CIT v. Balchand Ajit Kumar

263 ITR 610High Court2003#427 most cited

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.

212

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Balchand Ajit Kumar · Section 147 · Section 148 · Section 145(3) · addition restricted to profit · estimated profit · unaccounted receipts · on-money · bogus purchases · non-genuine sales · net profit rate · income estimation

Also reported as

135 Taxmann 180

Sections most often in play

Section 147Section 132Section 143(3)Section 142(1)Section 148Section 153ASection 145(3)Section 132(4)

Issues it is cited on

section 256(1)section 256on money receipton-moneyrejection of books of accountloose paperssection 145(3)survey under section 133asection 145section 132(4a)section 292cblock period

Judgments citing CIT v. Balchand Ajit Kumar

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 142/JODH/2022[2016-17]Status: DisposedITAT Jodhpur12 Oct 2023AY 2016-17
Section 143(3)Section 145Section 153A

…rt this view the ld. AR of the assessee placed reliance on following decisions: " CIT vs. S.C.Kothari 82 ITR 794 (SC) " CIT vs. M/s Shoorji Vallabhdas & Co. 46 ITR 144 (SC) " Poona Electric Supply Co. Ltd. vs. CIT 57 ITR 521 (SC) " CIT vs. Balchand Ajit Kumar 263 ITR 610 (MP) " ITO vs. Liyakat Ali 83 TTJ 769 (Jd) " Balaji Textiles vs. ITO 49 ITD 177 (Bom) " Acit vs. Rakesh M. Shah 86 TTJ (Mum) 288 Mewar Hospital Pvt. Ltd. vs. ACIT 5.3 On the other hand, the ld. DR supported the findings recorded in the orders of the lower authorities and prayed to sustain the addition to the extent confirmed by the ld. CIT(A).…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 141/JODH/2022[2015-16]Status: DisposedITAT Jodhpur12 Oct 2023AY 2015-16
Section 143(3)Section 145Section 153A

…rt this view the ld. AR of the assessee placed reliance on following decisions: " CIT vs. S.C.Kothari 82 ITR 794 (SC) " CIT vs. M/s Shoorji Vallabhdas & Co. 46 ITR 144 (SC) " Poona Electric Supply Co. Ltd. vs. CIT 57 ITR 521 (SC) " CIT vs. Balchand Ajit Kumar 263 ITR 610 (MP) " ITO vs. Liyakat Ali 83 TTJ 769 (Jd) " Balaji Textiles vs. ITO 49 ITD 177 (Bom) " Acit vs. Rakesh M. Shah 86 TTJ (Mum) 288 Mewar Hospital Pvt. Ltd. vs. ACIT 5.3 On the other hand, the ld. DR supported the findings recorded in the orders of the lower authorities and prayed to sustain the addition to the extent confirmed by the ld. CIT(A).…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 140/JODH/2022[2014-15]Status: DisposedITAT Jodhpur12 Oct 2023AY 2014-15
Section 143(3)Section 145Section 153A

…rt this view the ld. AR of the assessee placed reliance on following decisions: " CIT vs. S.C.Kothari 82 ITR 794 (SC) " CIT vs. M/s Shoorji Vallabhdas & Co. 46 ITR 144 (SC) " Poona Electric Supply Co. Ltd. vs. CIT 57 ITR 521 (SC) " CIT vs. Balchand Ajit Kumar 263 ITR 610 (MP) " ITO vs. Liyakat Ali 83 TTJ 769 (Jd) " Balaji Textiles vs. ITO 49 ITD 177 (Bom) " Acit vs. Rakesh M. Shah 86 TTJ (Mum) 288 Mewar Hospital Pvt. Ltd. vs. ACIT 5.3 On the other hand, the ld. DR supported the findings recorded in the orders of the lower authorities and prayed to sustain the addition to the extent confirmed by the ld. CIT(A).…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 139/JODH/2022[2012-13]Status: DisposedITAT Jodhpur12 Oct 2023AY 2012-13
Section 143(3)Section 145Section 153A

