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.

How many judgments cite CIT v. Precision Finance Pvt. Ltd.?

427 judgments on BharatTax cite CIT v. Precision Finance Pvt. Ltd. (208 ITR 465), spanning 2009 to 2026.

Which sections of the Income Tax Act does CIT v. Precision Finance Pvt. Ltd. come up under?

It is most often cited in judgments turning on Section 68, Section 143(3), Section 133(6), Section 142(1), Section 147, Section 148.

CIT v. Precision Finance Pvt. Ltd. (208 ITR 465)

Spectrum Foods Limited, Jaipur vs. Income Tax Officer, Jaipur

In the result, the appeal of the assessee is allowed

ITA 38/JPR/2024[2010-11]Status: DisposedITAT Jaipur08 Apr 2024AY 2010-11

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. S. L. Poddar, AdvFor Respondent: Sh. Anup Singh (Addl. CIT)

Section 143(3)Section 147Section 148

…SC 798. 25. The Hon’ble Delhi High Court in CIT(Addl) vs Jay Engineering Works Ltd (1978) 113 ITR 389 (Del). 26. Gadgil (SS) vs Lal & Co (1964) 53 ITR 231 (SC). 27. Mangilal Jain Vs ITO 315 ITR 105 the Hon’ble High Court of Madras. 28. Precision Finance P Ltd 208 ITR 465 the Hon’ble High Court of Calcutta. 29. Principal Commissioner of Income-tax (Central)-1 v. NRA Iron & Steel (P.) Ltd. [2019] 103 taxmann.com 48 (SC) Hon’ble Supreme Court. 30. [2018] 90 taxmann.com 147 (SC) SUPREME COURT OF INDIA Securities & Exchange Board of India v. Rakhi Trading (P.) Ltd 31. [1980] 4 Taxman 525 (Delhi) HIGH COURT OF DELHI Ya…

ACIT, Circle 25(1), Delhi vs. Vinod Rice Meal Pvt. Ltd., Delhi

In the result, the appeal of the Revenue is dismissed

ITA 2048/DEL/2021[2012-13]Status: DisposedITAT Delhi04 Apr 2024AY 2012-13

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. K. Sampath, Adv. &For Respondent: Sh. Amit Katoch, Sr. DR

Section 133(6)Section 68

…act that the share holder had in fact .contributed the share capital, lies, on the assessee”. iii) a) Shankar Industries Vs. CIT [1978] 114 ITR 689 (Cal.): b) C. Kant & Co. Vs. CIT [1980] 126 ITR 63 (Cal.) and CIT Vs. Precision Finance Private Limited [1994] 208 ITR 465 (Cal.):- “It is necessary for the assessee to prove the transaction which results in a credit in its books of accounts. Such proof includes proof of the identity of its creditors, the capacity of such creditors to advance money and lastly, the genuineness of the transactions. Merely, giving names of the creditors is not enough.” iv) A. Govindara…

DCIT, Central Circle-19, New Delhi vs. Sh. Subramaniam Ashok Kumar, Tamil Nadu

In the result, the appeal of the Revenue is dismissed and the appeal & the Cross objection of the assessee is dismissed as infructuous

ITA 2739/DEL/2023[2018-19]Status: DisposedITAT Delhi15 Mar 2024AY 2018-19

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Harshit Srivastava, CA &For Respondent: Sh. Amit Shukla, Sr. DR

Section 36(1)(iii)Section 68

…nuineness of the transaction, and credit-worthiness of the investors under Section 68 of the Act. The assessee is expected to establish to the satisfaction of the Assessing Officer: Proof of Identity of the creditors: CIT v. Precision Finance Pvt. Ltd. (1994) 208 ITR 465 (Cat) Capacity of creditors to advance money: and Genuineness of transaction This Court in the land mark case of Kale Khan Mohammad Hanif v. CIT-3 and, Roshan Di Hatti v. CIT-4 laid down that the onus of proving the source of a sum of money found to have been received by an assessee is on the assessee. Once the assessee has submitted the document…

Subramaniam Ashok Kumar, Tamil Nadu vs. ACIT, Centyral Circle-31, Delhi

In the result, the appeal of the Revenue is dismissed and the appeal & the Cross objection of the assessee is dismissed as infructuous

ITA 2488/DEL/2023[2018-19]Status: DisposedITAT Delhi15 Mar 2024AY 2018-19

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Harshit Srivastava, CA &For Respondent: Sh. Amit Shukla, Sr. DR

