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.

Totgars Co-Operative Sale Society Ltd, Sirsi vs. Pr. Commissioner of Income Tax, Hubballi

In the result, the appeal by the assessee is allowed

ITA 168/BANG/2023[2017-18]Status: DisposedITAT Bangalore12 Jun 2023AY 2017-18

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2017-18

For Appellant: Shri S.K. Tulsiyan & Ms. Bhoomija Verma, AdvocatesFor Respondent: Shri Sunil Kumar Singh, CIT(DR)(ITAT), Bengaluru
Section 142(1)Section 143(1)Section 143(3)Section 263

…, as required u/s. 68 of the Act, the assessee must satisfy three conditions, viz., (i) identity of the creditor, (ii) genuineness of the transaction, and (iii) creditworthiness of the creditor as held in the case of CIT vs. Precision Finance Pvt. Ltd. (1994) 208 ITR 465 (Cal). 29. It is submitted that the identity and creditworthiness of the trade debtors is not in doubt by Ld.Pr. CIT. It is only the genuineness of the receipts which has been questioned. In this respect it is submitted that the genuineness of the payments received has been duly established by the assessee by furnishing ledger copies of the trad…

Gulmohar Distributors Pvt. Ltd., Kolkata vs. I.T.O., Ward-9(2), Kolkata

ITA 270/KOL/2020[2009-10]Status: DisposedITAT Kolkata09 Jun 2023AY 2009-10

Bench: Shri Sanjay Garg & Shri Girish Agrawalassessment Year: 2009-10

For Appellant: Shri S. M. Surana, AdvocateFor Respondent: Smt. Ranu Biswas, Addl. CIT, DR
Section 143(3)Section 253Section 5Section 68

…riber companies by the account payee cheques is not sacrosanct for a cash credit to become genuine and definitely this cannot make a bogus transaction as a genuine one. Reliance may be placed on the judicial decisions like CIT Vs. Precison Finance Pvt. Ltd, - 208 ITR 465 (Cal), Nizam Wool Agency Vs. CIT, 193 ITR 318 (Ail)”. 17. On perusal of the complete order, it nowhere reveals when ld. Assessing Officer has started the investigation? When he has issued notice under section 142(1) or 133(6) to the subscriber of the shares as well as summons under section 131 of the Act to the Directors of the assessee-company?…

Vishan Raj Jain (HUF), Hyderabad vs. ACIT Central Circle-1 (2), Hyderabad

In the result, the appeal filed by the assessee is dismissed

ITA 193/HYD/2022[2016-17]Status: DisposedITAT Hyderabad25 May 2023AY 2016-17

Bench: Shri Rama Kanta Panda & Shri Laliet Kumarassessment Year: 2016-17 Vishan Raj Jain (Huf) Vs. Acit, Central Circle-1(2) 6-3-650, G7 6-3-650, G7, Aaykar Bhawan Maheswari Chambers Opp:L.B.Stadium Somajiguda Basheer Bagh Telangana-500 082 Hyderabad-500 004

For Appellant: Shri K.C.Devdas, CAFor Respondent: Shri K.P.R.R.Murthy, Sr.AR
Section 10Section 10(38)Section 115BSection 142(1)Section 143(2)Section 147Section 148Section 250

…of the tribunal in the following cases. i. Rajkumar B..Agarwal vs. DCIT [ITAt, Pune] ii. Pankaj Agarwal & Son (HUF) vs. ITO [ITAt, Chennai] iii. Nemichand Kothari vs. CIT (2003) Guwahati H.C. (264 ITR 254 iv. CIT vs. Precision Finance (P) Ltd., Kolkata H.C. (208 ITR 465) v. CIT vs. Durga Prasad More (82 ITR 540) (SC) vi. Sumati Dayal vs. CIT (214 ITR 801) (SC) vii. Sanath Kumar vs. ACIT, New Delhi (ITAT, Delhi) (122 taxmann 75) 7. On the other hand the DR for the revenue had submitted that the assessee was rightly charged under section115BBE. In fact he had drawn our attention to the decision of the SMC bench o…

Sangeeta Devi Jhunjhunwala, New Delhi vs. ITO, Ward-70(1), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 747/DEL/2022[2015-16]Status: DisposedITAT Delhi18 May 2023AY 2015-16

