Shri Vardhman Overseas Ltd. v. Asstt. CIT

24 SOT 393Income Tax Appellate Tribunal2008#8900 most cited

What is Shri Vardhman Overseas Ltd. v. Asstt. CIT authority for?

Section 68 of the Income Tax Act, 1961, does not apply to opening balances of unsecured loans that originated in previous financial years and were not credited anew in the current year.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2024.

Also referred to as

Shri Vardhman Overseas Ltd v ACIT · 24 SOT 393 · Section 68 · cash credits · unexplained income · opening balance · unsecured loans · financial year · ITAT Delhi

Sections most often in play

Section 115BBESection 131Section 133(6)Section 143(3)Section 234BSection 234CSection 250Section 68

Judgments citing Shri Vardhman Overseas Ltd. v. Asstt. CIT

Leelaram Choudhary, Bangalore vs. Income Tax Officer, Ward-5(2)(5), Bangalore

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

ITA 1086/BANG/2024[2017-18]Status: DisposedITAT Bangalore24 Jul 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Smt.Suman Lunkar, CAFor Respondent: Ms.Neha Sahay, JCIT-DR
Section 115BSection 133(6)Section 142(1)Section 143(2)Section 234BSection 250Section 68

…w that addition u/s. 68 could be made only if the amount was credited in the accounts of the assessee in the relevant financial year. Accordingly, the Delhi ITAT directed the addition to be deleted. Further, in the case of Shri Vardhman Overseas Ltd. vs. ACIT 24 SOT 393 (Delhi Trib.) held that since no new amount has been credited by the assessee in its account during the year under consideration, applicability of section 68 of the Act is ruled out. Therefore, in view of the above judgments, we observe that it is a settled law that opening balance o unsecured loans coming from previous financial years cannot be a…

The DCIT1(1), Indore vs. Shri Ravi Arora, Indore

ITA 212/IND/2020[2011-12]Status: DisposedITAT Indore31 Jul 2023AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year:2011-12 Dcit-5(1), Shri Ravi Arora, Indore 1007, Khatiwala Tank, बनाम/ 236, Indraprasth Tower, 6, M.G. Road, Vs. Indore. (Revenue / Appellant) (Assessee / Respondent) Pan: Agdpa8921H Assessee By Shri Yash Kukreja, Ca & Shri Hitesh Chimnani, Adv & Ld. Ars Revenue By Shri P.K.Mishra, Cit Dr Date Of Hearing 04.05.2023 Date Of Pronouncement 31.07.2023

Section 143(2)Section 143(3)Section 40A(3)Section 68

…ring the year. Ld. CIT(A) has rightly taken into account the decision of (i) Hon'ble Delhi High Court in case of CIT vs. Usha Stud Farms (301 ITR 384), (ii) Shri Vardhman Overseas Page 17 of 37 DCIT v. Ravi Arora Assessment year 2011-12 Ltd vs. ACIT (2008) 24 SOT 393 (Del), and (iii) DCIT vs. Global Mercantiles (P) Ltd. (2016) 157 ITD 924 (Kolkata Trib) in which it has been loudly held that no addition could be made u/s 68 in respect of opening balances when there is no sum credited in the current year. Secondly, in so far as the loan of Rs. 55,00,000/- accepted during the year from M/s Jayant is concerned, th…

M/S Green Star Corporation, Kolkata vs. ACIT, Circle - 45, Kolkata

In the result, the appeal of assessee is allowed in part

ITA 2463/KOL/2017[2011-12]Status: DisposedITAT Kolkata09 Apr 2021AY 2011-12

Bench: Hon’Ble Shri J. Sudhakar Reddy, Am & Hon’Ble Shri A. T. Varkey, Jm Assessment Year: 2011-12

Section 143(3)Section 250Section 41(1)

…e had obtained any benefit by cash or in any manner, merely because said liability was more than 5 years old it could not be said that there was cessation of liability - Held, yes [In favour of assessee] iv) ITAT Delhi in the case of Sri Vardhman Overseas Ltd 24 SOT 393 (Del.) held as under: Section 68 of the Income-tax Act, 1961 - Cash credits - Assessment year 2002- 7 A.Y 2011-12 M/s. Green Star Corporation 03 - During relevant assessment year, Assessing Officer asked assessee- company to prove genuineness of certain sundry creditors - Assessee could not file confirmations from said creditors; therefore, Asses…

Sh. Rajneesh Thakur, Ludhiana vs. ACIT, C-VII, Ludhiana

The appeal is allowed

ITA 1565/CHANDI/2018[2011-12]Status: DisposedITAT Chandigarh23 Dec 2020AY 2011-12

Bench: Smt. Diva Singh & Smt.Annapurna Guptaआयकरअपीलसं./Ita No.1565/Chd/2018 िनधा"रणवष"/ Assessment Year : 2011-12

For Appellant: ShriSudhirSehgal, AdvocateFor Respondent: ShriAtulJayaswal, Sr. Dr
Section 250(6)Section 69Section 69A

