CIT v. Lovely Exports (P) Ltd.

216 CTR 195Supreme Court of India2008#57 most cited

What is CIT v. Lovely Exports (P) Ltd. authority for?

If an assessee company receives share application money from alleged bogus shareholders and provides their details to the Assessing Officer, no addition can be made under Section 68 in the company's hands; the Department must proceed against the shareholders by reopening their individual assessments.

854

judgments rely on this decision, according to BharatTax’s citation analysis of 366,459 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Lovely Exports (P) Ltd. · Section 68 · share application money · bogus shareholders · creditworthiness of creditor · genuineness of transaction · addition u/s 68 · reopening assessments of shareholders · 216 CTR 195 · Supreme Court 2008

Sections most often in play

Section 68Section 133(6)Section 143(3)Section 147Section 131Section 148Section 143(2)Section 153A

Issues it is cited on

creditworthiness of the creditorsource of sourceshare capital and share premiumshare application moneypaper companyretracted statementaddition u/s 68addition under section 68genuineness of the transactionentry operatoraccommodation entrysection 133(6)

Judgments citing CIT v. Lovely Exports (P) Ltd.

ITO, New Delhi vs. M/S. Mridul Estate Pvt. Ltd., Delhi

In the result, both the appeals of the Revenue are allowed

ITA 200/DEL/2014[2005-06]Status: DisposedITAT Delhi27 Mar 2019AY 2005-06

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2006-07 Income Tax Officer, Vs. M/S. Mridul Estate Pvt. Ltd., Ward-17(2), New Delhi H-108, Connaught Circus, Delhi Pan :Aaacm1124A (Appellant) (Respondent) & Assessment Year: 2005-06 Income Tax Officer, Vs. M/S. Mridul Estate Pvt. Ltd., Ward-5(4), New Delhi H-108, Connaught Circus, New Delhi Pan :Aaacm1124A (Appellant) (Respondent) Department By Ms. Rinku Singh, Sr.Dr Assessee By Sh. Ashwani Seth, Ar

Section 133(6)Section 143(1)Section 148Section 69C

…s of the documents filed of M/s Hillridge investment limited including copy of return of income, audited balance sheet, bank statement, copy of assessment order etc and decision of the Hon’ble Supreme Court in the case of CIT Vs lovely export Private Limited (216 ITR 195 )(SC) and other decisions cited by the assessee, he deleted both the additions. 3.9 Aggrieved, the Revenue is in appeal before the Tribunal raising the grounds as reproduced above. 4. Before us, the Ld. DR submitted that the assessee filed only documents in the form of the paper trail and the said party was not produced before the Assessing Offic…

DCIT 4(3)(1), Mumbai vs. Patodia Filaments P. Ltd, Mumbai

ITA 5684/MUM/2017[2010-11]Status: DisposedITAT Mumbai26 Mar 2019AY 2010-11

Bench: Shri Rajesh Kumar & Shri Amarjeet Singhassessment Year: 2010-11

For Appellant: Shri Mani Jain, A.RFor Respondent: Shri Abi Rama Kartikeyan, D.R
Section 115JSection 148Section 68

…s of the share 4 M/s. Patodia Filaments P. Ltd. holders than the onus on the part of the applicant is discharged and that addition, if any to be made is to be in the hands of the investor and not applicant. In the case of CIT v. Lovely Exports (P) Ltd [2008] 216 CTR 195 it has been held that; "If share application money is received by assessee-company from alleged bogus shareholders, whose names are given to Assessing Officer, then Department is free to proceed to reopen their individual assessments in accordance with law but this amount of share money cannot be regarded as undisclosed income under section 68 o…

Banner Builders Pvt. Ltd., Ahmedabad vs. The ACIT, Central Circle-1(1), Ahmedabad

In the result, appeal of the assessee is dismissed

ITA 773/AHD/2016[1988-89]Status: DisposedITAT Ahmedabad22 Mar 2019AY 1988-89

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./ Ita No. 773/Ahd/2016 "नधा"रण वष"/Assessment Year: 1988-89 Banner Builders P.Ltd. Acit, Cent.Cir.1(1) 18, New Alkapuri Society Vs Ahmedabad. Gulbai Tekra Ambawadi Ahmedabad 380015. Pan : Aabcb 8794 Q अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Suketu Shah, Ar Revenue By : Shri O.P. Pathak, Sr.Dr

For Appellant: Shri Suketu Shah, ARFor Respondent: Shri O.P. Pathak, Sr.DR
Section 144Section 68

