What is CIT v. Balchand Ajit Kumar authority for?

When making an addition for unaccounted receipts, on-money, or non-genuine purchases/sales, the addition should be restricted to the estimated profit element embedded in such transactions, rather than the entire gross amount, particularly when evidence of corresponding expenditure is incomplete. This estimation often involves applying a net profit rate.

How many judgments cite CIT v. Balchand Ajit Kumar?

212 judgments on BharatTax cite CIT v. Balchand Ajit Kumar (263 ITR 610), spanning 2008 to 2026.

Which sections of the Income Tax Act does CIT v. Balchand Ajit Kumar come up under?

It is most often cited in judgments turning on Section 147, Section 132, Section 143(3), Section 142(1), Section 148, Section 153A.

CIT v. Balchand Ajit Kumar (263 ITR 610)

Assistant Commissioner of Income-Tax, Central Circle-2, Surat vs. Ms. Janani Exports, Mumbai

ITA 604/SRT/2024[2019-20]Status: DisposedITAT Surat31 Jul 2025AY 2019-20

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethआयकर अपील सं./Ita No.604/Srt/2024 (Assessment Year:2019-20) (Hybrid Hearing) Acit, Vs. M/S Janani Exports, Central Circle – 2, 704, Vastu Slip Apt., 7Th Floor, Nr. Surat Parsi Colony, Pump House, Andheri (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent) It(Ss)A Nos.9, 10 & 19/Srt/2024 (Ays:2013-14, 2014-15 & 2018-19) Acit, Vs. M/S Janani Exports, Central Circle – 2, 704, Vastu Slip Apt., 7Th Floor, Nr. Surat Parsi Colony, Pump House, Andheri (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent) It(Ss)A Nos.20 To 22/Srt/2024 (Ays: 2013-14 To 2015-16) M/S Janani Exports, Vs. Acit, 704, Vastu Slip Apt., 7Th Floor, Nr. Central Circle – 2, Parsi Colony, Pump House, Andheri Surat (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent) It(Ss)A Nos.35 To 38/Srt/2024 (Ays: 2016-17 To 2019-20) M/S Janani Exports, Vs. Acit, 704, Vastu Slip Apt., 7Th Floor, Nr. Central Circle – 2, Parsi Colony, Pump House, Andheri Surat (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent)

…ATs in the following cases have approved adoption of NP rate: (i) CIT vs. President Industries, 258 ITR 654 (Guj.), (ii) CIT vs. Abhishek Corporation, 158 CTR (Guj.) 374, (iii) ITO vs. Om Silk Mills, 55 taxmann.com 295 (Guj.), (iv) CIT vs. Balchand Ajitkumar, 263 ITR 610 (MP), (v) DCIT, CC-3, Surat vs. Mehul T. Desai, (2019) 101 taxmann.com 234 (Surat – Trib.), (vi) ITO vs. Sai Kripa Construction, (2007) 13 SOT 459 (Mum.) and (vii) Eagel Seeds and Biotech Ltd. vs. ACIT, 100 ITD 301 (Indore – Trib.). Therefore, we are of the considered view that the CIT(A) has rightly adopted the NP rate instead of the GP rate app…

Income Tax Officer, Sikar vs. Bhaskar Chauhan, Jaipur

In the result the appeal of the revenue in ITA no

ITA 868/JPR/2024[2017-18]Status: DisposedITAT Jaipur24 Jul 2025AY 2017-18

Bench: Him.

For Appellant: Shri S.L.Poddar, AdvFor Respondent: Mrs Alka Gautam, CIT-DR a

Section 143(3)Section 144Section 153CSection 251Section 69Section 69ASection 69C

…Acxt is the profit and gains of a year. What is chargeable to tax under the Income Tax Act is not the gross receipts, but income. Under the Income Tax Act, the tax is on income and not on gross receipts.” (2) Commissioner of Income Tax Vs. BalchandAjitkumar 263 ITR 610 (2003) Hon’ble MP High Court The Hon’ble High Court held that total sale cannot be regarded as the profit of the assessee. The net profit rate has to be adopted and once a net profit rate is adopted, it cannot be said that there is perversity of approach. Whether the rate is low or high, it would depend upon the facts of each case. In the presen…

