CIT v. Divine Leasing & Finance Ltd.

299 ITR 268High Court2008#169 most cited

What is CIT v. Divine Leasing & Finance Ltd. authority for?

The Assessing Officer cannot add share capital or share premium amounts if the assessee provides the identity and creditworthiness of the subscriber and establishes the genuineness of the transaction. The court may admit additional evidence under Rule 46A, such as the PAN identity of the creditor.

426

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Divine Leasing & Finance Ltd. · section 68 · share capital · share premium · creditworthiness of creditor · source of source · genuineness of transaction · addition u/s 68 · PAN identity · Rule 46A

Also reported as

158 Taxmann 440207 CTR 38

Sections most often in play

Section 143(3)Section 68Section 133(6)Section 147Section 69ASection 1961Section 131Section 132(4)

Issues it is cited on

creditworthiness of the creditorsource of sourceshare capital and share premiumpaper companyshare application moneyaddition u/s 68live linkadmission of additional evidenceentry operatorgenuineness of the transactionaddition under section 68rule 46a

Judgments citing CIT v. Divine Leasing & Finance Ltd.

Jingle Bells Aluminium, New Delhi vs. ITO Ward - 13(3), New Delhi

ITA 5397/DEL/2019[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

Kasper Information Technology P.Ltd, New Delhi vs. ITO, Ward-14(2), New Delhi

ITA 510/DEL/2019[2013-14]Status: DisposedITAT Delhi18 Mar 2021AY 2013-14

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

Landsky Real Estates P.Ltd, New Delhi vs. ITO, Ward-15(1), New Delhi

ITA 509/DEL/2019[2013-14]Status: DisposedITAT Delhi18 Mar 2021AY 2013-14

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, Ward-7(1), New Delhi vs. Delight Resorts P.Ltd, Ghaziabad

ITA 6401/DEL/2017[2014-15]Status: DisposedITAT Delhi18 Mar 2021AY 2014-15

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, Ward-7(1), New Delhi vs. Delight Resorts P.Ltd, New Delhi

ITA 5974/DEL/2017[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

M/S Globus Real Infra Pvt. Ltd., New Delhi vs. DCIT, New Delhi

ITA 2920/DEL/2017[2013-14]Status: DisposedITAT Delhi18 Mar 2021AY 2013-14

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ACIT, New Delhi vs. M/S. Star Light Consumer Electronics Pvt. Ltd., New Delhi

ITA 6070/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ACIT, New Delhi vs. M/S. Superstar Agency Pvt. Ltd., New Delhi

ITA 5832/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ACIT, New Delhi vs. M/S. Sur Buildcon Pvt. Ltd., New Delhi

ITA 5831/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, New Delhi vs. M/S Stylish Construction Pvt. Ltd., New Delhi

ITA 5744/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, New Delhi vs. M/S. Sukhna Real Estate Pvt. Ltd., Ghaziabad

ITA 5742/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, New Delhi vs. M/S. Sukhna Steel Pvt. Ltd., New Delhi

ITA 5741/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, New Delhi vs. M/S. Sunlight Tour and Travels Pvt. Ltd., Sahibabad

ITA 5740/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, New Delhi vs. M/S. Sintex Consumers Electronics Pvt. Ltd., Delhi

ITA 5736/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, New Delhi vs. M/S. Supreme Placement Services Pvt. Ltd., New Delhi

ITA 5650/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

ITO, New Delhi vs. M/S Angel Cement Pvt. Ltd., Ghaziabad

ITA 4691/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…any even if the subscribers to the increased share capital were held to be not genuine. Such addition could only be made in the hands of the alleged bogus share holder. The order of the Hon'ble Delhi High Court in the case of CIT vs. Lovely Exports Pvt. Ltd. 299 ITR 268 has been upheld by the Apex Court. In the case of CIT vs. Kamdhenu Steel and Alloys Ltd. 206 Taxman 254, the Hon'ble Delhi High Court has held that the assessee cannot be fastened with the liability u/s 68 unless a causal connection between the cash deposit in the bank and the assessee is established. The Hon'ble Delhi High Court in the case of C…

M/S Multiventure Financial Services Pvt Ltd., Mumbai vs. ITO 3 (2)(2), Mumbai

In the result, the appeals of the Revenue are dismissed and the appeal of the assessee is allowed

ITA 4882/MUM/2019[2010-11]Status: DisposedITAT Mumbai22 Feb 2021AY 2010-11

Bench: Shri Rajesh Kumar & Shri Amarjit Singh

For Appellant: Shri Vishnu Aggarwal, A.RFor Respondent: Shri Bharat Andhala, D.R
Section 143(3)Section 2Section 2(47)

…annot be doubted. The revenue could not prove that the money received by the appellant in the form of share application has come from its own sources. No evidences regarding this have been brought on record by the AO. In CIT Vs. Divine Leasing & Finance Ltd. 299 ITR 268 the Hon'ble Delhi High Court held that burden of proof can seldom be discharged the hilt by the assessee. If the A.O. harbours doubts of the legitimacy of any subscription he is empowered, rather duty bound, to carry out thorough investigations. But if the A.O. fails to unearth any wrong or illegal dealings, he cannot obdurately adhere to his su…