…from these persons as unaccounted cash credit, is deleted.” 6. The ld.counsel for the assessee submitted that the assessee has given identity of the share applicants. As per the decision of Hon’ble Supreme Court in the case of CIT Vs. Lovely Exports P.Ltd., 216 CTR 195, the AO should have made inquiry in their cases, but he could not make addition in the case of the assessee. On other hand, the ld.DR relied upon the order of the Revenue authorities. 7. On due consideration of the facts of the case, we are of the view that once the applicants have denied having given any amounts to the assessee, then what sort…

Bidit Financial Management Pvt. Ltd., Kolkata vs. DCIT, Circle-7(1), Kolkata

ITA 579/KOL/2017[2012-13]Status: DisposedITAT Kolkata15 Mar 2019AY 2012-13

Bench: Shri A.T.Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.579/Kol/2017 ("नधा"रणवष" / Assessment Year:2012-13)

For Appellant: Shri Miraj D Shah, ARFor Respondent: Shri Saurabh Mukherjee, Addl. CIT DR
Section 131Section 143(3)Section 14ASection 234ASection 68

…cer invoked the provisions under Section 68/69 of the Income Tax Act and made addition of Rs.24,00,000/-. On appeal the Learned CIT (A) by following the decision of the Supreme Court in the case of Cl. T. vs. M/s. Lovely Exports Pvt. Ltd., reported in (2008) 216 CTR 195 allowed the appeal by holding -that share capital/premium of Rs. 24,00,000/- received from the investors was not liable to be treated under Section 68 as unexplained credits and it should not be taxed in the hands of the appellant company. As indicated earlier, the Tribunal below dismissed the appeal filed by the Revenue. After hearing the lear…

ITO, New Delhi vs. M/S. Jai Gajanan Enterprises Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4861/DEL/2015[2007-08]Status: DisposedITAT Delhi15 Mar 2019AY 2007-08

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2007-08

Section 132Section 143(3)Section 147Section 148Section 271(1)(c)Section 68

…on-genuine. The aforesaid proposition of law clearly emerges from the cases mentioned below:- 1. Gangeshwari Metal (P.) Ltd: [2013] 30 taxmann.com 328 (Delhi) 2. CIT V. Goel Sons Golden Estate (P) Ltd ITA No. 212/2012 3. CIT v. Lovely Exports (P.) Ltd. [2008] 216 CTR 195 (SC) 4. CIT v. Dwarkadhish Investment (P) Ltd [2010] 194 taxman 43 (Delhi) 5. CIT v. Divine Leasing & Finance Ltd. [2007] 158 Taxman 440 (Delhi) In this context the appellant has again asserted that it’s case is not of a normal scrutiny under section 143(3). In fact, the appellant was originally assessed under section 143(3) as mentioned earlier…

ITO, WD-2(1), Siliguri, Darjeeling vs. M/S Samaksh Infrastructure Pvt. Ltd., Siliguri

Accordingly, the grounds raised by the Revenue are dismissed

ITA 1036/KOL/2015[2012-2013]Status: DisposedITAT Kolkata27 Feb 2019AY 2012-2013

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am] I.T.A. No. 1036/Kol/2015 Assessment Year: 2012-13 Ito, Ward-2(1), Siliguri Vs. M/S. Samaksh Infrastructure Pvt. Ltd. Pan : Aaqcs 2780 J Appellant Respondent

Section 133(6)Section 68

…share applicants for which every details were very much made available to him by the assessee. We find that the reliance placed by the Learned Ld. CIT(1) on the decision of the Hon'ble Apex Court in the case of CIT vs Lovely Exports (P) Ud reported in (2008) 216 CTR 195 (SC) is very well founded, wherein, it has been very clearly held that the only obligation of the company receiving the share application money is to prove the existence of the shareholders and for which the assessee had discharged the onus of proving their existence and also the source of share application money received. 3.4. 1. We also find th…

DCIT, New Delhi vs. M/S. Mahesh Wood Products (P) Ltd., New Delhi

In the result, the ITA No

ITA 4875/DEL/2014[2010-11]Status: DisposedITAT Delhi21 Feb 2019AY 2010-11

Bench: Sh. H.S. Sidhu & Shri Prashant Maharishi

Section 132Section 132(4)Section 143(2)Section 153A

…. Gangeshwari Metal (P) Ltd 361 ITR 10 (Del) (PB 85-89) relying on lovely exports (supra) 4.1.5 He further draw our attention to the following judgements wherein it has been conclusively held, relying on the decisions in the case of Lovely Exports Pvt Ltd (216 CTR 195) (SC), that as long as the identity of the share applicant was proved, the burden of proving the creditworthiness was not on the Assessee Company. It was also held that if the share application money is received from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their…

