KNC Chandrashekhar v. ACIT SumatiDayal

66 TTJ 355Income Tax Appellate Tribunal#3598 most cited

What is KNC Chandrashekhar v. ACIT SumatiDayal authority for?

A cash credit can be assessed even if the transaction was conducted through a cheque, as mere proof of identity or cheque payment is insufficient to establish the creditor's creditworthiness and the genuineness of the credit.

33

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2025.

Also referred to as

KNC Chandrashekhar v ACIT · 66 TTJ 355 · cash credit · section 68 · genuineness of credit · creditworthiness of creditor · source of source · cheque transaction · ITAT Bangalore

Sections most often in play

Section 115BBESection 133(6)Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 194HSection 246A

Issues it is cited on

section 31paper companysection 251(2)share capital and share premiumcreditworthiness of the creditorsource of sourcesection 251(1)(a)live linkadmission of additional evidenceshare application moneyprincipal officersection 144a

Judgments citing KNC Chandrashekhar v. ACIT SumatiDayal

ACIT, New Delhi vs. M/S. Sur Buildcon Pvt. Ltd., New Delhi

ITA 5831/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

ITO, New Delhi vs. M/S Stylish Construction Pvt. Ltd., New Delhi

ITA 5744/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

ITO, New Delhi vs. M/S. Sukhna Real Estate Pvt. Ltd., Ghaziabad

ITA 5742/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

ITO, New Delhi vs. M/S. Sukhna Steel Pvt. Ltd., New Delhi

ITA 5741/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

ITO, New Delhi vs. M/S. Sunlight Tour and Travels Pvt. Ltd., Sahibabad

ITA 5740/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

ITO, New Delhi vs. M/S. Sintex Consumers Electronics Pvt. Ltd., Delhi

ITA 5736/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

ITO, New Delhi vs. M/S. Supreme Placement Services Pvt. Ltd., New Delhi

ITA 5650/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

ITO, New Delhi vs. M/S Angel Cement Pvt. Ltd., Ghaziabad

ITA 4691/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Mar 2021AY 2012-13

Bench: Shri Amit Shukla & Shri Prashant Maharishi

…Mills V CIT 228 ITR 780 (AP) • Malabar Agricultural Co Ltd V following judgments: • Nova Promoters CIT 229 ITR 548 (Ker) • CIT V Precision Finance P. Ltd &Finlease P Ltd, • Mc Dowell & Co 208 ITR 465 (Cal) • • KNC Chandrashekhar V ACIT SumatiDayal • LN Dalmia 66 TTJ 355 (ITAT Bangalore) • • CIT V United Commercial and Sunil Siddhartha Bhai V CiT Industrial Co. Pvt Ltd 187 ITR • CIT Durga Prasad More 596 (Cal) • CIT V Durga Prasad More • ITO V K Jayaraman • (1971) 82 ITR 540 (SC) CIT V Divine Leasing • ITO V K. Jayaraman (1987) Finance • 168 ITR 757 (Mad.) Anand Woolen Mills Pvt • CIT V NeelkanthaIspat Udyog Ltd V…

DCIT 6(2)(2), Mumbai vs. Edesk Services Ltd, Mumbai

ITA 7113/MUM/2016[2012-13]Status: DisposedITAT Mumbai02 May 2019AY 2012-13

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.7113/Mum/2016 (नििाारण वर्ा / Assessment Year: 2012-13) बिाम/ Dcit 6(2)(2) M/S. Edesk Services Ltd. R.No. 563, Aayakar Bhavan, 6-A, Lalwani Indl. Estate M.K Road, Churchgate, 14, G.D. Ambekar Road, V. Mumbai 400020 Wadala, Mumbai 400031 स्थायी ऱेखा सं./ Pan : Aabcb5087H

For Appellant: Shri. Jayesh DadiaFor Respondent: Shri. O.P Meena (DR)
Section 143(3)Section 68

…ch is purchased by the assessee. The AO relied upon following judicial precedents to hold against the assessee : a) CIT v. Korlay Trading Co. Ltd. 232 ITR 820(Cal.) b) CIT v. Precision Finance Private Limited 208 ITR 465(Cal.) c) K.C.N.Chandrasekhar v. ACIT , 66 TTJ 355(ITAT Bangalore) d) CIT v. United Commercial & Industrial Co. Private Limited 187 ITR 596(Cal.) The AO observed that the assessee did not comply with the requisite details asked for during the course of assessment proceedings vide notice issued u/s 142(1) of the 1961 Act and the AO considered share premium of Rs. 7,04,90,000/- as sham transaction w…

Sh. Abhimanyu Soin, Ludhiana vs. ACIT, Ludhiana

In the result, appeal of the Assessee is dismissed

ITA 951/CHANDI/2016[2011-12]Status: DisposedITAT Chandigarh18 Apr 2018AY 2011-12

Bench: Shri. Sanjay Garg, Judicial, Member & Dr. B.R.R. Kumarassessment Year: 2011-12

