CIT v. Precision Finance Pvt. Ltd.

208 ITR 465High Court1994#168 most cited

What is CIT v. Precision Finance Pvt. Ltd. authority for?

When an assessee seeks to explain a cash credit under Section 68, they must prove the identity of the creditors, their creditworthiness or capacity to advance money, and the genuineness of the transactions. The burden of proof is not discharged merely by filing confirmatory letters or demonstrating banking channel transactions.

427

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2009 to 2026.

Also referred to as

CIT v. Precision Finance Pvt. Ltd. · Section 68 · cash credit · burden of proof · identity of creditor · creditworthiness of creditor · genuineness of transaction · unexplained money · confirmatory letters · banking channel transactions

Sections most often in play

Section 68Section 143(3)Section 133(6)Section 142(1)Section 147Section 148Section 1961Section 131

Issues it is cited on

creditworthiness of the creditorpaper companysource of sourceshare capital and share premiumlive linkshare application moneyentry operatorsection 251(1)(a)addition u/s 68genuineness of the transactionaddition under section 68borrowed satisfaction

Judgments citing CIT v. Precision Finance Pvt. Ltd.

ITO, New Delhi vs. M/S. Sukhna Steel Pvt. Ltd., New Delhi

ITA 5741/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…vs. Kamdhenu • A GovindarajuluMudaliar Steel and Alloys Ltd. V CIT [1958] 34 ITR 807 206 Taxman 254 (SC) • CIT vs. Nova • CIT V Korlay Trading Co. Promoters and Ltd. [1998] 230 ITR 820 Finlease (P) Ltd. (Cal.) • (Delhi HC) CIT V Precision Finance Ltd. (1994) 208 ITR 465 (cal.)  The assessee company has  In a detailed discussion in 7. Kaspers 2013-14 Section 68 Information Share not discharged its onus to assessment order AO has Technology capital/ prove genuineness and correctly held that amount Pvt Ltd share creditworthiness of of Rs. 16 crores in premium transactions.(Para 4.5.1, undisclosed income of the As…

ITO, New Delhi vs. M/S. Sunlight Tour and Travels Pvt. Ltd., Sahibabad

ITA 5740/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…vs. Kamdhenu • A GovindarajuluMudaliar Steel and Alloys Ltd. V CIT [1958] 34 ITR 807 206 Taxman 254 (SC) • CIT vs. Nova • CIT V Korlay Trading Co. Promoters and Ltd. [1998] 230 ITR 820 Finlease (P) Ltd. (Cal.) • (Delhi HC) CIT V Precision Finance Ltd. (1994) 208 ITR 465 (cal.)  The assessee company has  In a detailed discussion in 7. Kaspers 2013-14 Section 68 Information Share not discharged its onus to assessment order AO has Technology capital/ prove genuineness and correctly held that amount Pvt Ltd share creditworthiness of of Rs. 16 crores in premium transactions.(Para 4.5.1, undisclosed income of the As…

ITO, New Delhi vs. M/S. Sintex Consumers Electronics Pvt. Ltd., Delhi

ITA 5736/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…vs. Kamdhenu • A GovindarajuluMudaliar Steel and Alloys Ltd. V CIT [1958] 34 ITR 807 206 Taxman 254 (SC) • CIT vs. Nova • CIT V Korlay Trading Co. Promoters and Ltd. [1998] 230 ITR 820 Finlease (P) Ltd. (Cal.) • (Delhi HC) CIT V Precision Finance Ltd. (1994) 208 ITR 465 (cal.)  The assessee company has  In a detailed discussion in 7. Kaspers 2013-14 Section 68 Information Share not discharged its onus to assessment order AO has Technology capital/ prove genuineness and correctly held that amount Pvt Ltd share creditworthiness of of Rs. 16 crores in premium transactions.(Para 4.5.1, undisclosed income of the As…

ITO, New Delhi vs. M/S. Supreme Placement Services Pvt. Ltd., New Delhi

ITA 5650/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…vs. Kamdhenu • A GovindarajuluMudaliar Steel and Alloys Ltd. V CIT [1958] 34 ITR 807 206 Taxman 254 (SC) • CIT vs. Nova • CIT V Korlay Trading Co. Promoters and Ltd. [1998] 230 ITR 820 Finlease (P) Ltd. (Cal.) • (Delhi HC) CIT V Precision Finance Ltd. (1994) 208 ITR 465 (cal.)  The assessee company has  In a detailed discussion in 7. Kaspers 2013-14 Section 68 Information Share not discharged its onus to assessment order AO has Technology capital/ prove genuineness and correctly held that amount Pvt Ltd share creditworthiness of of Rs. 16 crores in premium transactions.(Para 4.5.1, undisclosed income of the As…

