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 366,339 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 4(2)(4), Mumbai vs. Khushboo Exports P.Ltd, Mumbai

ITA 3647/MUM/2017[2007-08]Status: DisposedITAT Mumbai21 Sept 2017AY 2007-08

Bench: Shri B.R. Baskaran (Am)

Section 148Section 68

…ntity of these persons are not or doubt and assessment particulars of all the persons are on record and there is no material to hold that creditworthiness of these persons are not established. The judgment of Hon'ble Supreme Court in the case of Lovely Export 216 CTR 195 and also the judgment of Hon'ble Delhi High Court in the case of CIT vs. Value Capital Services Pvt Ltd 307 ITR 334 are relevant on this issue. It was held by Hon'ble Madras High Court in the case of CIT vs. Electro Polychem Ltd. 294 ITR 661 and Hon'ble Allahabad High 11 M/s. Khshboo Exports Pvt. Ltd. Court in the case of Jaya Securities Ltd 16…

M/S. Meditronics India Pvt. Ltd., Delhi vs. ITO, New Delhi

The appeal is allowed

ITA 6251/DEL/2012[2004-05]Status: DisposedITAT Delhi12 Sept 2017AY 2004-05

Bench: Shri I. C. Sudhir & Shri L. P. Sahui. T. Appeal No. 6251/Del/2012 Assessment Year : 2004-2005. M/S. Meditronics India Pvt. Ltd., Income Tax Officer, 41, Pocket–Ii, Jasola, Vs. Ward : 6 (3), D E L H I – 110 025. New Delhi. Pan : Aadcm 3622 Q (Appellant) (Respondent)

For Appellant: Shri Salil Aggarwal, Adv.; &For Respondent: Shri Gudrun Nehra, Sr. D. R
Section 147

…e identity and creditworthiness of the share applicants and genuineness of the transaction and hence the burden which lay upon the assessee under section 68 of the Act stood discharged, (at pages 23-36 of PB and pages 6-102 of PB) :- CIT vs. Lovely Export i. 216 CTR 195 CIT vs. Kamdhenu Steel and Alloys Ltd. ii. reported in 248 CTR 33 CIT vs. vs. Nipuan Auto Pvt. Ltd. iii. in ITA 225/2013 dated 30.04.2013 Commissioner of Income-tax iv. Vs. Supertech Diamond Tools (P.) Ltd [2014] 44 taxmann.com 460 (Rajasthan) Commissioner of Income-tax (Central) v. 12 I. T. Appeal No. 6251/Del/2012 Assessment Year : 2004-2005.…

ACIT, Circle-2(2), Bhubaneswar vs. Printlink Computer and Communication Pvt. Ltd., Bhubaneswar

In the result, appeals of the revenue i

ITA 497/CTK/2013[2010-11]Status: DisposedITAT Cuttack12 Jul 2017AY 2010-11
For Appellant: Shri B.K.Mahapatra, ARFor Respondent: Shri D.K.Pradhan, DR
Section 133(6)Section 142(1)Section 143(3)Section 40Section 68

…ted & CO Nos.02&03/14 the addition based on the judicial decisions. We find that before the CIT(A), ld. AR has relied on plethora of judicial pronouncements, wherein the ratio of decision of Hon’ble Supreme Court in the case of Lovely Exports (P) Ltd., [2008] 216 CTR 195 (SC), have been followed. The CIT(A) has found that Shri Ashok Agrawal and Sri Iswar Shara (identified directors) were running the 3 companies in questions at the identified address and the accounts were audited. The companies were also operating bank account and the transactions of loan have been routed through banking channel. Therefore, the id…

ACIT, Circle-2(2), Bhubaneswar vs. Printlink Computer and Communication Pvt. Ltd., Bhubaneswar

In the result, appeals of the revenue i

ITA 496/CTK/2013[2009-10]Status: DisposedITAT Cuttack12 Jul 2017AY 2009-10
For Appellant: Shri B.K.Mahapatra, ARFor Respondent: Shri D.K.Pradhan, DR
Section 133(6)Section 142(1)Section 143(3)Section 40Section 68

…ted & CO Nos.02&03/14 the addition based on the judicial decisions. We find that before the CIT(A), ld. AR has relied on plethora of judicial pronouncements, wherein the ratio of decision of Hon’ble Supreme Court in the case of Lovely Exports (P) Ltd., [2008] 216 CTR 195 (SC), have been followed. The CIT(A) has found that Shri Ashok Agrawal and Sri Iswar Shara (identified directors) were running the 3 companies in questions at the identified address and the accounts were audited. The companies were also operating bank account and the transactions of loan have been routed through banking channel. Therefore, the id…