Section 36(1)(iii)Section 68

…nuineness of the transaction, and credit-worthiness of the investors under Section 68 of the Act. The assessee is expected to establish to the satisfaction of the Assessing Officer: Proof of Identity of the creditors: CIT v. Precision Finance Pvt. Ltd. (1994) 208 ITR 465 (Cat) Capacity of creditors to advance money: and Genuineness of transaction This Court in the land mark case of Kale Khan Mohammad Hanif v. CIT-3 and, Roshan Di Hatti v. CIT-4 laid down that the onus of proving the source of a sum of money found to have been received by an assessee is on the assessee. Once the assessee has submitted the document…

DCIT, Central Circle, Noida vs. Munni Entertainment P. Ltd., Panchkula

In the result, the appeal of the Revenue as well as cross objection of the assessee is dismissed

ITA 3763/DEL/2018[2015-16]Status: DisposedITAT Delhi28 Feb 2024AY 2015-16

Bench: Shri Shamim Yahya & Shri Challa Nagendra Prasad[Assessment Year: 2015-16]

Section 68

…to advance money and genuineness of transaction. In the instant case capacity of creditor could not be proved. Mere filing of confirmation (CIT Vs Korlay Trading co. Ltd (Cal ) 232 ITR 820) or transaction through cheques (CIT Vs Precision Finance P Ltd (Cal) 208 ITR 465) is not enough to prove the genuineness of cash credit and it can be assessed. v. That the order of the Ld CIT(A) being erroneous in law and on facts which needs to be vacated and the order of the AO be restored.” 3. Brief facts of the case are that the assessee has taken unsecured loan of Rs.1,56,50,000/- from following entities:- i. M/s Gevap…

Shri Praveen Gupta, Gurgaon vs. ACIT, Meerut

In the result, the appeal of the assessee is dismissed

ITA 3189/DEL/2017[2012-13]Status: DisposedITAT Delhi15 Feb 2024AY 2012-13

Bench: Shri Amit Shukla & Shri M. Balaganeshshri Praveen Gupta, Vs. Acit, D-101, First Floor, Tower Circle-2, No. D, Caitriona Meerut Residential Apartment Complex, Ambience Island, Gurgoan-22001 (Appellant) (Respondent) Pan: Acjpg4777H Assessee By : None Revenue By: Shri Vivek Vardha, Sr. Dr Date Of Hearing 12/02/2024 Date Of Pronouncement 15/02/2024

For Appellant: NoneFor Respondent: Shri Vivek Vardha, Sr. DR

Section 143(3)Section 37Section 68

…Legal smokescreen instead of discharging primary onus by establishing the creditworthiness of the lenders as well as the genuineness of the transactions involved with the assessee to whom they forwarded loans. In the case of CIT vs. Precision Finance (P) Ltd. 208 ITR 465 Hon'ble Calcutta High Court has held that: It is for the assessee to prove the identity of the creditors, their creditworthiness and the genuineness of the transactions. (ii) On the facts of the case: the Tribunal did not take into account all these ingredients which have to be satisfied by the assessee. Merefurnishing of the particulars is not e…

M/S. Bmm Ispat Limited, Hospet vs. Assistant Commissioner of Income Tax, Circle-1(1)(2), Bangalore

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 381/BANG/2023[2016-17]Status: DisposedITAT Bangalore24 Jan 2024AY 2016-17

Bench: Shri George George K. & Shri Chandra Poojariassessment Year: 2016-17

For Appellant: Shri K.R. Pradeep & Ms. Giriji G.P., A.RsFor Respondent: Shri Senthil Kumar N., D.R

Section 115BSection 142(1)Section 143(2)Section 234BSection 250Section 68Section 92C

…the Supreme Court extracted hereunder helps the cause of the assessee than that of the revenue. “The assessee is expected to establish to the satisfaction of the Assessing Officer: Proof of Identify of the creditors; CIT v. Precision Finance Pvt. Ltd. (1994) 208 ITR 465 (Cal) Capacity of creditors to advance money; and Genuineness of transaction This Court in the land mark case of Kale Khan Mohammad Hanifv. CITS and, Roshan Pi Batti v. CIT4 laid down that the onus of proving the source of a sum of money found to have been received by an assessee, is on the assessee. Once the assessee has submitted the documents…

