What is CIT v. Value Capital Services (P) Ltd. authority for?

An addition under Section 68 for cash credits or share application money is not sustainable if the Assessing Officer fails to conduct proper investigation into the documentary evidence provided by the assessee regarding the identity, creditworthiness, and genuineness of the transaction.

How many judgments cite CIT v. Value Capital Services (P) Ltd.?

216 judgments on BharatTax cite CIT v. Value Capital Services (P) Ltd. (307 ITR 334), spanning 2009 to 2026.

Which sections of the Income Tax Act does CIT v. Value Capital Services (P) Ltd. come up under?

It is most often cited in judgments turning on Section 143(3), Section 133(6), Section 68, Section 132(4), Section 147, Section 131.

CIT v. Value Capital Services (P) Ltd. (307 ITR 334)

Rajendra Kumar Mundra (HUF), Mumbai vs. National Faceless Assessment Centre (NFAC), Delhi

In the result the appeal filed by the assessee stands allowed

ITA 1000/MUM/2024[2016-17]Status: DisposedITAT Mumbai06 Aug 2025AY 2016-17

Bench: Hon’Ble Shri Sandeep Gosain& Shri Girish Agrawalrajendra Kumar Mundra Vs. Ito, Ward 24(3)(1) (Huf) Piramal Chamber C-28, Ameya Bldg, Behind Lalbaug, Mumbai – Ymca Dn Nagar Andheri (W) 400012. 400053. Pan/Gir No.Aadh6828J (Applicant) (Respondent)

Section 147Section 148Section 2Section 263Section 68Section 69A

…n 8. View taken in Modi creation Pvt. Ltd. Is also taken in following decision. i. CIT v/s Divine Leasing & Finance Ltd. 158 Taxmann 440 (Delhi) (2007). ii. Nemichand Kothari V/s CIT (136 Taxman 216) (Gau.) (2004). iii. CIT V/s Value Capital Services (P) Ltd. 307 ITR 334 (Delhi)(2008). Thus, the addition made on the basis of bad-assessment order is also bad- in-law and should not be added. HUMBLE PRAYER In view of the aforesaid facts, evidences of the case, judicial proceedings and in the interest of justice the appellant humbly requests your good self to consider the above submission. 4. On the other hand Ld.…

Pr. Commissioner of Income Tax (Central)-2 vs. M/S K.R. Pulp and Papers Ltd

ITA/529/2023HC Delhi31 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

For Appellant: Mr. Sanjay Kumar, Ms. Monica BenjaminFor Respondent: Mr. Gautam Jain and Mr. Manish Yadav

Section 143(3)Section 147Section 148Section 260ASection 68Section 80I

…HARMA Signing Date:03.06.2025 16:52:00 Signature Not Verified ITA No. 529/2023 Page 4 of 25 Value Capital Services Pvt. Ltd.: (2008) 307 ITR 334 and that of the Bombay High Court in CIT v. Gagandeep Infrastructure Pvt. Ltd.: 2017 SCC OnLine Bom 3796, the CIT(A) held that in the absence of such material, the amount received could not be treated as unexplained income of the Assessee. The CIT(A) also noted that a substantial number of the investor companies were registered as Non-Bankin…

Pr. Commissioner of Income Tax (Central)-2 vs. M/S K.R. Pulp and Papers Ltd

ITA-529/2023HC Delhi31 May 2025

For Appellant: Mr. Sanjay Kumar, Ms. Monica BenjaminFor Respondent: Mr. Gautam Jain and Mr. Manish Yadav

Section 143(3)Section 147Section 148Section 260ASection 68Section 80I

…HARMA Signing Date:03.06.2025 16:52:00 Signature Not Verified ITA No. 529/2023 Page 4 of 25 Value Capital Services Pvt. Ltd.: (2008) 307 ITR 334 and that of the Bombay High Court in CIT v. Gagandeep Infrastructure Pvt. Ltd.: 2017 SCC OnLine Bom 3796, the CIT(A) held that in the absence of such material, the amount received could not be treated as unexplained income of the Assessee. The CIT(A) also noted that a substantial number of the investor companies were registered as Non-Bankin…