DCIT, New Delhi vs. M/S. Micromax Informatics Ltd., Gurgaon

The appeal of the Revenue is dismissed and that of the assessee is partly allowed

ITA 4647/DEL/2014[2006-07]Status: DisposedITAT Delhi30 Jun 2017AY 2006-07

Bench: Shri I. C. Sudhir & Shri B. P. Jain

For Appellant: Shri Ved Jain, C. AFor Respondent: Shri H. K. Choudhary, CIT [DR]
Section 142Section 143(3)Section 153A

…is possession. The Assessing Officer relied on the inference and remarks of the special auditor and ignored the material in his possession. Respectfully following the judgment of the Hon’ble Supreme Court in the case of CIT vs. Lovely Exports Pvt. Ltd. (2008) 216 CTR 195 (SC), I hold that the Assessing Officer was incorrect and unjustified in making an addition of Rs.50 lakh. Accordingly, the addition made by the Assessing Officer amounting to Rs.50 lakh is deleted. ” 26.3 We are of the view that the findings recorded by the learned CIT (Appeals) is the correct finding and the Assessing Officer under the above d…

M/S. Micromax Informatics Ltd., New Delhi vs. DCIT, New Delhi

The appeal of the Revenue is dismissed and that of the assessee is partly allowed

ITA 4642/DEL/2014[2006-07]Status: DisposedITAT Delhi30 Jun 2017AY 2006-07

Bench: Shri I. C. Sudhir & Shri B. P. Jain

For Appellant: Shri Ved Jain, C. AFor Respondent: Shri H. K. Choudhary, CIT [DR]
Section 142Section 143(3)Section 153A

…is possession. The Assessing Officer relied on the inference and remarks of the special auditor and ignored the material in his possession. Respectfully following the judgment of the Hon’ble Supreme Court in the case of CIT vs. Lovely Exports Pvt. Ltd. (2008) 216 CTR 195 (SC), I hold that the Assessing Officer was incorrect and unjustified in making an addition of Rs.50 lakh. Accordingly, the addition made by the Assessing Officer amounting to Rs.50 lakh is deleted. ” 26.3 We are of the view that the findings recorded by the learned CIT (Appeals) is the correct finding and the Assessing Officer under the above d…

ACIT, Meerut vs. M/S. Emm Vee Infrastructures (India) Pvt. Ltd., Meerut

In the result, the Appeal filed by the Revenue stands dismissed

ITA 4178/DEL/2012[2009-10]Status: DisposedITAT Delhi19 Jun 2017AY 2009-10

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Chander Mehra, CAFor Respondent: Sh. Anil Kumar Sharma, Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 68

…cknowledgment of Income Tax Return and the copy of share application, the copy of the Board Resolution for the application for shares. Therefore, the Ld. CIT(A) has relied upon the judgment of Apex Court in the case of ClT Vs Lovely Exports Pvt. Ltd (2008) 216 CTR 195, as referred by the Ld. AR of the assessee before him and hence, rightly deleted the addition of Rs.3,00,00,000/-, which does not need any interference on our part, therefore, we uphold the action of the Ld. CIT(A) on the issue in dispute and reject the revised ground no. 1 raised by the Revenue. Our aforesaid view is fortified by the ITAT, ‘E…

ITO, New Delhi vs. M/S I.P. India, New Delhi

Appeal of the Revenue is allowed

ITA 1450/DEL/2010[2005-06]Status: DisposedITAT Delhi16 Jun 2017AY 2005-06

Bench: Shri N. K. Saini & Ms Suchitra Kamble

Section 131Section 133Section 133(6)Section 68

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘C’ NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A .No.1450/DEL/2010 (ASSESSMENT YEAR-2005-06) ITO Vs I.P. India P. Ltd. Ward 11 (4), Room No. 324 A-3/3A, Green Apartments C. R. Building, Paschim Vihar, New Delhi New Delhi (APPELLANT) AAACS1792C (RESPONDENT) Appellant by Sh. Amrit Lal, Sr. DR Respondent by Sh. K. Sampath & V. Raja Kumar, Advs. Date of Hearing 09.05.2017 Date of Pronouncement 16.06.2017 ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the Revenue against the order dated 03/03/2…

