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 366,314 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.

M/S Toplink Commerce Limited, Kolkata vs. ITO, Ward 10(2), Kolkata

ITA 1413/KOL/2023[2012-13]Status: DisposedITAT Kolkata09 Sept 2024AY 2012-13

Bench: Shri Rajpal Yadav & Shri Rakesh Mishraassessment Year: 2012-13

For Appellant: Shri Ankit Jalan, AdvocateFor Respondent: Shri Subhendu Datta, CIT, DR
Section 131Section 133(6)Section 142(1)Section 250Section 68

…s bad in law and is liable to be deleted. Reliance has been placed on the following decisions: i. Orissa Corpn. (P) ltd. 159 ITR 78 (SC) and Dy. CIT Vs. Rohini Builders [2002] 256 ITR 360 (Guj) for identity of the creditor. ii. CIT Vs. Lovely Exports (P) Ltd. 216 ITR 195 (SC) iii. CIT Vs. M/s. Gagandeep Infrastructure (P) Ltd. (I.T.A. No. 1613 of 2014 dated 20.03.2047) wherein it was held that the proviso to section 68 is effective from A.Υ. 2013-2014 and it does not have retrospective effect. iv. CIT Vs Gangeshwari Metal (P) Ltd (ITA No. 597 of 2012) dated 21.01.2012 (Delhi). 17 Toplink Commerce Ltd. AY: 2012-1…

Padmavati Agrico (India) Pvt Ltd, Ajmer vs. ACIT Circle - 1, Ajmer

In the result, the appeal of the assessee is allowed

ITA 702/JPR/2023[2010-11]Status: DisposedITAT Jaipur05 Sept 2024AY 2010-11

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. Tarun Mittal (CA)For Respondent: Sh. Anoop Singh (Addl. CIT)
Section 143Section 147

…It is submitted that the, assessee neither has any relation nor has any control on the business activity of those companies. The Ld. CIT(A) has ignored the binding decision of the Hon’ble Supreme Court in the case of M/s Lovely Exports Pvt. Ltd. reported in 216 CTR 195 and has not even discussed the same in his order which squarely applicable in the present case as the assessee has filed the necessary confirmation and other particulars of share holders 21 Padmavati Agrico (India) Pvt. Ltd. vs. ACIT and incidentally all the subscribers are Private Limited Companies and the appellant had received the applicatio…

ITO, Ward- 1)1), Nagpur vs. Axykno Enterprises Pvt. Ltd., Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 47/NAG/2019[2012-13]Status: DisposedITAT Nagpur02 Sept 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kapil Hirani a/wFor Respondent: Shri Kailash C. Kanojiya
Section 132(4)Section 143(3)Section 263Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.47/Nag./2019 (Assessment Year : 2012–13) Income Tax Officer ……………. Appellant Ward–1(1), Nagpur v/s M/s. Axykno Enterprises Pvt. Ltd. Level–3, Leela Vista, West High Court Road ……………. Respondent Bajaj Nagar, Nagpur 440 010 PAN – AAJCA2942B Assessee by : Shri Kapil Hirani a/w Shri Mukesh Agrawal Revenue by : Shri Kailash C. Kanojiya Date of Hearing – 05/08/2024 Date of Order – 02/09/2024 O R D E R PER K.M. ROY, A.M. The Revenue has filed the captioned appeal challeng…

Decent Industries P. Ltd., Bhopal vs. ITO-1(2), Bhopal

Appeal is partly allowed

ITA 356/IND/2023[2012-13]Status: DisposedITAT Indore20 Aug 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani(Virtual Hearing) Assessment Year: 2012-13 M/S Decent Industries Ito-1(2), Private Ltd, Bhopal 5Th Floor, Corporate Park, बनाम/ Db City Area Hills, Vs. Opp. M.P. Nagar Zone I, Bhopal (Assessee/Appellant) (Revenue/Respondent) Pan: Aaeca6271G Assessee By Ms. Shilpa Gupta & Shri N.K. Gupta Revenue By Shri V.K. Singh, Cit-Dr Date Of Hearing 04.06.2024 Date Of Pronouncement 20.08.2024

