(Oceanic Products Exporting Co. v. CIT

241 ITR 497High Court2000#3357 most cited

What is (Oceanic Products Exporting Co. v. CIT authority for?

The assessee bears the burden to satisfactorily explain cash credits in their books of account with positive material. Failure to do so can result in the unexplained credit being taxed under Section 68 of the Income Tax Act.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2026.

Also referred to as

Oceanic Products Exporting Co. v. CIT · Section 68 · cash credit · unexplained credit · onus on assessee · positive material · satisfactory explanation

Sections most often in play

Section 68Section 115BBESection 143(3)Section 69CSection 69Section 144Section 131Section 133A

Issues it is cited on

section 106section 256(2)section 127(2)(a)section 2(12a)section 66section 256peak credit theoryincome tax settlement commissioncreditworthiness of the creditorsection 127(2)section 114preponderance of probability

Judgments citing (Oceanic Products Exporting Co. v. CIT

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

…is upon the appellant to satisfactorily explain the credit Spiritual Impressions Pvt. Ltd. entry contained in his books of accounts. The burden has to be discharged with positive material. This has been observed in Oceanic Products Exporting Company v. CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s. 68 of the Act. This view is fortified by the ratio laid down in Hon'ble Apex Court in P. Mohankala (2007) (291 ITR 278)(SC). The law is well settled, the onus of proving the source of a sum. found to be receive…

M/S Garware Synthetics Limited, Mira Road vs. Asst CIT Circle-15 (1)(2), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 6832/MUM/2019[2016-17]Status: DisposedITAT Mumbai24 Jun 2020AY 2016-17

Bench: Shri G. Manjunatha & Shri Ravish Soodgarware Synthetics Limited Vs. Acit,Circle-15(1)(2) Manish Textile Ind. Premises Aaykar Bhawan Opp. Golden Chemicals M.K.Road Penkar Pada, Post Mira Mumbai-400 020 Thane-401 104 Pan/Gir No.Aaacg4208M (Appellant) .. (Respondent)

Section 133(6)Section 68

…e burden so cast upon. First burden is upon the appellant to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material. This has been observed in Oceanic Products Exporting Company v CIT 241 ITR 497 (Kerala). The legislature had laid down that in the absence of satisfactory explanation the unexplained cash credit may be charged u/s 68 of the Act. This view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007) (291 ITR 278 (SC). The law is well settled, the onus of proving the source of a sum, found to be received/t…

M/S Manish Finlease (P) Ltd, Patna vs. ITO, Ward-2(1), Patna

ITA 25/PAT/2019[2010-11]Status: DisposedITAT Patna09 Aug 2019AY 2010-11

Bench: Shri Chandra Mohan Garg & Laxmi Prasad Sahuassessment Year : 2010-2011 Manish Finlease Pvt Ltd., Vs. Ito, Ward 2(1), Patna Chandi House Exhibition Road, Patna Pan/Gir No.Aaccm 6252 B (Appellant) .. ( Respondent) Assessee By : Shri A.K.Rastogi & Rakesh Kumar, Ars Revenue By : Shri Indrajeet Singh, Dr Date Of Hearing : 20/06/ 2019 Date Of Pronouncement : 09/08/ 2019 O R D E R Per Bench This Is An Appeal Filed By The Assessee Against The Order Of The Cit(A)-1, Patna Dated 27.9.2018 For The Assessment Year 2010-2011. 2. The Appeal Filed By The Assessee Is Delayed By 51 Days. The Assessee Has Filed Application For Condonation Of Delay Stating The Reasons For Not Filing The Appeal In Time Before The Tribunal. After Hearing The Submissions Of The Parties, We Are Satisfied That The Assessee Had A Bonafide Reason For Not Filing The Appeal In Time. Therefore, We Condone The Delay & Proceed To Decide The Appeal Of The Assessee On Merits.

For Appellant: Shri A.K.Rastogi & Rakesh Kumar, ARsFor Respondent: Shri Indrajeet Singh, DR
Section 133(6)Section 143(2)Section 143(3)Section 147Section 148(1)Section 68

…planation and holding that the income is from an undisclosed source. The AO is not required to specify your prove what that source is, which from the nature of the case, must be known only to the assessee. 9 5 In the case of Oceanic Products Exporting Company 241 ITR 497, the Hon’ble High Court of Kerala had held that after the enactment of section 68. the burden is placed on the assessee to prove a credit appearing in its books of account. That burden has to be discharged with positive material. A conclusion regarding creditworthiness or otherwise of a person is essentially one of fact. It does not give rise to…

