ACIT v. Mewar Polytex

51 TTJ 698Income Tax Appellate Tribunal1995#10878 most cited

What is ACIT v. Mewar Polytex authority for?

Where an assessee declares a higher gross profit rate than in the preceding year, their trading results are generally accepted and trading additions deleted. Comparisons with unrelated third parties or future financial periods are not valid grounds for additions.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2022.

Also referred to as

ACIT v. Mewar Polytex · trading results · gross profit rate · trading addition · comparable case · past history · future years · unrelated third party

Judgments citing ACIT v. Mewar Polytex

M/S Raj Auto Wheels P .Ltd., Ajmer vs. JCIT, Range-1, Ajmer

In the result, the appeal of the assessee is party allowed

ITA 397/JPR/2015[2011-12]Status: DisposedITAT Jaipur09 Nov 2022AY 2011-12
For Appellant: Shri Mahendra Gargieya, AdvocawteFor Respondent: Shri P.R. Meena, C IT-DR
Section 131Section 145(3)Section 194ASection 40

…parable case—Assessee having 10 ITA NO. 397/JP/2015 RAJ AUTO WHEELS (P) LTD. VS JCIT, RANGE-1, AJMER declared higher GP rate than the preceding year, its trading results require acceptance and trading addition requires deletion” Also refer Madan Lal VS. ITO 99 TTJ 538 (JD), CIT vs. Ashok Behi Bharat Sethi & Party (2013)35 taxmann.com 214 (Raj.)(DPB 43-46) 4.3 Justifiable reason behind non-considering comparable case: The comparison so made with the G.P. declared two years later by a third party, is not a good basis for making addition. The justification behind the trading results of the current year are always…

M/S. Chambal Fertilizers and Chemicals Limited, Kota vs. Assistant Commissioner of Income Tax, Circle-2, Kota

In the result, appeal of the revenue is dismissed

ITA 744/JPR/2018[2014-15]Status: DisposedITAT Jaipur13 May 2022AY 2014-15
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…ng decisions:- • MalaniRamjivan Jagannath (2009) 316 ITR 120 (Raj HC) — para 9 to 11 • Pawan Enterprises v. ACIT (ITA No. 76/JP/2018)(Jaipur trib) — para 7 • PCIT v. IBILT Technologies Ltd. (2018) 98 taxmann.com 255 (Del HC) — para 9 • ACIT v. Mewar Polytex (51 TTJ 698)(Jaipur trib.) — para 13, 16 & 21 • Madan Lal v. ITO (99 TTJ 538)(jodhpur trib.) — para 9 • Century Tiles Ltd. V. JCIT (152 ITD 327)(Ahm. trib.) — para 23 Hence, basis the above decisions, the appellant submitted that the AO has not pointed out any specific defect or discrepancy in the account books maintained by the assessee. The assessee has bee…

Chambal Fertilisers and Chemicals Limited, Kota vs. ACIT, Kota

In the result, appeal of the revenue is dismissed

ITA 291/JPR/2017[2013-14]Status: DisposedITAT Jaipur13 May 2022AY 2013-14
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…ng decisions:- • MalaniRamjivan Jagannath (2009) 316 ITR 120 (Raj HC) — para 9 to 11 • Pawan Enterprises v. ACIT (ITA No. 76/JP/2018)(Jaipur trib) — para 7 • PCIT v. IBILT Technologies Ltd. (2018) 98 taxmann.com 255 (Del HC) — para 9 • ACIT v. Mewar Polytex (51 TTJ 698)(Jaipur trib.) — para 13, 16 & 21 • Madan Lal v. ITO (99 TTJ 538)(jodhpur trib.) — para 9 • Century Tiles Ltd. V. JCIT (152 ITD 327)(Ahm. trib.) — para 23 Hence, basis the above decisions, the appellant submitted that the AO has not pointed out any specific defect or discrepancy in the account books maintained by the assessee. The assessee has bee…

Chambal Fertilisers and Chemicals Limited, Kota vs. DCIT, Kota

In the result, appeal of the revenue is dismissed

ITA 201/JPR/2017[2012-13]Status: DisposedITAT Jaipur13 May 2022AY 2012-13
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…ng decisions:- • MalaniRamjivan Jagannath (2009) 316 ITR 120 (Raj HC) — para 9 to 11 • Pawan Enterprises v. ACIT (ITA No. 76/JP/2018)(Jaipur trib) — para 7 • PCIT v. IBILT Technologies Ltd. (2018) 98 taxmann.com 255 (Del HC) — para 9 • ACIT v. Mewar Polytex (51 TTJ 698)(Jaipur trib.) — para 13, 16 & 21 • Madan Lal v. ITO (99 TTJ 538)(jodhpur trib.) — para 9 • Century Tiles Ltd. V. JCIT (152 ITD 327)(Ahm. trib.) — para 23 Hence, basis the above decisions, the appellant submitted that the AO has not pointed out any specific defect or discrepancy in the account books maintained by the assessee. The assessee has bee…

Income Tax Officer, Ward- Bhiwadi vs. Shri Satish Kumar, Alwar

In the result, appeal of the revenue is partly allowed for statistical

ITA 637/JPR/2017[2012-13]Status: DisposedITAT Jaipur22 Nov 2017AY 2012-13

Bench: The Ld. Cit(A). The Ld. Cit(A)

For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri Rajendra Jha fu/kZkfjrh dh vksj ls@
Section 143(3)Section 68Section 80C

