Addl. CIT v. Jay Engineering Works Ltd.

113 ITR 389High Court1978#1225 most cited

What is Addl. CIT v. Jay Engineering Works Ltd. authority for?

The Assessing Officer is competent to accept or draw proper inferences from auditors' reports. When books of accounts are audited by chartered accountants and there is no material on record to show they are unreliable, no addition challenging deductions supported by those books is tenable.

92

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2026.

Also referred to as

Addl. CIT v. Jay Engineering Works Ltd. · 113 ITR 389 · section 143(3) · audited books of accounts · reliability of accounts · Assessing Officer powers · additions without material · burden of proof · auditors' report · income tax assessment · inference from audit

Also reported as

124 CTR 213

Sections most often in play

Section 143(3)Section 132Section 147Section 148Section 131Section 153CSection 132(4)Section 69

Issues it is cited on

section 120(4)(b)section 3asection 2(15a)section 17(2)(iiia)abatement of assessmentsection 36(1)(v)section 4aillegal paymentsection 10(20)section 61section 46section 40a(7)

Judgments citing Addl. CIT v. Jay Engineering Works Ltd.

Avery Dennison (I) Pvt. Ltd, New Delhi vs. ACIT, Circle-3(2), New Delhi

In the result, the appeal of the assessee is partly allowed for the statistical purposes

ITA 7183/DEL/2017[2013-14]Status: DisposedITAT Delhi27 Jun 2018AY 2013-14

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2013-14 M/S. Avery Dennison (I) Pvt. Vs. Acit, Ltd., Circle -3(2), New Delhi P-24, Green Park Extension, New Delhi, Delhi Pan :Aaaca6163D (Appellant) (Respondent) Appellant By Sh. Vishal Kalra, Adv. & Sh. S.S. Tomar, Adv. Respondent By Sh. H.K. Choudhary, Cit(Dr) Date Of Hearing 20.06.2018 Date Of Pronouncement 27.06.2018 Order

Section 144Section 92CSection 92C(3)

…tted that audited books of accounts cannot be rejected in a summarily manner without pointing out any cogent defects / reasons to support such rejection (reference is invited to the judgment of Delhi High Court in the case of CIT v. Jay Engineering Works Ltd: 113 ITR 389 @ page 392 (Del)). Reliance in this regard is also placed on Bharat Heavy Electricals Ltd. vs DCIT (2005 98 TTJ 565 Delhi ITAT) wherein the Hon'ble ITAT acknowledged that the auditor had duly verified the genuineness claim while undertaking an audit for this year without raising any qualifications and hence the addition made by Ld. AO is bad and…

Manna Bricks Manufacturing & Trading Pvt. Ltd., Midnapore(W) vs. JCIT, Range-2, Midnapore

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

ITA 389/KOL/2017[2010-11]Status: DisposedITAT Kolkata23 May 2018AY 2010-11

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.389/Kol/2017 ("नधा"रणवष" / Assessment Year: 2010-11) Manna Bricks Manufacturing Vs. Jcit, Range – 2 & Trading Pvt. Ltd. Midnapore Vill: Sheulipur, P.O. Mohar, Dist Midnapore (W), West Bengal, Pin – 721161. "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aaecm 9769 R (Appellant) .. (Respondent)

For Appellant: Shri Soumitra Choudhury, Adv. & AnikeshFor Respondent: Shri S. Dasgupta, Addl. CIT(DR)
Section 133(6)

…ovember, 2010, the Chartered Accountant with the aid of books maintained by the late accountant prepared the Profit & Loss and Balance Sheet, after proper verification of income and expenditure. We note in a similar case Jay Engineering Works Ltd. reported in 113 ITR 389 (Del). When the regular books of accounts were destroyed by fire, the Assessing Officer did not accept the deduction claimed by the assessee. However, the Tribunal taking note of the fact that the assessee’s accounts have been audited, allowed the deduction. The Revenue challenged the action of the Tribunal where in the Hon’ble Delhi High Court u…