…rt this view the ld. AR of the assessee placed reliance on following decisions: " CIT vs. S.C.Kothari 82 ITR 794 (SC) " CIT vs. M/s Shoorji Vallabhdas & Co. 46 ITR 144 (SC) " Poona Electric Supply Co. Ltd. vs. CIT 57 ITR 521 (SC) " CIT vs. Balchand Ajit Kumar 263 ITR 610 (MP) " ITO vs. Liyakat Ali 83 TTJ 769 (Jd) " Balaji Textiles vs. ITO 49 ITD 177 (Bom) " Acit vs. Rakesh M. Shah 86 TTJ (Mum) 288 Mewar Hospital Pvt. Ltd. vs. ACIT 5.3 On the other hand, the ld. DR supported the findings recorded in the orders of the lower authorities and prayed to sustain the addition to the extent confirmed by the ld. CIT(A).…

Nitesh Kumar Jain, Bina vs. Income Tax Officer-1, Sagar

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 68/JAB/2023[2011-12]Status: DisposedITAT Jabalpur22 Sept 2023AY 2011-12

Bench: Shri Om Prakash Kantshri Pavan Kumar Gadalenitesh Kumar Jain, Vs Ito, Link Road, Gali No.1, Bina (M.P) Achwat Ward, Bina, Distt.- Sagar-470113. (Appellant) (Respondent) Pan No. Ajzpj1655J Assessee By Shri Sapan Usrethe, Adv. Revenue By Shri Shiv Kumar, Sr.Dr Date Of Hearing 18/09/2023 Date Of Pronouncement 22/09/2023

Section 142(1)Section 147Section 148

…tted that entire sales cannot be taken as profit and net profit rate has to be applied. In support of the contention, Ld. Counsel for the assessee relied on the decisions of Hon’ble High Court of Madhya Pradesh in the case of CIT vs Balchand Ajit Kumar [2003] 263 ITR 610 (M.P) and decision in the case of Man Mohan Sadani vs CIT [2008] 304 ITR 52 (M.P). 5. We have heard Ld. Authorized Representatives of the parties on issue in dispute and perused the relevant material available on record. We find that the assessee remained non-represented before Ld.CIT(A) and Ld.CIT(A) has passed the order without taking into con…

Bhandari Gold and Jewellers Private Limited, Mumbai vs. CIT (Appeal), NFAC - Delhi

In the result, appeal filed by the assessee is allowed for statistical purpose

ITA 1619/MUM/2022[2017-2018]Status: DisposedITAT Mumbai19 Jul 2023AY 2017-2018

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Bledcit – 6(1)(2) V. M/S. Bandari Gold & Jewellers Pvt. Ltd., 407, Bussaudyog Bhavan Room No. 538B, 5Th Floor Tokersi, Jivraj Road, Sewree Aayakar Bhavan, M.K. Road Mumbai - 400015 Mumbai - 400020 Pan: Aadcb1291J (Appellant) (Respondent)

Section 143(3)Section 68

…oubted, Sales have not been doubted.  The Appellant placed reliance on the following judgments rendered in the context of Bogus Purchases, however the Appellant desires to emphasis the principle involved which remains the same.; 1. CIT vs. BalchandAjit Kumar 263 ITR 610 (MP-HC) 2. Man Mohan Sadani Vs. CIT 304 ITR 52 (MP-HC) 3. CIT vs. Simit P. Sheth 38 com385 (Guj-HC) 4. CIT vs. Bholanath Poly Fab Pvt. Ltd 355 ITR 290 (Guj-HC) 5. CIT vs. Nangalia Fabrics Pvt. Ltd 40 com206 (Guj-HC) 6. DCIT vs. Rajeev G. Kalathi ITA No.6727/Mum/20 12 7. ACIT Vs G.V. Sons & 2240/Mum/2012 8. ITO vs. Eagle Implex ITA No.5697/Mum/201…

Cy. CIT 6(1) (2), Mumbai vs. M/S. Bhandari Gold & Jewellers Pvt. Ltd, Mumbai

In the result, appeal filed by the assessee is allowed for statistical purpose

ITA 1564/MUM/2022[2017-18]Status: DisposedITAT Mumbai19 Jul 2023AY 2017-18

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Bledcit – 6(1)(2) V. M/S. Bandari Gold & Jewellers Pvt. Ltd., 407, Bussaudyog Bhavan Room No. 538B, 5Th Floor Tokersi, Jivraj Road, Sewree Aayakar Bhavan, M.K. Road Mumbai - 400015 Mumbai - 400020 Pan: Aadcb1291J (Appellant) (Respondent)

