CIT v. Precision Finance Pvt. Ltd.

DCIT, Circle -6, Jaipur, Ncrb vs. Ascent Buildhome Developers Limited, Adarsh Nagar, Jaipur

In the result, the appeal of the revenue is dismissed

…and the surrounding circumstances. Just producing documents or adhering to formalities is not sufficient to prove the genuineness of a transaction if the circumstances raise doubt about its authenticity. 4. CIT vs Precision Finance Pvt. Ltd. Citation: (1994) 208 ITR 465 (Cal) Key Finding: The Calcutta High Court held that the identity of the creditor, genuniness of the transaction, and creditworthiness are crucial for any claim. A mere payment through banking channels does not validate the transaction's genuineness without corroborative evidence of work or services performed. Conclusion: In light of these judici…

Raj Kumari Agarwal, Jaipur vs. ACIT Cen Cir 2, Jaipur

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

…e Calcutta High Court) it was held that production of even confirmatory letters from the lender parties before the Income-tax Officer in support of the loan alone would not suffice the loan as genuine. In the case of CIT v. Precision Finance (P.) Ltd. 11994] 208 ITR 465/11995] 82 Taxman 31 (Hon'ble Calcutta High Court) it was held that "It was not for the Income-tax Officer to find out by making investigation from the bank accounts unless the assessee proves the identity of the creditors and their creditworthiness. Mere payment by account payee cheque is not sacrosanct nor can it make a non- genuine transaction…

Income Tax Officer, Ward-7(2), Jaipur vs. Amar Pratap Steels Private Limited, Jaipur

Bench: Him The Order Passed Under Section 143(3) R.W.S

…ITA No. 134/JP/02 dated 10.12.2003 and affirmed by Hon'ble Supreme Court in 288 ITR 10(SC) has held that even payment by account payee cheque is not sufficient to establish the genuineness of the transaction. Further, in CIT V/s Precision Finance Pvt. Ltd. 208 ITR 465 (Cal.), the Hon'ble Calcutta High Court has held that payment made by account payee cheque is not sacrosanct and it would not make an otherwise non genuine transaction genuine. It is a well settled law that strict rules of evidence do not apply to the Income Tax Act and the real test with regard to genuineness of transactions is "Preponderance…

Samarth Lifestyle Retailing Pvt. Ltd., Jaipur vs. DCIT, Circle-6, Jaipur

In the result, the appeal of the assessee is allowed

…ss of the transaction, and credit-worthiness of the investors under Section 68 of the Act. The appellant is expected to establish to the satisfaction of the Assessing Officer as held in the case of CIT v. Precision Finance (P.) Ltd. [1995] 82 Taxman 31/[1994] 208 ITR 465 (Cal.) the following aspects: • Proof of Identity of the creditors, • Capacity of creditors to advance money, and • Genuineness of transaction 8.4 Hon'ble Supreme Court in the land mark case of Kale Khan Mohammed Hanif v. CIT [1963] 50 ITR 1 (SC) and Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC) laid down that the onus of proving the source of a…

Saket Agarwal, Jaipur vs. ITO Ward 2(3) Jaipur, Jaipur

In the result appeal filed by the assessee is allowed

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 646/JPR/2024 fu/kZkj.k o"kZ@Assessment Years : 2014-15 Saket Agarwal cuke The ITO, 27, Everest Vihar, Kings Road, Vs. Ward-2(3), Jaipur. Nirman Nagar, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AEKPA9319Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Ms. Satwika Jhan, Adv. jktLo dh vksj ls@ Rev…