Exterior-Interior Private Limited, Kolkata vs. ITO, Ward-12(1), Kolkata

Appeal is dismissed

ITA 2224/KOL/2016[2011-12]Status: DisposedITAT Kolkata11 May 2018AY 2011-12

Bench: Hon’Ble Shri S.S. Godara, Jm & Dr.Arjun Lal Saini, Am ] Assessment Year : 2011-12

For Appellant: Shri T.P.Kar, ARFor Respondent: Shri S.Dasgupta, Addl. CIT, Sr.DR
Section 142(1)Section 143(2)Section 144Section 2

…e material. But the question of law is well settled and is not capable of being disputed and does not therefore call for reference. Your appellant furnishes the decision of the Delhi High Court in the case of Addl CIT vs Jay Engineering Works Ltd reported in 113 ITR 389 where the appellant furnishes the Auditors Report but could not produce the books of accounts whether "material' in the absence of accounts books. It was held in favour of the assessee by the High Court. ITA No.2224/Kol/2016 Exterior Interior (P)Ltd A.Y.2011-12 1.10. Your appellant submits that when a return is furnished and the accounts are pu…

The ACIT, Visakhapatnam vs. Bharat Hevay Plates and Vessels Ltd, Visakhapatnam

In the result, appeal of the revenue is dismissed

ITA 48/VIZ/2016[2008-09]Status: DisposedITAT Visakhapatnam10 Jan 2018AY 2008-09

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.48/Viz/2016 (धनधाारण िर्ा/Assessment Year:2008-09) The Asst.Commissioner Of Income Tax Vs. M/S Bharat Heavy Plates & Circle-1(1), Visakhapatnam Vessels Ltd., Bhpv Post Visakhapatnam [Pan :Aaacb7076N] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलाथी की ओर से/ Appellant By : Shri Debakumar Sonowal, Dr प्रत्याथी की ओर से / Respondent By : Shri I Kama Sastry, Ar सुनिाई की तारीख / Date Of Hearing : 20.12.2017 10.01.2018 घोषणा की तारीख/Date Of Pronouncement :

For Appellant: Shri Debakumar Sonowal, DRFor Respondent: Shri I Kama Sastry, AR

…s a whole and not to make a pick and choose. We however, carefully examined the order of CIT(A) and we find that CIT(A) has adjudicated the issue in the light of judgement of the Delhi High Court in the case of Additional CIT Vs. Jay Engineering Works Limited 113 ITR 389. Our attention was also invited to the other judgement of the Delhi High Court in the case of CIT Vs. Mobile Pvt. Ltd 328 FIR 17 on the impugned proposition of law. Since the CIT(A) has properly adjudicated the issue and we find no infirmity therein, we confirm his order." 4.3.2 As can be seen from the above, the assessee company itself has taken…

ACIT, New Delhi vs. Sh. Satish Sehrawat, New Delhi

In the result, the appeal of the assessee is allowed for statistical purposes and Revenue’s appeal is partly allowed for statistical purposes

ITA 2791/DEL/2013[2009-10]Status: DisposedITAT Delhi28 Nov 2017AY 2009-10

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

Section 201(1)Section 40Section 40(1)(ia)

…In the Income-Tax Appellate Tribunal, Delhi Bench ‘G’, New Delhi Before : Shri H.S. Sidhu, Judicial Member And Shri L.P. Sahu, Accountant Member ITA No. 2791/Del./2013 Assessment Year: 2009-10 ACIT, Central Circle-24 (1), Vs. Satish Sehrawat, Prop., M/s. Tehn New Delhi Travels, 1, Prakash House, Main Road, Mahipalpur, New Delhi (PAN: ABAPS4331H) Appellant Respondent ITA No. 2491/Del./2013 Assessment Year: 2009-10 Satish Sehrawat, Prop., M/s. Tehn Vs. ACIT Travels, 1, Prakash House, Main Road, Central Circle-24 (1), Opp. State Bank of Patiala, New Delhi Mahipalpur, New Delhi Revenue by Sh. Kaushlendra Tiwari…

