CIT v. Bharat Engineering and Construction

83 ITR 187Supreme Court of India1972#2804 most cited

What is CIT v. Bharat Engineering and Construction authority for?

An addition under Section 68 for cash credits cannot be made if the assessee has not commenced its business operations.

42

judgments rely on this decision, according to BharatTax’s citation analysis of 366,369 Indian tax judgments — from 2007 to 2025.

Also referred to as

CIT v. Bharat Engineering and Construction · 83 ITR 187 · Section 68 · cash credit addition · unexplained cash credit · commencement of business · no business commenced · applicability of Section 68 · Supreme Court · addition for cash credit

Sections most often in play

Section 143(3)Section 68Section 131Section 133(6)Section 153ASection 250(6)Section 271(1)(C)Section 292C

Issues it is cited on

cash credit additionsection 153a proceedingsbogus share capitalretraction of statementprincipal officerstatement under section 132(4)retracted statementsummons under section 131section 292caddition under section 68on-moneyshare application money

Judgments citing CIT v. Bharat Engineering and Construction

Riddhi Promoters Pvt.Ltd vs. Commissioner of Income Tax-7

ITA/227/2015HC Delhi27 Mar 2015
Section 143(1)Section 68

…sum of Rs.24 lakhs in fact emanated from the directors of the share applicants, it could not be said that requirement of Section 68 of the Act is not discharged. He relied upon the decision of Supreme Court in CIT vs. Bharat Engineering and Construction 83 ITR 187, especially the following observations: 2. The assessee-company is an engineering construction company. It commenced business in May, 1943. In their account books, there are several cash credit entries in the first year of its business. We are concerned with only five of those cash credit entries. On June 1, 1943, there is a cash credit entr…

Commr.of Income Tax vs. P. Mohanakala

C.A. No.-002540-002540 - 2007Supreme Court15 May 2007
For Respondent: P. Mohanakala
Section 68Section 6B

…y even in the absence of any plea and rebuttal by the assessee. This decision is required to be understood in the light of the ratio of the judgment in Sumati Dayal (supra). In Commissioner of Income Tax, U.P Bharat Engineering & Construction Co. [1972] 83 ITR 187, the facts are that the Tribunal itself found that the cash credit entries could not represent the income or profit of the assessee as they were all made very soon after the assessee commenced its activities. This Court observed in the circumstances it would be reasonable to assume that those cash credit entries were capital receipts. It…