CIT v. First Point Finance Ltd.

286 ITR 477High Court2006#4421 most cited

What is CIT v. First Point Finance Ltd. authority for?

When an assessee provides evidence of genuine shareholders and their income tax returns, the Revenue must prove that the investment did not originate from the shareholder, rather than inferring the assessee's lack of creditworthiness.

27

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. First Point Finance Ltd · section 68 · share application money · unexplained cash credit · source of source · genuineness of transaction · addition u/s 68 · accommodation entry · burden of proof · investor creditworthiness

Sections most often in play

Section 68Section 144Section 147Section 148Section 115BBESection 131Section 132Section 133(6)

Issues it is cited on

source of sourceaddition u/s 68share application moneychange of opiniongenuineness of the transactionescapement of incomereason to believereopening of assessmentaccommodation entrysection 69cunexplained cash creditnotice under section 148

Judgments citing CIT v. First Point Finance Ltd.

M/S Bassi Steels Ltd., Mohali vs. DCIT, Mohali

ITA 96/CHANDI/2016[2004-05]Status: DisposedITAT Chandigarh27 Mar 2018AY 2004-05

Bench: Shri. Sanjay Garg, Judicial, Member & Dr. B.R.R. Kumarassessment Year: 2005-06

For Appellant: Sh. Ashok GoelFor Respondent: Smt. C. Chandrakanta
Section 148Section 68

…229 2. CIT Vs. Fair Finvest Ltd. 357 ITR 146 3. CIT Vs. Ganeshwari Metal (P) Ltd. 214 Taxman 423 4. CIT Vs. Five Vision Promoters (P) Ltd. Hon’ble Delhi High Court 5. CIT Vs. Vrindavan Farms(P) Ltd. Hon’ble Delhi High Court 6. CIT Vs. First Point Finance Ltd. 286 ITR 477 7. CIT Vs. LLIACE Investment (P) Ltd. 287 ITR 135 6. In the paper book he has submitted the copies of share application form, copy of incorporation, copy of ITR first page bank statement pertaining to these two companies. 7. The Ld. AR relied on the judgment in the case of Kisco Castings Pvt. Ltd. 152 TTJ 629 on the proposition that mere assert…

DCIT Cir 3(3)(2), Mumbai vs. Tulip Hotels P.Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 5151/MUM/2015[2011-12]Status: DisposedITAT Mumbai14 Mar 2018AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Dcit Cir 3(3)(2) Vs. M/S. Tulip Hotels Pvt.Ltd., R.No.609, 6Th Floor Chandermukhi Building Aayakar Bhavan (Basement), Behind The M.K.Road, Oberoi Nariman Point Mumbai – 400 020 Mumbai – 400 021 Pan/Gir No. Aaact9446Q Appellant) .. Respondent)

Section 10Section 143Section 143(3)Section 14A

…eholders, whose names are given to the AO, then the Department is free to proceed to reopen their individual assessments in accordance with law, but it cannot be regarded as undisclosed income of the assessee-company. v. CIT v. First Point Finance Ltd. [2006] 286 ITR 477 (Raj.), CIT v. Bhawani Oil Mills (P.) Ltd. 49 DTR 212: Where it is found that the investors are genuinely existing persons, they have filed confirmations in respect of investments made by them and their statements are also recorded, amount of share application money cannot be treated as unexplained cash credit and no addition can be made under se…

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

…proceed to reopen their individual assessment in accordance with law, but it cannot be regarded as undisclosed income of assessee company” Further we may submit that the present case is also directly covered by the decision of CIT vs. First Point Finance Ltd 286 ITR 477 (Raj.) by holding that It is not denied that all the share holders/share applicants are genuinely existing persons. It is also not denied that each of them is an income tax assessee and the copies of the return of their income were also placed before the AO by the assessee which facts is also not denied . In these circumstances, no material has b…

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)

…is initial onus is discharged, it shifts to the AO to rebut/ disprove the same for making a valid addition u/s 68. kindly refer CIT vs Shree Barkha Synthetics 182 CTR 175 (Raj). The Hon’ble RHC again reiterated the same view in CIT vs. First Point Finance Ltd 286 ITR 477 (Raj.) holding that this court 34 M/s.Tirupati College of Technical Education Society vs LD. CIT( Exemption), Jaipur held after referring to the aforesaid decisions, that once the initial burden has been discharged in respect of the identity of investors, about their existence, and the confirmation from such investors has been obtained, the bur…