Spiritual Impressions Pvt Ltd., Mumbai vs. Dy CIT 15 (3)(2), Mumbai

In the result, the appeal of assessee is partly allowed

ITA 7074/MUM/2019[2011-12]Status: DisposedITAT Mumbai24 Jan 2024AY 2011-12

Bench: Shri Narender Kumar Choudhry, Jm & Ms Padmavathy S, Am

For Appellant: Shri V.G. Ginde a/w Shri KumarFor Respondent: Shri P.D. Chougule, Sr. DR

Section 131Section 132(4)Section 143(1)Section 143(3)Section 147Section 148Section 250Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JM & MS PADMAVATHY S, AM I.T.A. No. 7074/Mum/2019 (Assessment Year: 2011-12) Spiritual Impressions Pvt. Ltd., DCIT-15(3)(2), Room No. 473, 4th Floor, 703, Sharda Chambers, Vs. Near SNDT College, Churchgate, Aayakar Bhavan, M.K. Road, Mumbai- 400020 Mumbai-400020. PAN : AAMCS0223L Appellant) : Respondent) Appellant/Assessee by : Shri V.G. Ginde a/w Shri Kumar Kale, Advocate Revenue/Respondent by : Shri P.D. Chougule, Sr. DR : 11.01.2024 Date of Hearing : 24.01.2024 Date of Pronouncement O R D E R Per Padmavathy S, AM: Thi…

DCIT, CC-5(1), Mumbai vs. Hetal N. Shah (Leagal Heir of the Assessee Shri Nitin Rajmal Shah), Mumbai

In the result, we admit the appeal of the AO as it has been replaced by bringing the legal heir of deceased assessee on record but dismissed the appeal on the merits of the addition

ITA 1080/MUM/2023[2012-13]Status: DisposedITAT Mumbai22 Jan 2024AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm Hetal Nitin Shah Dcit Legal Heir Of Nitin Rajmal Central Circle 5(1) Room No.1928, 19 Th Floor, Shah Air India Building, 301, Chandramani, Vs. Nariman Point, Hanuman Road, Mumbai-400 021 Vile Parle(E), Mumbai-400 057 (Appellant) (Respondent) Pan No. Aadps5476M Assessee By : Shri Jaiprakash Bairagra, Ar Revenue By : Shri Ashok Kumar Ambastha, Dr Date Of Hearing: 16.11.2023 Date Of Pronouncement : 22.01.2024

For Appellant: Shri Jaiprakash Bairagra, ARFor Respondent: Shri Ashok Kumar Ambastha

Section 131Section 132Section 133ASection 143Section 143(3)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM Hetal Nitin Shah DCIT Legal heir of Nitin Rajmal Central Circle 5(1) Room No.1928, 19 th Floor, Shah AIR India Building, 301, Chandramani, Vs. Nariman Point, Hanuman Road, Mumbai-400 021 Vile Parle(E), Mumbai-400 057 (Appellant) (Respondent) PAN No. AADPS5476M Assessee by : Shri Jaiprakash Bairagra, AR Revenue by : Shri Ashok Kumar Ambastha, DR Date of hearing: 16.11.2023 Date of pronouncement : 22.01.2024 O R D E R PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by the assessee against…

Creative Realmart Pvt. Ltd., Jaipur vs. ITO, Ward-3(5), Jaipur

ITA 599/JPR/2023[2013-14]Status: DisposedITAT Jaipur04 Jan 2024AY 2013-14

For Appellant: Sh. P.C. Parwal (CA)For Respondent: Sh. A.S. Nehra (Addl.CIT)

Section 133ASection 143(1)Section 144Section 147Section 148Section 68

…essee to prove prima facie the identity of creditors, the capacity of such creditors and lastly the genuineness of transactions". 8 ITA No. 599/JPR/2023 Creative Realmart Pvt. Ltd. vs. ITO 9.4 Similarly, in the case of CIT v. Precision Finance (P.) Ltd [1994] 208 ITR 465 (Cal)], it was observed that "it is for the assessee to prove the identity of creditors, their creditworthiness and genuineness of transactions". 9.5 It is thus also a settled legal position that the onus of the assessee, of explaining nature and source of credit, does not get discharged merely by filing confirmatory letters, or demonstrating tha…

Shrifal Impex Private Limited, Surat vs. Income Tax Officer, Ward - 2(1)(3), Surat