Section 143(3)Section 68

…oubted, Sales have not been doubted.  The Appellant placed reliance on the following judgments rendered in the context of Bogus Purchases, however the Appellant desires to emphasis the principle involved which remains the same.; 1. CIT vs. BalchandAjit Kumar 263 ITR 610 (MP-HC) 2. Man Mohan Sadani Vs. CIT 304 ITR 52 (MP-HC) 3. CIT vs. Simit P. Sheth 38 com385 (Guj-HC) 4. CIT vs. Bholanath Poly Fab Pvt. Ltd 355 ITR 290 (Guj-HC) 5. CIT vs. Nangalia Fabrics Pvt. Ltd 40 com206 (Guj-HC) 6. DCIT vs. Rajeev G. Kalathi ITA No.6727/Mum/20 12 7. ACIT Vs G.V. Sons & 2240/Mum/2012 8. ITO vs. Eagle Implex ITA No.5697/Mum/201…

Shreepal Humad, Indore vs. The Pr CIT-1, Indore

In the result, appeal of assessee is allowed

ITA 125/IND/2021[2016-17]Status: DisposedITAT Indore21 Jun 2023AY 2016-17

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanishreepal Humad Pr. Cit-1 Near Civil Hospital, Bus Indore Vs. Stand Road, Manasa Madhya Pradesh (Appellant / Assessee) (Respondent/ Revenue) Pan: Aaxph1346 K Assessee By Shri Ashish Goyal & N.D. Patwa, Ars Revenue By Shri P.K. Mishra, Cit-Dr Date Of Hearing 13.04.2023 Date Of Pronouncement 21 .06.2023

Section 12ASection 138Section 263

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER Shreepal Humad Pr. CIT-1 Near Civil Hospital, Bus Indore Vs. Stand Road, Manasa Madhya Pradesh (Appellant / Assessee) (Respondent/ Revenue) PAN: AAXPH1346 K Assessee by Shri Ashish Goyal & N.D. Patwa, ARs Revenue by Shri P.K. Mishra, CIT-DR Date of Hearing 13.04.2023 Date of Pronouncement 21 .06.2023 O R D E R Per Vijay Pal Rao, JM: This appeal by the assessee is directed against the order dated 25.03.2021 of Pr. Commissioner of In…

Tilak Raj Bansal, Delhi vs. ITO.Ward, 34(1), New Delhi

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

ITA 2498/DEL/2022[2010-11]Status: DisposedITAT Delhi02 Feb 2023AY 2010-11

Bench: Shri Kul Bharat

Section 142(1)Section 147Section 148Section 27

…ers where he found deposit of Rs.39,69,927/-. There is in and out of transactions in Bank Statement from where it could have well assumed that entire deposits could not be income of the assessee as held by Madhya Pradesh High Court CIT vs. Balchand Ajit Kumar 263 ITR 610 "That the total sale could not be regarded as the profit of the assessee. Whether the rate was low or high would depend upon the facts of each case." Gujarat High Court C.I. T. vs. President Industries 258 ITR 654 "That the amount of sales could not represent the income of the assessee who had not disclosed the sales. The sales only represented t…

Tilak Raj Bansal, Delhi vs. ITO-Ward 34(1), Delhi

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

ITA 2497/DEL/2022[2010-11]Status: DisposedITAT Delhi02 Feb 2023AY 2010-11

Bench: Shri Kul Bharat

Section 142(1)Section 147Section 148Section 27

…ers where he found deposit of Rs.39,69,927/-. There is in and out of transactions in Bank Statement from where it could have well assumed that entire deposits could not be income of the assessee as held by Madhya Pradesh High Court CIT vs. Balchand Ajit Kumar 263 ITR 610 "That the total sale could not be regarded as the profit of the assessee. Whether the rate was low or high would depend upon the facts of each case." Gujarat High Court C.I. T. vs. President Industries 258 ITR 654 "That the amount of sales could not represent the income of the assessee who had not disclosed the sales. The sales only represented t…

