Legal Case Summary

Case Details
Case ID 054e86a1-51cb-43f2-8fd3-e5225a0d260b
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Case Number
Decision Date
Hearing Date
Decision The Tribunal's decision was upheld, concluding that the loans claimed by the assessee were genuine based on confessional statements made by creditors. The Tribunal determined that the onus of proof under Section 68 of the Income-tax Act, 1961 had been satisfied. No issues of perversity were raised, affirming the Tribunal's findings as a matter of fact and evidence appreciation. The case involved the deletion of amounts from the total income of the assessee based on the credibility of these loans. The court agreed with the Tribunal's inference and answered the questions in favor of the assessee, establishing a precedent on the burden of proof in cash credit cases.
Summary This case revolves around the interpretation of Section 68 of the Income-tax Act, 1961 regarding cash credits. The assessee claimed that certain cash amounts recorded in its books were genuine loans, supported by confessional statements from its creditors. The Tribunal reviewed the evidence and upheld the genuineness of these loans, stating that the onus of proof was met. The case highlights the importance of evidence appreciation in tax law and the responsibilities of the taxpayer to substantiate claims of cash credits. The decision emphasizes that the question of proving the genuineness of loans is a factual matter, and the absence of perversity in the Tribunal's findings solidifies the ruling. This case serves as a significant reference for similar tax disputes involving cash credits and evidentiary standards under the Income-tax Act.
Court Calcutta High Court
Entities Involved Lohaty Bros. (P.) Ltd.
Judges SATISH CHANDRA, C.J., SUHAS CHANDRA SEN, J.
Lawyers H.M. Dhar, M.L. Saha, Sukumar Bhattacharyya
Petitioners Commissioner of Income Tax
Respondents Lohaty Bros. (P.) Ltd.
Citations 1987 SLD 2952 = (1987) 164 ITR 730
Other Citations Not available
Laws Involved Income-tax Act, 1961
Sections 68, 256