13

Bench: The Ld. Cit(A). The Ld. Cit(A)

For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri Rajendra Jha fu/kZkfjrh dh vksj ls@
Section 143(3)Section 68Section 80C

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh Hkkxpan] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 637/JP/2017 fu/kZkj.k o"kZ@Assessment Year : 2012-13 cuke Income Tax Officer, Satish Kumar, Vs. Ward- Bhiwadi. J-501-502, Krish Vatika, Bhiwadi, Teh-Tijara, district- Alwar. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AIEPK 2046 C vihykFkhZ@Appellant izR;FkhZ@Respondent izR;k{ksi.k@C.O. No. 33/JP/2017 (Arising out of vk;dj vihy la-@ITA No. 637/JP/2017) fu/kZkj.k o"kZ@Assessme…

Late Shri Sanjay Paliya Through L/H Smt. Jaishree Paliya, Pipariya vs. The DCIT, Circle, Itarsi

In the result, the appeal of the assessee is partly allowed

ITA 922/IND/2016[2012-13]Status: DisposedITAT Indore30 May 2017AY 2012-13

Bench: Shri C.M. Garg & Shri O.P. Meena

Section 234BSection 271(1)(c)Section 68

…Late shri Sanjay Paliya ITA 922/Ind/2016 आयकर अपील"य अ"धकरण, इ"दौर "यायपीठ, इ"दौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER आ.अ.सं./ITA. No. 922/Ind/2016 "नधा"रण वष" /Assessment Year: 2012-13 Late Shri Sanjay Paliya Through L/H Smt. JaishreePaliya Pipariya :: अपीलाथ" /Appellant PAN – ABXPP 5864H Vs Dy. CIT, Circle :: ""यथ"/Respondent Itarsi Shri Ashish Goyal & Shri N.D. "नधा"रती क" ओर से/Assessee by Patwa राज"व क" ओर से/Revenue by Shri Mohd. Javed 24.5.2017 सुनवाई क" तार"ख Date of hearing 30.5.2017 उ"घोषणा क" त…

Tirupati College of Technical Education Society, Jaipur vs. CIT(Exemptions), Jaipur

In the result, the appeal filed by the assessee is partly allowed with

ITA 452/JPR/2016[2012-13]Status: DisposedITAT Jaipur03 Mar 2017AY 2012-13
For Appellant: Shri Sharvan Kumar Gupta, AdvocateFor Respondent: Shri B.K. Gupta, (CIT)
Section 10Section 143(3)

…the asssessee in such cases does not extend to prove the source of the creditor from where he made the advance to the assessee. 36 M/s.Tirupati College of Technical Education Society vs LD. CIT( Exemption), Jaipur 18.3 Also refer Aravali Trading Co. v/s ITO 8 DTR 199 held that once the existence of the creditors is proved and such persons own the credits which are found in the books of the assessee, the assessee's onus stand discharged and the latter is not further required to prove the sources from which the creditors could have acquired the money deposited with him and, therefore the addition u/s 68 cannot be…