Shankar Industries v. CIT

114 ITR 689High Court1978#907 most cited

What is Shankar Industries v. CIT authority for?

To explain cash credits in books under Section 68, the assessee must prove the identity of the creditor, their capacity to advance the money, and the genuineness of the transaction. Failure to establish these three elements results in the addition being upheld.

117

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

Shankar Industries v CIT · 114 ITR 689 · Section 68 Income Tax Act · cash credits onus of proof · identity capacity genuineness · creditor's creditworthiness · unexplained share capital · burden of proof section 68 · addition under section 68 · unexplained cash credits

Sections most often in play

Section 68Section 143(3)Section 133(6)Section 147Section 69Section 142(1)Section 144Section 143(2)

Issues it is cited on

source of sourcesection 31paper companycreditworthiness of the creditorshare capital and share premiumsection 251(2)section 251(1)(a)onus of prooflive linkadmission of additional evidenceaddition u/s 68entry operator

Judgments citing Shankar Industries v. CIT

Sanjay Singh, Ghaziabad vs. DCIT, Ghaziabad

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 6097/DEL/2016[2012-13]Status: DisposedITAT Delhi05 May 2017AY 2012-13

Bench: Shri N. K. Saini

For Appellant: Sh. L. M. Aggarwal, CAFor Respondent: Ms. Bedobani, Sr. DR
Section 68

…cision Finance (P) Ltd. (1994) 208 ITR 465 (Cal.) " CIT Vs Baishnab Charan Mohanty (1995) 212 ITR 199 (Ori) " United Commercial & Industrial Co. (P) Ltd. (1994) 187 ITR 596 (Cal.) " Oriental Wire Ind. Pvt. Ltd. (1981) 134 ITR 688 (Cal.) " C. Kant & Co. (1980) 126 ITR 63 (Cal.) 7 Sanjay Singh " M.A. Limiter Kutty (1992) 198 ITR 147 (Ker.) " RBN Naidu Vs CIT (1956) 29 ITR 194 (Nag.) " Chunnilal Tikamchand Coal Co. Ltd. Vs CIT (1955) 30 ITR 181 (SC) " Lalchand Bhagat Ambica Ram Vs CIT (1959) 37 ITR 288 (SC) " Sri Ram Tandon Vs CIT (1961) 42 ITR 689 (All.) " Kanpur Steel Co. Ltd. Vs CIT (1957) 32 ITR 56 (All.) " Al…

Sushila Steel Complex (P) Ltd., Kolkata vs. The ITO, WD-7 (3), Kolkata

In the result, the appeal of the assessee is dismissed

ITA 540/KOL/2014[2002-2003]Status: DisposedITAT Kolkata17 Mar 2017AY 2002-2003

Bench: Shri P.M. Jagtap

Section 133(6)Section 143(1)Section 143(3)Section 148Section 68

…d to hold that in case of privately held companies, mere identity of the shareholders is not sufficient. The entire facts of the case inform that the assessee has not proved any of the limbs specified in the celebrated case of Shankar Industries v. CIT (1978) 114 ITR 689 Cal. and others. The assessee, besides copies of the alleged share applications, has no other evidence. The assessee has not even able to prove the transactions through its own bank accounts and the bank accounts of the shareholders. Even no address or PAN is available which can be verified. The shareholders registers are also no produced to expl…

Shri Krishna Charitable Trust, New Delhi vs. JCIT, Ghaziabad

In the result, the appeal of the assessee is allowed

ITA 2878/DEL/2015[2010-11]Status: DisposedITAT Delhi01 Feb 2017AY 2010-11

Bench: Sh. N. K. Sainiita No. 2878/Del/2015 : Asstt. Year : 2010-11 Sh. Krishna Charitable Trust, Vs Jcit, C/O-M/S Rra Taxindia, D-28, Range-2, South Extension, Part-I, Ghaziabad New Delhi-110049 (Appellant) (Respondent) Pan No. Aagts8457F Assessee By : Dr. Rakesh Gupta & Sh. Somil Agarwal, Advs. Revenue By : Sh. Anil Sharma, Sr. Dr Date Of Hearing : 02.11.2016 Date Of Pronouncement : 01.02.2017 Order This Is An Appeal By The Assessee Against The Order Dated 19.02.2015 Of Ld. Cit(A), Muzaffarnagar.

