Chhabildas Tribhuvandas Shah v. CIT

59 ITR 733Supreme Court of India1966#7957 most cited

What is Chhabildas Tribhuvandas Shah v. CIT authority for?

The Income-tax Officer must have material to support a finding that income cannot be properly deduced from the assessee's accounting method before invoking Section 145(3) or estimating income. Merely not maintaining a stock register or finding book profits low may not be sufficient grounds.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2010 to 2025.

Also referred to as

Chhabildas Tribhuvandas Shah v. CIT · Section 145(3) · estimation of income · finding of fact · material in support · Appellate Tribunal · proviso to section 13 · question of fact · method of accounting · stock register · AO · IT Act

Sections most often in play

Section 142(1)Section 144BSection 145(3)Section 115BBESection 144Section 37Section 132Section 133(6)

Issues it is cited on

section 260section 260asection 30mercantile system of accountingcommercial expediencysection 145(3)profits and gains of business or professionsection 145capital expendituresection 115bbsection 115bsection 37(1)

Judgments citing Chhabildas Tribhuvandas Shah v. CIT

Radhakishan Beniwal, Jaipur vs. Deputy Commissioner of Income Tax, Circle 1, Jaipur

In the result, the appeal filed by the assessee in ITA no

ITA 695/JPR/2025[2016-17]Status: DisposedITAT Jaipur10 Sept 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri P. C. Parwal, CA &For Respondent: Shri Gorav Avasthi, JCIT
Section 139Section 144Section 147rSection 148Section 148ASection 194CSection 251Section 68

…voking of the provisions of section 145(3) and/or estimation of income by itself is a finding of fact and it would be appropriate to refer to a few judgments in this regards. 13. The hon'ble apex court in the case of Chhabildas Tribhuvandas Shah v. CIT [1966] 59 ITR 733 has observed as under (page 737) : "We may point out that we are not concerned with the correctness of the conclusion and we are only concerned with the question whether there is any material in support of the finding of the Appellate Tribunal. In cases involving the applicability of the proviso to section 13, the question to be determined by the…

Radhakishna Beniwal, Jaipur vs. Deputy Commissioner of Income Tax, Circle 1, Jaipur

In the result, the appeal filed by the assessee in ITA no

ITA 694/JPR/2025[2015-16]Status: DisposedITAT Jaipur10 Sept 2025AY 2015-16

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri P. C. Parwal, CA &For Respondent: Shri Gorav Avasthi, JCIT
Section 139Section 144Section 147rSection 148Section 148ASection 194CSection 251Section 68

…voking of the provisions of section 145(3) and/or estimation of income by itself is a finding of fact and it would be appropriate to refer to a few judgments in this regards. 13. The hon'ble apex court in the case of Chhabildas Tribhuvandas Shah v. CIT [1966] 59 ITR 733 has observed as under (page 737) : "We may point out that we are not concerned with the correctness of the conclusion and we are only concerned with the question whether there is any material in support of the finding of the Appellate Tribunal. In cases involving the applicability of the proviso to section 13, the question to be determined by the…

M/S Kanak Vrindavan Resorts Limited, Jaipur vs. Income Tax Officer, Ward 6(2), Jaipur

In the result, the appeal of the assessee is allowed

ITA 543/JPR/2025[2016-17]Status: DisposedITAT Jaipur02 Sept 2025AY 2016-17

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. Tarun Mittal, CAFor Respondent: Sh. Gautam Singh Choudhary, Addl. CIT
Section 143(1)(a)Section 143(2)Section 143(3)Section 145Section 37

…voking of the provisions of section 145(3) and/or estimation of income by itself is a finding of fact and it would be appropriate to refer to a few judgments in this regards. 13. The hon'ble apex court in the case of Chhabildas Tribhuvandas Shah v. CIT [1966] 59 ITR 733 has observed as under (page 737) : "We may point out that we are not concerned with the correctness of the conclusion and we are only concerned with the question whether there is any material in support of the finding of the Appellate Tribunal. In cases involving the applicability of the proviso to section 13, the question to be determined by the…

Satish Chand Gupta, Jaipur vs. ITO Ward 6(2), Jaipur

In the result, the appeal filed by the assessee is allowed

ITA 211/JPR/2024[2017-18]Status: DisposedITAT Jaipur25 Apr 2024AY 2017-18

Bench: SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri Dheeraj Borad, CAFor Respondent: Mrs. Monisha Choudhary, Addl. CIT
Section 131Section 145(3)Section 250Section 69A

…ble because on one hand cost of the sales has been taxed (after deducting gross profit from sale price ultimately credited to profit and loss account” and on the other hand amount received from above parties has also been added u/s. 68 of the IT Act. 6 (1966) 59 ITR 733 Chhabildas In this case it is held that (Supreme Tribhuvandas Shah an assessee who Court) vs. CIT maintains regular account books which are not found to be incorrect, the mere fact that a stock register is not maintained and book profit is considered by the AO as low may provoke an enquiry, but they may not be sufficient to justify action u/s. 145…