DCIT, New Delhi vs. M/S. Mahesh Wood Products (P) Ltd., New Delhi

In the result, the ITA No

ITA 4874/DEL/2014[2009-10]Status: DisposedITAT Delhi21 Feb 2019AY 2009-10

Bench: Sh. H.S. Sidhu & Shri Prashant Maharishi

Section 132Section 132(4)Section 143(2)Section 153A

…. Gangeshwari Metal (P) Ltd 361 ITR 10 (Del) (PB 85-89) relying on lovely exports (supra) 4.1.5 He further draw our attention to the following judgements wherein it has been conclusively held, relying on the decisions in the case of Lovely Exports Pvt Ltd (216 CTR 195) (SC), that as long as the identity of the share applicant was proved, the burden of proving the creditworthiness was not on the Assessee Company. It was also held that if the share application money is received from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their…

DCIT, New Delhi vs. M/S. Mahesh Wood Products (P) Ltd., New Delhi

In the result, the ITA No

ITA 4873/DEL/2014[2008-09]Status: DisposedITAT Delhi21 Feb 2019AY 2008-09

Bench: Sh. H.S. Sidhu & Shri Prashant Maharishi

Section 132Section 132(4)Section 143(2)Section 153A

…. Gangeshwari Metal (P) Ltd 361 ITR 10 (Del) (PB 85-89) relying on lovely exports (supra) 4.1.5 He further draw our attention to the following judgements wherein it has been conclusively held, relying on the decisions in the case of Lovely Exports Pvt Ltd (216 CTR 195) (SC), that as long as the identity of the share applicant was proved, the burden of proving the creditworthiness was not on the Assessee Company. It was also held that if the share application money is received from alleged bogus shareholders, whose names are given to the Assessing Officer, then the department is free to proceed to reopen their…

ITO, New Delhi vs. M/S Blisswood Green Infrastructure and Developers Pvt. Ltd., New Delhi

In the result, the appeal is dismissed

ITA 5120/DEL/2016[2012-13]Status: DisposedITAT Delhi15 Feb 2019AY 2012-13

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahuassessment Year: 2012-13

Section 133(6)Section 68

…me. We, therefore, observe that the ingredients of section 68 stand satisfied on the part of the assessee. 14. The ld. counsel for the assessee in support of its contentions has also relied on the following decisions : CIT v. Lovely Exports (P.) Ltd. [2008] 216 CTR 195 (SC) (i) ACIT v. Shyam Indus Power Solutions (P.) Ltd. [2018] 90 taxmann.com 424 (Delhi - (ii) Trib.) CIT v. Kamdhenu Steel &. Alloys Ltd. [2014] 361 ITR 220/19 taxmann.com 26 (iii) (Delhi) 12 CIT v. Winstral Petrochemicals (P.) Ltd. [2011] 10 taxmann.com 137 (Delhi) (iv) CIT vs. Gangour Investment Ltd. (2009) 18 DTR (Del) 242: (2009) 179 Taxman…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1211/JPR/2018[2013-14]Status: DisposedITAT Jaipur12 Feb 2019AY 2013-14
Section 132Section 153Section 68

…s well as High Court has held that once the identity of creditor is established, the department is free to reopen the assessment of creditor and no addition can be made in the hand of borrower as rightly held in case of CIT v/s Lovely Exports Pvt. Ltd. [2008] 216 CTR 195 (SC), Commissioner of Income-tax v. Rock Fort Metal & Minerals Ltd. [2011] 198 TAXMAN 497 (Delhi), Divine Leasing & Finance Limited [2008] 299 ITR 268 (Delhi) CIT v. Orissa Corporation (P.) Ltd. [1986) 159 ITR 78/25 Taxman 80F (SC) and others on this question of law. 6.11 Further, power to call for information/production of evidences or enforcin…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1099/JPR/2018[2016-17]Status: DisposedITAT Jaipur12 Feb 2019AY 2016-17
Section 132Section 153Section 68

…s well as High Court has held that once the identity of creditor is established, the department is free to reopen the assessment of creditor and no addition can be made in the hand of borrower as rightly held in case of CIT v/s Lovely Exports Pvt. Ltd. [2008] 216 CTR 195 (SC), Commissioner of Income-tax v. Rock Fort Metal & Minerals Ltd. [2011] 198 TAXMAN 497 (Delhi), Divine Leasing & Finance Limited [2008] 299 ITR 268 (Delhi) CIT v. Orissa Corporation (P.) Ltd. [1986) 159 ITR 78/25 Taxman 80F (SC) and others on this question of law. 6.11 Further, power to call for information/production of evidences or enforcin…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1098/JPR/2018[2015-16]Status: DisposedITAT Jaipur12 Feb 2019AY 2015-16
Section 132Section 153Section 68

