Orient Trading Co. Ltd. v. CIT

DCIT 4(3)(2), Mumbai vs. Sunrise Metallic (India) P.Ld, Mumbai

In the result, appeal of Revenue is dismissed

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Dcit 4(3)(2) Vs. M/S. Sunrise Metallic R.No.649, 6Th Floor (India) Pvt. Ltd., Aayakar Bhavan Shiva Industrial Estate, Mumbai – 400 020 Near Tata Power House Lake Road, Bhandup (W) Mumbai – 400 078 Pan/Gir No.Aajcs2965E Appellant) Respondent) ..

…AO to disprove the evidences adduced by the appellant. None of the documents adduced by the appellant has been disproved or disbelieved by the AO with any concrete evidence. It has been held by the Bombay High Court in the case of Orient Trading Co Ltd v CIT (49 ITR 723), Patna High Court in the case of Sarogi Credit Corporation v CIT (103 ITR 344), Madras High Court in the case of CIT v Gani Silk Palace (171 ITR 373), Allahabad High Court in the case of Daya C hand Jain Vaidya (98 ITR 280), it will not thereafter be for the assessee to explain further. The burden will shift on to the AO to show why the assessee'…

Asst CIT 1(3)(1), Mumbai vs. Sankalp Corporate P. Ltd, Mumbai

In the result, this appeal by the Revenue stands dismissed

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं./I.T.A. No.118/Mum/2016 ("नधा"रण वष" / Assessment Year: 2012-13) Asst. Cit-1(3)(1) M/S. Sankalp Corporate Pvt. Ltd. Room No. 564, 5Th Floor, Ground Floor, Sunbeam Chambers, बनाम/ Aayakar Bhawan, Opp. Liberty Cinema, New Marine Vs. M. K. Road, Mumbai-400 020 Lines, Mumbai-400 020 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aancs 3998 P (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri V. Justin ""यथ" क" ओर से/Respondent By : Shri Prakash Jhunjhunwala

…CIT vs. Dwarkadhish Investment Pvt Ltd 330ITR298(Del-HC) 19. CIT vs. Samir Bio-tech Pvt Ltd 325ITR294(Del-HC) 20. CIT vs. Orchid Industries Pvt Ltd 397ITR136(Bom-HC) 21. CIT vs. Creative World Telefilms Ltd 333ITR100(Bom-HC) 22. Orient Trading Co. Ltd vs. CIT 49 ITR 723 (Bom-HC) 23. CIT vs. Tania Investment Pvt Ltd 322 ITR 394 (Bom-HC) 24. CIT vs. Dwarkadhish Investment Pvt Ltd 330ITR298(Del-HC) 11. We have heard the counsels and perused the records. We find that the assessee in this case has received share capital and share premium from its associate concern M/s. Illusion Securities P. Ltd. The Assessing Offi…

ITO 8(3)(2), Mumbai vs. Spartacus Farmsp.Ltd, Mumbai

In the result, the Revenue’s appeal is allowed

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं./I.T.A. No.3073/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11) The I.T.O-8(3)(2), M/S. Spartacus Farms Pvt. Ltd. 201, Aayakar Bhavan, 11-A, Gr. Floor, बनाम/ M. K. Marg, Mumbai-400 020 Technopolis Knowledge Park, Vs. Mahakali Caves Road, Andheri (E), Mumbai-400 093 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aancs 6632 A (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri V. Justin ""यथ" क" ओर से/Respondent By : Shri Mihir Naniwadekar & Ms. Trupti Y. Katale सुनवाई क" तार"ख / : 30.11.2017 Date Of Hearing घोषणा क" तार"ख / : 13.02.2018 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.:

…huge funds. The Assessing Officer further referred to several case laws as under: 1. CIT vs. P. Mohankala (2007) 161 Taxman 169 (SC) 2. Mr. Kale Khan Mohammad Hanif vs. CIT 50 ITR 1 (SC) 3. M/s. Precision Finance Pvt. Ltd. 4. Orient Trading Co. Ltd. vs. CIT 49 ITR 723 6 M/s. Spartacus Farms Pvt. Ltd. 5. R. B. Mittal vs. CIT 165 CTR 366 6. CIT vs. Nova Promoters & Finlease (P) Ltd. order dated 15.2.2012 7. Ld. Departmental Representative. D. Siva Sankara Rao vs. ITO dated 27.11.2012 6. The Assessing Officer concluded as under: 6. If the totality of the facts and judicial pronouncements discussed above are kept…