Smt Krishna Ojha, Kolkata vs. ITO, WD-26(4), Kolkata

In the result, the appeal of the assessee is allowed

ITA 658/KOL/2015[2009-2010]Status: DisposedITAT Kolkata13 Jan 2017AY 2009-2010

Bench: Shri S. S. Viswanethra Ravi, Jm & Dr. A. L. Saini, Am]

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri Arindam Bhattacharya, JCIT
Section 143(3)

…be treated as income of the assessee. The High Court had agreed with the said view of the Tribunal. There was no error in the said finding recorded by the Tribunal.The appeal was, accordingly, dismissed.” (2). Addl. CIT Vs. Jay Engineering Works Ltd. (1978) 113 ITR 389 (Del.): “Under section 34 of the Indian Evidence Act, account books maintained in the regular course of business are evidence after the relevant entries are proved by oral evidence or are admitted. The ITO, however, have to deal with such numerous cases of assessment that they can accept as correct books of account maintained in regular course of…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

ITA 1545/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Oct 2016AY 2010-11

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. NC Sawain, CIT DR
Section 143Section 143(3)Section 144CSection 92C

…ke any ad hoc addition since the books of accounts have been duly audited in accordance with the provisions of the Act and have been accepted as true and correct without any adverse inference being drawn against the appellant. [Refer: Jai Engineering Limited: 113 ITR 389 (Del)].Further he stated that, in the following cases, adhoc disallowance made in absence of any specific mention of any unvouched expenditure liable to be disallowed has been held to be untenable and not called for. (i) Dwarka Prasad Agarwal v. ITO: 52 ITD 239 (Cal) Hero MotoCorp Limited Vs. JCIT & DCIT Vs. Hero MotoCorp Ltd. ITA Nos. 1545/Del/…

D.C.I.T Cir - 8, Kolkata vs. M/S Rawatsons Engineers Pvt Ltd, Howrah

In the result, Revenue’s appeal stands dismissed

ITA 1306/KOL/2013[2009-10]Status: DisposedITAT Kolkata09 Sept 2016AY 2009-10

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Years:2009-10

Section 143(2)Section 143(3)

…mstance and such facts have also been acknowledged by the AO in his assessment order. The appellant has cited on the issue very land mark judgments or the Honble Delhi High Court in the matter of Addl. Commissioner of Income Tax Vs. Jay Engineering Works Ltd [113 ITR 389] and in the matter of Modi Carpets Ltd Vs. Income Tax Officer I (J 993) 46 TTJ Del 155]. The said ITA No.1306/Kol/2013 A.Y.2009-10 DCIT Cir-8, Kol. vs. M/s Rawatsons Engineers Pvt. Ltd. Page 5 judgments deal with the mode and manner of assessment in case of destruction of records and 'Material evidence' in case of fire. I find that the Hon'bJe…

ITO, Ward-1(3), Kolkata vs. M/S Gkw Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 432/KOL/2012[1998-99]Status: DisposedITAT Kolkata24 Aug 2016AY 1998-99

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :1998-99 Ito Ward-1(3), Room V/S. M/S Gkw Ltd., Central No. 1A, 4Th Floor, Plaza, 2/6 Sarat Bose Aayakar Bhawan, P-7, Road, Office Space No. Chowringhee Suquare, 406, 4Thfloor, Kolkata-20 Kolkata-700 069 [Pan No. Aabcg 0671 K] .. अपीलाथ" /Appellant ""यथ"/Respondent

Section 143(2)Section 143(3)Section 145A

…the same was in possessions of the lending bank, disregard of the assessee’s audited accounts is not justified and auditor’s report should be relied upon as evidence. In this case, reliance also placed in the case of ACIT vs. Jay Engineering Works Ltd. (1978) 113 ITR 389 (Del) wherein it has been held that income tax authorities could rely on the report of the auditors if detailed information of the claims were not available. In the assessee case, the auditor has carried out his audit and in the Audit Report given his opinions which indicates that assessee-company did maintain proper books of accounts which refle…