ACIT - 13(3)(1), Mumbai vs. R&B Infra Projects Pvt. Ltd., Mumbai

The appeal of the Revenue is allowed for statistical purposes

ITA 5347/MUM/2016[2012-13]Status: DisposedITAT Mumbai24 Sept 2018AY 2012-13

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2012-13 Acit-13(3)(1), M/S R & B Infra Projects Room No.229, 2Nd Floor, Pvt. Ltd. बनाम/ Aayakar Bhavan, Sodawala Cross Lane, Vs. M. K. Marg, Borivali (W), Mumbai-400020 Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aaecm3616P

Section 133(6)Section 68

…ssessee to discharge the burden so cast upon. First burden is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of se…

Idhasoft Ltd., Mumbai vs. DCIT - 15(2)(1), Mumbai

ITA 5139/MUM/2016[2007-08]Status: DisposedITAT Mumbai13 Jul 2018AY 2007-08

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2007-08 M/S Idhasoft Ltd. Dcit-15(2)(1), 3, Narayan Building, Room No.357, 3Rd Floor बनाम/ 23 L. N. Road, Dadar East, Aayakar Bhavan, Vs. Mumbai-400014 M. K. Road, Mumbai-400020 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aabci6090G Assessment Year: 2007-08 Dcit-15(2)(1), M/S Idhasoft Ltd. Room No.357, 3Rd Floor 3, Narayan Building, बनाम/ Aayakar Bhavan, 23 L. N. Road, Dadar East, Vs. M. K. Road, Mumbai-400014 Mumbai-400020 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aabci6090G

Section 142(1)Section 143(3)Section 147Section 148Section 68

…assessee to discharge the burden so cast upon. First burden is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of se…

ACIT 30(3), Mumbai vs. Shreedham Builders, Mumbai

ITA 5589/MUM/2017[2012-13]Status: DisposedITAT Mumbai22 Jun 2018AY 2012-13

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2012-13 Acit-30(3), Shreedham Builders, R. No.510, 5Th Floor, 105/106, 1St Floor, बनाम/ Pratayakshkar Bhavan, Vijay Indl. Estate, Vs. Bandra Kurla Complex, Malad (W), Bandra (East), Mumbai-400064 Mumbai-400051 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Abdfs0133N

Section 143(1)Section 143(2)Section 68

…ssessee to discharge the burden so cast upon. First burden is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of se…

ITO 19(2)(3), Mumbai vs. Meenakshi N Shah, Mumbai

ITA 7082/MUM/2016[2007-08]Status: DisposedITAT Mumbai20 Jun 2018AY 2007-08

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2007-08 Dcit 5(2)(2) Meridian Chem Bond Mumbai Purchase Ltd., बनाम/ 903 Raheja Centre, Free Vs. Press Journal Marg, Nariman Point, Mumbai 400 021 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. Aaacr1789G

Section 68

…lain the credit entry contained in 23 Meridian Chem Bond P Ltd. & Meenakshi N Shah ITA No.7385 & 7082/Mum/2016 & C.O. No.86 & 85/Mum/2018 his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of s…

Navnidhi Steel and Engg Co. P.Ltd, Mumbai vs. DCIT 5(2)(1), Mumbai

The appeal of the assessee is dismissed

ITA 3420/MUM/2017[2007-08]Status: DisposedITAT Mumbai08 Jan 2018AY 2007-08

Bench: Shri Joginder Singh, Assessment Year: 2007-08

Section 133(6)Section 143(1)Section 143(2)Section 148Section 68Section 69C

…pon. First burden is upon the assessee to satisfactorily explain the credit entry 40 Navnidhi Steel & Engg. Co. Pvt. Ltd. contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. My view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of sec…

Anil Chhaganlal Jain (HUF), Mumbai vs. Asst CIT 18(1), Mumbai

The appeal of the assessee is allowed

ITA 370/MUM/2017[2013-14]Status: DisposedITAT Mumbai13 Apr 2017AY 2013-14

Bench: Shri Joginder Singh & Shri Rajendra

Section 68

…assessee to discharge the burden so caste upon. First burden is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of secti…

Anil Chhaganlal Jain, Mumbai vs. Asst CIT 18(1), Mumbai

The appeal of the assessee is allowed

ITA 369/MUM/2017[2013-14]Status: DisposedITAT Mumbai13 Apr 2017AY 2013-14

Bench: Shri Joginder Singh & Shri Rajendra

Section 68

…assessee to discharge the burden so caste upon. First burden is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of secti…

Asst CIT 21(3), Mumbai vs. Ram Textiles, Mumbai

The appeal of the Revenue is dismissed

ITA 3478/MUM/2015[2010-11]Status: DisposedITAT Mumbai22 Mar 2017AY 2010-11

Bench: Shri Joginder Singh & Shri N.K. Pradhanassessment Year: 2010-11 Acit-21(3), M/S Ram Textiles, 221, 02Nd Floor, Piramal Kewal Industrial Estate, बनाम/ Chambers, Lalbaug, S.B. Marg, Lower Parel(W) Vs. Mumbai Mumbai-400013 (राज"व /Revenue) ("नधा"रती/Assessee) P.A. No. Aakfr4679N