…ohra, 301 ITR 404, Rajasthan High Court •Mahabir Prasad Prem Chand Jain v. ITO [1988] 40 Taxman 35 (Mag.)(Delhi) •Nuchem Ltd. v. Dy. CIT [2004] 87 TTJ 166 (Delhi - Trib.) 1565-Chd/2018- Rajneesh Thakur, Ludhiana 11 •Shri Vardhman Overseas Ltd.'s case [2008] 24 SOT 393 (Delhi) •ACIT Vs. Smt. N. Sasikala 92 TTJ 1196 (Chennai) (Trib.) It was also pointed out that for the A.Y. 2008-09 (relevant to F.Y. in which the advance was received) the said advance had been assessed under section 143(3) of the Act and no adverse view was taken against the assessee. In this regard our attention was drawn to the financial stat…

ACIT, Circle-3, Ranchi vs. Shri Sumit Ramsisaria, Ranchi

ITA 222/RAN/2019[2015-16]Status: DisposedITAT Ranchi11 Dec 2020AY 2015-16

Bench: Shri J.Sudhakar Reddy & Shri S.S.Godara

Section 133(6)Section 143(3)Section 41(1)

…s irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not complete and section 41 (1) is not attracted. In the case of Shri Vardhman Overseas Ltd. vs. Asstt. CIT 24 SOT 393 (Del ‘H’-Trib), the facts of the case were that the AO asked the assessee to prove the genuineness of some sundry creditors. The assessee did not file confirmations of said sundry creditors, except one. Therefore, AO after giving various opportunities treated the balance amount as income of assessee on account of unexplained cash credits and added…

Purna Chandra Biswal, Jajpur vs. Principal CIT, Cuttack

In the result, appeal of the assessee is partly allowed

ITA 200/CTK/2018[2013-14]Status: DisposedITAT Cuttack15 Nov 2019AY 2013-14

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.200/Ctk/2018 (नििाारण वषा / Assessment Year :2013-2014) Sri Purna Chandra Biswal, Vs. Principal Cit, Cuttack Jakhapura, Jajpur-755019 स्थायी लेखा सं./Panno. : Aclpb 1493 P (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee By : Shri S.K.Sarangi, Ar िाजस्व की ओर से /Revenue By : Shri S.M.Keshkamat, Citdr

For Appellant: Shri S.K.Sarangi, ARFor Respondent: Shri S.M.Keshkamat, CITDR
Section 143(3)Section 144Section 145Section 145(3)Section 263Section 44ASection 68

…s irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not complete and section 41 (1) is not attracted. In the case of Shri Vardhman Overseas Ltd. vs. Asstt. CIT 24 SOT 393 (Del 'H'-Trib), the facts of the case were that the AO asked the assessee to prove the genuineness of some sundry creditors. The assessee did not file confirmations of said sundry creditors, except one. Therefore, AO after giving various opportunities treated the balance amount as income of assessee on account of unexplained cash credits and added…

Shri Navneet Modi, Ranchi vs. DCIT, Circle-2, Ranchi

In the result, both appeals of the assessee are allowed

ITA 106/RAN/2019[2015-16]Status: DisposedITAT Ranchi30 Oct 2019AY 2015-16

Bench: Shri C.M.Garg, Jm & Shri L.P. Sahu, Am आयकर अऩीऱ सं./Ita No.106/Ran/2019 & आयकर अऩीऱ सं./Ita No.53/Ran/2019 (नििाारण वषा / Assessment Year :2015-2016 & 2013-2014) Shri Navneet Modi, Vs. Dcit, Circle-2, Ranchi Modi House, Kanke Dam Side Road, Kanke, Ranchi स्थायी ऱेखा सं./ Pan No. : Actpm 1511 F (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri Devesh Poddar, Advocate राजस्व की ओर से /Revenue By : Shri Inderjeet Singh, Cit(Dr)

For Appellant: Shri Devesh Poddar, AdvocateFor Respondent: Shri Inderjeet Singh, CIT(DR)
Section 143(3)Section 234ASection 271(1)(c)Section 68

…s irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not complete and section 41 (1) is not attracted. In the case of Shri Vardhman Overseas Ltd. vs. Asstt. CIT 24 SOT 393 (Del 'H'-Trib), the facts of the case were that the AO asked the assessee to prove the genuineness of some sundry creditors. The assessee did not file confirmations of said sundry creditors, except one. Therefore, AO after giving various opportunities treated the balance amount as income of assessee on account of unexplained cash credits and added…

ITO, WD-30(4), Kolkata vs. M/S S. L. D. Corporation, Kolkata

Accordingly, Ground No.5 raised by the Revenue is dismissed

ITA 1220/KOL/2014[2009-2010]Status: DisposedITAT Kolkata08 Nov 2017AY 2009-2010
For Appellant: Shri P. B. Pramanik, Addl. CITFor Respondent: Shri S.K. Tulsiyan, Advocate
Section 143(3)Section 194ISection 68