Mohit Ramchandani, Jabalpur vs. Income Tax Officer Ward 2(1), Jabalpur

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

ITA 8/JAB/2025[2011-12]Status: DisposedITAT Jabalpur30 Jun 2025AY 2011-12

Bench: Shri Kul Bharat & Shri, Nikhil Choudharyassessment Year: 2011-12 Mohit Ramchandani V. Ito Ward-2(1) Lig13, Shiv Nagar Damoh Annexue Building, Naka, Jabalpur-482002. Aayakar Bhawan, Napier Town, Jabalpur-482001. Pan:Auipr4713M (Appellant) (Respondent) Appellant By: Shri Sapan Usrethe, Adv Respondent By: Shri Alok Bhura, Sr. Cit(Dr) Date Of Hearing: 22 05 2025 Date Of Pronouncement: 30 06 2025 O R D E R

For Appellant: Shri Sapan Usrethe, AdvFor Respondent: Shri Alok Bhura, Sr. CIT(DR)

Section 147Section 148

…,245 as AO erred in making addition on account of entire cash deposit whereas the net profit rate may be applied to unrecorded sales or receipts for the purpose of making any additions as held by Hon'ble Madhya Pradesh High Court in CIT v. Balchand Ajit Kumar 263 ITR 610 (MP), wherein it was held that the total sale could not be regarded as profit of the assessee and only net profit should be taxed. 5. The learned Commissioner of Income Tax (Appeal) of NFAC New Delhi was not justified in confirming the action of AO whereas assessment is liable to be quashed as assessment order was passed under wrong section and i…

ACIT, Allahabad vs. Kesarwani Zarda Bhandar, Allahabad

In the result, the appeal of Revenue is dismissed and the appeal of the assessee is partly allowed

ITA 12/ALLD/2014[2010-11]Status: DisposedITAT Allahabad30 Jun 2025AY 2010-11

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 153A

…ent order about the suppression of investment in acquiring the alleged suppressed production. Sir total sales or total production cannot be regarded as profit/ income of the assessee. In support of this the assessee rely on following decisions…………. 1- (2003) 263 ITR 610 (MP) 2- (2002) 258 ITR 654 (Guj) 3- (2008) 304 ITR 52 (MP) 4- (2008) 302 ITR 63 (Guj) 5- (2011) 12 ITR 748 (ITAT Delhi Bench) To sum up the whole submissions on the point of the addition of the amount of alleged suppression of production of tobacco and addition of Rs 6,95,66,165/- treating such amount as income of the assessee. The questions to…

M/S Kesarwani Zarda Bhandar, Allahabad vs. Jt.CIT, Allahabad

In the result, the appeal of Revenue is dismissed and the appeal of the assessee is partly allowed

ITA 379/ALLD/2013[2010-11]Status: DisposedITAT Allahabad30 Jun 2025AY 2010-11

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 153A

…ent order about the suppression of investment in acquiring the alleged suppressed production. Sir total sales or total production cannot be regarded as profit/ income of the assessee. In support of this the assessee rely on following decisions…………. 1- (2003) 263 ITR 610 (MP) 2- (2002) 258 ITR 654 (Guj) 3- (2008) 304 ITR 52 (MP) 4- (2008) 302 ITR 63 (Guj) 5- (2011) 12 ITR 748 (ITAT Delhi Bench) To sum up the whole submissions on the point of the addition of the amount of alleged suppression of production of tobacco and addition of Rs 6,95,66,165/- treating such amount as income of the assessee. The questions to…

Deputy Commissioner of Income Tax-1(1), Raipur vs. Shanta Techno Private Limited, Raipur

ITA 155/RPR/2025[2018-19]Status: DisposedITAT Raipur18 Jun 2025AY 2018-19

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita No: 155/Rpr/2025 (िनधा"रण वष" Assessment Year: 2018-19)

For Appellant: NoneFor Respondent: Dr. Priyanka Patel, Sr. DR

Section 142(1)Section 147Section 148Section 250Section 69C

…आयकर अपीलीय अिधकरण, रायपुर "ायपीठ, रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR "ी पाथ" सारथी चौधर", "ाियक सद" एवं "ी अ"ण खोड़िपया, लेखा सद" के सम" । BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं. / ITA No: 155/RPR/2025 (िनधा"रण वष" Assessment Year: 2018-19) Deputy Commissioner of Income Tax- V Shanta Techno Private Limited, 1(1), Raipur, C.G. s C-12, Shanta Techno, Anupam Nagar, Raipur-492007, C.G. PAN: AAJCS8353E (अपीलाथ"/Appellant) . (""थ" / Respondent) . िनधा"रती की ओर से /Assessee by : None राज" की ओर से /Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई की…