Section 133(6)Section 68

…e assessee to discharge the burden so cast upon. First burden is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala 6 M/s Ram Textiles (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that…

Dhanraj Mills P. Ltd, Mumbai vs. ACIT (OSD)-II Cen RG-7, Mumbai

The appeals of the assessee are dismissed

ITA 3830/MUM/2009[1987-88]Status: DisposedITAT Mumbai21 Mar 2017AY 1987-88

Bench: Shri Joginder Singh & Shri N.K. Pradhan

Section 271(1)(c)Section 273Section 68

…Nos.3830 to 3831/Mum/2009 and ITA Nos. 4115 & 4116/Mum/2012 is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. Our view is fortified by the ratio laid down in Hon’ble Apex Court in P. Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that in the case of secti…

M/S. Ram Pal & Party (AOP), New Delhi vs. ITO (OSD), New Delhi

ITA 830/DEL/2012[2004-05]Status: DisposedITAT Delhi08 Feb 2016AY 2004-05

Bench: Shri N.K. Saini, Am & Smt. Beena A. Pillai, Jm Assessment Year : 2004-05 Ram Pal & Party (Aop), Vs. Ito (Osd), E-78, 1St Floor, Lic Colony, Delhi-Ix, Paschim Vihar, Cr Building, New Delhi. New Delhi. Pan: Aaaar3396R Assessment Year : 2004-05

For Appellant: Shri R.S. Singhvi, CAFor Respondent: Smt. Rasmita Jha, Sr. DR
Section 131Section 145(3)Section 68

…. United Commercial Bank Ltd., 187 ITR 596 (Ca I), wherein it has been held that mere filing of confirmatory letters does not discharge the onus that lies on the assessee. The AO has also quoted the case of Oceanic Products Exporting Company Vs. CIT (2000) 241 ITR 497, as per which the burden is placed on the assessee to prove credits in its books of accounts and that such a burden has to be discharged with positive material. 2.4. The Assessing Officer also noticed that the assessee had declared a GP rate of 22.28% on total sales of Rs.17,25,44,586/-. The AO noticed that the sales were totally un-vouched and…

ITO, New Delhi vs. M/S. Ram Pal & Party (AOP), New Delhi

ITA 1031/DEL/2012[2004-05]Status: DisposedITAT Delhi08 Feb 2016AY 2004-05

Bench: Shri N.K. Saini, Am & Smt. Beena A. Pillai, Jm Assessment Year : 2004-05 Ram Pal & Party (Aop), Vs. Ito (Osd), E-78, 1St Floor, Lic Colony, Delhi-Ix, Paschim Vihar, Cr Building, New Delhi. New Delhi. Pan: Aaaar3396R Assessment Year : 2004-05

For Appellant: Shri R.S. Singhvi, CAFor Respondent: Smt. Rasmita Jha, Sr. DR
Section 131Section 145(3)Section 68

…. United Commercial Bank Ltd., 187 ITR 596 (Ca I), wherein it has been held that mere filing of confirmatory letters does not discharge the onus that lies on the assessee. The AO has also quoted the case of Oceanic Products Exporting Company Vs. CIT (2000) 241 ITR 497, as per which the burden is placed on the assessee to prove credits in its books of accounts and that such a burden has to be discharged with positive material. 2.4. The Assessing Officer also noticed that the assessee had declared a GP rate of 22.28% on total sales of Rs.17,25,44,586/-. The AO noticed that the sales were totally un-vouched and…

Hitendra M Ghosh, Mumbai vs. ITO WD 19(1)(3), Mumbai

The appeal of the assessee is dismissed

ITA 5347/MUM/2014[2007-08]Status: DisposedITAT Mumbai06 Jan 2016AY 2007-08

Bench: Shri Joginder Singh, Assessment Year: 2007-08 Hitendra M. Ghosh, Ito, 28, Veena Beena, Gr. Fl. Ward-19(1)(3), बनाम/ Opp. Bandra Station, Mumbai Vs. Mumbai-400050 "नधा"रती / Assessee राज"व / Revenue P.A. No.Acmpg7670A

Section 133Section 133(6)Section 142(1)Section 144Section 68

…ection 68 of the Act, onus is upon the assessee. First burden is upon the assessee to satisfactorily explain the credit entry contained in his books of accounts. The burden has to be discharged with positive material (Oceanic Products Exporting Company vs CIT 241 ITR 497 (Kerala.). The legislature had laid down that 4 Hitendra M. Ghosh in the absence of satisfactory explanation, the unexplained cash credit may be charged u/s 68 of the Act. My view is fortified by the ratio laid down in Hon’ble Apex Court in P.Mohankala (2007)(291 ITR 278)(SC). A close reading of section 68 and 69 of the Act makes it clear that i…