Shri Vinod Kumar Kothari, Tonk vs. ITO, Ward, Tonk

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

ITA 1381/JPR/2019[2014-15]Status: DisposedITAT Jaipur22 Jul 2020AY 2014-15

Bench: Him, The Appellant Had Attended His Office On All These Days & Sought To Submit The Written Reply On The Given Dates. Finally The Reply Could Be Submitted On 10.4.2019, As The Same Was Not Received By The Ld. Cit On Earlier Dates Due To Paucity Of Time. In The Circumstances The Ld. Cit (A) Has Dismissed The Appeal Summarily Without Going Into The Merits Of The Case As 2

For Appellant: Shri K.L. Moolchandani (CA)For Respondent: Ms Chanchal Meena (Addl. CIT)
Section 145(3)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH ’B’, JAIPUR Jh jes'k lh- 'kekZ] ys[kk lnL; ,oa h Jh fot; iky jkWo] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 1381/JP/2019 fu/kZkj.k o"kZ@Assessment Year : 2014-15. cuke Shri Vinod Kumar Kothari The Income Tax Officer, Vs. 02, Industrial Area, Malpura, Ward Tonk. Tonk. LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. ACRPK 8599 B vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri K.L. Moolchandani (CA) jktLo dh vksj ls@ Revenue by : Ms Chanch…

Shri Kamal Kumarc/O- Garg Rajendra & Co., Ca Radhika-Nandan, Be-Narain Gate, Bharatpur vs. ITO Ward-2, Bharatpur, Ward-2

In the result, the ground of appeal is dismissed

ITA 717/JPR/2019[2015-16]Status: DisposedITAT Jaipur03 Jul 2020AY 2015-16
For Appellant: Sh. Rajendra Agarwal (CA)For Respondent: Sh. K. C. Gupta (JCIT)
Section 145(3)Section 44A

…le from the bills/vouchers. Most of the sales vouchers are not fully vouched. In the absence v) of stock register. The Trading result declared by the assessee cannot be relied upon. The Hon'ble Supreme court in the case of Chhabil Das Trubhuwandas Shah Vs CIT 59 ITR 733 (SC) has held that in absence of quantitative tally, the fall in margin of profit cannot be explained. The Rajasthan High Court in the case of Ghasiram Todarmal Vs CIT reported in 196 ITR 329 has held that if the stock register maintained by the assessee does not reflect the true stage of affairs of the articles consumed or produced the action of…

ITO, New Delhi vs. Sh. Sunil Nayyar, Delhi

In the result, the appeal of the revenue is dismissed and Cross

ITA 6168/DEL/2016[2012-13]Status: DisposedITAT Delhi24 Feb 2020AY 2012-13

Bench: Sh. Kuldip Singhdr. B. R. R. Kumarita No. 6168/Del/2016 : Asstt. Year : 2012-13 Income Tax Officer, Vs Sh. Sunil Nayyar, Ward-49(3), R/O 81-A, Vikrant Enclave, New Delhi Mayapuri, New Delhi-110064 (Appellant) (Respondent) Pan No. Abvpn3963B

For Appellant: Sh. Jagdish Ajmani, CAFor Respondent: Sh. Saras Kumar, Sr. DR
Section 68

…re was material before the AO to lead him to the conclusion that a proper ITA No. 6168/Del/2016 & 17 CO No. 9/Del/2017 Sunil Nayyar statement of income, could not be deduced, in that event AO is not entitled to estimate the profit". Chhabildas Shah vs. CIT 59 ITR 733 (SC). a. In the case of Pandit Brothers vs. CIT 26 ITR 159 (Pun) Hon'ble supreme court has as explained the basic principles for invoking section 145(3) and has clarified in clear terms that unless a clear satisfaction with regard to inaccuracy of books of accounts is recorded in absolute terms in the body of assessment order, the assessment fram…

A.C.I.T Cir - 2(2), Kolkata vs. M/S West Bengal State Electricity Distribution Co Ltd, Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1952/KOL/2017[2004-05]Status: DisposedITAT Kolkata30 Apr 2019AY 2004-05

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1952/Kol/2017 (िनधा"रणवष" / Assessment Year: 2004-05) Acit, Circle-2(2), Kolkata Vs. M/S West Bengal State Electricity Board (Now Renamed West Bengal State Electricity Distribution Co. Ltd. )

For Appellant: Shri RadheyShyam, CIT DRFor Respondent: Shri N.K. Poddar, Sr. Advocate
Section 143(3)Section 4

…rmination of profits is essentially one of fact. Whether the income, profits and gains could or could not be properly deduced from the method of accounting regularly adopted by the assessee is a question of fact. (see ChhabildasTribhuvandas Shah v. CIT [1966] 59 ITR 733 (SC). Therefore, in our opinion, no question of law arises out of the order of the Tribunal ... " 11.0n similar lines, In the case of Saurashtra Cement & Chemical Industries Ltd. V. Commissioner of Income Tax, [1995] 213 ITR 523(Gujarat), the Division Bench of Gujarat High Court has expressed thus:- "Merely because an expense relates to a transac…