Yash Developers, Thane vs. DCIT Cir 3, Thane

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

Bench: Shri R.C. Sharma & Shri Pawan Singhm/S Yash Developers Dcit Circle 3, Room No. 2, B Wing, 6Th Floor, Room No. 4, Aaji Krupa Building, Hari Niwas Circle, Ashar I.T.Park, Road No. 16-Z, Vs. Naupada, Thane (W), Wagle Indl. Estate, Thane(W), Thane – 400 602. Thane-400604. Pan: Aaafy4509J

…the bank accounts of those creditors because under law the assessee can be asked to prove the source of the credits in its books of account but not the source of the source as held by the Bombay High Court in the case of Orient Trading Co. Ltd. v. CIT [1963] 49 ITR 723. The genuineness of the transaction is proved by the fact that the payment to the assessee as well as repayment of the loan by the assessee to the depositors is made by account payee cheques and the interest is also paid by the assessee to the creditors by account payee cheques. Merely because summons issued to some of the creditors could not be s…

Yash Developers, Thane vs. DCIT Cir-3, Thane

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

Bench: S/Shri B.R. Baskaran (Am) & Amarjit Singh (Jm)

…the bank accounts of those creditors because under law the assessee can be asked to prove the source of the credits in its books of account but not the source of the source as held by the Bombay High Court in the case of Orient Trading Co. Ltd. v. CIT [1963] 49 ITR 723. The genuineness of the transaction is proved by the fact that the payment to the assessee as well as repayment of the loan by the assessee to the depositors is made by account payee cheques and the interest is also paid by the assessee to the creditors by account payee cheques. Merely because summons issued to some of the creditors could not be s…

ITO 3(3)(4), Mumbai vs. Harsh Dalmia, Mumbai

In the result, appeal filed by the Revenue is dismissed

Bench: Shri B.R. Baskaran (Am)

…leged creditors to find out whether they were creditworthy. Therefore, it was held that in these circumstances, assessee could not do any further and it had discharged the burden laid on it. In Orient Trading Co. Ltd. v. Commissioner of Income-tax (1963) xi. 49 ITR 723 (Born.), one of the questions referred to the Bombay High Court was whether there was any material before the Tribunal to hold that a sum standing in the books of the assessee to the credit of a third party belonged to the assessee. The Bombay High Court discussed the nature and significance of cash credits in such cases and observed as follows:…

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

The appeal of the Revenue is dismissed

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

…ining one, the authorized representative appeared before the Assessing Officer along with confirmation. It was contended that the loans were repaid by the assessee. Reliance was placed upon the decision in ORIENT TRADING CO. LTD vs. COMMISSIONER OF INCOME TAX 49 ITR 723 (Bom.) and COMMISSIONER OF INCOME TAX vs. CHANDELA TRADING CO. P. LTD. 372 ITR 232 (Cal.). 2.2. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee, a partnership firm, was engaged in the business of manufacturing and dealing in textiles and other merchandises, consisti…

Swastik Realtors, Mumbai vs. Asst CIT 15(3), Mumbai

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.800/Mum/2012 & 6314/Mum/2012 ("नधा"रण वष" / Assessment Year : 2007-08 & 2008-09) Swastik Realtors The Assistant बनाम/ 312, Swastik Disha Commissioner Of Income V. Corporate Park , Kohinoor Tax – 15(3), Textile Printing Compound Matru Mandir I T Office Opp. Shreyas Cinema, Lbs Nana Chowk Marg, Ghatkopar(W) Grant Road Mumbai-400 086 Mumbai. "थायी लेखा सं./Pan : Abafs2576A (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

…e the purchases and ITA 800/Mum/2012 & 6314/Mum/2012 35 sale made of diamond and no discrepancies were found , thus this case was decided on its own facts wherein the additions were deleted by the Tribunal. c) Orient Trading Company Limited v. CIT , (1963) 49 ITR 723(Bom. HC) – The hon’ble Bombay High Court in this case has held that once the tax-payer satisfies the AO as to the identity of the third party and also supplies such other evidence which will show, prima facie, that the entry is not fictitious, the initial burden which lies on the tax-payer can be said to have been discharged by him. It will not, t…