Jay Ganga Exim India Pvt.Ltd., Howrah vs. I.T.O., Ward-13(1), Kolkata

ITA 964/KOL/2019[2012-13]Status: FixedITAT Mumbai08 Apr 2025AY 2012-13

Bench: Shri B.R. Baskaran & Shri Narender Kumar Choudhry

For Appellant: Shri Tejveer SinghFor Respondent: Smt. Sanyogita Nagpal, CIT-DR

Section 131Section 131(1)(d)Section 133(6)Section 68

…68 of the Act. (a) We notice that the AO has alleged that the assessee has routed its own money through these subscribers. However, no supporting document was brought on record to support this view. In the case of CIT vs. Value Capital Services (P) Ltd (2008) 307 ITR 334 (Delhi), it has been held that the additional burden is on the revenue to show that even if the share applicants did not have means to make the investment and the investment made by them actually emanated from the coffers of the assessee so as to enable it to be treated as the undisclosed income of the assessee. (b) In the case of CIT vs. Dwarkad…

Assistant Commissioner of Income Tax, Central Circle -3, Surat vs. Bharatbhai Kanjibhai Kakadiya, Surat

In the result, deletion of unsecured loan of Rs

ITA 391/SRT/2023[2016-17]Status: DisposedITAT Surat24 Mar 2025AY 2016-17

Bench: Shri Pawan Singh & Shri Bijayananda Prusethआयकर अपील सं./Ita No.391/Srt/2023 Assessment Year: (2016-17) (Physical Court Hearing) Assistant Commissioner Of Bharatbhai Kanjibhai Kakadiya Income-Tax, Central Circle-3, Vs. 27, Hans Society, Varachha Road, Surat, Room No.507, 5Th Floor, Varachha, Surat-395 006 Aatyakar Bhawan, Majura Gate,Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Afmpk 5646 M (अपीलाथ"/Appellant) (""थ" /Respondent) आयकर अपील सं./Ita No.312/Srt/2023 Assessment Year: (2016-17) Bharatbhai Kanjibhai Kakadiya Assistant Commissioner Of 27, Hans Society, Varachha Road, Vs. Income-Tax, Central Circle-3, Varachha, Surat-395 006 Surat, Room No.507, 5Th Floor, Aatyakar Bhawan, Majura Gate,Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Afmpk 5646 M (अपीलाथ"/Appellant) (""थ" /Respondent)

Section 132(4)Section 147Section 250Section 44ASection 68

…rise 71 taxmann.com 275 (Guj), (vi) CIT vs. Ranachhod Jivabhai Nakhava 21 taxmann.com 159 (Guj), (vii) ITA No.391 & 312/SRT/2023/AY.16-17 Bharatbhai K Kakadiya Nemi Chand KothARI VS. CIT 264 ITR 254 (Guj) and (viii) CIT vs. Value Capital Services Pvt. Ltd. 221 CTR 511 (Del). The Ld. AR further submitted that assessee is not required to prove the source of the source as the amendment in this regard was brought in the Statute by the Finance Act, 2022 with effect from 01.04.2023. He also submitted that assessee has repaid loan of Rs.2,01,00,000/- of 26 parties long before the assessment was made and notice u/s 14…

Bharatbhai Kanjibhai Kakadiya, Surat vs. Assistant Registrar, Central Circle-3, Surat

In the result, deletion of unsecured loan of Rs

ITA 312/SRT/2023[2016-17]Status: DisposedITAT Surat24 Mar 2025AY 2016-17

Bench: Shri Pawan Singh & Shri Bijayananda Prusethआयकर अपील सं./Ita No.391/Srt/2023 Assessment Year: (2016-17) (Physical Court Hearing) Assistant Commissioner Of Bharatbhai Kanjibhai Kakadiya Income-Tax, Central Circle-3, Vs. 27, Hans Society, Varachha Road, Surat, Room No.507, 5Th Floor, Varachha, Surat-395 006 Aatyakar Bhawan, Majura Gate,Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Afmpk 5646 M (अपीलाथ"/Appellant) (""थ" /Respondent) आयकर अपील सं./Ita No.312/Srt/2023 Assessment Year: (2016-17) Bharatbhai Kanjibhai Kakadiya Assistant Commissioner Of 27, Hans Society, Varachha Road, Vs. Income-Tax, Central Circle-3, Varachha, Surat-395 006 Surat, Room No.507, 5Th Floor, Aatyakar Bhawan, Majura Gate,Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Afmpk 5646 M (अपीलाथ"/Appellant) (""थ" /Respondent)