Bench: Dr. Brr Kumar & Ms. Astha Chandraasstt. Year: 2015-16

For Appellant: Shri Rajiv SaxenaFor Respondent: Shri Amit Shukla, Sr. DR
Section 10(38)Section 131Section 142(1)Section 143(1)Section 69C

…However, even this plea is contrary to facts brought on record by the Revenue. The assessee did not consider the business activity of the company M/s. HPC Biosciences Limited, its financials and its creditability. 15.2 In CIT vs. Precision Finance Pvt. Ltd. 208 ITR 465 (Cal) the Hon’ble Calcutta High Court has observed that it is for the assessee to prove the identity of the creditor/ his creditworthiness and the genuineness of the transactions. In CIT vs. Nova Promoters Finlease Pvt. Limited (2012) 342 ITR 169 (Del) the Hon’ble Delhi High Court held that it would be incorrect to state that the onus to prove th…

D.C.I.T., Circle-1(4), Kolkata vs. Edmond Finvest Pvt. Ltd., Kolkata

In the result, the appeal filed by the Revenue is dismissed

ITA 96/KOL/2021[2015-16]Status: DisposedITAT Kolkata16 May 2023AY 2015-16

Bench: Sri Sanjay Garg & Dr. Manish Borad

Section 131Section 143(2)Section 143(3)Section 14ASection 250Section 68

…nt evidence the genuineness 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 CIT v. Precision Finance (P) Ltd. [1995] 82 Taxman 31/[1994]208 ITR 465 (Cal.): Proof of Identity of the creditors; Capacity of creditors to advance money; and Genuineness of transaction This 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 sum of money found to have been received b…

Kiran Rupchand Oswal, Pune vs. Income Tax Officer, NFAC, Pune

ITA 503/PUN/2022[2018-19]Status: DisposedITAT Pune11 May 2023AY 2018-19

Bench: Hon’Ble Shri S. S. Godara & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No.503/Pun/2022 निर्धारण वर्ा / Assessment Year : 2018-2019 Kiran Rupchand Oswal, Store No.18/19 8, M. G. Road, Pune – 411 001 Pan : Aadpo3423A . . . . . . . अपऩलधथी / Appellant बनाम / V/S. Income Tax Officer, National E-Assessment Centre . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee By : Smt. Deepa Khare Revenue By : Shri Ramnath Murkunde सपिवधई की तधरऩख / Date Of Conclusive Hearing : 28/03/2023 घोर्णध की तधरऩख / Date Of Pronouncement : 28/03/2023 आदेश / Order Per G. D. Padmahshali, Am; By The Present Appeal, The Assessee Challenges The Order Of National Faceless Appeal Centre, Delhi [For Short ‘Nfac’] Dt. 30/05/2022 Passed U/S 250 Of The Income-Tax Act, 1961 [For Short ‘The Act’] For The Assessment Year [For Short ‘Ay’] 2018-19. Itat-Pune Page 1 Of 4

For Appellant: Smt. Deepa KhareFor Respondent: Shri Ramnath Murkunde
Section 10Section 139(1)Section 143(2)Section 250Section 68

…ncurrence of Ld. AO. ITAT-Pune Page 2 of 4 Kiran Rupchand Oswal, ITA No.503/PUN/2022 AY: 2018-19 3. In the event of failure to establish and explain the genuine source of credit, the Ld. AO placing reliance on ‘CIT Vs Precision Finance (P) Ltd.’ reported in 208 ITR 465 (Kol) and N. K. Proteins Ltd Vs CIT’ reported in 2017-TIOL- 23-SC-IT, held the transaction as bogus / non genuine and made an addition of ₹12,80,00,000/- u/s 68 of the Act as unexplained cash credit vide order dt. 16/03/2021. 4. In an appeal before the Ld. NFAC the appellate reiterated his submission; however of no success the matter came on boar…