ITO, New Delhi vs. M/S Angel Cement Pvt. Ltd., Ghaziabad

ITA 4691/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…vs. Kamdhenu • A GovindarajuluMudaliar Steel and Alloys Ltd. V CIT [1958] 34 ITR 807 206 Taxman 254 (SC) • CIT vs. Nova • CIT V Korlay Trading Co. Promoters and Ltd. [1998] 230 ITR 820 Finlease (P) Ltd. (Cal.) • (Delhi HC) CIT V Precision Finance Ltd. (1994) 208 ITR 465 (cal.)  The assessee company has  In a detailed discussion in 7. Kaspers 2013-14 Section 68 Information Share not discharged its onus to assessment order AO has Technology capital/ prove genuineness and correctly held that amount Pvt Ltd share creditworthiness of of Rs. 16 crores in premium transactions.(Para 4.5.1, undisclosed income of the As…

DCIT CC 8(1), Mumbai vs. M/S Jainam Investments, Mumbai

In the result, appeals filed by the revenue are hereby dismissed

ITA 4474/MUM/2019[2016-17]Status: DisposedITAT Mumbai25 Feb 2021AY 2016-17
For Appellant: Shri Suchek Anchaliya (AR)For Respondent: Shri Rahul Raman (DR)
Section 143(1)Section 148Section 68

…ase. Accordingly, he submitted that the Ld CIT(A) not have brushed aside the findings of search officials. In this if appeal the Ld D.R placed reliance on the decision rendered by Hon‟ble Calcutta High Court in the case of CIT vs. Precision Finance Ltd(1994) (208 ITR 465). He submitted that the tax authorities are entitled to look into the surrounding circumstances and human probabilities in order to ascertain the genuineness of transactions. He further submitted that they ITA. Nos.4286 & 4474/Mum/2019 A.Ys. 2011-12 & 2016-17 are also entitled to look into the substance by overlooking the form. For these proposi…

ITO 17(3)(5), Mumbai vs. United Plastics, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 4492/MUM/2019[2009-10]Status: DisposedITAT Mumbai19 Jan 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 17(3)(5) V. M/S. United Plastics Room No. 137, 1St Floor 174, Shiva Kunj Samuel Street Aayakar Bhavan Masjid Bunder, Mumbai - 400009 M.K. Road, Mumbai-400020 Pan: Aadfu1749H (Appellant) (Respondent) Assessee By : None Department By : Ms. Smita Verma

For Appellant: NoneFor Respondent: Ms. Smita Verma
Section 147

…he above, the claim of the appellant that the payments have been made by the a/c payee cheque also does not make the claim as bonafide in view of the judicial pronouncement made by Hon'ble Calcutta High Court in the case of CIT vs. Precision Finance Pvt. Ltd. 208 ITR 465 Cal. (1994). It was held that transaction through bank is not sufficient to prove a transaction as bonafide. Merely because the money is transferred through the bank account does not prove that the money is explained. It is essential to prove the creditworthiness of the persons or genuineness of the transactions. Merely furnishing of particulars…

Deputy Commissioner of Income Tax (Central), Jabalpur vs. Tarun Devcon Private Limited, Jabalpur

In the result, the Revenues’ appeal is dismissed in terms of the foregoing

ITA 18/JAB/2019[2015-16]Status: DisposedITAT Jabalpur29 Dec 2020AY 2015-16

Bench: Shri N.R.S. Ganesan & Shri Sanjay Arora

Section 10(38)Section 131Section 139(1)Section 143(3)Section 68

…s accordingly required by him to produce the said creditors, which it failed to. He, accordingly, relying on Roshan Di Hatti vs. CIT [1977] 107 ITR 938 (SC); CIT vs. Korlay Trading Co. Ltd. [1998] 232 ITR 820 (Cal); and CIT v. Precision Finance P. Ltd. [1994] 208 ITR 465 (Cal), assessed the said credits as the assessee’s income on account of unexplained credit u/s. 68 for want of necessary satisfaction toward the creditworthiness of the creditors. 2.2 In appeal, the assessee furnished the source of each of the several sums comprising the impugned credits in a tabular form, stating their sources as the refund of t…