…s well as High Court has held that once the identity of creditor is established, the department is free to reopen the assessment of creditor and no addition can be made in the hand of borrower as rightly held in case of CIT v/s Lovely Exports Pvt. Ltd. [2008] 216 CTR 195 (SC), Commissioner of Income-tax v. Rock Fort Metal & Minerals Ltd. [2011] 198 TAXMAN 497 (Delhi), Divine Leasing & Finance Limited [2008] 299 ITR 268 (Delhi) CIT v. Orissa Corporation (P.) Ltd. [1986) 159 ITR 78/25 Taxman 80F (SC) and others on this question of law. 6.11 Further, power to call for information/production of evidences or enforcin…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1097/JPR/2018[2014-15]Status: DisposedITAT Jaipur12 Feb 2019AY 2014-15
Section 132Section 153Section 68

…s well as High Court has held that once the identity of creditor is established, the department is free to reopen the assessment of creditor and no addition can be made in the hand of borrower as rightly held in case of CIT v/s Lovely Exports Pvt. Ltd. [2008] 216 CTR 195 (SC), Commissioner of Income-tax v. Rock Fort Metal & Minerals Ltd. [2011] 198 TAXMAN 497 (Delhi), Divine Leasing & Finance Limited [2008] 299 ITR 268 (Delhi) CIT v. Orissa Corporation (P.) Ltd. [1986) 159 ITR 78/25 Taxman 80F (SC) and others on this question of law. 6.11 Further, power to call for information/production of evidences or enforcin…

Deputy Commissioner of Income Tax, Central Circle, Kota vs. M/S Oriental Power Cables Ltd., Kota

ITA 1096/JPR/2018[2012-13]Status: DisposedITAT Jaipur12 Feb 2019AY 2012-13
Section 132Section 153Section 68

…s well as High Court has held that once the identity of creditor is established, the department is free to reopen the assessment of creditor and no addition can be made in the hand of borrower as rightly held in case of CIT v/s Lovely Exports Pvt. Ltd. [2008] 216 CTR 195 (SC), Commissioner of Income-tax v. Rock Fort Metal & Minerals Ltd. [2011] 198 TAXMAN 497 (Delhi), Divine Leasing & Finance Limited [2008] 299 ITR 268 (Delhi) CIT v. Orissa Corporation (P.) Ltd. [1986) 159 ITR 78/25 Taxman 80F (SC) and others on this question of law. 6.11 Further, power to call for information/production of evidences or enforcin…

M/S Oriental Power Cables Ltd., Kota vs. Deputy Commissioner of Income Tax, Central Circle, Kota

ITA 1028/JPR/2018[2015-16]Status: DisposedITAT Jaipur12 Feb 2019AY 2015-16
Section 132Section 153Section 68

…s well as High Court has held that once the identity of creditor is established, the department is free to reopen the assessment of creditor and no addition can be made in the hand of borrower as rightly held in case of CIT v/s Lovely Exports Pvt. Ltd. [2008] 216 CTR 195 (SC), Commissioner of Income-tax v. Rock Fort Metal & Minerals Ltd. [2011] 198 TAXMAN 497 (Delhi), Divine Leasing & Finance Limited [2008] 299 ITR 268 (Delhi) CIT v. Orissa Corporation (P.) Ltd. [1986) 159 ITR 78/25 Taxman 80F (SC) and others on this question of law. 6.11 Further, power to call for information/production of evidences or enforcin…

M/S Oriental Power Cables Ltd., Kota vs. Deputy Commissioner of Income Tax, Central Circle, Kota

ITA 1027/JPR/2018[2014-15]Status: DisposedITAT Jaipur12 Feb 2019AY 2014-15
Section 132Section 153Section 68

…s well as High Court has held that once the identity of creditor is established, the department is free to reopen the assessment of creditor and no addition can be made in the hand of borrower as rightly held in case of CIT v/s Lovely Exports Pvt. Ltd. [2008] 216 CTR 195 (SC), Commissioner of Income-tax v. Rock Fort Metal & Minerals Ltd. [2011] 198 TAXMAN 497 (Delhi), Divine Leasing & Finance Limited [2008] 299 ITR 268 (Delhi) CIT v. Orissa Corporation (P.) Ltd. [1986) 159 ITR 78/25 Taxman 80F (SC) and others on this question of law. 6.11 Further, power to call for information/production of evidences or enforcin…