Onkar International Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the Appeal filed by the Assessee stands allowed

ITA 310/DEL/2015[2009-10]Status: DisposedITAT Delhi02 Aug 2016AY 2009-10

Bench: Shri H.S. Sidhu

For Appellant: Sh. M.S. Sekhon, CAFor Respondent: None
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 40A(2)(b)

…see at H-32, Connaught Circus, New Delhi on 5.8.2010. I find considerable cogency in the assessee’s counsel contention that this issue is 5 squarely covered by the decision of the Hon’ble Delhi High Court in the case of Jay Engineering Pvt. Ltd. reported in 113 ITR 389 wherein it has been held that such disallowance cannot be upheld. Accordingly, respectfully follow the precedent in the case of Jay Engineering (Supra), I delete the disallowance in dispute and allow the ground raised by the assessee. 8. In the result, the Appeal filed by the Assessee stands allowed. Order pronounced in the Open Court on 02…

State Bank of Mysore, Bangalore vs. Joint Commissioner of Income Tax(Ltu), Bangalore

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 1063/BANG/2014[2007-08]Status: DisposedITAT Bangalore27 May 2016AY 2007-08

Bench: Shri Sunil Kumar Yadav & Shri Abraham P. Georgeassessment Year : 2007-08

For Appellant: Shri K.R. Vasudevan, AdvocateFor Respondent: Dr. Sibicen K. Mathew, CIT(DR)

…espect of those assets. In support of his contention that even in the absence of some of bills of certain assets, disallowance of depreciation on total assets cannot be made, he placed reliance upon the decision in the case of ACIT v. Jay Engineering Works, 113 ITR 389 and PNC Construction Co. Ltd. v. DCIT, 144 ITD 577. Page 10 of 12 11. The ld. DR, on the other hand, has contended that when the assessee claims depreciation over the fixed assets, the onus is upon him to produce the relevant invoices with regard to his purchase and if he fails to do so, the AO can disallow depreciation thereon, because depreci…

M/S. Samsung Heavy Industries Co. Ltd., Gurgaon vs. JCIT, Dehradun

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1978/DEL/2015[2011-12]Status: DisposedITAT Delhi28 Mar 2016AY 2011-12

Bench: Sh. N. K. Saini, Am & Sh. A. T. Varkey, Jm Ita No. 1978/Del/2015 : Asstt. Year : 2011-12 M/S Samsung Heavy Industries Vs Joint Commissioner Of Income Tax Co. Ltd., C/O Price Water House (International Taxation), Coopers Pvt. Ltd., 17Th Floor, Dehradun Building 10, Tower C, Dlf, Cyber City, Gurgaon, Haryana-122002 (Appellant) (Respondent) Pan No. Aajcs7859K Assessee By : Sh. Pawan Kumar, Adv., Ms. Pooja Khanna & Sanjam Goel, Cas Revenue By : Sh. Anuj Arora, Cit Dr Date Of Hearing : 07.01.2016 Date Of Pronouncement : 28.03.2016 Order Per N. K. Saini, Am:

For Appellant: Sh. Pawan Kumar, Adv., Ms. PoojaFor Respondent: Sh. Anuj Arora, CIT DR
Section 143(1)Section 194CSection 234BSection 234CSection 271(1)(c)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. N. K. Saini, AM And Sh. A. T. Varkey, JM ITA No. 1978/Del/2015 : Asstt. Year : 2011-12 M/s Samsung Heavy Industries Vs Joint Commissioner of Income Tax Co. Ltd., C/o Price Water House (International Taxation), Coopers Pvt. Ltd., 17th Floor, Dehradun Building 10, Tower C, DLF, Cyber City, Gurgaon, Haryana-122002 (APPELLANT) (RESPONDENT) PAN No. AAJCS7859K Assessee by : Sh. Pawan Kumar, Adv., Ms. Pooja Khanna, & Sanjam Goel, CAs Revenue by : Sh. Anuj Arora, CIT DR Date of Hearing : 07.01.2016 Date of Pronouncement : 28.03.2016 ORDER Per…