Manju Sharma, New Delhi vs. ITO Ward - 45(5), New Delhi

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

ITA 8275/DEL/2019[2014-15]Status: DisposedITAT Delhi23 Nov 2020AY 2014-15

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2014-15 Manju Sharma, Vs Ito, Wz-43B, Meenakshi Garden, Ward-45(5), New Delhi. New Delhi. Pan: Aatps2170A (Appellant) (Respondent) Assessee By : Shri Krishnan Sampath, Advocate Revenue By : Ms Rinku Singh, Sr. Dr Date Of Hearing : 03.11.2020 Date Of Pronouncement : 23.11.2020 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 05.09.2019 Passed By The Ld. Cit(A)-15, New Delhi, Relating To Assessment Year 2014-15. 2. Facts Of The Case, In Brief, Are That The Assessee Is An Individual & Is Proprietor Of M/S Eastern Galaxy Which Is Engaged In The Business Of Export Of Handicrafts & Decorative Items. She Filed Her Return Of Income On 29.11.2014 Declaring Taxable Income Of Rs.47,10,000/-. The Case Of The Assessee Was Selected For Limited Scrutiny Under Cass With The Reason That There Is “Large Increase In Sundry Creditors With Respect To Turnover As Compared To Preceding Year.”

For Appellant: Shri Krishnan Sampath, AdvocateFor Respondent: Ms Rinku Singh, Sr. DR
Section 131Section 142(1)Section 144ASection 68

…(P) Ltd. vs. CIT (1981), 131 ITR 688 (Cal); ii) Bharati (P) Ltd. vs. CIT (1978) 111 ITR 951 (Cal); iii) Prakash Textile Agency vs. CIT (1980) 121 ITR 890 (Cal) 8 iv) CIT v. K.M. Mahim (1995) 81 Taxman 222 (Ker.); v) CIT vs. Precision Finance (P) Ltd. (1994) 208 ITR 465; vi) Gumani Ram Siri Ram vs. CIT (1975) 98 ITR 337 (P&H); vii) Roshan Di Hatti (1977) 107 ITR 938 (SC); viii) Aravali Trading Co. vs. ITO (2010) 187 Taxman 338 (Raj); ix) CIT vs. Mihir Kanti Hazra (2015) 61 taxmann.com 315 (Cal); x) Pr. CIT-7, Delhi vs. Bikram Singh (2017) 85 taxmann.com 104 (Del); xi) Papneja Traders vs. CIT (2012) 20 taxmann.co…

Deputy Commissioner of Income Tax 15(1)(1), Mumbai vs. Almega Paints Private Limited, Mumbai

In the result, appeal filed by the revenue for assessment year 2013-

ITA 6267/MUM/2017[2013-14]Status: DisposedITAT Mumbai06 Nov 2020AY 2013-14

Bench: Shri Rajesh Kumar (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2013-14 The Dy. Commissioner Of Income M/S Almega Paints Pvt. Ltd., Tax - 15(1)(1), B-24, Minerva Industrial Room No. 470, 4Th Floor, Estate, Off P.K. Road, Aayakar Bhavan, Vs. Mulund (W), Maharshi Karve Road, Mumbai - 400080 Mumbai - 400020 Pan: Aahca3698N (Appellant) (Respondent)

For Appellant: Shri Satish Mody (AR)For Respondent: Shri Michael Jerald (DR)
Section 143Section 68

…d in deleting the addition of unsecured loans from Individuals, HUF and Companies amounting to Rs. 2,20,00,000/- made u/s 68 of the I.T. Act, ignoring the decision Assessment Year: 2013-14 of the Calcutta High Court in the case of precision Finance Pvt. Ltd. 208 ITR 465, where in it is held that mere payment by account payee cheque is not sacrosanct not can it make a non- genuine transaction genuine.” 4. The only ground raised by the revenue is that the Ld. CIT (A) erred in deleting the addition of unsecured loans from individuals, HUF and companies amounting to Rs. 2,20,00,000/- holding that the assessee has p…

ITO 14 (3)(4), Mumbai vs. M/S Supergold Properties Pvt Ltd.[Successor of M/S Advaya Tex Trading Pvt Ltd], Mumbai

ITA 177/MUM/2020[2011-12]Status: DisposedITAT Mumbai19 Oct 2020AY 2011-12
Section 143(1)Section 68

…itor (2) the genuineness of the transaction (3)Financial capacity of the person, i.e. the credit worthiness of the creditor. Further, reference is also invited to the decision of Hon'ble Calcutta High Court in the case of CIT Vs M/s Precision Finance Pvt Ltd (208 ITR 465). In this case the appellant has produced a valid confirmation letter proving the identity of the creditor. Similarly, ledger account and bank statements prove the genuineness of the transaction. The balance sheet submitted by the appellant proves that the investor had sufficient own money to invest proving creditworthiness of the party. For enha…