For Appellant: Dr. Rakesh Gupta &For Respondent: Sh. Anil Sharma, Sr. DR
Section 12ASection 68

…(SC) " Nanak Chand Laaxman Das Vs CIT (1983) 140 ITR 151 (Alld.) " Anraj Narain Das Vs CIT (1951) 20 ITR 562 (Punj.) " A.D. Jayveerapandia Nadar Vs CIT (1964) 54 ITR 401 (Mad.) " CIT Vs V. K. Mahim (1995) 213 ITR 820 (Ker.) " Shankar Industries Vs CIT (1978) 114 ITR 689 (Cal.) " Cochin State Power & Light Corporation Ltd. Vs State of Kerala AIR 1965 SC 1688, 1691 " Vinod Krishna Kaul Vs Union of India JT 1995 (9) SC 205, 208 6. Being aggrieved the assessee carried the matter to the ld. CIT(A) who passed the ex-parte order and confirmed the addition by observing as under: “During appellate proceedings, the appell…

A.C.I.T Cir - 3, Asansol vs. Sri Bireswar Kar, Raiganj

In the result, the appeal of the revenue is dismissed while the C

ITA 1454/KOL/2013[2008-09]Status: DisposedITAT Kolkata29 Jul 2016AY 2008-09

Bench: Shri P.M.Jagtap & Shri S.S. Viswanethra Ravi

…oney he put in the bank represented accumulation of his earnings as a teacher.The AO however, observed that it is well settled in the cases of CIT Vs. Biju Patnaik (SC) 160 ITR 674, Roshan De Hatti Vs. CIT (SC) 107 ITR 938 and Shankar Industries Vs. CIT (Cal) 114 ITR 689 and in many other cases by different courts of law of India that in order the discharge the onus, the assessee must prove the followings:- i) The identity of the creditor, ii) The capacity of the creditor to advance money, and iii) The genuineness of the transaction. There mere furnishing of particulars or the mere fact of payment by an accoun…

ACIT, New Delhi vs. M/S. Plastograph India Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue and C

ITA 3556/DEL/2012[2005-06]Status: DisposedITAT Delhi27 Jul 2016AY 2005-06

Bench: Smt Diva Singh & Sh.O.P.Kant

Section 132Section 153Section 153CSection 68

…Accordingly, relying upon Sreelekha Banerjee vs CIT 49 ITR 112 (SC); M/s Sophia Finance Ltd. 205 ITR 98 (Delhi); Kamal Kishore vs CIT [2003] 131 Taxman 155 (Raj.); CIT vs Divine Leasing & Finace Ltd. [2007] 158 Taxman 440 (Del.); C.Kant & Co. v CIT [1980] 126 ITR 63 (Cal.); and CIT vs Precision Finance Pvt.Ltd. 208 ITR 465 (Cal.) addition of Rs.50 lakh was made holding that the assessee has failed to discharge the onus as caste upon it by section 68 of the Act as it had failed despite opportunity to file any supporting document. 3. Aggrieved, the assessee came in appeal before the First Appellant Authori…

ACIT, New Delhi vs. Sh. Inderpal Singh Wadhawan, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 952/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…by way of cheques and most of them were also repaid in subsequent year the details of which have also been provided by the appellant. Reliance is placed on judgement of the Hon'ble Calcutta High Court in the landmark case of Shankar Industries Vs. CIT (1978) 114 ITR 689 (cal.) followed in C. Kant & Co. Vs. CIY (1980) 126 ITR 63 (cal.) wherein the Hon'ble Court has laid down three ingredients & conditions to prove the cash credit, i.e. (i) the existence and identity of the creditor, (ii) the genuineness of the loan/deposits received and (iii) the credit worthiness of the creditors. The appellant has proved the id…

ACIT, New Delhi vs. M/S Vardan Fashion, New Delhi

In the result ground No. 3 of the appeal of the assessee is dismissed

ITA 950/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishivardan Fashions, Jcit, E-1/7, 2Nd Floor, East Patel Range-33, Vs. Nagar, New Delhi New Delhi Pan:Aacfv0423H (Appellant) (Respondent) Acit, Vardan Fashions, Circle-33(1) E-1/7, 2Nd Floor, East Patel Vs. New Delhi Nagar, New Delhi Pan:Aacfv0423H (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 40

