How many judgments cite CIT v. Bholanath Poly Fab. Pvt. Ltd.?

712 judgments on BharatTax cite CIT v. Bholanath Poly Fab. Pvt. Ltd. (355 ITR 290), spanning 2016 to 2026.

Which sections of the Income Tax Act does CIT v. Bholanath Poly Fab. Pvt. Ltd. come up under?

It is most often cited in judgments turning on Section 143(3), Section 148, Section 147, Section 37(1), Section 153A, Section 132.

CIT v. Bholanath Poly Fab. Pvt. Ltd.

355 ITR 290High Court2013#73 most cited

What is CIT v. Bholanath Poly Fab. Pvt. Ltd. authority for?

If an assessee makes purchases from bogus parties, but the underlying goods are genuinely acquired and sold, only the profit margin embedded in such purchases, and not the entire value of the bogus purchases, should be added to the assessee's income.

712

judgments rely on this decision, according to BharatTax’s citation analysis of 371,887 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Bholanath Poly Fab · 355 ITR 290 · bogus purchases · accommodation entry · unexplained expenditure · profit margin · gross profit rate · section 37(1) · section 68 · section 153A · genuineness of purchases · entire purchases addition

Sections most often in play

Section 143(3)Section 148 Section 147 Section 37(1)Section 153A Section 132 Section 133(6)Section 68

Issues it is cited on

section 292c section 44ab section 69c section 131 commissioner (appeals)section 132(4)accommodation entry section 145 section 37(1)section 133(6)escapement of income unexplained expenditure

Judgments citing CIT v. Bholanath Poly Fab. Pvt. Ltd.

Smt Alpa Rajesh Desai, Mumbai vs. ITO 17 (3)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 6980/MUM/2019[2010-11]Status: DisposedITAT Mumbai10 Nov 2021AY 2010-11

Bench: Shri C.N. Prasad, Hon'Blesmt Alpa Rajesh Desai V. Income Tax Officer -17(3)(1) 327, Makharia House Room No. 621 Svp Road, Opera House Piramal Chambers, Lalbaug Mumbai - 400027 Mumbai – 400 012 Pan: Aelpd3053K (Appellant) (Respondent) Assessee By : None Department By : Ms. Kranti Yadav

For Appellant: NoneFor Respondent: Ms. Kranti Yadav

Section 133(6)Section 143(1)Section 143(2)Section 236

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “SMC” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER Smt Alpa Rajesh Desai v. Income Tax Officer -17(3)(1) 327, Makharia House Room No. 621 SVP Road, Opera House Piramal Chambers, Lalbaug Mumbai - 400027 Mumbai – 400 012 PAN: AELPD3053K (Appellant) (Respondent) Assessee by : None Department by : Ms. Kranti Yadav Date of Hearing : 10.11.2021 Date of Pronouncement : 10.11.2021 O R D E R PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against order of the Learned Commissioner of Income Tax (Appeals)–30, Mumbai [hereinafter in short “…

Parshwamani Overseas, Mumbai vs. ITO Ward 19(2)(5), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 665/MUM/2020[2010-11]Status: DisposedITAT Mumbai03 Nov 2021AY 2010-11

Bench: Shri C.N. Prasad, Hon'Bleparshwamani Overseas V. Income Tax Officer -19(2)(5) Room No. 1, 1St Floor Room No. 210 Matru Mandir 21, Manipur House Tardev Road, Mumbai – 400 007 1St Parsiwada Lane Mumbai - 400004 Pan: Aakfp2571K (Appellant) (Respondent) Assessee By : None Department By : Shri Ashok Koli

For Appellant: NoneFor Respondent: Shri Ashok Koli

Section 143(1)Section 147Section 236

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “SMC” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER Parshwamani Overseas v. Income Tax Officer -19(2)(5) Room No. 1, 1st Floor Room No. 210 Matru Mandir 21, Manipur House Tardev Road, Mumbai – 400 007 1st Parsiwada Lane Mumbai - 400004 PAN: AAKFP2571K (Appellant) (Respondent) Assessee by : None Department by : Shri Ashok Koli Date of Hearing : 06.10.2021 Date of Pronouncement : 03.11.2021 O R D E R PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against order of the Learned Commissioner of Income Tax (Appeals)–30, Mumbai [hereina…

Mr. Girish C Shah, Mumbai vs. Mr. Romany Pathalil ITO - 19(1)(3), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 1882/MUM/2020[2009-10]Status: DisposedITAT Mumbai03 Nov 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: NoneFor Respondent: Shri Sanjay J. Sethi

Section 143(1)Section 147

…uine from out of these (A.Ys: 2007-08 & 2009-10) Shri Girish Chunilal Shah purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply becaus…

Mr. Girish C. Shah, Mumbai vs. John Pathalil ITO - 19(1)(3), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 1881/MUM/2020[2007-08]Status: DisposedITAT Mumbai03 Nov 2021AY 2007-08

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: NoneFor Respondent: Shri Sanjay J. Sethi

Section 143(1)Section 147

Assistant Commissioner of Income Tax -11(3)(1), Mumbai vs. Time Technoplast Ltd, Mumbai