Section 132(4)Section 147Section 250Section 44ASection 68

…rise 71 taxmann.com 275 (Guj), (vi) CIT vs. Ranachhod Jivabhai Nakhava 21 taxmann.com 159 (Guj), (vii) ITA No.391 & 312/SRT/2023/AY.16-17 Bharatbhai K Kakadiya Nemi Chand KothARI VS. CIT 264 ITR 254 (Guj) and (viii) CIT vs. Value Capital Services Pvt. Ltd. 221 CTR 511 (Del). The Ld. AR further submitted that assessee is not required to prove the source of the source as the amendment in this regard was brought in the Statute by the Finance Act, 2022 with effect from 01.04.2023. He also submitted that assessee has repaid loan of Rs.2,01,00,000/- of 26 parties long before the assessment was made and notice u/s 14…

The Pr. Commissioner of Income Tax -Central -1 vs. Jaguar Buildcon Pvt. Ltd

ITA/530/2023HC Delhi03 Mar 2025

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR

Section 133(1)(d)Section 133(6)Section 68

…vine Leasing & Finance Ltd. [CIT v. Divine Leasing & Finance Ltd., 2006 SCC OnLine Del 1624 : (2008) 299 ITR 268 : (2007) 158 Taxman 440] and CIT v. Value Capital Services (P) Ltd. [CIT v. Value Capital Services (P) Ltd., 2008 SCC OnLine Del 1474 : (2008) 307 ITR 334] 13. The principles which emerge where sums of money are credited as share capital/premium are: 13.1. The assessee is under a legal obligation to prove the genuineness of the transaction, the identity of the creditors, and creditworthiness of the investors who should have the financial capacity to make the investment in question, to the sat…

The Pr. Commissioner of Income Tax -Central -1 vs. Jaguar Buildcon Pvt. Ltd

ITA/531/2023HC Delhi03 Mar 2025

Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA

Section 133(1)(d)Section 133(6)Section 68

…vine Leasing & Finance Ltd. [CIT v. Divine Leasing & Finance Ltd., 2006 SCC OnLine Del 1624 : (2008) 299 ITR 268 : (2007) 158 Taxman 440] and CIT v. Value Capital Services (P) Ltd. [CIT v. Value Capital Services (P) Ltd., 2008 SCC OnLine Del 1474 : (2008) 307 ITR 334] 13. The principles which emerge where sums of money are credited as share capital/premium are: 13.1. The assessee is under a legal obligation to prove the genuineness of the transaction, the identity of the creditors, and creditworthiness of the investors who should have the financial capacity to make the investment in question, to the sat…

Deputy Commissioner of Income Tax Central Circle-1(3), Nagpur vs. M/S. Fuelco Coal India Ltd., Nagpur

Appeal of the Revenue is dismissed

ITA 90/NAG/2022[2014-15]Status: DisposedITAT Nagpur14 Feb 2025AY 2014-15

Bench: Shri V. Durgarao & Shrik.M. Roy, Accountant, Member

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Sandipkumar Salunke

Section 143(2)Section 143(3)Section 36(1)(iii)Section 40Section 40aSection 68

…IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGARAO, JUDICIAL MEMBER AND SHRIK.M. ROY, ACCOUNTANT, MEMBER ITA no.90/Nag./2022 (Assessment Year : 2014–15) Dy. Commissioner of Income Tax ……………. Appellant Central Circle–1(2), Nagpur v/s M/s. Fuel Co. Coal India Ltd. 926–A, Fulwani Palace ……………. Respondent Central Avenue, Despande Layout Nagpur 440 008 PAN – AAACF8231B Assessee by : Shri Kishore P. Dewani Revenue by : Shri Sandipkumar Salunke Date of Hearing – 30/01/2025 Date of Order – 14/02/2025 O R D E R PER V. DURGA RAO, J.M. The appeal by the assessee is emanating from the impu…