The ACIT Central-1, Bhopal vs. Shri Narendra Gupta, Gwalior

ITA 795/IND/2018[2014-15]Status: DisposedITAT Indore01 Dec 2022AY 2014-15

Bench: Shri T.R. Senthil Kumar & Shri B.M. Biyani(Conducted Through Virtual Court) Assessment Year: 2014-15 Acit Central-1 Shri Narendra Gupta, Bhopal Gwalior बनाम/ Vs. (Appellant / Revenue) (Respondent / Assessee) Pan: Afqpg 8055 A Revenue By Shri P.K. Mitra, Cit-Dr Respondent By Shri Ashish Goyal & Shri N.D. Patwa, Ars Date Of Hearing 08.09.2022 Date Of Pronouncement 01.12.2022

Section 131Section 132Section 143(3)

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER (Conducted through Virtual Court) Assessment Year: 2014-15 ACIT Central-1 Shri Narendra Gupta, Bhopal Gwalior बनाम/ Vs. (Appellant / Revenue) (Respondent / Assessee) PAN: AFQPG 8055 A Revenue by Shri P.K. Mitra, CIT-DR Respondent by Shri Ashish Goyal & Shri N.D. Patwa, ARs Date of Hearing 08.09.2022 Date of Pronouncement 01.12.2022 आदेश / O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by appeal-order dated 04.07.2018 passe…

Mr. Gregory Francis D'Silva, Mangaluru vs. The Deputy Commissioner of Income Tax, Central Circle -1, Mangaluru

In the result, all these appeals are partly allowed

ITA 221/BANG/2022[2017-18]Status: DisposedITAT Bangalore28 Nov 2022AY 2017-18

Bench: Shri N. V. Vasudevan

For Appellant: Smt. Sheetal, AdvocateFor Respondent: Shri. Ganesh R. Gale, Standing Counsel for Department
Section 132Section 153ASection 153CSection 44ASection 69A

…re the Tribunal. Learned Counsel for the assessee reiterated submissions as were made before the Revenue authorities. Learned Counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajith Kumar 263 ITR 610 (MP). In the aforesaid decision, the question was whether the entire unaccounted sale has to be added as undisclosed income or only the net profit rate has to be treated as undisclosed income. The Hon’ble MP held as follows: ITA Nos.216 to 221/Bang/2022 Page 6 of 8 On appreciating the rival submissions raised at the Bar, we 1. have carefully pe…

Mr. Gregory Francis D'Silva, Mangaluru vs. The Deputy Commissioner of Income Tax, Central Circle -1, Mangaluru

In the result, all these appeals are partly allowed

ITA 220/BANG/2022[2016-17]Status: DisposedITAT Bangalore28 Nov 2022AY 2016-17

Bench: Shri N. V. Vasudevan

For Appellant: Smt. Sheetal, AdvocateFor Respondent: Shri. Ganesh R. Gale, Standing Counsel for Department
Section 132Section 153ASection 153CSection 44ASection 69A

…re the Tribunal. Learned Counsel for the assessee reiterated submissions as were made before the Revenue authorities. Learned Counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajith Kumar 263 ITR 610 (MP). In the aforesaid decision, the question was whether the entire unaccounted sale has to be added as undisclosed income or only the net profit rate has to be treated as undisclosed income. The Hon’ble MP held as follows: ITA Nos.216 to 221/Bang/2022 Page 6 of 8 On appreciating the rival submissions raised at the Bar, we 1. have carefully pe…

Mr. Gregory Francis D'Silva, Mangaluru vs. The Deputy Commissioner of Income Tax, Central Circle -1, Mangaluru

In the result, all these appeals are partly allowed

ITA 219/BANG/2022[2015-16]Status: DisposedITAT Bangalore28 Nov 2022AY 2015-16

Bench: Shri N. V. Vasudevan

For Appellant: Smt. Sheetal, AdvocateFor Respondent: Shri. Ganesh R. Gale, Standing Counsel for Department
Section 132Section 153ASection 153CSection 44ASection 69A

