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 367,154 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.

ACIT, Circle - 1, Asansol vs. Ashirbad Real Estate & Transport Pvt. Ltd., Asansol

In the result, the cross objection of the assessee in CO 1/2012 is dismissed and revenue appeal in ITA No

ITA 1591/KOL/2011[2008-09]Status: DisposedITAT Kolkata18 Sept 2015AY 2008-09

Bench: Shri Mahavir Singh, Jm & Shri M.Balaganesh, Am] Assessment Year : 2008-09 (Appellant ) (Respondent) A.C.I.T., Circle-1, -Versus- Ashirbad Real Estate & Asansol Transport Pvt.Ltd. Burdwan (Pan:Aaeca 8075 C) C.O.No.1/Kol/2012 A/O Ita No.1591/Kol/2011 Assessment Year : 2008-09 Ashirbad Real Estate & -Versus- A.C.I.T., Circle-1, Transport Pvt.Ltd., Burdwan Asansol (Pan Aaeca 8075 C) (Cross Objector) (Respondent) For The Appellant : Shri S.S.Alam, Cit (Dr) For The Respondent : Shri Aravind Agarwal, Advocate Date Of Hearing : 10.09.2015. Date Of Pronouncement : 18.09.2015. Order Per Shri M.Balaganesh, Am 1. This Appeal Of The Revenue & Cross Objection Of The Assessee Arises Out Of The Order Of The Learned Cit(A) In Appeal No142/Cit(A)/Asl/Range-1/Asl/10-11 Dated 27.09.2011 For The Asst Year 2008-09 Arising Out Of The Order Of The Learned Assessing Officer Framed U/S 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’).

For Appellant: Shri S.S.Alam, CIT (DR)For Respondent: Shri Aravind Agarwal, Advocate
Section 143(3)Section 271CSection 40

…no reply in response to notice u/s 133(6) had been received and, therefore, the creditworthiness of the sundry creditor has not been established. The A.O. has relied on the case of Baishnab Charan Mohanty [212 ITR 199 (Orissa)] and Precision Finance (P) Ltd. [208 ITR 465 (Cal.)] in support of his stand. The appellant’s case is that bills in support of its purchases were duly submitted before the A.O. and he has not doubted that these purchases have been actually made. It has also disputed the application of the case laws relied on by the A.O. on the facts of its case. I find that the existence of the creditor and…

M/S. Rajsadan Overseas Sales(P)Ltd, Siliguri vs. DCIT, Circle-2, Siliguri

In the result, appeal of assessee is dismissed

ITA 1076/KOL/2012[2008-2009]Status: DisposedITAT Kolkata17 Sept 2015AY 2008-2009

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Subhas Agarwal, AdvocateFor Respondent: Shri Amitabha Choudhury, Addl. CIT
Section 143(3)Section 68

…l) 114 ITR 689, Nanak Chandra Laxman Das Vs. CIT (Cal) 140 ITR 151, Hari Chand Virender Paul Vs. CIT (P&H) 140 ITR 148, CIT Vs. Biju Patnaik (SC) 160 ITR 674, ITO Vs. Sky jet Aviation (P) Ltd. (ITAT, Ahd- TM) 71 ITD 95, CIT Vs. Precision Finance P. Ltd. (Cal) 208 ITR 465, Oriental Wire Industries (P) Ltd. Vs. CIT (Cal) 131 ITR 688, Malabar Agricultural Co. Ltd. Vs. CIT (Ker) 229 ITR 548, Roshan De Hatti Vs. CIT (SC) 107 ITR 938, C. Kant & Co. Vs. CIT (Cal) 126 ITR 63, Bharat P. Ltd. Vs. CIT (Cal) 111 ITR 951, Dhanalakshmi Steel Re-rolling Mills Vs. CIT (AP) 228 ITR 780, Prakash Textile Agency Vs. CIT (Cal) 121 IT…

Commissioner of Income Tax-VI vs. M/S. T.S.Kishan & Co. Ltd

The appeal is disposed of

ITA/1270/2011HC Delhi16 Sept 2014
Section 143(1)Section 143(2)Section 260ASection 68

…ncome tax returns etc. 16. The Calcutta High Court in the case of CIT Vs. Precision Finance 2014:DHC:4687-DB ITA No. 1270/2011 Page 14 of 16 (P) Ltd., [1994] 208 ITR 465 (Cal) has held that it is for the assessee to prove the identity of the creditors, their creditworthiness and genuineness of the transactions. Mere furnishing of particulars is not enough. It was found, in that case, on enquiry by the ITO that the assessee was not traceable and there was no such file. The first ingredient as to the ident…

The Commissioner of Income Tax -III vs. Sri T.C. Reddy

The appeal stands dismissed

ITTA/577/2011HC Telangana28 Feb 2012

…and has wrongly partly allowed the appeal of the assessee and the tribunal has committed serious error in dismissing the appeal of the department. 4.3 He has relied upon the decision of Calcutta High Court in CIT vs. Precision Finance Pvt. Ltd. (1994) 208 ITR 465 wherein it has been held as under:- “In the course of assessment proceedings for the assessment years 1978-79 and 1979-80, the AO found various cash credits in the books of the assessee. Enquiries were conducted through the inspector on different dates and it was found that either the files did not exist as per details given by the assessee or…

The Commissioner of Income Tax-III vs. M/S V.J.Equipment Limited

ITTA/305/2008HC Telangana02 Feb 2012

Commissioner of Income Tax, Delhi-II vs. Kishori Lal Construction Ltd

Appeals are disposed of in the aforesaid terms

ITA-783/2007HC Delhi23 Dec 2009
Section 132(4)Section 143(1)Section 148Section 68

…counsel also contended that the plea of the assessee that, since the transactions were through cheque, the same are genuine, does not hold good and tenable. He referred to the decision of Calcutta High Court in the case of CIT vs. Precession Finance Ltd., 208 ITR 465 (CAL). His further submission was that the onus on the assessee does not get discharged merely by filing of confirmatory copy of account as held by the Calcutta High court in the case of CIT vs. United Commercial reported in 187 ITR 596 (CAL). His further endeavour was to demonstrate that the decision of the tribunal is contradictory in view…

Commissioner of Income T Ax Delhi II vs. Kishori Lal Construction Ltd

Appeals are disposed of in the aforesaid terms

ITA - 783 / 2007HC Delhi23 Dec 2009
Section 132(4)Section 143(1)Section 148Section 68

…counsel also contended that the plea of the assessee that, since the transactions were through cheque, the same are genuine, does not hold good and tenable. He referred to the decision of Calcutta High Court in the case of CIT vs. Precession Finance Ltd., 208 ITR 465 (CAL). His further submission was that the onus on the assessee does not get discharged merely by filing of confirmatory copy of account as held by the Calcutta High court in the case of CIT vs. United Commercial reported in 187 ITR 596 (CAL). His further endeavour was to demonstrate that the decision of the tribunal is contradictory in view…