Swastik Realtors, Mumbai vs. A.C.I.T.15(3), Mumbai

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.800/Mum/2012 & 6314/Mum/2012 ("नधा"रण वष" / Assessment Year : 2007-08 & 2008-09) Swastik Realtors The Assistant बनाम/ 312, Swastik Disha Commissioner Of Income V. Corporate Park , Kohinoor Tax – 15(3), Textile Printing Compound Matru Mandir I T Office Opp. Shreyas Cinema, Lbs Nana Chowk Marg, Ghatkopar(W) Grant Road Mumbai-400 086 Mumbai. "थायी लेखा सं./Pan : Abafs2576A (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

…e the purchases and ITA 800/Mum/2012 & 6314/Mum/2012 35 sale made of diamond and no discrepancies were found , thus this case was decided on its own facts wherein the additions were deleted by the Tribunal. c) Orient Trading Company Limited v. CIT , (1963) 49 ITR 723(Bom. HC) – The hon’ble Bombay High Court in this case has held that once the tax-payer satisfies the AO as to the identity of the third party and also supplies such other evidence which will show, prima facie, that the entry is not fictitious, the initial burden which lies on the tax-payer can be said to have been discharged by him. It will not, t…

Jayant B Patel HUF, Mumbai vs. ACIT CC13, Mumbai

In the result, appeals filed by the revenue are dismissed,

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm आयकर अपील सं./Ita Nos.5547, 5548, 5553/Mum/2012 & Ita No.7525/Mum/2013 ("नधा"रण वष" / Assessment Years :2001­02, 2003­04 & 2007­08) Jayant B. Patel Huf, B/27, Vs. Acit, Cc­13, Mumbai Clifton Society, Near Centuar Hotel, Juhu Vile Parle (W), Mumbai­49 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaahj 1081 L (अपीलाथ" /Appellant) (""यथ" / Respondent) .. & आयकर अपील सं./Ita Nos.5455 To 5461/Mum/2012 ("नधा"रण वष" / Assessment Years :2001­02 To 2007­08) Acit, Cc­13, Mumbai Vs. Jayant B. Patel Huf, B/27, Clifton Society, Near Centuar Hotel, Juhu Vile Parle (W), Mumbai­49 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaahj 1081 L (अपीलाथ" /Appellant) (""यथ" / Respondent) .. & आयकर अपील सं./Ita Nos.5549 To 5552, 5554/Mum/2012 &7524/Mum/2013 ("नधा"रण वष" / Assessment Years :2001­02, 2003­04 2004­05,2006­07 & 2007­08) Jayant B. Patel, B/27, Clifton Vs. Acit, Cc­13, Mumbai Society, Near Centuar Hotel, Juhu Vile Parle (W), Mumbai­49 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacpp 6414 H (अपीलाथ" /Appellant) (""यथ" / Respondent) .. "नधा"रती क" ओर से /Assessee By : Dr. K.Shivaram & Ms. Neelam C. Jadhav राज"व क" ओर से /Revenue By : Shri Alok Johri सुनवाई क" तार"ख / Date Of Hearing : 13/05/2016 घोषणा क" तार"ख/Date Of Pronouncement 10/08/2016

…­ per acre per annum which is not very high. 4. After relying on the judicial pronouncements in the case of Umesh Electricals 131 ITD 127, Pragati Co­op Bank 278 ITR 170 and the decision of Hon’ble Bombay High Court in the case of Orient Trading Co. Ltd., 49 ITR 723, the CIT(A) has deleted the addition on account of agricultural income. Detailed finding recorded by CIT(A) are as per materials on record, therefore, do not warrant any interference on our part. Accordingly, we confirm the action of CIT(A) regarding agricultural income earned and declared by assessee. 5. With regard to the addition made on ac…