…re the Tribunal. Learned Counsel for the assessee reiterated submissions as were made before the Revenue authorities. Learned Counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajith Kumar 263 ITR 610 (MP). In the aforesaid decision, the question was whether the entire unaccounted sale has to be added as undisclosed income or only the net profit rate has to be treated as undisclosed income. The Hon’ble MP held as follows: ITA Nos.216 to 221/Bang/2022 Page 6 of 8 On appreciating the rival submissions raised at the Bar, we 1. have carefully pe…

Mr. Gregory Francis D'Silva, Mangaluru vs. The Deputy Commissioner of Income Tax, Central Circle -1, Mangaluru

In the result, all these appeals are partly allowed

ITA 218/BANG/2022[2014-15]Status: DisposedITAT Bangalore28 Nov 2022AY 2014-15

Bench: Shri N. V. Vasudevan

For Appellant: Smt. Sheetal, AdvocateFor Respondent: Shri. Ganesh R. Gale, Standing Counsel for Department
Section 132Section 153ASection 153CSection 44ASection 69A

…re the Tribunal. Learned Counsel for the assessee reiterated submissions as were made before the Revenue authorities. Learned Counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajith Kumar 263 ITR 610 (MP). In the aforesaid decision, the question was whether the entire unaccounted sale has to be added as undisclosed income or only the net profit rate has to be treated as undisclosed income. The Hon’ble MP held as follows: ITA Nos.216 to 221/Bang/2022 Page 6 of 8 On appreciating the rival submissions raised at the Bar, we 1. have carefully pe…

Mr. Gregory Francis D'Silva, Mangaluru vs. The Deputy Commissioner of Income Tax, Central Circle -1, Mangaluru

In the result, all these appeals are partly allowed

ITA 217/BANG/2022[2013-14]Status: DisposedITAT Bangalore28 Nov 2022AY 2013-14

Bench: Shri N. V. Vasudevan

For Appellant: Smt. Sheetal, AdvocateFor Respondent: Shri. Ganesh R. Gale, Standing Counsel for Department
Section 132Section 153ASection 153CSection 44ASection 69A

…re the Tribunal. Learned Counsel for the assessee reiterated submissions as were made before the Revenue authorities. Learned Counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajith Kumar 263 ITR 610 (MP). In the aforesaid decision, the question was whether the entire unaccounted sale has to be added as undisclosed income or only the net profit rate has to be treated as undisclosed income. The Hon’ble MP held as follows: ITA Nos.216 to 221/Bang/2022 Page 6 of 8 On appreciating the rival submissions raised at the Bar, we 1. have carefully pe…

Mr. Gregory Francis D'Silva, Mangaluru vs. The Deputy Commissioner of Income Tax, Central Circle-1, Mangaluru

In the result, all these appeals are partly allowed

ITA 216/BANG/2022[2012-13]Status: DisposedITAT Bangalore28 Nov 2022AY 2012-13

Bench: Shri N. V. Vasudevan

For Appellant: Smt. Sheetal, AdvocateFor Respondent: Shri. Ganesh R. Gale, Standing Counsel for Department
Section 132Section 153ASection 153CSection 44ASection 69A

…re the Tribunal. Learned Counsel for the assessee reiterated submissions as were made before the Revenue authorities. Learned Counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajith Kumar 263 ITR 610 (MP). In the aforesaid decision, the question was whether the entire unaccounted sale has to be added as undisclosed income or only the net profit rate has to be treated as undisclosed income. The Hon’ble MP held as follows: ITA Nos.216 to 221/Bang/2022 Page 6 of 8 On appreciating the rival submissions raised at the Bar, we 1. have carefully pe…

Jagdish Bhutt, Uttar Pradesh vs. DCIT, Circle-1, Uttar Pradesh

In the result, appeal filed by assessee is allowed for statistical purposes

ITA 527/DEL/2022[2013-14]Status: DisposedITAT Delhi16 Nov 2022AY 2013-14

Bench: Shri N.K.Billaiya & Shri Kul Bharat[Assessment Year : 2013-14] Jagdish Bhutt, Vs Dcit, F-115, Sector-56, Noida, Circle-1, Uttar Pradesh-201301. Noida. Pan-Aylpb6080G Appellant Respondent Appellant By Shri Rishi Gautam, Adv. Respondent By Shri Sanjay Tripathi, Sr. Dr Date Of Hearing 16.11.2022 Date Of Pronouncement 16.11.2022