Section 133ASection 143(2)Section 147Section 148Section 14ASection 68

…he assessee has discharged primary onus by adducing ample evidence as noted above, the burden shifts upon AO. Reliance in this regard is placed on Orissa Corporation (P) Ltd. 159 ITR 78 (SC), Rohini Builders 127 Taxman 523 (Gujrat), Lovely Exports (P) Ltd. 216 ITR 195, Oasis Hospitalities (P) Ltd. 333 ITR 119 (Delhi) and Fair Finvest Ltd. 357 ITR 146 (Delhi). (vii) The assessee-company has issued identical shares at identical premium in preceding AY 2011-12. This point was categorically submitted to AO in Point No. (ii) of the letter dated 24.12.2019 re- produced in Para 3.1 of assessment-order. Ld. AR dre…

Assistant Commissioner of Income Tax, Central Circle-1(1), Nagpur vs. M/S. Radha Radhav Developer, Nagpur

In the result, all the six appeals preferred by the department are dismissed

ITA 49/NAG/2021[2013-14]Status: DisposedITAT Nagpur29 Jul 2024AY 2013-14

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

Section 142ASection 145

…to share application money, share capital, share premium or any such amount by whatever name called. The proviso does not apply to unsecured loans as in the present case. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. 8.10 The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as unde…

Assistant Commissioner of Income Tax, Central Circle-1(1), Nagpur vs. M/S. Radha Madhav Developer, Nagpur

In the result, all the six appeals preferred by the department are dismissed

ITA 48/NAG/2021[2012-13]Status: DisposedITAT Nagpur29 Jul 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

Section 142ASection 145

…to share application money, share capital, share premium or any such amount by whatever name called. The proviso does not apply to unsecured loans as in the present case. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. 8.10 The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as unde…

Assistant Commissioner of Income Tax, Central Circle-1(1), Nagpur vs. M/S. Radha Madhav Developer, Nagpur

In the result, all the six appeals preferred by the department are dismissed

ITA 47/NAG/2021[2011-12]Status: DisposedITAT Nagpur29 Jul 2024AY 2011-12

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

Section 142ASection 145

…to share application money, share capital, share premium or any such amount by whatever name called. The proviso does not apply to unsecured loans as in the present case. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. 8.10 The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as unde…

Assistant Commissioner of Income Tax, Central Circle-1(1), Nagpur vs. M/S. Suflam Infra Project Ltd, Nagpur

In the result, the departmental appeal is dismissed

ITA 46/NAG/2021[2014-15]Status: DisposedITAT Nagpur29 Jul 2024AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kapil Hirani, Adv &For Respondent: Shri Kailash C. Kanojiya, CTI DR
Section 143(3)Section 263Section 68

…lender may have raised bogus share capital to advance the funds to the assessee does not mean that the loan received by the assessee can be treated as unexplained income. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the Department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as under: IT…

Assistant Commissioner of Income Tax, Central Circle-1(1), Nagpur vs. M/S. Radha Madhav Developer, Nagpur

In the result, all the six appeals preferred by the department are dismissed

ITA 140/NAG/2021[2018-19]Status: DisposedITAT Nagpur29 Jul 2024AY 2018-19

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

Section 142ASection 145

…to share application money, share capital, share premium or any such amount by whatever name called. The proviso does not apply to unsecured loans as in the present case. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. 8.10 The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as unde…

Asstt.Commissioner of Income Tax Central Circle-1(1), Nagpur vs. M/S Radha Madhav Developer, Nagpur

In the result, all the six appeals preferred by the department are dismissed

ITA 27/NAG/2020[2015-16]Status: DisposedITAT Nagpur29 Jul 2024AY 2015-16

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

Section 142ASection 145

…to share application money, share capital, share premium or any such amount by whatever name called. The proviso does not apply to unsecured loans as in the present case. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. 8.10 The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as unde…

Asstt.Commissioner of Income Tax Central Circle-1(1), Nagpur vs. M/S Radha Madhav Developer, Nagpur

In the result, all the six appeals preferred by the department are dismissed

ITA 26/NAG/2020[2014-15]Status: DisposedITAT Nagpur29 Jul 2024AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

Section 142ASection 145

…to share application money, share capital, share premium or any such amount by whatever name called. The proviso does not apply to unsecured loans as in the present case. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. 8.10 The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as unde…

Sufalam Infra Projects Ltd, Nagpur vs. Pr. CIT (Central ), Nagpur

In the result, the departmental appeal is dismissed

ITA 97/NAG/2019[2014-15]Status: DisposedITAT Nagpur29 Jul 2024AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kapil Hirani, Adv &For Respondent: Shri Kailash C. Kanojiya, CTI DR
Section 143(3)Section 263Section 68