ITO 14(3)(4), Mumbai vs. Nextgen Constructions P.Tld (Changed to M/S Aetius Construction P. Ltd Which Is Further Amalgamated With M/S Supergold Properties Pvt. Ltd), Mumbai

ITA 3593/MUM/2019[2011-12]Status: DisposedITAT Mumbai25 Jun 2020AY 2011-12

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Dr.P.Daniel-Ld.ARFor Respondent: Shri Rahul Raman-CIT- DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 68

…tor (2) the genuineness of the transaction (3) Financial capacity of the person, i.e. the credit worthiness of the creditor. Further, reference is also invited to the decision of Hon'ble Calcutta High Court in the case of CIT Vs M/s Precision Finance Pvt Ltd (208 ITR 465). In this case the appellant has produced a valid confirmation letter proving the identity of the creditor. Similarly, ledger account and bank statements prove the genuineness of the transaction. The balance sheet submitted by the appellant proves that the investor had sufficient own money to invest proving creditworthiness of the party. For incr…

M/S Garware Synthetics Limited, Mira Road vs. Asst CIT Circle-15 (1)(2), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 6832/MUM/2019[2016-17]Status: DisposedITAT Mumbai24 Jun 2020AY 2016-17

Bench: Shri G. Manjunatha & Shri Ravish Soodgarware Synthetics Limited Vs. Acit,Circle-15(1)(2) Manish Textile Ind. Premises Aaykar Bhawan Opp. Golden Chemicals M.K.Road Penkar Pada, Post Mira Mumbai-400 020 Thane-401 104 Pan/Gir No.Aaacg4208M (Appellant) .. (Respondent)

Section 133(6)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL “G”, BENCH MUMBAI BEFORE SHRI G. MANJUNATHA, ACCOUNTANT MEMBER & SHRI RAVISH SOOD, JUDICIAL MEMBER Garware Synthetics Limited Vs. ACIT,Circle-15(1)(2) Manish Textile Ind. Premises Aaykar Bhawan Opp. Golden Chemicals M.K.Road Penkar Pada, Post Mira Mumbai-400 020 Thane-401 104 PAN/GIR No.AAACG4208M (Appellant) .. (Respondent) Assessee by Shri Haridas Bhat, AR Revenue by Shri V.Vinod Kumar, JCIT -DR Date of Hearing 24/02/2020 Date of Pronouncement 24/06/2020 आदेश आदेश / O R D E R आदेश आदेश PER G.MANJUNATHA (A.M): This appeal filed by the assessee is directed against order…

Skan Enterprise, Kolkata vs. Pr.C.I.T.-12, Kolkata

In the result, appeal of the assessee is allowed

ITA 840/KOL/2019[2014-15]Status: DisposedITAT Kolkata18 Mar 2020AY 2014-15
Section 143(3)Section 263

…er deduction of tax. The tax deducted as source has duly been deposited. The cheque after deduction of tax. The tax deducted as source has duly been deposited. The judgment in the case of judgment in the case of CIT vs. Precision Finance Pvt. Ltd. reported in 208 ITR 465 relied . reported in 208 ITR 465 relied upon by Mr. Bhowmick do upon by Mr. Bhowmick does not really assist him. The aforesaid judgment is an es not really assist him. The aforesaid judgment is an authority for the proposition that mere payment by account payee cheque cannot authority for the proposition that mere payment by account payee cheque…

Vijay B Shah (HUF), Mumbai vs. ITO 17 (3)(5), Mumbai

In the result, appeal of the assessee is dismissed

ITA 667/MUM/2019[2009-10]Status: DisposedITAT Mumbai03 Mar 2020AY 2009-10

Bench: Shri R.C.Sharmavijay B Shah (Huf), Vs. I.T.O.-17(3)(5) Prop.- Of M/S Vijay Room No. 137, Aayakar Enterprises, 12A, Giriraj Bhavan, M.K. Road, Building, S.T. Road, Mumbai-400020 Carnac Bunder, Mumbai- 400009. Pan/Gir No. Aabhv 7438 J (Appellant) .. (Respondent)

Section 143(3)

…ques. The claim of the appellant that the payments have been. made by the a/c payee cheque also does not make his claim I as' bonafide in view of the judicial pronouncement made by Hon'ble Calcutta High Court in the case of CIT vs. Precision Finance Pvt. Ltd. 208 ITR 465 Cal. (1994). It was held that transaction through bank is not sufficient to prove transaction as bonafide. Merely because the money is transferr through the bank account does not prove that the money is explained. It is essential to prove the creditworthiness of the persons or genuineness of the transactions. Merely furnishing of particulars is n…

Jap Agro Foods Pvt.Ltd., Baroda vs. The Income Tax Officer, Ward-1(4), Baroda

In the result the appeal of the assessee is partly allowed

ITA 191/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad02 Mar 2020AY 2011-12

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकरअपीलसं./Ita No. 191/Ahd/2016 "नधा"रणवष"/Asstt. Year: 2011-2012 M/S Jap Agro Foods Pvt. Ltd., I.T.O, Block No.295, Vs. Ward-1(4), Ranu Tal. Padra, Baroda. Vadodara.

