CIT v. Youth Construction Pvt. Ltd.

357 ITR 197High Court2013#2942 most cited

What is CIT v. Youth Construction Pvt. Ltd. authority for?

For share application money, proof of identity alone is insufficient; the assessee must also establish the genuineness and creditworthiness of the subscriber. The onus is on the assessee to prove these three aspects.

40

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2025.

Also referred to as

CIT v. Youth Construction Pvt. Ltd. · section 68 · share application money · genuineness · creditworthiness · identity · onus on assessee · cash credit

Sections most often in play

Section 143(2)Section 143(3)Section 68Section 133(6)Section 147Section 1961Section 142(1)Section 148

Issues it is cited on

public servantpreponderance of probabilityshare application moneycreditworthiness of the creditorshare capital and share premiumlive linkentry operatoraddition under section 68borrowed satisfactiongenuineness of the transactionincome escaping assessmentaddition u/s 68

Judgments citing CIT v. Youth Construction Pvt. Ltd.

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3565/MUM/2019[2014-15]Status: DisposedITAT Mumbai23 Dec 2021AY 2014-15
Section 133Section 143(3)Section 6Section 68

…o give. As noted by Hon'ble Delhi High Court, in the context of issuance of share capital and in the case of CIT v. Youth Construction (P.) Ltd. [2014] 44 ITA Nos. 3561 to 3565/Mum/2019 Assessment years: 2010-11 to 2014-15 Page 8 of 11 taxmann.com 364/[2013] 357 ITR 197, "it involves three ingredients, namely, the proof regarding the identity of the share applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole". That is the approach adopted by Hon'ble Courts above all along. In the case of CIT v. United Commercial & Industrial Co. (P.) Ltd. [1991] 56 Taxman 304…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3564/MUM/2019[2013-14]Status: DisposedITAT Mumbai23 Dec 2021AY 2013-14
Section 133Section 143(3)Section 6Section 68

…o give. As noted by Hon'ble Delhi High Court, in the context of issuance of share capital and in the case of CIT v. Youth Construction (P.) Ltd. [2014] 44 ITA Nos. 3561 to 3565/Mum/2019 Assessment years: 2010-11 to 2014-15 Page 8 of 11 taxmann.com 364/[2013] 357 ITR 197, "it involves three ingredients, namely, the proof regarding the identity of the share applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole". That is the approach adopted by Hon'ble Courts above all along. In the case of CIT v. United Commercial & Industrial Co. (P.) Ltd. [1991] 56 Taxman 304…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3563/MUM/2019[2012-13]Status: DisposedITAT Mumbai23 Dec 2021AY 2012-13
Section 133Section 143(3)Section 6Section 68

…o give. As noted by Hon'ble Delhi High Court, in the context of issuance of share capital and in the case of CIT v. Youth Construction (P.) Ltd. [2014] 44 ITA Nos. 3561 to 3565/Mum/2019 Assessment years: 2010-11 to 2014-15 Page 8 of 11 taxmann.com 364/[2013] 357 ITR 197, "it involves three ingredients, namely, the proof regarding the identity of the share applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole". That is the approach adopted by Hon'ble Courts above all along. In the case of CIT v. United Commercial & Industrial Co. (P.) Ltd. [1991] 56 Taxman 304…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3562/MUM/2019[2011-12]Status: DisposedITAT Mumbai23 Dec 2021AY 2011-12
Section 133Section 143(3)Section 6Section 68

…o give. As noted by Hon'ble Delhi High Court, in the context of issuance of share capital and in the case of CIT v. Youth Construction (P.) Ltd. [2014] 44 ITA Nos. 3561 to 3565/Mum/2019 Assessment years: 2010-11 to 2014-15 Page 8 of 11 taxmann.com 364/[2013] 357 ITR 197, "it involves three ingredients, namely, the proof regarding the identity of the share applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole". That is the approach adopted by Hon'ble Courts above all along. In the case of CIT v. United Commercial & Industrial Co. (P.) Ltd. [1991] 56 Taxman 304…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3561/MUM/2019[2010-11]Status: DisposedITAT Mumbai23 Dec 2021AY 2010-11
Section 133Section 143(3)Section 6Section 68