…Ltd. and it was received back by the appellant on 19.1.2007 through an account payee cheque. In support of the submissions the appellant placed reliance on the judgment of the Hon'ble Calcutta High Court in the landmark case Shankar Industries Vs. CIT (1978) 114 ITR 689 (cal.) followed in C. Kant & Co. Vs. CIT (1980) 126 ITR 63 (cal.) wherein the Hon'ble Court has laid down three ingredients & conditions to prove the credits appearing in the assessee's books of account i.e. (i) the existence and identity of the creditor, (ii) the genuineness of the loan/deposits received and (iii) the credit worthiness of the cr…

Mr. Inder Pal Singh Wadhawan, New Delhi vs. ACIT, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 1589/DEL/2013[2008-09]Status: DisposedITAT Delhi08 Jul 2016AY 2008-09

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…by way of cheques and most of them were also repaid in subsequent year the details of which have also been provided by the appellant. Reliance is placed on judgement of the Hon'ble Calcutta High Court in the landmark case of Shankar Industries Vs. CIT (1978) 114 ITR 689 (cal.) followed in C. Kant & Co. Vs. CIY (1980) 126 ITR 63 (cal.) wherein the Hon'ble Court has laid down three ingredients & conditions to prove the cash credit, i.e. (i) the existence and identity of the creditor, (ii) the genuineness of the loan/deposits received and (iii) the credit worthiness of the creditors. The appellant has proved the id…

Mr. Inder Pal Singh Wadhawan, New Delhi vs. JCIT, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 1155/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…by way of cheques and most of them were also repaid in subsequent year the details of which have also been provided by the appellant. Reliance is placed on judgement of the Hon'ble Calcutta High Court in the landmark case of Shankar Industries Vs. CIT (1978) 114 ITR 689 (cal.) followed in C. Kant & Co. Vs. CIY (1980) 126 ITR 63 (cal.) wherein the Hon'ble Court has laid down three ingredients & conditions to prove the cash credit, i.e. (i) the existence and identity of the creditor, (ii) the genuineness of the loan/deposits received and (iii) the credit worthiness of the creditors. The appellant has proved the id…

M/S Vardaan Fashion, New Delhi vs. JCIT, New Delhi

In the result ground No. 3 of the appeal of the assessee is dismissed

ITA 1143/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishivardan Fashions, Jcit, E-1/7, 2Nd Floor, East Patel Range-33, Vs. Nagar, New Delhi New Delhi Pan:Aacfv0423H (Appellant) (Respondent) Acit, Vardan Fashions, Circle-33(1) E-1/7, 2Nd Floor, East Patel Vs. New Delhi Nagar, New Delhi Pan:Aacfv0423H (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 40

…Ltd. and it was received back by the appellant on 19.1.2007 through an account payee cheque. In support of the submissions the appellant placed reliance on the judgment of the Hon'ble Calcutta High Court in the landmark case Shankar Industries Vs. CIT (1978) 114 ITR 689 (cal.) followed in C. Kant & Co. Vs. CIT (1980) 126 ITR 63 (cal.) wherein the Hon'ble Court has laid down three ingredients & conditions to prove the credits appearing in the assessee's books of account i.e. (i) the existence and identity of the creditor, (ii) the genuineness of the loan/deposits received and (iii) the credit worthiness of the cr…