One Stop Commosale Pvt. Ltd., Kolkata vs. I.T.O., Ward-6(3), Kolkata

In the result, the appeal filed by the assessee is dismissed

ITA 636/KOL/2019[2012-13]Status: DisposedITAT Kolkata03 May 2023AY 2012-13

Bench: Sri Rajpal Yadav & Dr. Manish Borad

Section 133(6)Section 143(2)Section 143(3)Section 14ASection 250Section 68

…ness of the transaction. As per the provisions of section 68 of the I.T. Act, the onus is on assessee to prove the above three criteria. Reliance is being placed on the decision of jurisdictional High Court in the case of CIT -vs- Precision Finance Pvt. Ltd. [208 ITR 463] wherein it was observed that:- Further reliance is placed on the judgment of the Hon’ble Calcutta High Court in CIT- v- Ruby Traders and Exporters Ltd, fl34 Taxman 29 (Cal)] which was pleased to hold, ‘it is incumbent on the assessee to prove and establish the identity of the subscribers, their creditworthiness and the genuineness of the transac…

The Principal Commissioner vs. M/S Obulapuram Mining

ITA/100091/2016HC Karnataka17 Mar 2023

Bench: K.SOMASHEKAR,UMESH M ADIGA

Section 131Section 143(3)Section 260ASection 37

…ort department. The transaction would not become ginuwine just because the payments have been routed through banks. To substantiate the same, reliance is also placed on the decision of the High Court of Madras in the case of Precision Financer reported in 208 ITR 465, wherein it was held that mere payment by account payee cheque is not sacrosanct not would it make a non-genuine transaction genuine. From the assessment order, it is seen that the reasons given by the Assessing Officer in paragraph 1.9 for not accepting the reply of the assessee are that there is substantial increase in the transportation…

M/S Kashiram Atmaram, Surat vs. Dy. Commissioner of Income Tax, Circle - 1(1)(1), Surat

In the result, ground No.1 of assessee is allowed

ITA 236/SRT/2022[2015-16]Status: DisposedITAT Surat13 Mar 2023AY 2015-16

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.236/Srt/2022 (Ay 2015-16) (Hearing In Physical Court) Kashiram Atmaram Deputy Commissioner Of 3/1949, Siddhi Sheri, Income-Tax, Vs Salabatpura, Surat-395003 Central Circle-(1)(1)(1), Pan No. Aadfk 2670 H Room No.108, Aayakar Bhawan, Majura Gate, Surat-395001 ""थ" /Respondent अपीलाथ"/Appellant

Section 115BSection 143(3)Section 254(1)Section 68

…count did not represent income as has been held by the various courts. The transaction made through banking channel is not 6 M/s Kashiram Atmaram conclusive evidence about the genuineness as held by Hon’ble Calcutta High Court in Precision Finance P Limited (208 ITR 465) unless the creditworthy of the landers and genuineness of transaction is proved. The assessee could not prove the unsecured loan in its books of account satisfactory and upheld the addition. The NFAC/ Ld. CIT(A) also upheld the addition of interest expenses as well as taxing the additions under section 68 under section 115BBE. Further aggrieved…

Deputy Commissioner of Income Tax, Circle- 3, Guwahati vs. M/S. Satyam Ispat (North East) Limited, Banderdewa

In the result, the appeals filed by the Revenue for AY 2011-

ITA 87/GTY/2017[2012-13]Status: DisposedITAT Guwahati03 Mar 2023AY 2012-13

Bench: Sri Rajpal Yadav(Kz) & Dr. Manish Borad

Section 132Section 133(6)Section 139Section 143(2)Section 153CSection 250Section 68Section 80I

…nt evidence the genuineness 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 CIT v. Precision Finance (P) Ltd. [1995] 82 Taxman 31/[1994]208 ITR 465 (Cal.): Proof of Identity of the creditors; Capacity of creditors to advance money; and Genuineness of transaction This 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 Page 21 of 26 I.T.A. Nos.: 86 & 87/GTY/2017 Assessment Years: 2011-12 & 2012-13 M/s. Satyam Ispat (No…

Deputy Commissioner of Income Tax, Circle- 3, Guwahati vs. M/S. Satyam Ispat (North East) Limited, Banderdewa

In the result, the appeals filed by the Revenue for AY 2011-

ITA 86/GTY/2017[2011-12]Status: DisposedITAT Guwahati03 Mar 2023AY 2011-12

Bench: Sri Rajpal Yadav(Kz) & Dr. Manish Borad

Section 132Section 133(6)Section 139Section 143(2)Section 153CSection 250Section 68Section 80I