DCIT CC-45, Mumbai vs. Paramshkti Distributors P. Ltd, Mumbai

In the result, appeal of the assessee is allowed, whereas appeal of the revenue is allowed in part in terms indicated hereinabove

ITA 9224/MUM/2010[2006-07]Status: DisposedITAT Mumbai09 Oct 2015AY 2006-07

Bench: Shri R.C.Sharma, Am & Shri Pawan Singh, Jm आमकय अऩीर सिं./Ita No.8748/Mum/2010 (नििाारण वषा / Assessment Year :2005-2006) M/S Paramshakti Distributors Pvt. Vs. Acit, Cent. Cir-45, Ltd., 501-B, Elegant Business Mumbai Park, Andheri-Kurla Road, J.B.Nagar, Andheri(E), Mumbai- 400059 स्थममी रेखम सिं./ जीआइआय सिं./ Pan/Gir No. : Aabcp 5835 C (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सिं./Ita Nos.9223&9224/Mum/2010 (नििाारण वषा / Assessment Years :2005-06 & 2006-07) Acit, Cent. Cir-45, Mumbai Vs. M/S Paramshakti Distributors Pvt. Ltd., 501-B, Elegant Business Park, Andheri-Kurla Road, J.B.Nagar, Andheri(E), Mumbai-400059 स्थममी रेखम सिं./ जीआइआय सिं./ Pan/Gir No. : Aabcp 5835 C (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. यनधमवरयती की ओर से /Assessee By : Shri Vijay Mehta यमजस्र् की ओर से /Revenue By :Shri Deepkant Prasad & Shri Nimesh Yadav सुनर्मई की तमयीख / Date Of Hearing : 26/08/2015 घोषणम की तमयीख/Date Of Pronouncement 09/10/2015 आदेश / O R D E R Per R.C.Sharma (A.M):

For Appellant: Shri Vijay MehtaFor Respondent: Shri Deepkant Prasad & Shri Nimesh Yadav
Section 143(3)Section 68

…urther relied upon following cases for establishing that the share application money received by the the company: • CIT v. Value Capital Services P. Ltd [307 ITR 334 (Del.)] • CIT v. AKJ Granites P. Ltd. [301 ITR 298 (Raj.)) • CIT V. First Point Finance Ltd. [286 ITR 477 (Raj.)) • Shree Barkha Synthetic Ltd. v. ACIT [283 ITR 377 (Raj.)) • CIT v. Belenje Investment & Trading Co. Ltd. (Income-tax Application No. 314 of 1993 dated 08.12.1993) • Twin Roses & Traders Agency Ltd. v. ITO (ITA No. 2653/Bom/1995 dated 18.10.1995) • Uma Polymers v. DCIT [100 ITD 1 (Jodh) (TM)) • Standard Cylinders v. ITO [24 ITD 504 (Del))…

DCIT CC-45, Mumbai vs. Paramshkti Distributors P. Ltd, Mumbai

In the result, appeal of the assessee is allowed, whereas appeal of the revenue is allowed in part in terms indicated hereinabove

ITA 9223/MUM/2010[2005-06]Status: DisposedITAT Mumbai09 Oct 2015AY 2005-06

Bench: Shri R.C.Sharma, Am & Shri Pawan Singh, Jm आमकय अऩीर सिं./Ita No.8748/Mum/2010 (नििाारण वषा / Assessment Year :2005-2006) M/S Paramshakti Distributors Pvt. Vs. Acit, Cent. Cir-45, Ltd., 501-B, Elegant Business Mumbai Park, Andheri-Kurla Road, J.B.Nagar, Andheri(E), Mumbai- 400059 स्थममी रेखम सिं./ जीआइआय सिं./ Pan/Gir No. : Aabcp 5835 C (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सिं./Ita Nos.9223&9224/Mum/2010 (नििाारण वषा / Assessment Years :2005-06 & 2006-07) Acit, Cent. Cir-45, Mumbai Vs. M/S Paramshakti Distributors Pvt. Ltd., 501-B, Elegant Business Park, Andheri-Kurla Road, J.B.Nagar, Andheri(E), Mumbai-400059 स्थममी रेखम सिं./ जीआइआय सिं./ Pan/Gir No. : Aabcp 5835 C (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. यनधमवरयती की ओर से /Assessee By : Shri Vijay Mehta यमजस्र् की ओर से /Revenue By :Shri Deepkant Prasad & Shri Nimesh Yadav सुनर्मई की तमयीख / Date Of Hearing : 26/08/2015 घोषणम की तमयीख/Date Of Pronouncement 09/10/2015 आदेश / O R D E R Per R.C.Sharma (A.M):

