creditworthiness

Merely filing of affidavits of creditors and their revenue records (land holding) will not be sufficient to prove that the loans raised are genuine. Full Article

It would depend upon facts of each case whether all the three ingredients to discharge the onus to prove cash credit have been proved by the assessee or not; if an NRI, engaged in business of real estate development with substantial means, decided to invest in real estate in India, genuineness of same cannot be doubted unless there is any evidence to contrary. Full Article

Today, everyone is aware of the word CIBIL. The Credit Information Bureau India Ltd. keeps the track on the creditworthiness of an individual. They have information about a person’s creditability. Cibil rates a person according to his/her payment track; this is commonly known as Cibil Score. Full Article

SUMMARY OF CASE LAW For proving a gift to be genuine, the assessee-donee is required to prove the existence of natural love and affection between the donor and donee, voluntary nature of the gift and the occasion for giving gifts; for a gift to be genuine, what should appear to any quasi-judicial authority is that [...] Full Article

SUMMARY OF CASE LAW The gift transactions involving the unrelated NRI persons as donors are always a matter of dispute between revenue and the assessee; the aspects of identity of the donor, creditworthiness of the donor and the genuineness of the transaction become relevant simply because as to why or what reason an unrelated person [...] Full Article

Less than a week after third-quarter GDP estimates showed a lower-than-expected 5.3 per cent growth rate, the Reserve Bank of India on Wednesday surprised the market and sent fresh signals to banks to lower lending and deposit rates by pruning the repo rate and the reverse repo rate by 50 basis points each.  The repo [...] Full Article

A loan transaction has to be treated as a loan transaction only and it should be examined in the light of provisions of section 68 and not under provisions of section 56(2)(v). ITAT, MUMBAI BENCHES `C’ Chandrakant H. Shah v.  ITO Appeal No. ITA NO. 3966/MUM/2008 Dated:  12.01.2008 RELEVANT PARAGRAPHS : 11. We have considered [...] Full Article

ITO v Laxman Das Makhija : Appeal No. ITA No. 145/Agra/2005 Dated: October 23, 2008   If there is cash credit, creditworthiness of the creditor, genuineness of the entry, identity of the creditor, the source of money, etc. is required to be considered under section 68 of Income-tax Act. RELEVANT EXTRACTS: 9. I have seen [...] Full Article