…nt evidence the genuineness 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 CIT v. Precision Finance (P) Ltd. [1995] 82 Taxman 31/[1994]208 ITR 465 (Cal.): Proof of Identity of the creditors; Capacity of creditors to advance money; and Genuineness of transaction This 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 Page 21 of 26 I.T.A. Nos.: 86 & 87/GTY/2017 Assessment Years: 2011-12 & 2012-13 M/s. Satyam Ispat (No…

M/S. Dwarka Goods Pvt. Ltd., Kolkata vs. I.T.O., Ward-1(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 524/KOL/2022[2016-2017]Status: DisposedITAT Kolkata07 Feb 2023AY 2016-2017

Bench: Dr. Manish Borad & Shri Sonjoy Sarma]

Section 133(6)Section 250Section 68

…t evidence the genuineness 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 CIT v. Precision Finance (P.) Ltd. [1995] 82 Taxman 31/[1994] 208 ITR 465 (Cal.): Proof of Identity of the creditors; Capacity of creditors to advance money; and Genuineness of transaction 9 AY: 2016-17 M/s. Dwarka Goods Pvt. Ltd. This 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…

M/S Starland Vinimay Pvt. Ltd, Kolkata vs. ITO, Ward-2(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 574/KOL/2020[2012-13]Status: DisposedITAT Kolkata24 Jan 2023AY 2012-13

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 131Section 143(2)Section 143(3)Section 250Section 56(2)(viib)Section 68

…t evidence the genuineness 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 CIT v. Precision Finance (P.) Ltd. [1995] 82 Taxman 31/[1994] 208 ITR 465 (Cal.): Proof of Identity of the creditors; Capacity of creditors to advance money; and Genuineness of transaction This 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 sum of money found to have been received b…

ITO, New Delhi vs. M/S. Accentor Infotech Pvt. Ltd., Delhi

In the result, appeal of the Revenue is allowed for statistical purposes

ITA 3278/DEL/2017[2012-13]Status: DisposedITAT Delhi17 Jan 2023AY 2012-13

Bench: Shri Anil Chaturvedi & Shri Chandra Mohan Garg

For Appellant: NoneFor Respondent: Shri Kanv Bali, Sr.DR
Section 133(6)Section 143(3)Section 68

…ced reliance on the decision in the case NRA Steel [2019] 218 ITR 161 (SC), the decision of Delhi High Court in the case of Indus Valley Promoters Ltd. 305 ITR 202, Nova Promoters & Finlease (P) Ltd. 342 ITR 169 (Delhi High Court), Precision Finance Pvt. Ltd. 208 ITR 465 (Calcutta High Court) and Swati Bajaj 139 taxmann.com 352 (Calcutta High Court). 7. We have heard the Ld. DR and perused the material on record. The issue in the present ground is with respect to addition u/s. 68 of the Act, on account of share premium by 9 investor companies that was made by AO but deleted by CIT(A). 8. AO in the assessment or…

ITO, Ward-2(3)(7), Surat vs. Anshuman Ramdayalji Kumawat, Surat

In the result the ground No

ITA 22/SRT/2020[2009-10]Status: DisposedITAT Surat13 Jan 2023AY 2009-10

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble Accountnat Member (Physical Court Hearing) Sl.

For Appellant: Shri Rohit Vijayvargiya, CAFor Respondent: Shri Ashok B. Koli, CIT(DR) with Shri Vinod Kumar
Section 132(4)Section 144

…t this argument of the assessee cannot be taken into consideration 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 transaction genuine [Precision Finance Pvt. Ltd. vs CIT – 208 ITR 465 (Cal.)]. The burden of proof as to any particular fact lies on that person who wished the court to believe in its existence. The assessing officer also noted that the ratio laid down in section 106 of the Indian Evidence Act, whereby the onus of proving the correctness of the entry, the truth of which is called in question by Assessing Officer sh…

ITO, Ward-2(3)(7), Surat vs. Anshuman Ramdayalji Kumawat, Surat

In the result the ground No

ITA 21/SRT/2020[2008-09]Status: DisposedITAT Surat13 Jan 2023AY 2008-09

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble Accountnat Member (Physical Court Hearing) Sl.