Sadhana Phosphates & Chemicals Ltd., New Delhi vs. Itow, New Delhi

In the result appeal filed by revenue is allowed

ITA 5066/DEL/2010[2000-01]Status: DisposedITAT Delhi11 May 2017AY 2000-01

Bench: Sh. R. K. Panda & Smt. Beena A. Pillaisadhana Phosphates & Ito A Chemical Ltd. Ward-7(2) 304, South Delhi House Vs. New Delhi 12, Zamrudpur Community Centre, Kailash Colony New Delhi Gir/Pan: Aabcs5840G (Appellant) (Respondent)

For Appellant: Sh. K. Sampath, Sr. AdvFor Respondent: Sh. N. K. Bansal, Sr.DR
Section 143(1)Section 143(2)Section 271Section 271(1)(b)Section 274Section 68

…rom all parties during the appellate proceedings and the same were also available on assessment records and the AO should have taken note of the same. The appellant has also relied on the decision of Supreme Court in the case of CIT vs. Lovely Exports Pvt Ltd 216 CTR 195 (SC) wherein it has been held that if the Department has any suspicion of alleged bogus shareholders or share applicants whose names are given to the assessing officer then the department is free to proceed to reopen their individual assessments in accordance with law. It has also been stated by the appellant that where the share application mone…

Bmel Infra India Ltd., Kolkata vs. CIT-3, Kolkata

In the result the appeal of the assessee is allowed

ITA 385/KOL/2015[2006-2007]Status: DisposedITAT Kolkata03 May 2017AY 2006-2007

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] I.T.A No. 385/Kol/2015 Assessment Year : 2006-07 Bmel Infra India Ltd. -Vs.- C.I.T.-3, Kolkata Kolkata Kolkata [Pan : Aaccb 6325 N] (Respondent) (Appellant) For The Appellant : Shri Vigyaneshwar Nath Datta, Advocate For The Respondent : Shri Bani Brata Dutta, Addl. Cit.Sr.Dr Date Of Hearing : 12.04.2017. Date Of Pronouncement : 03.05.2017. Order Per N.V.Vasudevan, Jm This Is An Appeal By The Assessee Against The Order Dated 25.03.2015 Of C.I.T.(A)-Kolkata-3, Kolkata Passed U/S 263 Of The Income Tax Act, 1961 (Act).

For Appellant: Shri Vigyaneshwar Nath Datta, AdvocateFor Respondent: Shri Bani Brata Dutta, Addl. CIT.Sr.DR
Section 143(1)Section 144Section 263Section 68

…s were seized by police department and the relevant documents to support his case could not be furnished. In respect to issue of share application money, CIT(A) quoted the decision of Hon'ble Supreme Court in the case of CIT Vs. Lovely exports (P) Ltd. (2008) 216 CTR 195 (SC) but relied on some wrong quotation, which is not from Lovely Exports (P) Ltd. (supra) and that quotation reads as under: "In the present case, the details had been furnished to the Assessing Officer much before March, 1999, but he failed to react to the shifting of the burden to investigate into the creditworthiness of the share applicants.…

M/S. Prabhatam Investment Pvt. Ltd., Delhi vs. ACIT, New Delhi

ITA 2525/DEL/2015[2011-12]Status: DisposedITAT Delhi17 Apr 2017AY 2011-12

Bench: Sh. Bhavnesh Saini & Sh.L.P.Sahu

Section 132Section 139(1)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘G’ NEW DELHI BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER AND SH.L.P.SAHU, ACCOUNTANT MEMBER I.T.A .No.-2525/Del/2015 (ASSESSMENT YEAR-2011-12) Prabhatam Investment Pvt. Ltd., Vs ACIT, Rastriya Tower, 38, Rani Jhansi Central Circle-15, Road, Jhandewalan, Delhi. New Delhi. PAN-AAECP1021H (APPELLANT) (RESPONDENT) I.T.A .No.-2523/Del/2015 (ASSESSMENT YEAR-2011-12) Prabhatam Buildtech Ltd., Vs ACIT, Rastriya Tower, 38, Rani Jhansi Central Circle-15, Road, Jhandewalan, Delhi-110055. New Delhi. PAN-AADCP9211E (APPELLANT) (RESPONDENT) I.T.A .No.-2524/Del/2015…

M/S. Airads Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal filed by the Assessee is allowed

ITA 4676/DEL/2014[2011-12]Status: DisposedITAT Delhi22 Mar 2017AY 2011-12

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

For Appellant: Sh. Ved Jain, AdvFor Respondent: Sh. S.K. Jain, DR
Section 68

…is .thus illegal, without jurisdiction, and requires to be deleted in entirety. 4.01 That the addition made to income is incorrect and is against law in view of the decision of The Hon'ble Apex Court in Commissioner of Income Tax vs Lovely Exports (P) Ltd., 216 CTR 195, subsequently followed and applied by The Hon'ble Delhi High Court in commissioner Of Income-Tax vs Stellar Investment Ltd (Delhi), wherein the Hon'ble Courts have held that where the share application money is alleged to have been received from alleged bogus shareholders, whose names are given to the AO, the Revenue should proceed to reopen the…