DCIT, New Delhi vs. M/S Lifestyle Texworks Pvt. Ltd., New Delhi

In the result, the appeal is allowed partly for statistical purpose

ITA 1943/DEL/2011[2006-07]Status: DisposedITAT Delhi30 Jun 2016AY 2006-07

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2006-07 Deputy Commissioner Of Income Vs. M/S. Lifestyle Texworks Pvt. Ltd., Tax, Circle-4(1), Room No. 407, 4Th Apartment 530, Tower Iii, Mount Floor, C.R. Building, I.P. Estate, Kailash, East Of Kailash, New Delhi New Delhi Gir/Pan : Aaacl7069F (Appellant) (Respondent) Appellant By Sh. Amit Jain, Sr. Dr Respondent By None Date Of Hearing 16.05.2016 Date Of Pronouncement 30.06.2016 Order Per O.P. Kant, A.M.: This Appeal By The Revenue Is Directed Against Order Dated 21/02/2011 Of Learned Commissioner Of Income-Tax (Appeals)-Vii, New Delhi Raising Following Grounds; “01. The Order Of The Learned Cit (Appeals) Is Erroneous & Contrary To Facts & Law. 02. On The Facts & In The Circumstances Of The Case & In Law, The Ld Cit (Appeals) Has Erred In Deleting The Penalty Of Rs.52,29,408/- Made U/S 68 Of The Act, Being The Unconfirmed Unsecured Loan. 2.1 The Ld. Cit (A) Has Ignored The Findings Recorded By The Ao & The Fact That The Assessee Did Not Discharge The Onus Of Proving The Creditworthiness Of The Creditors & Genuineness Of The Transactions. 03. On The Facts & In The Circumstances Of The Case & In Law, The Learned Cit (Appeals) Has Erred I N Deleting The Addition Of Rs.12,62,503/- Made On Account Of Disallowance Excessive Expenditure. 3.1. The Ld. Cit (A) Ignored The Finding Recorded By The Ao & The Fact That The Assessee Did Not File Required Evidences To Substantiate Its Claim.

Section 142(1)Section 143(2)Section 144Section 68

…onsideration before various High Courts which have held that the assessee has to prove three conditions (i) identity of the creditor (ii) capacity of such creditor to advance money & (iii) genuineness of the transaction. [Vide Shankar Industries v. CIT (1978) 114 ITR 689 (Cal.); C. Kant & Company v. CIT (1980) 126 ITR 63 (Cal.); Prakash Textile Agency vs. CIT (1980) 121 ITR 890 (Cal.); Oriental Wire Industries Pvt. Ltd. vs. CIT (1981) 131 ITR 688; CIT Vs. B.C. Mohanty (1995) 212 ITR 199 (Ori.); Jalan Timbers Vs. CIT (1997) 223 ITR 11 (Gau.) & CIT vs. Korlay Trading Company Ltd. (1999) 232 ITR 820 If all the afore…

Raj Rishi Sharma, Rohtak vs. ITO, Rohtak

In the result, appeal of the assessee is partly allowed

ITA 1217/DEL/2016[2010-11]Status: DisposedITAT Delhi29 Jun 2016AY 2010-11

Bench: Sh. N. K. Sainiita No. 1217/Del/2016 : Asstt. Year : 2010-11 Sh. Raj Rishi Sharma, Vs Income Tax Officer, H. No. 1011, Sector-3, Ward-1, Rohtak (Haryana) Rohtak (Haryana) (Appellant) (Respondent) Pan No. Acops1474Q Assessee By : Sh. Naveen Gupta, Adv. Revenue By : Sh. V. R. Sonbhadra, Sr. Dr Date Of Hearing : 25.05.2016 Date Of Pronouncement : 29.06.2016 Order

For Appellant: Sh. Naveen Gupta, AdvFor Respondent: Sh. V. R. Sonbhadra, Sr. DR

…d a cash flow statement of Smt. Sunita Sharma. The AO was not satisfied from the explanation of the assessee and made the addition of Rs.6,09,000/- to the income of the assessee. The reliance was placed on the following case laws: " Shankar Industries VS CIT 114 ITR 689 (Calcutta) " C. Kant and Co. Vs CIT 126 ITR 63 (Calcutta) " CIT VS Korlay Trading Company Ltd. 232 ITR 820 (Calcutta) " CIT Vs Precision Fiannce Pvt. Ltd. 208 ITR 465 (Calcutta) " ITO Vs Diza Holdings (P) Ltd. 120 Taxman 539 (Kerla) 5. Being aggrieved the assessee carried the matter to the ld. CIT(A) and submitted as under: “4.3 AR of the appella…

DCIT 5(2), Mumbai vs. Lahoti Overseas Ltd, Mumbai

In the result, appeal of the assessee company in ITA

ITA 3812/MUM/2012[2003-04]Status: DisposedITAT Mumbai30 Mar 2016AY 2003-04

Bench: Shri Amit Shukla & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 3812/Mum/2012 ("नधा"रण वष" / Assessment Year : 2003-04) Dy. Commissioner Of Income M/S Lahoti Overseas Ltd., बनाम/ Tax , 5(2),Room No. 571, 307, Arun Chambers, V. 5 Th Floor, Tardeo Road, Tardeo, Aayakar Bhavan, Mumbai - 400034. M.K. Road, Mumbai – 400 020. "थायी लेखा सं./Pan : Aaacl2578 H .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri Yogesh TharFor Respondent: Shri Ganesh Bare (Sr.DR)
Section 133ASection 143(3)Section 147Section 148Section 151(1)