ITA 250/SRT/2023[2014-15]Status: DisposedITAT Surat29 Dec 2023AY 2014-15

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.190 To 191/Srt/2023 Assessment Year: (2011-12 To 2012-13) (Physical Hearing) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent) आयकर अपील सं./Ita No.250/Srt/2023 Assessment Year: (2014-15) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent)

Section 143(3)Section 148

…te that this argument of the assessee cannot be taken into believe since in various case laws it has been held that “mere payment by account payee cheque is not sacrosanct nor can it make a non-genuine transacted genuine [Precision Finance Pvt. Ltd. vs. CTT - 208 ITR 465 (Cal).]”. The burden of proof as to any particular fact lies on that person who wishes the court to believe in its existence. (viii) As to assessee's request for cross-examination witness it is stat© that if there are sufficient other collateral evidences, then mere not allowing cross examination would not be prejudicial. Here it is to be mention…

Shrifal Impex Pvt. Ltd., Surat vs. Income Tax Officer, Ward - 2(1)(3), Surat

ITA 191/SRT/2023[2012-13]Status: DisposedITAT Surat29 Dec 2023AY 2012-13

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.190 To 191/Srt/2023 Assessment Year: (2011-12 To 2012-13) (Physical Hearing) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent) आयकर अपील सं./Ita No.250/Srt/2023 Assessment Year: (2014-15) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent)

Section 143(3)Section 148

…te that this argument of the assessee cannot be taken into believe since in various case laws it has been held that “mere payment by account payee cheque is not sacrosanct nor can it make a non-genuine transacted genuine [Precision Finance Pvt. Ltd. vs. CTT - 208 ITR 465 (Cal).]”. The burden of proof as to any particular fact lies on that person who wishes the court to believe in its existence. (viii) As to assessee's request for cross-examination witness it is stat© that if there are sufficient other collateral evidences, then mere not allowing cross examination would not be prejudicial. Here it is to be mention…

Shrifal Impex Pvt. Ltd., Surat vs. Income Tax Officer, Ward - 2(1)(3), Surat

ITA 190/SRT/2023[2011-12]Status: DisposedITAT Surat29 Dec 2023AY 2011-12

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.190 To 191/Srt/2023 Assessment Year: (2011-12 To 2012-13) (Physical Hearing) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent) आयकर अपील सं./Ita No.250/Srt/2023 Assessment Year: (2014-15) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent)

Section 143(3)Section 148

…te that this argument of the assessee cannot be taken into believe since in various case laws it has been held that “mere payment by account payee cheque is not sacrosanct nor can it make a non-genuine transacted genuine [Precision Finance Pvt. Ltd. vs. CTT - 208 ITR 465 (Cal).]”. The burden of proof as to any particular fact lies on that person who wishes the court to believe in its existence. (viii) As to assessee's request for cross-examination witness it is stat© that if there are sufficient other collateral evidences, then mere not allowing cross examination would not be prejudicial. Here it is to be mention…

Rukmani Jewellers Private Limited, Jaipur vs. DCIT Cir.-4 Jaipur, Jaipur

In the result, the appeal of the assessee is allowed

ITA 539/JPR/2023[2017-18]Status: DisposedITAT Jaipur20 Dec 2023AY 2017-18

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

For Appellant: Shri Shrawan Kumar Gupta (Adv.)For Respondent: Shri A. S. Nehra (Addl. CIT) a

Section 115BSection 143(2)Section 143(3)Section 145(3)Section 234ASection 68

…was necessary for the assessee to prove prima facie the identity of creditors, the capacity of such creditors and lastly the genuineness of transactions". (Page No. 7 to 9) 3. Hon'ble Calcutta High Court in the case of CIT vs Precision Finance (P) Ltd. [1994] 208 ITR 465(Cal)] observed that, "it is for the assessee to prove the identity of creditors, their creditworthiness and genuineness of transactions". (Page No. 10 to 13) 4. Hon'ble Supreme Court in the case of CIT vs Durga Prasad More[(1971)] 82 ITR 540(SC) held that "Science has not yet invented any instrument to test the reliability of the evidence placed…

ACIT-2(2)(1), Mmumbai vs. M/S. Jics Logistic Limited, Mumbai

In the result, the appeal of the revenue for assessment year the appeal of the revenue for assessment year the appeal of the revenue for assessment year

ITA 1781/MUM/2023[2017-18]Status: DisposedITAT Mumbai29 Nov 2023AY 2017-18