For Appellant: Shri Hardik Vora, A.RFor Respondent: Shri Deelip Kumar, Sr.D.R
Section 41(1)Section 68

…sactions and creditworthiness of the parties/lenders. These liabilities on the assessee were imposed to justify the cash credit entries under section 68 of the Act by the Hon’ble Calcutta High Court in the case of CIT Vs. Precision Finance (P) Ltd reported in 208 ITR 465 wherein it was held as under: “It was for the assessee to prove the identity of the creditors, their creditworthiness and the genuineness of the transactions. On the facts of this case, the Tribunal did not take into account all these ingredients which had to be satisfied by the assessee. Mere furnishing of the particulars was not enough. The en…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 219/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2020AY 2013-14

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…d to the assessee, has been disclosed to the Income-tax Department. Payments were admittedly made by cheque after deduction of tax. The tax deducted as source has duly been deposited. The judgment in the case of CIT vs. Precision Finance Pvt. Ltd. reported in 208 ITR 465 relied upon by Mr. Bhowmick does not really assist him. The aforesaid judgment is an authority for the proposition that mere payment by account payee cheque cannot establish that the transaction was genuine, but in the case before us, besides the fact that payment was made by chegue, there are other pieces of evidence available which are as follo…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 218/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2020AY 2012-13

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…d to the assessee, has been disclosed to the Income-tax Department. Payments were admittedly made by cheque after deduction of tax. The tax deducted as source has duly been deposited. The judgment in the case of CIT vs. Precision Finance Pvt. Ltd. reported in 208 ITR 465 relied upon by Mr. Bhowmick does not really assist him. The aforesaid judgment is an authority for the proposition that mere payment by account payee cheque cannot establish that the transaction was genuine, but in the case before us, besides the fact that payment was made by chegue, there are other pieces of evidence available which are as follo…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 217/KOL/2018[2011-12]Status: DisposedITAT Kolkata28 Feb 2020AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…d to the assessee, has been disclosed to the Income-tax Department. Payments were admittedly made by cheque after deduction of tax. The tax deducted as source has duly been deposited. The judgment in the case of CIT vs. Precision Finance Pvt. Ltd. reported in 208 ITR 465 relied upon by Mr. Bhowmick does not really assist him. The aforesaid judgment is an authority for the proposition that mere payment by account payee cheque cannot establish that the transaction was genuine, but in the case before us, besides the fact that payment was made by chegue, there are other pieces of evidence available which are as follo…

ITO-26(2)(4), Mumbai vs. Pankaj Agarwal, Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

ITA 6/MUM/2019[2010-11]Status: DisposedITAT Mumbai23 Jan 2020AY 2010-11

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.06/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2010-11) Ito-26(2)(4) बिधम/ Pankaj Agarwal Room No.511, 5Th Floor, C- A/102, Twin Star Chs, Vs. Shristhi Complex, Saki 11, Bandra Kurla Complex, Vihar Road, Powai, Bandra (E), Mumbai- Mumbai-400072. 400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Abmpa0824F (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri Akhtar Ali Ansari (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 09/01/2020 घोषणा की तारीख /Date Of Pronouncement: 23/01/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 24.07.2018 Passed By The Commissioner Of Income Tax (Appeals) -38, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2010- 11. 2. The Revenue Has Raised The Following Grounds: -

For Appellant: NoneFor Respondent: Shri Akhtar Ali Ansari (DR)
Section 143(1)Section 143(2)Section 147Section 148Section 40A(3)

…R 10 (SC), wherein it has been held that even payment by account payee cheque is not sufficient to establish the genuineness of purchases. Support is drawn from the decision of the Hon'ble Calcutta High Court in the case of CIT vs. Precision Finance Pvt. Ltd. 208 ITR 465 Cal. (1994). It was held that transaction through bank is not sufficient to transaction as bonafide. Merely because the money is transferred through the bank account does not prove that the money transacted is explained. It is essential to prove the creditworthiness of the persons or genuineness of the transactions. Merely furnishing of particula…