A.C.I.T. Cent.Cir.13, Mumbai vs. Jayant B. Patel(HUF), Mumbai

In the result, appeals filed by the revenue are dismissed,

Bench: Shri R.C.Sharma, Am & Shri Ram Lal Negi, Jm आयकर अपील सं./Ita Nos.5547, 5548, 5553/Mum/2012 & Ita No.7525/Mum/2013 ("नधा"रण वष" / Assessment Years :2001­02, 2003­04 & 2007­08) Jayant B. Patel Huf, B/27, Vs. Acit, Cc­13, Mumbai Clifton Society, Near Centuar Hotel, Juhu Vile Parle (W), Mumbai­49 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaahj 1081 L (अपीलाथ" /Appellant) (""यथ" / Respondent) .. & आयकर अपील सं./Ita Nos.5455 To 5461/Mum/2012 ("नधा"रण वष" / Assessment Years :2001­02 To 2007­08) Acit, Cc­13, Mumbai Vs. Jayant B. Patel Huf, B/27, Clifton Society, Near Centuar Hotel, Juhu Vile Parle (W), Mumbai­49 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaahj 1081 L (अपीलाथ" /Appellant) (""यथ" / Respondent) .. & आयकर अपील सं./Ita Nos.5549 To 5552, 5554/Mum/2012 &7524/Mum/2013 ("नधा"रण वष" / Assessment Years :2001­02, 2003­04 2004­05,2006­07 & 2007­08) Jayant B. Patel, B/27, Clifton Vs. Acit, Cc­13, Mumbai Society, Near Centuar Hotel, Juhu Vile Parle (W), Mumbai­49 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacpp 6414 H (अपीलाथ" /Appellant) (""यथ" / Respondent) .. "नधा"रती क" ओर से /Assessee By : Dr. K.Shivaram & Ms. Neelam C. Jadhav राज"व क" ओर से /Revenue By : Shri Alok Johri सुनवाई क" तार"ख / Date Of Hearing : 13/05/2016 घोषणा क" तार"ख/Date Of Pronouncement 10/08/2016

…­ per acre per annum which is not very high. 4. After relying on the judicial pronouncements in the case of Umesh Electricals 131 ITD 127, Pragati Co­op Bank 278 ITR 170 and the decision of Hon’ble Bombay High Court in the case of Orient Trading Co. Ltd., 49 ITR 723, the CIT(A) has deleted the addition on account of agricultural income. Detailed finding recorded by CIT(A) are as per materials on record, therefore, do not warrant any interference on our part. Accordingly, we confirm the action of CIT(A) regarding agricultural income earned and declared by assessee. 5. With regard to the addition made on ac…

DCIT 5(3), Mumbai vs. Radiant Shipping Ltd

Bench: Shri Saktijit Dey & Shri Rajesh Kumar

…applicant to advance money vii) The assessee failed to produce the evidences regarding the credit worthiness of the share applicants to prove the genuineness of the transactions. viii) The Hon'ble Mumbai High Court in the case of M/s Orient Trading Co. Ltd ( 49 ITR 723) held that the AO is entitled to satisfy himself about the true nature and source of amount of cash credits entered in the books of accounts of the assessee and if he is satisfied that there is no satisfactory explanation as to those entries, he would be entitled to consider them as representing undisclosed income of the assessee. Similar view has…

Parmanand K Hinduja, Thane vs. ACIT Cir 2, Kalyan

In the result, the appeal filed by the assessee in ITA N0

Bench: Shri Amit Shukla & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 1049/Mum/2014 ("नधा"रण वष" / Assessment Year : 2007-08) Shri Parmanand K. Hinduja, Asst. Comm. Of Income बनाम/ 402, Banswani Tower, Tax – Circle – 2, V. Near Corporation Bank, Mohan Plaza, Ist Floor, Municipal Road, Khadakpada, Ulhasnagar, Kalyan (West). Dist. Thane – 401003. "थायी लेखा सं./Pan : Aacph9702N (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

…paid by San Finance Corporation to the society and the transaction is genuine and proper as per the requirement of section 68 of the Act. The assessee relied on the following judicial pronouncements:- ITA 1049/Mum/2014 5 i) Orient Trading Co. Ltd. v. CIT, 49 ITR 723 (Bom) ii) CIT v. Mahalakshmi Textiles Mills Ltd. , 100 ITR 360 (Mad.) iii) Addl. CIT v. Hanuman Agarwal, 151 ITR 150 (Patna) iv) Sarogi Credit Corporation v. CIT, 103 ITR 344 v) Addl. CIT v. Bahri Bros (P) Ltd., 154 ITR 244 (Patna) vi) Bhadarmal Hajarimal v. ITO, 5TTJ 297 vii) ITO v. Hindustan Cold Storage and Refrigeration Company,19 TTJ 467 viii…