Tag: creditworthiness

Sundry creditors are not loans or advances where creditworthiness to give advances is essential point for examination – ITAT In a recent judgment, the ITAT Lucknow has held that sundry creditors do not represent loans or advances taken by the assessee where creditworthiness to extending the advances are …

ITAT is required to examine correctness of the findings recorded by appellate authority and record conclusion why such findings are not acceptable In a recent judgment, the Hon’ble Calcutta High Court has held the ITAT over-turning the order passed by the appellate authority was required to examine the …

Finding recorded by lower authorities on the basis of evidence can not be interfered with by the third Appellate Court – High Court In a recent judgment, Hon’ble Guwahati High Court has held that finding once recorded by both the lower authorities on the basis of evidence with …

Capital generation capability not profit generation ability to be seen for investment – ITAT deleted addition u/s 68  In a recent judgment, ITAT Delhi deleted addition u/s 68 and held that tax authorities erred in believing that new investment can be made only on the basis of profit …

Identity capacity and genuineness of creditors fell apart when shareholder companies was found to be non-existent – High Court  In a recent judgment, Hon’ble High Court of Chhattisgarh has confirmed the addition on account of share application money received from bogus shell companies observing that proof of identity …

Mere failure of creditor/ shareholder to appear no basis to make addition u/s 68 when assessee produced basic evidences – ITAT In a recent judgment, the ITAT Kolkata has set aside addition u/s 68 for fresh order without shifting onus upon assessee to produce the director of the …

Onus to prove source of source of a loan/borrowing mandatory from AY 2023-24 In a recent judgment, ITAT Raipur has held that under section 68, onus to prove source of source of a loan or borrowing is mandatory w.e.f. 01.04.2023 i.e. from A.Y 2023-24 ABCAUS Case Law Citation:ABCAUS …

CIT(A) was justified in considering surrounding circumstances, the normal human conduct of a prudent investor, the probabilities to judge creditworthiness of investors – High Court In a recent judgment, Hon’ble Calcutta High Court has held that surrounding circumstances, the normal human conduct of a prudent investor, the probabilities …

Presumption that donors have meagre source of income because they are agriculturists may not be appropriate – ITAT ABCAUS Case Law CitationABCAUS 3573 (2022) (01) ITAT In the instant case, the assessee had challenged the order passed by the CIT(A) in upholding the addition made by the CIT(A) …

Non-filing of ITRs by lenders can give rise to suspicion for the lack of creditworthiness but not sufficient to draw inference against assessee ABCAUS Case Law CitationABCAUS 3437 (2021) (01) ITAT Important case law relied upon by the parties:CIT Vs. Chanakya Developers reported 43 taxmann.com 91 In the …