…o give. As noted by Hon'ble Delhi High Court, in the context of issuance of share capital and in the case of CIT v. Youth Construction (P.) Ltd. [2014] 44 ITA Nos. 3561 to 3565/Mum/2019 Assessment years: 2010-11 to 2014-15 Page 8 of 11 taxmann.com 364/[2013] 357 ITR 197, "it involves three ingredients, namely, the proof regarding the identity of the share applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole". That is the approach adopted by Hon'ble Courts above all along. In the case of CIT v. United Commercial & Industrial Co. (P.) Ltd. [1991] 56 Taxman 304…

Sastvijay Investment & Consultancy Services P.Ltd, New Delhi vs. ITO, Ward-22(4), New Delhi

In the result, both the appeals filed by the assessee are allowed

ITA 901/DEL/2019[2010-11]Status: DisposedITAT Delhi10 Nov 2021AY 2010-11

Bench: Shri R.K. Panda & Shri Vijay Pal Rao

For Appellant: Shri Amol Sinha &For Respondent: Shri Prakash Dubey, Sr. DR
Section 132Section 142(1)Section 143(1)Section 143(2)Section 147Section 148Section 68

…xpressed its inability to produce them. Thus, the appellant could not file any evidence in respect of share applicants that they actually exist. Similar view has been taken by Hon'ble jurisdictional High Court in the case CIT vs. Youth Construction Pvt. Ltd., 357 ITR 197 and CIT vs, Nipun Builders and Developers Pvt. Ltd., 350 ITR 407, wherein, it has been held that onus is on assessee to prove the identity of share applicants., failing which it has to be concluded that the assessee company has introduced its own money through non-existing companies using the banking channels in the shape of share application mon…

Dy CIT 15(1)(2), Mumbai vs. M/S Leena Poower Tech Engineers P Ltd., Navi Mumbai

In the result, the appeal is allowed

ITA 1313/MUM/2020[2011-12]Status: DisposedITAT Mumbai21 Sept 2021AY 2011-12

Bench: Us Is A Private Limited Company Stated To Be Engaged In The Business As 'Investment Company' In Column 10, Page 1, Of The Impugned Assessment Order. Its Assessment Under Section 143(3)

Section 143(3)Section 68

…by the assessee. The next question is as to what is the kind of explanation that the assessee is expected to give. As noted by Hon'ble Delhi High Court, in the context of issuance of share capital and in the case of PCIT Vs Youth Construction Pvt Ltd [(2013) 357 ITR 197 (Del)], "it involves three ingredients, namely, the proof regarding the identity of the share applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole". That is the approach adopted by Hon’ble Courts above all along. In the case of CIT v. United Commercial and Industrial Co (P.) Ltd [1991] 187 IT…

M/S. Shashvat Jewels Pvt. Ltd., Surat vs. The Deputy Commissioner of Income Tax, Circle-2(1)(2), Surat

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

ITA 3364/AHD/2016[2007-08]Status: DisposedITAT Surat06 Feb 2020AY 2007-08

Bench: Shri Sandeep Gosain & Shri O.P.Meena, Accoutant Member आ.अ.सं/.I.T.A No3364/Ahd/2016 िनधा"रण वष"/Assessment Year:2007-08 M/S. Shashvat Jewels Pvt. Deputy Commissioner Of Ltd., Income-Tax, 6/1468, Shashvat House, Circle-2(1)(2) Surat Kansara Street, Mahidharpura, Surat 395003 Pan:Aajcs 9790D अपीलाथ" Appellant ""यथ"/Respondent