For Appellant: Sh. Kuldip SinghFor Respondent: Smt. C. Chandrakanta
Section 10(38)Section 131Section 133(6)Section 68

…ss of the transaction. Only when these three ingredients are established prima facie, the department is required to undertake further exercise." 10.2 In the case of CIT Vs Prescision Finance P. LTD. (Cal)208 ITR 465, K.C.N. Chandrasekhar Vs AC IT (ITAT.Bang) 66 TTJ 355, CIT Vs United Commercial & industrial Co.(P) ltd.(Cal)187 ITR. "It is necessary for the assessee to prove prima face the transaction which results in a cash credit in his books of account. Such proof includes proof of the identity of his creditor, the capacity of such creditor to advance the money and, lastly, the genuineness of the transaction.…

Jasamrit Constructions P.Ltd, Mumbai vs. ITO 6(3)(2), Mumbai

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

ITA 1091/MUM/2016[2012-13]Status: DisposedITAT Mumbai08 Feb 2018AY 2012-13

Bench: Shri Joginer Singh & Shri Rajesh Kumarm/S. Jasamrit Constructions Income Tax Officer-6(3)(2) Private Ltd. Room No. 503, 5Th Floor Flat No. 901, Building 'B' Vs. Aayakar Bhavan, M.K. Road Ashok Tower, Near Itc Hotel Mumbai 400020 Parel, Mumbai 400017 Pan – Aabcj8295L Appellant Respondent

For Appellant: Shri Vijay MehtaFor Respondent: Shri Aarju Goradia
Section 133(6)Section 143(3)Section 68

…ficer vs. Skyjet Aviation (P) Ltd. 71 ITD 95 (Ahd) xxxii. CIT vs. Precision Finance Pvt. Ltd. 208 465 (Cal) xxxiii. Orient Wire Industries (P) Ltd. 131 ITR 688 (Cal) xxxiv. CIT vs. Korlay Trading Co. Ltd. 232 ITR 820 (Cal) xxxv. K.C.N. Chandrassekhar vs. ACIT 66 TTJ 355 (Bang) xxxvi. Gayathri Associates vs. Income Tax Officer 41taxmann.com 526 (AP) xxxvii. Agrawal Coal Corpn. (P) Ltd. vs. ACIT 135 ITD 270 (Ind) xxxviii. Nipun Builders & Developers P. Ltd. 350 ITR 407 (Del) xxxix. CIT vs. Ultra Modern Exports P. Ltd. 40 taxmann.com 458 (Del) xl. ACIT vs. Dhanalaxmi Steel Re-rolling Mills 57 ITD 361 (Hyd) xli. CIT…

M/S. Rajsadan Overseas Sales(P)Ltd, Siliguri vs. DCIT, Circle-2, Siliguri

In the result, appeal of assessee is dismissed

ITA 1076/KOL/2012[2008-2009]Status: DisposedITAT Kolkata17 Sept 2015AY 2008-2009

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Subhas Agarwal, AdvocateFor Respondent: Shri Amitabha Choudhury, Addl. CIT
Section 143(3)Section 68

…of cash credit as held in CIT Vs. Korlay Trading Co. Ltd. (Cal) 232 ITR 820. Further, cash credit can be assessed even if transaction is through cheques as held in CIT Vs. Precision Finance P. Ltd (Cal) 208 ITR 465, K.C.N. Chandrasekhar Vs. ACIT (ITAT, Bang) 66 TTJ 355 and CIT Vs. United Commercial & Industrial Co. (P) Ltd. (Ca!) 187 ITR 596. In the instant case, the assessee has failed to prove the creditworthiness of these five loan creditors. It is necessary for the assessee to prove prima-facie the genuineness of the transactions with identity of the creditor and' his capacity. Only 4 M/s. Rajsadan Oversea…

Late Sri. K.B. Khaleel, Hassan vs. ITO, Hassan

In the result, the appeals by the Assessee are dismissed

ITA 239/BANG/2011[2004-05]Status: DisposedITAT Bangalore05 Mar 2015AY 2004-05

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri P. Dhivahar, Jt. CIT(DR)
Section 131Section 68

…and creditworthiness of the creditor and also the genuineness of the transaction. It was submitted by him that the additions made were justified and did not call for any review. He placed reliance on the decision in the case of K.C.N. Chandrashekar v. ACIT, 66 TTJ 355 (Bang), wherein the Bangalore Tribunal after making a reference to the decision of the Hon’ble Calcutta High Court in Shankar Industries v. CIT, 114 ITR 689 (Cal) and the decision of Hon’ble High Court of Karnataka in Bedi & Co. P. Ltd. v. CIT, 144 ITR 352 (Kar), held that capacity of the creditor has to be established by the assessee. 14. Our…