Income Tax Officer, Ludhiana vs. Sh Surender Kumar Prop, Ludhiana

The appeal of the Assessee is partly allowed for statistical purposes

ITA 747/CHANDI/2016[2011-12]Status: DisposedITAT Chandigarh08 Feb 2019AY 2011-12

Bench: Itat Shall Not Be Filed In Cases Where The Tax Effect Does Not Exceed The Monetary Limit Of Rs. 20 Lacs. The Tax Will Not Include Any Interest Thereon. It Is Further Clarified That If In The Case Of An Assessee, Disputed Issues Arise In More Than One Assessment Year, Appeal Can Be Filed In Respect Of Such Assessment Year Or Years In Which The Tax Effect In Respect Of Disputed Issues Exceeds The Monetary Limit So Specified.

For Appellant: NoneFor Respondent: Shri Manjit Singh

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ”B”, CHANDIGARH "ी संजय गग", "या"यक सद"य एवं डा. बी.आर.आर, कुमार, लेखा सद"य BEFORE: Sh.SANJAY GARG, JM & DR. B.R.R. KUMAR, AM आयकर अपील सं./ ITA No. 747/Chd/2016 "नधा"रण वष" / Assessment Year : 2011-12 The ITO Sh. Surender Kumar, बनाम Ward 3(3), Prop. M/s BBS Exports, 1175/1-A, Ludhiana Kalyan Nagar, Circular Road Ludhiana "थायी लेखा सं./PAN No: ACCPK4304K अपीलाथ"/Appellant ""यथ"/Respondent Cross Objection No. 2/Chd/2017 (आयकर अपील सं./ ITA No. 747/Chd/2016) "नधा"रण वष" / Assessment Year : 2011-12 Sh. Surend…

Surinder Kumar, Ludhiana vs. DCIT, Ludhiana

The appeal of the Assessee is partly allowed for statistical purposes

ITA 475/CHANDI/2016[2011-12]Status: DisposedITAT Chandigarh08 Feb 2019AY 2011-12

Bench: Itat Shall Not Be Filed In Cases Where The Tax Effect Does Not Exceed The Monetary Limit Of Rs. 20 Lacs. The Tax Will Not Include Any Interest Thereon. It Is Further Clarified That If In The Case Of An Assessee, Disputed Issues Arise In More Than One Assessment Year, Appeal Can Be Filed In Respect Of Such Assessment Year Or Years In Which The Tax Effect In Respect Of Disputed Issues Exceeds The Monetary Limit So Specified.

For Appellant: NoneFor Respondent: Shri Manjit Singh

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ”B”, CHANDIGARH "ी संजय गग", "या"यक सद"य एवं डा. बी.आर.आर, कुमार, लेखा सद"य BEFORE: Sh.SANJAY GARG, JM & DR. B.R.R. KUMAR, AM आयकर अपील सं./ ITA No. 747/Chd/2016 "नधा"रण वष" / Assessment Year : 2011-12 The ITO Sh. Surender Kumar, बनाम Ward 3(3), Prop. M/s BBS Exports, 1175/1-A, Ludhiana Kalyan Nagar, Circular Road Ludhiana "थायी लेखा सं./PAN No: ACCPK4304K अपीलाथ"/Appellant ""यथ"/Respondent Cross Objection No. 2/Chd/2017 (आयकर अपील सं./ ITA No. 747/Chd/2016) "नधा"रण वष" / Assessment Year : 2011-12 Sh. Surend…

Ritu Kamal Singhal, Mumbai vs. ITO 24(3)(4), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3017/MUM/2018[2010-11]Status: DisposedITAT Mumbai01 Feb 2019AY 2010-11

Bench: Shri A.K. Garodiaassessment Year : 2010-11

For Appellant: Shri Vimal Punamiya, ARFor Respondent: Shri Vijay Kumar Soni, DR
Section 132Section 133(6)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “SMC”, MUMBAI BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER Assessment Year : 2010-11 Smt. Ritu Kamal Singhal, 203A, A-Wing, Mithila Apartment, Income Tax Officer-24(3)(4), J.B. Nagar, Andheri-West, MUMBAI MUMBAI Vs. [PAN : AAKPB1532A] (Appellant) (Respondent) Appellant By : Shri Vimal Punamiya, AR Respondent By : Shri Vijay Kumar Soni, DR Date of Hearing : 28-01-2019 Date of Pronouncement : 01-02-2019 O R D E R This appeal is filed by the assessee, which is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-36, Mumbai, dated 08-02-…