…The assessee company also filed affidavit of Mr Nimish G Chandak and also submitted before the AO during remand proceedings to produce Mr Nimish G Chandak before the AO. The assessee company relied upon the following decisions:- i) Shankar Industries v. CIT (114 ITR 689)(Calcutta) ii) CIT v. Precision Finance Pvt. Ltd. (208 ITR 465) iii) CIT vs. Corley Trading Company Limited (232 ITR 820) iv) CIT v. Lovely Exports Pvt. Ltd. (216 CTR 195 (SC) v) CIT v. Kinetic Capital Finance Ltd. (ITA No. 87/2007)(Delhi) vi) M/s Kiara Jewellery Pvt. Ltd. v. ACIT (ITA No. 4911/Mum/09) The CIT(A) admitted the additional evidence…

DCIT, New Delhi vs. M/S. Hi- Tech Residency Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4707/DEL/2012[2009-10]Status: DisposedITAT Delhi18 Dec 2015AY 2009-10

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. C.S. Anand, CAFor Respondent: Sh. T.Vasanthan, Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 50C(1)Section 68

…ts Pvt. Ltd. (299 ITR 268), had taken care of the 11 earlier decisions in the cases of Stellar Investment Ltd. (251 ITR 263-SC}, Sumati Dayal (214 ITR 801-SC}, Sophia Finance Ltd (205 ITR 98-Del), Korley Trading Co. Ltd. (232 ITR 820-Cal), Shankar Industries (114 ITR 689-Cal), Precision Finance P. Ltd. (208 ITR 465- Cal), United Commercial and Industrial Company Pvt. Ltd. (187 ITR S96-Cal). It may be worth pointing out here that the Hon'ble Supreme Court of India has dismissed the Revenue's SLP against the said order of Hon'ble Delhi High Court in Lovely Exports Ltd. Other decisions relied upon by the AO are not…

Iss Hicare P.Ltd, Mumbai vs. ITO WD 10(2)(3), Mumbai

In the result, appeal of the assessee is allowed in part for statistical purposes

ITA 45/MUM/2014[2009-10]Status: DisposedITAT Mumbai30 Oct 2015AY 2009-10
For Appellant: Ms. Rachana AgarwalFor Respondent: Shri E. Shankaran
Section 144Section 68

…10,00,000/-, the appellant has to prove identity of the creditors, creditworthiness of the creditors and genuineness of the creditors in view of the following decision: i) Roshan De Hatti Vs. CIT(SC) reported in 107 ITR 938; ii) C.Kant & Co. Vs. CIT(Calcutta) 126 ITR 63; iii) Dhanalakhsmi Steel Re-rolling Mills Vs. CIT(AP) 228 ITR 780; (iv) CIT Vs. Biju Patnaik (SC) 160 ITR 674 v) Malabar Agricultural Co. Ltd. Vs. CIT(Kerala) 229 ITR 548 8.6 In view of the above decisions, the appellant has to prove all the three conditions i.e. identity of the creditor, creditworthiness of the creditor and genuineness of the tra…

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

…Shri Phool Chand Jain and Shri Subhash Jain is justified. It has been held in various judgements that the assessee must prove identity of credits, capacity of creditor to advance money and genuineness of transaction e.g. as in Shankar Industries Vs. CIT (Cal) 114 ITR 689, Nanak Chandra Laxman Das Vs. CIT (Cal) 140 ITR 151, Hari Chand Virender Paul Vs. CIT (P&H) 140 ITR 148, CIT Vs. Biju Patnaik (SC) 160 ITR 674, ITO Vs. Sky jet Aviation (P) Ltd. (ITAT, Ahd- TM) 71 ITD 95, CIT Vs. Precision Finance P. Ltd. (Cal) 208 ITR 465, Oriental Wire Industries (P) Ltd. Vs. CIT (Cal) 131 ITR 688, Malabar Agricultural Co. Ltd.…

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

…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 attention was also drawn to the decision of Chennai Bench of M/s. Lalita Jewellery Mart v. ACIT, ITA the Tribunal in No.1871/MDS/2010, A.Y. 2007-08, order da…