Sushila Steel Complex (P) Ltd., Kolkata vs. The ITO, WD-7 (3), Kolkata

In the result, the appeal of the assessee is dismissed

ITA 540/KOL/2014[2002-2003]Status: DisposedITAT Kolkata17 Mar 2017AY 2002-2003

Bench: Shri P.M. Jagtap

Section 133(6)Section 143(1)Section 143(3)Section 148Section 68

…by the Assessing Officer were confronted by the ld. CIT(Appeals) to the assessee, reliance was placed by the assessee on various judicial pronouncements including the decision of the Hon’ble Supreme Court in the case of CIT –vs.- Lovely Exports Pvt. Limited [216 ITR 195] to contend that the limited onus that lay on it to explain the relevant cash credits in the form of share capital introduction was duly discharged by the assessee in terms of section 68. After discussing the said judicial pronouncements cited by the assessee in great details, the ld. CIT(Appeals) did not find merit in the case of the assessee an…

ACIT, Alwar vs. M/S Prime Chem Oil Ltd., Alwar

ITA 9/JPR/2012[1999-00]Status: DisposedITAT Jaipur10 Mar 2017AY 1999-00
For Appellant: Shri P.C. Parwal (C.A.)For Respondent: Shri Prithaviraj Meena(Addl. CIT)
Section 143(1)Section 143(3)Section 147Section 148Section 68Section 69

…ar Ispat, Zindal Oil Swift Fin Vest, Shambhuka Agro including Moon Holding and Subh in Cap but confirmation of above companied obtained by the AO. The appellant relied upon CIT Steeller investment Ltd. 251 ITR 263 (2000) SC and CIT Vs. Lovely Export Pvt. Ltd. 216 CTR 195 ( SC) and argued that if the share application money is received by the assessee company from alleged bogus share holder, whose names are given to the AO, then the department is free to proceed to reopen their individual assessment in accordance with law, but it cannot regarded as undisclosed income of the assessee company. The ld. AO also referr…

M/S. R.P. Singh & Co. Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 5710/DEL/2012[2000-01]Status: DisposedITAT Delhi10 Mar 2017AY 2000-01

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2000-01 Vs. The Acit, Circle-15(1), C.R. M/S. R.P. Singh & Co. Pvt. Ltd., 382, Bhera Enclave Pachim Building, I.P. Estate, New Delhi Vihar, New Delhi Pan : Aaacr5778B (Appellant) (Respondent) Appellant By S/Sh. J.S. Kochar & U.S. Kochar, Advocates. Respondent By Sh. F.R. Meena, Sr.Dr Date Of Hearing 05.01.2017 Date Of Pronouncement 10.03.2017 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against The Order Of Learned Commissioner Of Income Tax (Appeals)-Xviii, New Delhi, Dated 14.08.2012, For Assessment Year 2000-01 Raising The Following Grounds : 1) The Learned Commissioner Of Income Tax (Appeals) Erred In Law By Confirming The Addition Of Rs.13,90,000/- Received As Share Application Money, Despite The Fact That Out Of A Total Of 29 Share Applicants. I. 19 Applicants Whose Aggregate Investments Were Rs.10,15,000 Were Produced Before The A.O. & They Confirmed Their Investments. Ii. 2 Applicants With Aggregate Investments Of Rs.90,000 Had Since Died & Their Death Certificates Were Filed. Iii. Request Was Made To The Assessing Officer To Issue Summons U/S 131 To 4 Applicants With Aggregate Investment

Section 131Section 143(1)Section 147Section 148Section 68

…ficer can proceed as has been held in Lovely Exports (P) Ltd. (supra) against such creditors in accordance with law.” (B) CIT Vs. J.J. Jindal Infin Pvt. Ltd.(supra) “Keeping in view the mandate of law in Commissioner of Income Tax Vs. Lovely Exports (P) Ltd., 216 CTR 195 (SC) and the concurrent findings of fact arrived at by the two authorities below, the share application money cannot be regarded as undisclosed income of the assessee under Section 68 of the Act. Consequently, the present appeal, being bereft of merit, is dismissed in limine.” (C) CIT Vs. TDI Marketing Pvt. Ltd. (supra) “It will be useful to clar…