…/- was received from Tata Chemicals Ltd. towards advance rent. Based on the evidences in the paper-book and the decision of the Hon'ble Tribunals in the case of Shri Vardhman Overseas Ltd. v. Assistant Commissioner of Income-tax, Circle 8(1), New Delhi [2008] 24 SOT 393 (ITAT DELHI) and Assistant commissioner of Income-tax v. Shivalikloha Mills (p.) Ltd. [2003] 126 taxman 101(chd.)(mag.) I accept the contention that section 68 is not applicable to the said amount. 3. Coming to the objection of the A.O. that the advance rent must have been returned in 2006 on the termination of the agreement, the appellant has rel…

Kachi Madarsab Adbulkhadar, Hubli vs. ITO-Ward-1(3)/(4), Hubli

In the result, the appeal of the assessee stands dismissed

ITA 1698/BANG/2016[2008-09]Status: DisposedITAT Bangalore28 Sept 2017AY 2008-09

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodiaassessment Year : 2008-09

For Appellant: Shri M.D. Pukhale, AdvocateFor Respondent: Shri B.R. Ramesh, Jt.CIT(DR) ITAT Bengaluru
Section 250(6)

…ial evidence and discharge his onus. L'nd CIT(A) ought to have appreciated that the Appellant fully discharged his onus. 7. The L'nd CIT(A) also erred to state that citation [ (a) ITO V Rakesh (1998) TIV (Del) 674; (b) Shri Vardhman Overseas Ltd v ACIT (2008) 24 SOT 393 (c) ITO v Bansi Lal (2008) 113 TTJ (Asr) 898 ] relied upon by Appellant as not relevant. 8. The L'nd CIT(A) erred to dismiss the appeal because, he failed to state the points for determination as per Section 250(6) of the IT Act on the material proposition of the parties and decide the appeal with reasons upon the points to be so stated. 9. For th…

Smt. Abhadevi Narendra Agrawal, Burhanpur vs. The ACIT, Khandwa

In the result, appeal of the assessee stands partly allowed

ITA 58/IND/2015[2010-11]Status: DisposedITAT Indore16 Mar 2017AY 2010-11

Bench: Shri C.M.Garg & Shri O.P.Meenaआ.अ.सं./ I.T.A. No.58/Ind/2015 "नधा"रणवष" /Assessment Year: 2010-11

Section 14ASection 41(1)

…w Commercial Mills Co. Ltd. v/s Dy. CIT (2001) 73 TTJ (Ahd) 893, CIT v/s Sugauli Sugar Works (P) LTD. (1999) 152 CTR (SC) 46; (1999) 236 ITR 518 (SC): ((1999) 102 TAXMAN 713 (SC), Shri Vardhman Overseas Ltd. v/s Assistant Commissioner of Income Tax (2008) 24 SOT 393 (Del), Smt. Abhadevi Agarwal/ I.T.A. No.58/Ind/2015/A.Y.:10-11 Page 10 of 19 Wilson & Co v/s ACIT 121 TTJ 258. Therefore, it was claimed that the provision of Section 41(1) of the Act are attracted only when the assessee has written off the liability in the books of accounts by unilateral act. Since in the case of assessee, liability has not…

Income Tax Officer-Ward-12(1), Kolkata vs. M/S Standard Leather Pvt. Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 2620/KOL/2013[2010-2011]Status: DisposedITAT Kolkata07 Sept 2016AY 2010-2011

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Years:2010-11

Section 133(6)Section 143(3)Section 40A(3)

…s irrevocable cessation so that there is no possibility of the liability being revived in future. If there is such a possibility, then the cessation is not complete and section 41 (1) is not attracted. In the case of Shri Vardhman Overseas Ltd. vs. Asstt. CIT 24 SOT 393 (Del ‘H’-Trib), the facts of the case were that the AO asked the assessee to prove the genuineness of some sundry creditors. The assessee did not file confirmations of said sundry creditors, except one. Therefore, AO after giving various opportunities treated the balance amount as income of assessee on account of unexplained cash credits and added…

M/S Vipul Ltd., Gurgaon vs. ACIT, New Delhi

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

ITA 2153/DEL/2013[2009-10]Status: DisposedITAT Delhi14 Jul 2016AY 2009-10

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

Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘D’ NEW DELHI BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER ITA Nos. 2153 & 4397/Del/2013 Assessment Years: 2009-10 & 2010-11 M/s. Vipul Ltd., Vipul Tech. Square- Vs. ACIT, Cent. Circle-2, New Delhi I, Golf Course Road, Sec-43, Gurgaon. GIR/PAN :AAACA5396C (Appellant) (Respondent) Appellant by Sh. Rajesh Arora, CA Respondent by Sh. S.R. Senapathi, Sr. DR Date of hearing 31.05.2016 Date of pronouncement 14.07.2016 ORDER PER O.P. KANT, A.M.: These two appeals by the assessee are directed against two separate orders dated 15/01/2013 and…

Shri Vardhman Overseas Ltd. v. Asstt. CIT (24 SOT 393) — Cited in 12 Judgments | BharatTax