CIT v. Korlay Trading Co. Ltd.

232 ITR 820High Court1998#849 most cited

What is CIT v. Korlay Trading Co. Ltd. authority for?

To discharge the onus under Section 68, an assessee must establish the identity of the creditor, the genuineness of the transaction, and the creditworthiness of the creditor. Merely providing basic documentary evidence or a file number is insufficient; each credit entry requires a separate, detailed explanation.

122

judgments rely on this decision, according to BharatTax’s citation analysis of 366,369 Indian tax judgments — from 2010 to 2026.

Also referred to as

CIT v. Korlay Trading Co. Ltd. · 232 ITR 820 · Section 68 · cash credit · unexplained cash credit · onus of proof · identity genuineness creditworthiness · share capital · accommodation entry · mere furnishing PAN ITR insufficient · each entry explained separately

Sections most often in play

Section 68Section 115BBESection 143(3)Section 69Section 69CSection 133ASection 142(1)Section 144

Issues it is cited on

section 106creditworthiness of the creditorsection 31paper companysource of sourcesection 251(2)share capital and share premiumsection 251(1)(a)live linkincome tax settlement commissionadmission of additional evidenceentry operator

Judgments citing CIT v. Korlay Trading Co. Ltd.

Gupta Citi Shelters Ltd vs. Commissioner of Income Tax New Delhi

Appeals of the assessee are allowed

ITA - 1324 / 2008HC Delhi23 Dec 2011

…Tribunal would be free to hear the arguments of both the parties and decide afresh in view of the observations made above. Accordingly, the reference is answered in favour of the Revenue and against the assessee." D) CIT vs. Korlay Trading Co. Ltd., 232 ITR 820 (Cal) was cited by the Revenue to press the following:- " .......... There should be a genuine transaction. The income tax file number has been given but that is not enough to prove the genuineness of the cash credit. Admittedly, there is no affidavit to this effect, by the creditor, on record. Considering these facts, we find that t…

Commissioner of Income Tax vs. Dwarkadhish Capital Pvt Ltd

Appeals are dismissed

ITA/913/2010HC Delhi02 Aug 2010

Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE MANMOHAN

Section 143(1)Section 143(2)Section 260ASection 68

…Tribunal would be free to hear the arguments of both the parties and decide afresh in view of the observations made above. Accordingly, the reference is answered in favour of the Revenue and against the assessee. D) CIT vs. Korlay Trading Co. Ltd., 232 ITR 820 (Cal) wherein it has been held as under :- ITA Nos. 911/2010 & 913/2010 Page 8 of 14 “……….There should be a genuine transaction. The income tax file number has been given but that is not enough to prove the genuineness of the cash credit. Admittedly, ther…