Commissioner of Income Tax vs. M/S Real Overseas P.Ltd

ITA/232/2004HC Delhi09 Mar 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

Section 158Section 158B

…$~1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 232/2004 COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr. Ruchir Bhatia, Adv. versus M/S REAL OVERSEAS P. LTD. ..... Respondent Through: CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE NAJMI WAZIRI O R D E R % 09.03.2017 1. The question of law framed in this case is as follows: "Whether considering Section 158BA(2) with the Explanations and Section 158 (3) as also sub-section (l) of Section 158B, it is open to the assessing officer to include the income of the assessee, which is not disclosed for assessment for the block period though the…

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)

…se laws. (i) CIT v. P. Mohanakala [2007] 161 Taxman 169 / 291 ITR 278 (SC). 53 M/s.Tirupati College of Technical Education Society vs LD. CIT( Exemption), Jaipur (ii) CIT v/s Real Time Marketing (P) Ltd 306 ITR 35 (Del) (iii) CIT v/s Lovely Exports (P) Ltd 216 CTR 195(SC), wherein it has been held that “If the share application money is received by the assessee company from alleged bogus share holders, whose names are given to the AO, then the department is free to proceed to reopen their individual assessment in accordance with law, but it cannot be regarded as undisclosed income of assessee company” (iv) CIT…

Jigar Palm Resorts P.Ltd, Mumbai vs. ITO 8(2)(1), Mumbai

In the result, appeal of the assessee is allowed for statistical purpose

ITA 7628/MUM/2014[2010-11]Status: DisposedITAT Mumbai10 Feb 2017AY 2010-11

Bench: Shri D.Karunakara Rao & Shri Pawan Singh

For Appellant: Mr. Devendra Jain (AR)For Respondent: Mr. Saurabh Kumar (DR)
Section 132Section 133Section 143(3)Section 253Section 254(1)Section 68

…es below disregarded the documentary evidence and made the addition solely on the basis of third party statement (statement of Mukesh Choksi). The Ld. AR of the assessee further relied upon the decision of Hon’ble Apex Court in CIT vs. Lovely Export Pvt. Ltd. 216 CTR 195, decision of CIT vs. Pranav Foundation Ltd. 51 Taxman.com 98 (Madras), CIT Vs. Kuber Ploritech Ltd. 2 Taxman 136 (Del.) and ACIT Vs. ETC Industries Ltd. (2012) 21 taxman.com 457 (Indore). The ld. AR of the assessee further submitted that in case of Jafferali K. Rattonsey Vs ADIT [2006] 6 SOT 247 (Mum), Ravinderkumar Toshniwal Vs DIT ITA No.5302/M…

M/S. Utkal Plaster Pvt. Ltd., Bhubaneswar vs. ITO, Ward-1(3), Bhubaneswar

In the result, the appeal filed by the assessee is allowed

ITA 249/CTK/2016[2008-09]Status: DisposedITAT Cuttack23 Jan 2017AY 2008-09

Bench: Shri N.S Sainiassessment Year :2008-09

For Appellant: Shri K.K.Bal, ARFor Respondent: Shri D.K.Pradhan, DR
Section 194CSection 40Section 68

…Asse ssment Year :20 08- 09 IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK ‘SMC’ BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER Assessment Year :2008-09 M/s. UJtkal Plaster Pvt Ltd., Vs. ITO,Ward-1(3), C/O. Jagannath Saw Mill, Bhubaneswar. Cuttack Road, Bhubaneswar. PAN/GIR No. (Appellant) .. ( Respondent) Assessee by : Shri K.K.Bal, AR Revenue by : Shri D.K.Pradhan, DR Date of Hearing : 02 /02/ 2017 Date of Pronouncement : 02/02/ 2017 O R D E R This is an appeal filed by the assessee against the order of CIT(A)-1, Bhubaneswar, dated 31.3.2016, for the assessment year 2008-09. 2. In Ground Nos.2,3…

Pr.Commisioner of Income Tax-6 vs. M/S N.C Cables Ltd

The appeal is dismissed

ITA/335/2015HC Delhi11 Jan 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

Section 131Section 143(3)Section 147Section 151Section 68

…nity failed to substantiate these infusions and also failed to show that the share investors or creditors were genuine parties and that the transactions were genuine. It was submitted that the judgment in Commissioner of Income Tax Vs. Lovely Exports (P) Ltd. 216 CTR 195(SC) clearly envisages that three tests are to be satisfied. In the present case, the genuineness of the transactions and the creditworthiness of the share applicants and the creditors were not demonstrated. In the circumstances, the assessee could not be said to have discharged the burden placed upon it in the first instance. 7. Counsel for the a…