…lender may have raised bogus share capital to advance the funds to the assessee does not mean that the loan received by the assessee can be treated as unexplained income. The appellant has argued and placed reliance on CIT Vs. Lovely Exports Pvt. Ltd. (2008) 6 DTR 308 (SC) that in case the Department was not satisfied about the source of the funds of the Lenders, it was free to proceed against the Lenders rather than making additions in the hands of the Appellant. The appellant has rightly placed reliance on CIT Vs. Dwarkadhish Investment Pvt. Ltd. (2011) 37 (I) ITCL 456 (Del HC) wherein it has been as under: IT…

M/S. Emirates Hindustan Builders and Developers, Kerala vs. Assistant Commissioner of Income-Tax, Central Circle-2, Mangalore

In the result, appeals of the assessee in ITA Nos

ITA 415/BANG/2024[2018-19]Status: DisposedITAT Bangalore08 Jul 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Keshav Dubey

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Sri Guru Kumar S., D.R
Section 132(4)Section 143(3)Section 148Section 68

…confirmation statements were duly submitted during the assessment proceedings. 6.2 She submitted that the ld. AO has failed to appreciate that the facts of this case are squarely covered by the judgement of the Supreme Court in CIT vs. Lovely Exports P. Ltd 216 CTR 195 (SC) wherein the Honorable Apex Court held that the onus of the assessee is discharged on giving names and PAN of the investors. It ITA Nos.414&415/Bang/2024 Emirates Hindustan Builders and Developers, Kasargod ITA Nos.167&168/Bang/2024 Tabesco Hindustan Infra Developers Pvt. Ltd., Kasargod ITA Nos.174 & 175/Bang/2024 MKH Infrastructure, Kasargod…

M/S. Emirates Hindustan Builders and Developers, Kerala vs. Assistant Commissioner of Income-Tax, Central Circle-2, Mangalore

ITA 414/BANG/2024[2017-18]Status: DisposedITAT Bangalore08 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Keshav Dubey

Section 131Section 132(4)Section 143(3)Section 148Section 68

…demonstrating the nature and source of the credit in the hands of the firm, the initial onus has been discharged and the burden shifts on to the department. Relying upon the Judgment of the Hon'ble Supreme Court in the case of CIT vs Lovely Exports (P) Ltd., 216 CTR 1 95, the appellant pleaded that the additions may be deleted. 5.1 It is the case of the AO that in spite of specially requiring to produce the partners who contributed cash, the appellant firm did not comply with it. Further, the cash flow statement or bank account statement of the concerned persons had not been furnished. The AO pointed out that in…

Mkh Infrastructure, Kerala vs. Deputy Commissioner of Income-Tax, Central Circle-2, Mangalore

ITA 175/BANG/2024[2018-19]Status: DisposedITAT Bangalore08 Jul 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Keshav Dubey

Section 131Section 132(4)Section 143(3)Section 148Section 68

…confirmation statements were duly submitted during the assessment proceedings. 6.2 She submitted that the 1d. AO has failed to appreciate that the facts of this case are squarely covered by the judgement of the Supreme Court in CIT vs. Lovely Exports P. Ltd – 216 CTR 195 (SC) wherein the Honorable Apex Court held that the onus of the assessee is discharged on giving names and PAN of the investors. It further held that, if at all, the Department would like to assess any income, the same can be done in the hands of the investor. 6.3 She submitted that the ld. AO was wrong in stating in Paras 8.1 and 8.2 of the Asse…

Mkh Infrastructure, Kerala vs. Deputy Commissioner of Income Tax, Central Circle-2, Mangalore

In the result, appeals of the assessee in ITA Nos

ITA 174/BANG/2024[2017-18]Status: DisposedITAT Bangalore08 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Keshav Dubey

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Sri Guru Kumar S., D.R
Section 132(4)Section 143(3)Section 148Section 68