For Appellant: Shri Vijay MehtaFor Respondent: Shri Deepkant Prasad & Shri Nimesh Yadav
Section 143(3)Section 68

…urther relied upon following cases for establishing that the share application money received by the the company: • CIT v. Value Capital Services P. Ltd [307 ITR 334 (Del.)] • CIT v. AKJ Granites P. Ltd. [301 ITR 298 (Raj.)) • CIT V. First Point Finance Ltd. [286 ITR 477 (Raj.)) • Shree Barkha Synthetic Ltd. v. ACIT [283 ITR 377 (Raj.)) • CIT v. Belenje Investment & Trading Co. Ltd. (Income-tax Application No. 314 of 1993 dated 08.12.1993) • Twin Roses & Traders Agency Ltd. v. ITO (ITA No. 2653/Bom/1995 dated 18.10.1995) • Uma Polymers v. DCIT [100 ITD 1 (Jodh) (TM)) • Standard Cylinders v. ITO [24 ITD 504 (Del))…

Parashakti Distributors P. Ltd, Mumbai vs. ACIT Cen Cir 45, Mumbai

In the result, appeal of the assessee is allowed, whereas appeal of the revenue is allowed in part in terms indicated hereinabove

ITA 8748/MUM/2010[2005-06]Status: DisposedITAT Mumbai09 Oct 2015AY 2005-06

Bench: Shri R.C.Sharma, Am & Shri Pawan Singh, Jm आमकय अऩीर सिं./Ita No.8748/Mum/2010 (नििाारण वषा / Assessment Year :2005-2006) M/S Paramshakti Distributors Pvt. Vs. Acit, Cent. Cir-45, Ltd., 501-B, Elegant Business Mumbai Park, Andheri-Kurla Road, J.B.Nagar, Andheri(E), Mumbai- 400059 स्थममी रेखम सिं./ जीआइआय सिं./ Pan/Gir No. : Aabcp 5835 C (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. & आमकय अऩीर सिं./Ita Nos.9223&9224/Mum/2010 (नििाारण वषा / Assessment Years :2005-06 & 2006-07) Acit, Cent. Cir-45, Mumbai Vs. M/S Paramshakti Distributors Pvt. Ltd., 501-B, Elegant Business Park, Andheri-Kurla Road, J.B.Nagar, Andheri(E), Mumbai-400059 स्थममी रेखम सिं./ जीआइआय सिं./ Pan/Gir No. : Aabcp 5835 C (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. यनधमवरयती की ओर से /Assessee By : Shri Vijay Mehta यमजस्र् की ओर से /Revenue By :Shri Deepkant Prasad & Shri Nimesh Yadav सुनर्मई की तमयीख / Date Of Hearing : 26/08/2015 घोषणम की तमयीख/Date Of Pronouncement 09/10/2015 आदेश / O R D E R Per R.C.Sharma (A.M):

For Appellant: Shri Vijay MehtaFor Respondent: Shri Deepkant Prasad & Shri Nimesh Yadav
Section 143(3)Section 68

…urther relied upon following cases for establishing that the share application money received by the the company: • CIT v. Value Capital Services P. Ltd [307 ITR 334 (Del.)] • CIT v. AKJ Granites P. Ltd. [301 ITR 298 (Raj.)) • CIT V. First Point Finance Ltd. [286 ITR 477 (Raj.)) • Shree Barkha Synthetic Ltd. v. ACIT [283 ITR 377 (Raj.)) • CIT v. Belenje Investment & Trading Co. Ltd. (Income-tax Application No. 314 of 1993 dated 08.12.1993) • Twin Roses & Traders Agency Ltd. v. ITO (ITA No. 2653/Bom/1995 dated 18.10.1995) • Uma Polymers v. DCIT [100 ITD 1 (Jodh) (TM)) • Standard Cylinders v. ITO [24 ITD 504 (Del))…