Legal Case Summary

Case Details
Case ID 1b78d95a-7458-4a28-bbdc-55e2cc3e4556
Body View case body.
Case Number IT APPLICATION No. 39 OF 1968
Decision Date Jun 22, 1972
Hearing Date
Decision The Tribunal held that the loans in question were genuine transactions and could not be added back to the assessee's income. The findings were based on appreciation of evidence, and it was concluded that the Income-tax Officer had not provided sufficient evidence to dispute the genuineness of the loans. The case was decided in favor of the assessee, with the court ruling that the evidence presented substantiated the authenticity of the transactions.
Summary In the case IT APPLICATION No. 39 OF 1968, the Bombay High Court dealt with the issue of loan transactions treated as income from undisclosed sources by the Income-tax Officer. The Tribunal found that the loans were genuine, supported by confirmatory letters from bankers and proper documentation. The court emphasized that the Income-tax Officer failed to provide evidence challenging the authenticity of the loans, leading to a decision favoring the assessee. This case highlights the importance of thorough and fair assessment procedures in tax-related matters, ensuring that genuine transactions are not erroneously classified as undisclosed income. Keywords such as 'Income-tax Act', 'genuine transactions', 'Bombay High Court', and 'loan assessment' are essential for SEO optimization.
Court Bombay High Court
Entities Involved Not available
Judges Kotval, C.J., Chandrachud, J.
Lawyers R.M. Hajarnavis, J.H. Parikh, F.N. Kaka, Dinesh Vyas
Petitioners Commissioner of Income tax
Respondents U.M. Shah, Proprietor, Shrenik Trading Co.
Citations 1973 SLD 358 = (1973) 90 ITR 396
Other Citations CIT v. Daulatram Rawatmall [1970] 78 ITR 318 (SC), Reform Flour Mills (P.) Ltd v. CIT [1970] ITR 322 (SC)
Laws Involved Income-tax Act, 1961
Sections 143, 256