…confirmation statements were duly submitted during the assessment proceedings. 6.2 She submitted that the ld. AO has failed to appreciate that the facts of this case are squarely covered by the judgement of the Supreme Court in CIT vs. Lovely Exports P. Ltd 216 CTR 195 (SC) wherein the Honorable Apex Court held that the onus of the assessee is discharged on giving names and PAN of the investors. It ITA Nos.414&415/Bang/2024 Emirates Hindustan Builders and Developers, Kasargod ITA Nos.167&168/Bang/2024 Tabesco Hindustan Infra Developers Pvt. Ltd., Kasargod ITA Nos.174 & 175/Bang/2024 MKH Infrastructure, Kasargod…

Tabesco Hindustan Infra Developers Pvt Ltd., Kerala vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangalore

ITA 168/BANG/2024[2018-19]Status: DisposedITAT Bangalore08 Jul 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Keshav Dubey

Section 131Section 132(4)Section 143(3)Section 148Section 68

…demonstrating the nature and source of the credit in the hands of the firm, the initial onus has been discharged and the burden shifts on to the department. Relying upon the Judgment of the Hon'ble Supreme Court in the case of CIT vs Lovely Exports (P) Ltd., 216 CTR 1 95, the appellant pleaded that the additions may be deleted. 5.1 It is the case of the AO that in spite of specially requiring to produce the partners who contributed cash, the appellant firm did not comply with it. Further, the cash flow statement or bank account statement of the concerned persons had not been furnished. The AO pointed out that in…

Tabesco Hindustan Infra Developers Pvt Ltd., Kerala vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangalore

ITA 167/BANG/2024[2017-18]Status: DisposedITAT Bangalore08 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Keshav Dubey

Section 131Section 132(4)Section 143(3)Section 148Section 68

…confirmation statements were duly submitted during the assessment proceedings. 6.2 She submitted that the 1d. AO has failed to appreciate that the facts of this case are squarely covered by the judgement of the Supreme Court in CIT vs. Lovely Exports P. Ltd – 216 CTR 195 (SC) wherein the Honorable Apex Court held that the onus of the assessee is discharged on giving names and PAN of the investors. It further held that, if at all, the Department would like to assess any income, the same can be done in the hands of the investor. 6.3 She submitted that the ld. AO was wrong in stating in Paras 8.1 and 8.2 of the Asse…

Florence Dealer Pvt Ltd, Kolkata vs. ITO Ward 9(2), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 837/KOL/2023[2012-13]Status: DisposedITAT Kolkata02 Jul 2024AY 2012-13

Bench: Shri Sanjay Garg (Judicial Member), Dr. Manish Borad (Accountant Member)

Section 131Section 142(1)Section 250Section 68

…ol/2023 Assessment Year: 2012-13 Florence Dealer Pvt. Ltd Source of fund of the shares subscribed is enclosed herewith for your record. Our above mentioned contention is duly supported by the following judicial pronouncement. 1. CIT Vs Lovely Exports Pvt Ltd. 216 CTR 195 2. Anshika Consultants Pvt Ltd Vs. GIT (A) (Delhi High Court) 3. CIT VS Steller Investment Ltd, (2001) 251ITR 263 (SC & HC) 4. CIT Vs Gagandeep Infrastructure: Pvt. Ltd, Bombay High Court Considering the above facts, the Ld. A.O was not justified in treating the share capital issued by Assesses Company as unexplained cash credit u/s 68 of the In…

Ganga Cotton & Allied Industries Ltd., New Delhi vs. ITO Ward - 11(3), New Delhi

In the result, the appeal of the assessee is allowed

ITA 1187/DEL/2019[2014-15]Status: DisposedITAT Delhi06 Jun 2024AY 2014-15

Bench: Shri M Balaganesh & Shri Vimal Kumarasstt. Year: 2014-15 M/S. Ganga Cotton & Allied Vs. Ito Ward-11(3) Industries Ltd., New Delhi 7/2, West Patel Nagar, New Delhi – 110 008 Pan Aaacg3976E (Appellant) (Respondent)

For Appellant: Shri Pulkit Saini, AdvocateFor Respondent: Shri Sandeep Kr. Mishra, Sr. DR
Section 143(3)Section 144Section 68

…editor and/or creditworthiness of the sub-creditors, for, these aspects may not be within the special knowledge of the Assessee." 14. Learned representative for appellant/assessee submitted that Hon’ble Supreme Court in CIT vs. Lovely Exports (P) Ltd. [2008] 216 CTR 195 (SC) it has held that if the share application money is received by the assessee company from alleged bogus shareholders, whose names are given to the Assessing Officer, then the 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 of as…