Pr. Commissioner Oflncome Tax Delhi - 5 vs. Mrs. Rowena Sharma

ITA/1220/2018HC Delhi11 Feb 2025

Bench: HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR,HON'BLE MR. JUSTICE YASHWANT VARMA

Section 68Section 69Section 69ASection 80

…vine Leasing & Finance Ltd. [CIT v. Divine Leasing & Finance Ltd., 2006 SCC OnLine Del 1624 : (2008) 299 ITR 268 : (2007) 158 Taxman 440] and CIT v. Value Capital Services (P) Ltd. [CIT v. Value Capital Services (P) Ltd., 2008 SCC OnLine Del 1474 : (2008) 307 ITR 334] 13. The principles which emerge where sums of money are credited as share capital/premium are: 13.1. The assessee is under a legal obligation to prove the genuineness of the transaction, the identity of the creditors, and creditworthiness of the investors who should have the financial capacity to make the investment in question, to the…

Achla Malhotra, Delhi vs. ITO, Ward-24(1), Delhi

ITA 4252/DEL/2024[2014-15]Status: DisposedITAT Delhi23 Jan 2025AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 132Section 132(4)Section 147

…t has cited several judgments in its favour claiming that such deficiencies in the assessment order makes it untenable. The judgements of different Hon'ble High Courts and ITATs cited by the appellant are as follows: i) CIT vs. Value Capital Services (P) Ltd. 307 ITR 334, Delhi High Court ii) CIT Vs. Metaphor Exports P Ltd. ITA 4/2015 dated 13.01.2015, Delhi High Court iii) CIT-II Vs. M/s. Multiplex Trading & Industrial Co. Ltd.378 ITR 351 dated 22.09.2015, Delhi High Court iv) CIT Vs M/s. Mark Hospitals (P) Ltd. 373 ITR 115 dated 03.12.2014 Madras High Court v) CIT vs. Apex Therm Packaging (P.) Ltd. 42 taxmann.c…

The Dy. C.I.T., Central Cir. 2(1), Nagpur vs. M/S Mahavir Coal Resources Pvt. Ltd

In the result, appeal filed by the Revenue for A

ITA 386/NAG/2014[2011-12]Status: DisposedITAT Nagpur08 Jan 2025AY 2011-12

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Sandipkumar Salunke

Section 132(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.386/Nag./2014 (Assessment Year : 2011–12) Dy. Commissioner of Income Tax ……………. Appellant Central Circle–2(1), Nagpur v/s M/s. Mahavir Coal Resources Pvt. Ltd. Jain Complex, Opp. Amar Dharamkanta ……………. Respondent Maihan Road, Pureni, Katani PAN – AAFCM7014C Assessee by : Shri Kishore P. Dewani Revenue by : Shri Sandipkumar Salunke Date of Hearing – 26/12/2024 Date of Order – 08/01/2025 O R D E R PER K.M. ROY, A.M. Captioned appeal by the Revenue is against the impu…

The Dy. C.I.T., Central Cir. 2(1), Nagpur vs. M/S Mahavir Coal Resources Pvt. Ltd

In the result, appeal filed by the Revenue for A

ITA 385/NAG/2014[2010-11]Status: DisposedITAT Nagpur08 Jan 2025AY 2010-11

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Sandipkumar Salunke

Section 132(1)Section 153C

…IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.385/Nag./2014 (Assessment Year : 2010–11) Dy. Commissioner of Income Tax ……………. Appellant Central Circle–2(1), Nagpur v/s M/s. Mahavir Coal Resources Pvt. Ltd. Jain Complex, Opp. Amar Dharamkanta ……………. Respondent Maihan Road, Pureni, Katani PAN – AAFCM7014C Assessee by : Shri Kishore P. Dewani Revenue by : Shri Sandipkumar Salunke Date of Hearing – 26/12/2024 Date of Order – 08/01/2025 O R D E R PER K.M. ROY, A.M. Captioned appeal by the Revenue is against the imp…