ITO - 3(2)(2), Mumbai vs. M/S Multiventure Financial Services Pvt. Ltd, Mumbai

In the result, the appeals of the Revenue are dismissed and the appeal of the assessee is allowed

ITA 3715/MUM/2019[2010-11]Status: DisposedITAT Mumbai22 Feb 2021AY 2010-11

Bench: Shri Rajesh Kumar & Shri Amarjit Singh

For Appellant: Shri Vishnu Aggarwal, A.RFor Respondent: Shri Bharat Andhala, D.R
Section 143(3)Section 2Section 2(47)

…annot be doubted. The revenue could not prove that the money received by the appellant in the form of share application has come from its own sources. No evidences regarding this have been brought on record by the AO. In CIT Vs. Divine Leasing & Finance Ltd. 299 ITR 268 the Hon'ble Delhi High Court held that burden of proof can seldom be discharged the hilt by the assessee. If the A.O. harbours doubts of the legitimacy of any subscription he is empowered, rather duty bound, to carry out thorough investigations. But if the A.O. fails to unearth any wrong or illegal dealings, he cannot obdurately adhere to his su…

Shri Vishnu Prasad, Jaipur vs. Deputy Commissioner of Income Tax, Circle-7, Jaipur

In the result, this appeal of the assessee is allowed

ITA 1503/JPR/2018[2011-2012]Status: DisposedITAT Jaipur15 Feb 2021AY 2011-2012

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 1503/Jp/2018 Fu/Kzkj.K O"Kz@Assessment Year :2011-12 Cuke Shri Vishnu Prasad, D.C.I.T. Vs. Namdev Export, Circle-7, Opp.-Dhanopia Textiles, Sanganer, Jaipur. Jaipur. Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Aappp 9225 M Vihykfkhz@Appellant Izr;Fkhz@Respondent Fu/Kzkfjrh Dh Vksj Ls@ Assessee By: Shri Manish Agarwal (Ca) Jktlo Dh Vksj Ls@ Revenue By :Smt. Rooni Paul(Addl.Cit) Lquokbz Dh Rkjh[K@ Date Of Hearing : 09/02/2021 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 15/02/2021 Vkns'K@ Order Per: Sandeep Gosain, J.M. The Present Appeal Has Been Filed By The Assessee Against The Order Of The Ld. Cit(A)-3, Jaipur Dated 30/10/2018 For The A.Y. 2011-12, Wherein The Assessee Has Raised Following Grounds Of Appeal: “1. On The Facts & In The Circumstances Of The Case & In Law, Ld. Cit(A) Erred In Confirming Addition Of Rs. 30,50,000/- Made By A.O. U/S 68 Alleging Cash Deposits In Bank Account As Undisclosed Income. 1.1 That, Ld. Cit(A) Erred In Confirming Addition Of Rs. 30,50,000/- Ignoring The Submission Of Assessee That The Said Amount Represented Sale Consideration Received By Assessee For Sale Of Land.

For Appellant: Shri Manish Agarwal (CA)For Respondent: Smt. Rooni Paul(Addl.CIT)
Section 68

…ences, deserve to be deleted and the assessee prays accordingly. He relied upon the following case laws: 1. CIT v. U.M. Shah, Proprietor, Shrenik Trading Co. [1973] 90 ITR 396 (Bom.) 2. Nemichand Kothari v. CIT (264 ITR 254)(Gau) 3. Divine Leasing etc Vs. CIT 299 ITR 268 (DEL) 8 ITA 1503/JP/2018_ Sh. Vishnu Prasad Vs DCIT 4. 34 ITR 328 (MAD) & Ker HC in 117 ITR 371 6. On the other hand, the ld DR has relied on the orders of the revenue authorities. 7. We have considered the rival contentions and carefully gone through the orders of the authorities below. We also deliberated upon the judicial pronouncements refe…

Garima Polymers Pvt. Ltd., New Delhi vs. ACIT Central Circle-16, New Delhi

In the result appeal of the assessee partly allowed

ITA 1302/DEL/2020[2009-10]Status: DisposedITAT Delhi01 Feb 2021AY 2009-10

Bench: Shri Bhavnesh Saini & Shri B.R.R. Kumar

For Appellant: Shri I.P. Bansal, AdvocateFor Respondent: Ms. Sunita Singh, CIT-DR
Section 131(1)Section 132Section 143(1)Section 144Section 144ASection 153

…A.O. in response to the summons under section 131 of the Income Tax Act, 1961. Further no time have been given to the assessee to enforce the attendance of these creditors before A.O. The Hon’ble Delhi High Court in the case of Divine Leasing & Finance Ltd., 299 ITR 268, in which it was held as under : “No adverse inference should be drawn if shareholders failed to respond to the notice by A.O. 14 ITA.No.1302/Del./2020 M/s. Garima Polymers Pvt. Ltd., New Delhi. 8.2. It is also well settled Law assessee need not to prove the source of the source. We rely upon the Judgment of the Hon’ble Delhi High Court in the…