Section 144Section 69A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI BEFORE SHRI N.K.BILLAIYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT, JUDICIAL MEMBER [Assessment Year : 2013-14] Jagdish Bhutt, vs DCIT, F-115, Sector-56, Noida, Circle-1, Uttar Pradesh-201301. Noida. PAN-AYLPB6080G APPELLANT RESPONDENT Appellant by Shri Rishi Gautam, Adv. Respondent by Shri Sanjay Tripathi, Sr. DR Date of Hearing 16.11.2022 Date of Pronouncement 16.11.2022 ORDER PER KUL BHARAT, JM : This appeal filed by the assessee for the assessment year 2013-14 is directed against the order of Ld. CIT(A), Noida dated 30.04.2017. 2. The assessee has r…

Dy. CIT CC -7(40), Mumbai vs. Shree Ambica Gems, Mumbai

In the result, both the appeals of the revenue are dismissed and Cross Objection filed by the assessee are dismissed

ITA 1769/MUM/2022[2018-19]Status: DisposedITAT Mumbai23 Sept 2022AY 2018-19

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Biren ShahFor Respondent: Pitta Samuel
Section 133ASection 69A

…Gujarat High Court held "We are of the opinion that the Tribunal committed no error……….” 9.3.15 In CIT vs President Industries (2002) 258 ITR 654(Guj)(HC) it was held that only profit embodied on sale proceeds can be taxed In CIT vs Balachand Ajit Kumar(2003) 263 ITR 610(MP)(HC)(612-613) it was held that suppressed sale cannot be the income only net profit can be assessed In Sanjeev Woolen Mills vs CIT(2005) 279 ITR 434(SC) it was observed that it is a settled principle of income- tax law that it is the real income which is taxable under the Act Hon'ble Gujarat High Court in the case of CIT vs. Simit Sheth (2013)…

M/S. Sarswati Extrusion Pvt.Ltd, Aurangabad vs. Income-Tax Officer, Ward - 2(4), Aurangabad

ITA 1716/PUN/2017[2011-12]Status: DisposedITAT Pune29 Aug 2022AY 2011-12

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपीलसं. / Ita No.1546/Pun/2017 िनधा"रणवष" / Assessment Year : 2011-12 The Income Tax Officer, M/S.Saraswati Extrusions Ward-2(4), Aurangabad. Vs Pvt. Ltd., . H-20, Midc, Waluj, Aurangabad – 431136. Pan: Aajcs 6024 J Appellant/ Assessee Respondent /Revenue आयकर अपीलसं. / Ita No.1716/Pun/2017 िनधा"रणवष" / Assessment Year : 2011-12 M/S.Saraswati Extrusions Pvt. The Income Tax Officer, Ltd., Vs Ward-2(4), Aurangabad. H-20, Midc, Waluj, . Aurangabad – 431136. Pan: Aajcs 6024 J Appellant/ Assessee Respondent /Revenue Assessee By Shri Pramod Shingte – Ar Revenue By Shri M.G.Jasnani – Dr Date Of Hearing 11/07/2022 Date Of Pronouncement 29/08/2022 आदेश/ Order Per S.S.Godara, Jm: These Revenue’S & Assessee’S Cross Appeals Ita No.1546 & 1716/Pun/2017 For A.Y. 2011-12 Arising Against The Ld.Cit(A)- 2, Aurangabad’S Order Dated 12.04.2017 Passed In Appeal No.Abd/Cit(A)-2/E-File/57/2016-17, In Proceedings Under Section 143(3) Of The Income Tax Act, 1961 [In Short “The Act”].

Section 143(3)

…ed or addition should be restricted to the profits embodied in sale proceeds was answered by Hon’ble Gujarat High Court in the case of CIT Vs. President Industries (258 ITR 654) and Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Balchand Ajit Kumar (263 ITR 610). Considering the above decisions, it is clear that only the profits embodied on sale proceeds should be taxed instead of addition on account of entire purchases. Looking to the circumstantial evidence in the present case, it is evident that had received the entire goods from the consignors which was utilized for production and further sales. Hen…