Section 131Section 133(6)Section 143Section 148Section 68

…e Court is distinguishable on facts, as in that case no further enquiry were made and sole reliance was placed on third party information. The ld. Sr. D.R. further supported her view by placing reliance in the case of CIT v. Youth Construction (P) Ltd. [2014] 357 ITR 197 (Delhi) wherein it was held that filing of the confirmation letters and copies of their income-tax returns is not sufficient for purpose of discharging creditworthiness of share applicants and genuineness of transaction. She further relied in the case of Ridhi Promoters v. CIT [2015] 58 taxmann.com 367 (Delhi) , and CIT v. Ultra Modern Exports (P…

Lakshya Educational Trust, Ghaziabad vs. Addl. CIT, Range-1, Ghaziabad

In the result appeal of the assessee is dismissed

ITA 4128/DEL/2017[2010-11]Status: DisposedITAT Delhi04 Jun 2019AY 2010-11

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishilakshya Educational Trust, Vs. Addl. Cit, Range-1, Akhilesh Kumar, Adv., Chamber Ghaziabad No. 206-207, Ansal Satyam, Rdc Raj Nagar, Ghaziabad, Pan: Aatl6943M (Appellant) (Respondent)

For Appellant: Shri Akhilesh Kumar, AdvFor Respondent: Smt Naina Soin Kapil, Sr. DR
Section 11Section 143(3)Section 68

…subscriber was a paper company and not a genuine investor. The SLP against the ruling of the Hon‟ble High Court has been dismissed by the Hon‟ble Supreme Court. Further, it has been held by Hon‟ble Delhi High Court in the case of Youth Construction Pvt. Ltd. 357 ITR 197 (Delhi) that mere proof of identity without genuineness and creditworthiness is not enough. Further, it has been held by the Hon‟ble Delhi High Court in the case of N.R. Portfolio Pvt. Ltd. 87 DTR 0162 (Del) that the onus to prove the three factum is on the assessee as the facts are within his knowledge. Mere furnishing names address and PAN part…

Secl Industries Limited, Bathinda vs. DCIT, Ludhiana

In the result, the appeal of the assessee is dismissed

ITA 798/CHANDI/2017[2012-13]Status: DisposedITAT Chandigarh29 Mar 2019AY 2012-13
For Appellant: Shri Sudhir Sehgal, AdvFor Respondent: Smt.Mona Mohanti, CIT DR
Section 133(6)Section 143(3)Section 250(6)Section 68

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ “बी”, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’, CHANDIGARH "ी संजय गग", "याय"क सद"य एवं "ीमती अ"नपूणा" गु"ता, लेखा सद"य BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.798/Chd/2017 "नधा"रण वष" / Assessment Year : 2012-13 SECL Industries Limited, The D.C.I.T., बनाम # 21605, Street No.6/1A, Central Circle-III, Power House Road, Ludhiana. Bathinda. "थायी लेखा सं./PAN NO: AALCS6651H "नधा"रती क" ओर से/Assessee by : Shri Sudhir Sehgal, Adv. राज"व क" ओर से/ Revenue by : Smt.Mona Mohanti, CIT DR सुनवाई…

Stryton Exim India P.Ltd, New Delhi vs. ITO, Ward-24(2), New Delhi

In the result appeal filed by the assessee is allowed for statistical purposes

ITA 5982/DEL/2018[2014-15]Status: DisposedITAT Delhi23 Oct 2018AY 2014-15

Bench: Shri Kuldip Singh & Shri Prashant Maharishisa No. 665/Del/2018 (In Ita No. 5982/Del/2018) (Assessment Year: 2014-15) Stryton Exim India Pvt Ltd, Vs. Ito, C/O. R Khare & Associates, Ward-24(2), 7/6, Sarvapriya Vihar, New Delhi New Delhi Pan: Aaics0797B (Appellant) (Respondent) Stryton Exim India Pvt Ltd, Vs. Ito, C/O. R Khare & Associates, Ward-24(2), 7/6, Sarvapriya Vihar, New Delhi New Delhi Pan: Aaics0797B (Appellant) (Respondent)