For Appellant: Shri Rohit Vijayvargiya, CAFor Respondent: Shri Ashok B. Koli, CIT(DR) with Shri Vinod Kumar
Section 132(4)Section 144

…t this argument of the assessee cannot be taken into consideration 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 transaction genuine [Precision Finance Pvt. Ltd. vs CIT – 208 ITR 465 (Cal.)]. The burden of proof as to any particular fact lies on that person who wished the court to believe in its existence. The assessing officer also noted that the ratio laid down in section 106 of the Indian Evidence Act, whereby the onus of proving the correctness of the entry, the truth of which is called in question by Assessing Officer sh…

ITO, Ward 2(3)(8), Surat vs. Mukesh Mahavirprasad Sen, Surat

In the result the ground No

ITA 16/SRT/2020[2009-10]Status: DisposedITAT Surat13 Jan 2023AY 2009-10

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble Accountnat Member (Physical Court Hearing) Sl.

For Appellant: Shri Rohit Vijayvargiya, CAFor Respondent: Shri Ashok B. Koli, CIT(DR) with Shri Vinod Kumar
Section 132(4)Section 144

…t this argument of the assessee cannot be taken into consideration 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 transaction genuine [Precision Finance Pvt. Ltd. vs CIT – 208 ITR 465 (Cal.)]. The burden of proof as to any particular fact lies on that person who wished the court to believe in its existence. The assessing officer also noted that the ratio laid down in section 106 of the Indian Evidence Act, whereby the onus of proving the correctness of the entry, the truth of which is called in question by Assessing Officer sh…

ITO, Ward 2(3)(8), Surat vs. Mukesh Mahavirprasad Sen, Surat

In the result the ground No

ITA 15/SRT/2020[2008-09]Status: DisposedITAT Surat13 Jan 2023AY 2008-09

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble Accountnat Member (Physical Court Hearing) Sl.

For Appellant: Shri Rohit Vijayvargiya, CAFor Respondent: Shri Ashok B. Koli, CIT(DR) with Shri Vinod Kumar
Section 132(4)Section 144

…t this argument of the assessee cannot be taken into consideration 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 transaction genuine [Precision Finance Pvt. Ltd. vs CIT – 208 ITR 465 (Cal.)]. The burden of proof as to any particular fact lies on that person who wished the court to believe in its existence. The assessing officer also noted that the ratio laid down in section 106 of the Indian Evidence Act, whereby the onus of proving the correctness of the entry, the truth of which is called in question by Assessing Officer sh…

Income Tax Officer, Ward 2(3)(8), Surat vs. Shri Rajesh Kumar Pamecha, Ajmer

In the result the ground No

ITA 87/SRT/2017[2007-08]Status: DisposedITAT Surat13 Jan 2023AY 2007-08

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble Accountnat Member (Physical Court Hearing) Sl.

For Appellant: Shri Rohit Vijayvargiya, CAFor Respondent: Shri Ashok B. Koli, CIT(DR) with Shri Vinod Kumar
Section 132(4)Section 144

…t this argument of the assessee cannot be taken into consideration 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 transaction genuine [Precision Finance Pvt. Ltd. vs CIT – 208 ITR 465 (Cal.)]. The burden of proof as to any particular fact lies on that person who wished the court to believe in its existence. The assessing officer also noted that the ratio laid down in section 106 of the Indian Evidence Act, whereby the onus of proving the correctness of the entry, the truth of which is called in question by Assessing Officer sh…

Navroop Commercial Pvt. Ltd., Kolkata vs. I.T.O., Ward-13(3), Kolkata

In the result, both the appeals of the assessee are allowed

ITA 613/KOL/2019[2013-14]Status: DisposedITAT Kolkata11 Jan 2023AY 2013-14

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 131Section 133(6)Section 68

…t evidence the genuineness 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 CIT v. Precision Finance (P.) Ltd. [1995] 82 Taxman 31/[1994] 208 ITR 465 (Cal.): Proof of Identity of the creditors; 6 I.T.A. Nos. 151 & 613/Kol/2019 Assessment Year: 2012-13 & 2013-14 Navroop Commercial Pvt. Ltd. Capacity of creditors to advance money;and Genuineness of transaction This 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…