…ere is decline in the G.P. rate due to substantial increase in the turnover, the trading addition is not justified. He relied on the following case laws: 1. PCIT Vs. Purshottam B. Pitroda (2017) 248 Taxman 118 (Guj.) (HC). 2. Madan Lal V. Income tax Officer 99 TTJ 538 (Jd.) 3. ITO V. Arun Kumar Gupta 103 TTJ 134 (Jd.) In view of above, the trading addition confirmed by CIT(A) be directed to be deleted. 18. On the other hand, the ld DR has relied on the orders of the authorities below. 19. We have heard both the sides on this issue and also perused the material available on the record. From the records, we f…

ACIT, Jaipur vs. Nirmal Glasstech Industries, Jaipur

In the result, the revenue’s appeal is dismissed and the assessee’s

ITA 963/JPR/2016[2012-13]Status: DisposedITAT Jaipur21 Apr 2017AY 2012-13
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri R.A. Verma (Addl.CIT) fu/kZkfjrh dh vksj ls@
Section 143(3)Section 68Section 80I

…rious cases it has been held that simply because there is decline in the G.P. rate due to substantial increase in the turnover, the trading addition is not justified. For this purpose reliance is placed on the following cases:- Madan Lal V. Income tax Officer 99 TTJ 538 (Jd.) It was held that the estimation of the income has to be made only on the basis of some logic and the past history is the best guide except in cases where the assessee is liable to explain that the figures of the past year can’t be applied in the relevant year. The assessee has explained the fall in the G.P. rate by referring to steep increas…

Amit Bhandari, Jaipur vs. ITO, Jaipur

In the result, both the appeals of the assessee are partly allowed

ITA 350/JPR/2015[2008-09]Status: DisposedITAT Jaipur06 Apr 2017AY 2008-09
For Appellant: Shri B.P. Moondra (CA)For Respondent: Shri Raj Mehra (Addl.CIT)
Section 145(3)Section 148Section 40A(3)

…addition when discrepancies were duly reconciled before lower authorities. (vi) The assessee request that only one irregularity of not keeping stock register cannot justify the rejection of entire books of accounts in view of ACIT v/s Mewar Polytee (P) Ltd. 51 TTJ 698 (JP) XIII Tax world 64 and (2) CIT V/s Geo Tech Construction Corporation (1996) 221 ITR (Ker.). [Pandit Bros. v. CIT, (1954) 26 ITR 159, 166-7 (Punj). Also, CST v. Khera Shoe Co., (1975) 36 STC 220 (All); Lallooram Ram Swarup v. CST, (1978) Tax LR (NOC) 152 (All); Asst. CTO v. Kapur Trunk Factory, (1990) 79 STC, 334 (Raj); State of Orissa v. Gaura…

Mc Nally Sayaji Engineering Limited, North 24 Parganas vs. D.C.I.T Cir - 1, Kolkata

In the result, the appeals of the assessee in ITA No

ITA 927/KOL/2013[2009-10]Status: DisposedITAT Kolkata10 Mar 2017AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri Partha Sarathi Chaudhury, Jm]

For Appellant: Smt. Shreya Loyalka, CAFor Respondent: Md. Ghayas Uddin, JCIT, Sr. DR
Section 143(3)Section 14A

…of the business as the business cannot be advantageously carried out under a leaking roof. We also find that the reliance placed by the ld AR on the co-ordinate bench decision of Jaipur Tribunal in the case of ACIT vs Mewar Polytex Pvt Ltd reported in (1995) 51 TTJ 698 (Jp) is well founded wherein it was decided that where an assessee incurs expenditure on extensive repairs carried out in replacing roof sheets, flooring etc, necessitated due to heavy rain and floods which caused the extensive damage, such 9 ITA Nos.2776/A/2011,1575/K/2011 & 927/K/.2013 Mc Nally Sayaji Engg. Ltd.., AY 2008-09 & 2009-10 expenditu…

DCIT, Circle - 1, Kolkata vs. M/S. Mcnally Sayaji Engineering Limited, Kolkata

In the result, the appeals of the assessee in ITA No

ITA 1575/KOL/2011[2008-09]Status: DisposedITAT Kolkata10 Mar 2017AY 2008-09

Bench: Shri M. Balaganesh, Am & Shri Partha Sarathi Chaudhury, Jm]

For Appellant: Smt. Shreya Loyalka, CAFor Respondent: Md. Ghayas Uddin, JCIT, Sr. DR
Section 143(3)Section 14A

…of the business as the business cannot be advantageously carried out under a leaking roof. We also find that the reliance placed by the ld AR on the co-ordinate bench decision of Jaipur Tribunal in the case of ACIT vs Mewar Polytex Pvt Ltd reported in (1995) 51 TTJ 698 (Jp) is well founded wherein it was decided that where an assessee incurs expenditure on extensive repairs carried out in replacing roof sheets, flooring etc, necessitated due to heavy rain and floods which caused the extensive damage, such 9 ITA Nos.2776/A/2011,1575/K/2011 & 927/K/.2013 Mc Nally Sayaji Engg. Ltd.., AY 2008-09 & 2009-10 expenditu…

ACIT, Noida vs. M/S. Prisma Electronics, Noida

In the result, appeal of the Revenue is dismissed

ITA 1551/DEL/2012[2008-09]Status: DisposedITAT Delhi19 Oct 2016AY 2008-09
Section 143(2)Section 143(3)Section 37Section 80I

…dore Bench of Tribunal in Jagdish Oil Mills v ITO (1995) 52 TTJ 102 held that rejection of books on account of low G.P. rate, without disclosing any defect in the books, is not justified. • The Jaipur Bench of Tribunal in ACIT v Mewar Polytex Pvt. Ltd. (1995) 51 TTJ 698 held that mere low G.P. rate or one irregularity cannot justify rejection of entire books of account particularly when in the past department had never rejected the books of account of the assessee and had finalized the assessments as per book results only. Trading addition deleted as there was no justification for estimating higher turnover or ap…