For Appellant: Shri Rahul Khare, AdvFor Respondent: Shri K Tewari, Sr. DR
Section 56(2)(viib)Section 68

…ing/subsequent years, their tax audit report, resolution of the board meetings, complete bank statements, details related to investment in shares, etc. In such situation only, Hon'ble jurisdictional High Court in the case CIT vs. Youth Construction Pvt. Ltd., 357 ITR 197 and CIT vs. Nipun Builders and Developers Pvt. Ltd., 350 ITR 407, has held that onus is on assessee to prove the identity of share applicants, failing which it has to be concluded that the assessee company has introduced its own money through non-existing companies using the banking channels in the shape of ®hare application money. In view of thi…

Yagya Techno Solutions Pvt. Ltd., Karnal vs. ACIT, Haryana

ITA 4955/DEL/2016[2010-11]Status: DisposedITAT Delhi31 May 2017AY 2010-11

Bench: Shri R.S. Syal, Vice-Assessment Year : 2010-11 Yagya Techno Solutions Pvt Vs. Acit, Ltd., Circle Karnal, 25, 2Nd Floor, Haryana. Nehru Place, Karnal. Pan : Aaacy3078R

For Appellant: Shri Rajiv Sachdeva, CAFor Respondent: Ms Bedobani, DR
Section 132Section 133Section 143(1)Section 148Section 68

…a transaction is not proved, notwithstanding the fact that the assessee proved the identity and capacity of the creditor, the attractibility of section 68 cannot be overruled. 7. The Hon’ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del) has held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view ITA No.4955/Del/2016 5 has been taken by the Hon'ble ju…

M/S. K.G. Finvest Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 999/DEL/2014[2005-06]Status: DisposedITAT Delhi28 Apr 2017AY 2005-06

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…

ACIT, New Delhi vs. M/S. K.G. Finvest Pvt. Ltd., New Delhi

ITA 4206/DEL/2014[2010-11]Status: DisposedITAT Delhi28 Apr 2017AY 2010-11

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…

ACIT, New Delhi vs. M/S K.G. Finvest Pvt. Ltd., New Delhi

ITA 4709/DEL/2013[2007-08]Status: DisposedITAT Delhi28 Apr 2017AY 2007-08

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…

K.G. Finvest Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 4500/DEL/2013[2008-09]Status: DisposedITAT Delhi28 Apr 2017AY 2008-09

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…

K.G. Finvest Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 3980/DEL/2013[2009-10]Status: DisposedITAT Delhi28 Apr 2017AY 2009-10

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…

DCIT, New Delhi vs. M/S K.G. Finvest (P) Ltd., New Delhi

ITA 3429/DEL/2013[2006-07]Status: DisposedITAT Delhi28 Apr 2017AY 2006-07

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…

DCIT, New Delhi vs. M/S K.G. Finvest (P) Ltd., New Delhi

ITA 3424/DEL/2013[2008-09]Status: DisposedITAT Delhi28 Apr 2017AY 2008-09

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…

DCIT, New Delhi vs. M/S K.G. Finvest (P) Ltd., New Delhi

ITA 3423/DEL/2013[2009-10]Status: DisposedITAT Delhi28 Apr 2017AY 2009-10

Bench: Shri R.S. Syal & Ms Suchitra Kamble

For Appellant: Shri Salil Kapoor
Section 132Section 153A

…n the assessee under section 68 from further establishing the ITA Nos.4206 & 999/Del/2014 genuineness of transaction. In this regard, the ld. DR has rightly relied on the judgment of the Hon'ble Delhi High Court in CIT vs. Youth Construction Pvt. Ltd. (2013) 357 ITR 197 (Del), in which it has been held that the sole fact that share applicants had established their identity by filing confirmation letters and copies of their income-tax returns is not sufficient for the purpose of discharging credit worthiness of share applicants and genuineness of transactions. Similar view has been taken by the Hon'ble juris…