ACIT Cir-1, Jamshedpur vs. M/S Autoprofile Ltd, Jamshedpur

Appeal is dismissed

ITA 174/RAN/2016[2010-11]Status: DisposedITAT Ranchi15 Feb 2019AY 2010-11

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2010-11

Section 133(6)Section 143(3)

…210 ITR 406 however, the assessee has failed in appellate grounds to distinguish his case from facts and circumstances of the case cited under the assessment order. 3.6 Further, the apex court in the case of Chhabildas Tribhubandas Shaha & Others vs. CIT (SO 59 ITR 733) has also held that where there is no day-to-day stock account or day-to-day purchase (the production of scrap in this case) or sales – rejection of accounts are justified. 3.7 In view of facts as above, the invocation of proviso to section 145 of the IT Act, 1961 shall be sustained. ITA No.174/Ran/2016 A.Y. 2010-11 ACIT, Cir-1 JSR Vs. M/s Auto P…

Mukesh Kumar Meena, Jaipur vs. ITO, Jaipur

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

ITA 657/JPR/2016[2011-12]Status: DisposedITAT Jaipur30 Nov 2017AY 2011-12
For Appellant: Shri M.L. Borad (Advocate)For Respondent: Shri R.A. Verma (Addl.CIT)
Section 145(3)Section 68Section 69A

…he account books under section 145(2) of the Act and to make the assessment in the manner contemplated in those provisions." ITA No. 657/JP/2016. Shri Mukesh Kumar Meena, Jaipur. The Hon'ble Supreme Court in the case of Chhabil Das Trubhuwandas Shah Vs. CIT 59 ITR 733 (SC) has held that in absence of quantitative tally, the fall in margin of profit cannot be explained. The Rajasthan High Court in the case of Ghasiram Todarmal Vs. CIT reported in 196 ITR 329 has held that if the stock register maintained by the assessee does not reflect the true state of affairs of the articles consumed or produced, the action o…

CIT vs. Superior Crafts

ITA/615/2011HC Delhi06 Mar 2012

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 142Section 260

…pinion that correct profitsl and gains cannot be deduced, then they would be justified in applying the Proviso to s.1 3." i 34. The Supreme Court had anotfer occasion to examine the I' said question in the case of Chhahildas Tribhuvandas Shah v. 'l CtT (1966) 59 ITR 733 (SC) and it was held:- I ".... What we have to dee is whether the finding of the Appellate i Tribunal that the income, profits and gains icannot properly be deduced from the method of accounting employed by the appellant is based on any ITA Nos. 24412009, 547 t2O1 1, 5481201 I & 6151201 1 Page 36 of 44 . I I material. The Appellate Tflbunal has…

CIT vs. Superior Crafts

ITA - 548 / 2011HC Delhi06 Mar 2012
Section 142Section 260

…pinion that correct profitsl and gains cannot be deduced, then they would be justified in applying the Proviso to s.1 3." i 34. The Supreme Court had anotfer occasion to examine the I' said question in the case of Chhahildas Tribhuvandas Shah v. 'l CtT (1966) 59 ITR 733 (SC) and it was held:- I ".... What we have to dee is whether the finding of the Appellate i Tribunal that the income, profits and gains icannot properly be deduced from the method of accounting employed by the appellant is based on any ITA Nos. 24412009, 547 t2O1 1, 5481201 I & 6151201 1 Page 36 of 44 2012:DHC:9801-DB . I I material. The Appell…

Commissioner of Income Tax vs. Superior Crafts

The appeals are dismissed holding that no substantial question of law arises for

ITA/244/2009HC Delhi06 Mar 2012
Section 142Section 260A

…opinion that correct profits and gains cannot be deduced, then they would be justified in applying the proviso to s.13.” 34. The Supreme Court had another occasion to examine the said question in the case of Chhabildas Tribhuvandas Shah v. CIT (1966) 59 ITR 733 (SC) and it was held:- “.... What we have to see is whether the finding of the Appellate Tribunal that the income, profits and gains cannot properly be deduced from the method of accounting employed by the appellant is based on any 2012:DHC:1630-DB ITA Nos. 244/2009, 547/2011, 548/2011 & 615/2011…

Commissioner of Income Tax vs. Jagatjit Industries Ltd

Accordingly, the same stands dismissed without any order as to

ITA/848/2010HC Delhi06 Sept 2010

Bench: HON'BLE THE ACTING CHIEF JUSTICE,HON'BLE MR. JUSTICE MANMOHAN

Section 143(2)Section 260ASection 271(1)(c)

…ion of profits is essentially one of fact. Whether the income, profits and gains could or could not be properly deduced from the method of accounting regularly adopted by the assessee is a question of fact. (see Chhabildas Tribhuvandas Shah v. CIT [1966] 59 ITR 733 (SC). Therefore, in our opinion, no question of law arises out of the order of the Tribunal. . . .” [Emphasis supplied] 13. In Saurashtra Cement & Chemical Industries Ltd. V. Commissioner of Income Tax, [1995] 213 ITR 523(Gujarat), the Division Bench has expressed thus:- “Merely because an expense relates to a transaction…

Chhabildas Tribhuvandas Shah v. CIT (59 ITR 733) — Cited in 14 Judgments | BharatTax