2019 (2) TMI 1398 – GUJARAT HIGH COURT – TMI – Attachment on the petitioner’s cash credit – existence of debtor-creditor relationship – recovery of dues – Held that:- This court in the case of Kaneria Granito Ltd. v. Assistant Commissioner of Income Tax, [2016 (7) TMI 65 – GUJARAT HIGH COURT], wherein it has been held that cash credit accounts were opened to enable the assessee to borrow the money from the bank for the purpose of its business. Any money, therefore, that the bank may make available to the assessee would necessarily be in the nature of a loan or a cash credit facility, in either case, would be in the nature of borrowing by the assessee from the bank. The bank and the assessee, therefore, do not have the debtor-creditor relat
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ht of the decision of this court in the case of Kaneria Granito Ltd. v. Assistant Commissioner of Income Tax, (2016) 241 Taxman 315 (Gujarat), wherein the court has held that cash credit accounts were opened to enable the assessee to borrow the money from the bank for the purpose of its business. Any money, therefore, that the bank may make available to the assessee would necessarily be in the nature of a loan or a cash credit facility, in either case, would be in the nature of borrowing by the assessee from the bank. The bank and the assessee, therefore, do not have the debtor-creditor relationship. This court after placing reliance upon various decisions of the Supreme Court, set aside the impugned notice of attachment. 4. In the aforesai
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