Orient Trading Co. Ltd. v. CIT

49 ITR 723High Court1963#844 most cited

What is Orient Trading Co. Ltd. v. CIT authority for?

When a cash credit is found, the assessee discharges the initial burden by proving the identity of the creditor and the genuineness of the transaction, shifting the burden to the Revenue. The assessee is not required to prove the source of the creditor's funds (source of source).

123

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

Orient Trading Co. Ltd. v. CIT · Section 68 · cash credits · onus of proof · identity of creditor · genuineness of transaction · source of source · shifting burden · creditworthiness · addition under section 68

Sections most often in play

Section 68Section 143(3)Section 131Section 147Section 148Section 132Section 115BBESection 133(6)

Issues it is cited on

summons under section 131section 131(1)source of sourcepermanent account numberonus of proofcreditworthiness of the creditorpaper companyaddition under section 68addition u/s 68genuineness of the transactionshare application moneysection 131

Judgments citing Orient Trading Co. Ltd. v. CIT

ACIT, New Delhi vs. Shri Vikrant Puri, New Delhi

In the result, the Revenue’s Appeal stands dismissed

ITA 3377/DEL/2011[2007-08]Status: DisposedITAT Delhi28 Mar 2016AY 2007-08

Bench: Shri H.S. Sidhu & Shri O.P. Kanta.Y. 2007-08 Assistant Commissioner Of Income Tax Vs. Shri Vikrant Puri, Central Circle-13, New Delhi A-1/36, Panchsheel Enclave, New Delhi (Pan:Afypp9110K) (Appellant) (Respondent)

For Appellant: Sh. V.K. Agarwal, ARFor Respondent: Sh. Amit Mohan Govil, CIT(DR)
Section 127(2)Section 132Section 142(1)Section 143(2)Section 143(3)

…by giving their complete addresses, GIR nos./PAN as well as confirmations alongwith the copies of their assessment orders wherever readily available, no substantial question of law arises; appeal uls 260A dismissed." b) Orient Trading Co. Ltd. vs. CIT, (1963) 49 ITR 723 (Bom) "Cash credit-Burden of proof-When the entry stands in the name of a third party and the assessee establishes the identity of the creditor and produces 9 evidence showing that the entry is not fictitious, initial burden lying on the assessee stands discharged; the burden shifts on to the Revenue to show that the entry represented assessee's…

Shri Banwari Lal, Haryana vs. ITO, Fatehabad

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

ITA 1542/DEL/2012[2008-09]Status: DisposedITAT Delhi15 Jan 2016AY 2008-09

Bench: Shri J.S. Reddy & Shri A.T. Varkeyita No.1542/Del./2012 Assessment Year : 2008-09 Shri Banwari Lal, Vs. Ito, Ward 2, S/O Shri Bishan Dass, Fatehabad. 31, Anaj Mandi, Bhuna Distt. Fatehabad.

For Appellant: S/Shri Gautam Jain & Peeyush Kamal, AdvocatesFor Respondent: Shri K.K. Jaiswal, Senior DR
Section 68

…eques drawn from bank accounts of the creditors and the assessee is not expected 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. vs. 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 assesse 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.” 12. The Hon’ble Madhya Pradesh High Court in the case of CIT vs Met…

ACIT, New Delhi vs. M/S Sonali Punj, New Delhi

In the result, both the appeals of the revenue are dismissed

ITA 3717/DEL/2011[2001-02]Status: DisposedITAT Delhi18 Dec 2015AY 2001-02

Bench: Shri N.K. Saini & Shri A.T. Varkey

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Smt. Sunita Kejriwal, CIT DR
Section 127Section 132Section 143Section 143(3)Section 153A

…the capacity of lender to advance money as that would amount to seeking to establish source of the source. The appellant's case falls fairly within the facts of the aforesaid judgement. The judgement by the Bombay High Court in the case of Orient Trading Co. 49 ITR 723 is also relevant. As per the said judgement, when the entry has been in the name of a third party and the assessee establishes the identity of the creditor and produces evidence showing that the entries are not fictitious, the initial burden lying on the assessee stands discharged. The burden shifts on the revenue to show that the entries represen…