Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

Latest Case Laws

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2012 (9) TMI 1064

iness was not established. In view of such facts, in our opinion, no question of law arises. - Tax Appeal No. 1496 of 2011 - Dated:- 25-9-2012 - AKIL KURESHI AND MS. HARSHA DEVANI, JJ. Appellant: Bandish Soparkar and Mrs. Swati Soparkar ORDER Akil Kureshi, J. - The assessee has challenged the judgment of the Income Tax Appellate Tribunal dated 21.7.2011. Though several questions have been framed in the appeal, we record that the question No. 1 pertains to an issue which the Tribunal has ordered the Assessing Officer for re-computation. We are, therefore, not inclined to consider such a question. Remaining questions barring question No. 3 involve amounts which are extremely small. We have, therefore, focused our inquiry only on the question .....

X X X X X X X

Full Text of the Document

X X X X X X X

aid creditors. Since the assessee failed to do so, the Assessing Officer proceeded to make the additions observing that the assessee had not discharged his onus. He had not proved creditworthiness of the depositors or even their identity. He doubted the confirmations on the basis of the fact that despite express request by the assessee and notice under section 133(6) of the Act to Shri Gopal Krishna, no reply was received from him. 3. The assessee carried the matter in appeal. The Commissioner dismissed the appeal on similar grounds whereupon, the assessee approached the Tribunal. The Tribunal by the impugned order, confirmed the additions making following observations : "13. We have heard both the parties and gone through the facts of .....

X X X X X X X

Full Text of the Document

X X X X X X X

CIT v. United Commercial and Industrial Co. P. Ltd. [1991] 187 ITR 596 (Cal.), when it was observed that the assessee must prove not only the identity of the creditor but their creditworthiness and genuineness of the transaction has also to be proved beyond any reasonable doubt by the assessee. In R.B. Mittal's case [2000] 246 ITR 283 (AP), it was held that the assessee was expected to establish the proof of his creditors, the capacity of his creditors to advance money and the genuineness of the transactions in order to discharge the onus imposed on him under section 68 of the Act. A similar view was taken by the Hon'ble Kerala High Court in Oceanic Products Exporting Co. v. CIT [2000] 241 ITR 497. A Division Bench of the Hon'b .....

X X X X X X X

Full Text of the Document

X X X X X X X

Co. P. Ltd. [1991] 187 ITR 596 (Cal); M.A. Unneeri Kutty v. CIT [1992] 198 ITR 147 (Ker); Nemi Chand Kothari v. CIT [2003] 264 ITR 254 (Gauhati); and Hindustan Tea Trading Co. Ltd. v. CIT [2003] 263 ITR 289 (Cal) support the view that Revenue authorities are entitled to consider genuineness of the transactions and to penetrate the veil in order to ascertain the truth. It is well settled that mere identification of creditor or receipt of amount through banking channel is not sufficient to satisfy the requirement of a genuine credit. In the light of view taken in the aforesaid decisions, especially when not a whisper has been made before us regarding creditworthiness of the aforesaid two creditors and genuineness of the transactions nor any s .....

X X X X X X X

Full Text of the Document

X X X X X X X

credit, burden is on the assessee to prove that the amounts credited did not represent his income. It was observed that in view of section 68 of the Act, where any sum is found credited in the books of the assessee for any previous year, it may be charged to income tax as the income of the assessee of that previous year if the explanation offered by the assessee about the nature and source thereof is not satisfactory. 6. In case of Rohini Builders (supra), this Court only confirmed the decision of the Tribunal by a short order holding that in view of the observations in paragraphs 7, 8 and 8.1, there was no substance in the appeal. If we peruse the decision of the Tribunal more minutely, we notice that in the said case, the assessee had pro .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||