In the result, all the appeals of the Revenue are dismissed

ITA 6207/MUM/2017[2008-09]Status: DisposedITAT Mumbai08 Oct 2021AY 2008-09

Bench: Shri Rajesh Kumar & Shri Pavan Kumar Gadale

For Appellant: Shri Rakesh Joshi, A.RFor Respondent: Shri S.C. Tiwari, D.R

Section 133ASection 143(3)Section 147Section 148Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA Nos.6207, 6208, 6209, 6210, 6211, 6212 & 6213/M/2017 Assessment Years: 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 & 2014-15 ACIT 11(3), M/s. Time Technoplast Room No.204, Ltd., Aayakar Bhavan, 102, Todi Complex, Vs. 2nd Floor, 35 Saki Vihar Rd., Maharshi Karve Marg, Andheri (E), Mumbai – 400020 Mumbai – 400 072 PAN: AAACT2783J (Appellant) (Respondent) Present for: Assessee by : Shri Rakesh Joshi, A.R. Revenue by : Shri S.C. Tiwari, D.R. Date of Hea…

ITO 17 (1)(4), Mumbai vs. Dhaval & Company, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 6428/MUM/2018[2009-10]Status: DisposedITAT Mumbai06 Oct 2021AY 2009-10

Bench: Shri S Rifaur Rahman & Shri Pavan Kumar Gadaleito – 17(1)(4) Vs. M/S. Dhaval & Room No. 115, 1St Company, Floor, Aayakar Bhavan, 19, 201, Nagdevi Mumbai – 400 020 Street, 2Nd Floor, Mumbai – 400 003. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaafd1095L Appellant .. Respondent Appellant By : Shri Bharat Andhale. Cit Dr Respondent By : Shri Rajesh Shah. Ar Date Of Hearing 30.09.2021 Date Of Pronouncement 06.10.2021 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Order Of The Commissioner Of Income Tax (Appeals)-56, Mumbai Passed U/S 143(3) R.W.S 147 & 250 Of The Income Tax Act, 1961. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Bharat Andhale. CIT DRFor Respondent: Shri Rajesh Shah. AR

Section 133(6)Section 142(1)Section 143(1)Section 143(3)Section 148

…notice on the assessee to substantiate the genuineness of the transactions. Since the submissions of the assessee are not satisfactory. The A.O relied on the decision of Hon’ble High Court of Gujarat in the Case of CIT Vs. Bholanath Play Fab P. Ltd., (2013) (355 ITR 290) and estimated the profit rate @ 12.5% of alleged bogus purchases of Rs. 41,31,930/- which worked out to Rs.5,16,491/- and assessed the total income of the assessee of Rs. 12,02,297/- and passed the order u/s 143(3) r.w.s 147 of the Act on 27.02.2015. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A). The CIT(A) in the…

Piyush Amratlal Mehta, Mumbai vs. ITO 19(2)(5), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 737/MUM/2020[2010-11]Status: DisposedITAT Mumbai01 Oct 2021AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: NoneFor Respondent: Shri Sanjay J. Sethi

Section 236Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “SMC” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER ITA.NOs. 735, 736 & 737/MUM/2020 (A.Ys: 2011-12, 2009-10 & 2010-11) Shri Piyush A. Mehta v. Income Tax Officer – 19(2)(5) 10/11, Ground Floor Matru Mandir, Tardev Road 48th Khetwadi Lane, Mumbai -400004 Mumbai – 400 007 PAN: ALHPM6546K (Appellant) (Respondent) Assessee by : None Department by : Shri Sanjay J. Sethi Date of Hearing : 22.09.2021 Date of Pronouncement : 01.10.2021 O R D E R PER C.N. PRASAD (JM) 1. These appeals are filed by the assessee against common order of the Learned Commi…

Piyush Amratlal Mehta, Mumbai vs. ITO 19(2)(5), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 736/MUM/2020[2009-10]Status: DisposedITAT Mumbai01 Oct 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: NoneFor Respondent: Shri Sanjay J. Sethi

Section 236Section 69C

Piyush Amratlal Mehta, Mumbai vs. ITO 19(2)(5), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 735/MUM/2020[2011-12]Status: DisposedITAT Mumbai01 Oct 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: NoneFor Respondent: Shri Sanjay J. Sethi

Section 236Section 69C

Shri. Praveen Singh Chandan Singh Dewal, Mumbai vs. ITO 19(2)(5), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 1348/MUM/2020[2009-10]Status: DisposedITAT Mumbai01 Oct 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Prakash JunjhunwalaFor Respondent: Shri Sanjay J. Sethi

Section 143(1)Section 147Section 236

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “SMC” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER ITA.NO. 1348/MUM/2020 (A.Y: 2009-10) Shri Praveen Singh Chandan Singh Dewal v. Income Tax Officer – 19(2)(5) Flat No. 5/502, Rajani Mahal 2nd Floor, Matru Mandir Opp. DC Market, Tardeo Road Grant Road, Mumbai – 400 007 Mumbai - 400034 PAN: AJGPD6037M (Appellant) (Respondent) Assessee by : Shri Prakash Junjhunwala Department by : Shri Sanjay J. Sethi Date of Hearing : 23.09.2021 Date of Pronouncement : 01.10.2021 O R D E R PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against t…

M/S Designer Wathches Pvt Ltd., Mumbai vs. ITO 14 (1)93), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 7800/MUM/2019[2009-10]Status: DisposedITAT Mumbai01 Oct 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Blem/S. Designer Watches Pvt. Ltd., V. Income Tax Officer -14(1)(3) F1/8 Pinnacle Business Park Aayakar Bhavan, M.K. Road First Floor, Mahakali Caves Road Mumbai - 400020 Andheri (E), Mumbai -400093 Pan: Aaacd4460G (Appellant) (Respondent) Assessee By : Shri Vinod Mehta Department By : Shri Sanjay J. Sethi

For Appellant: Shri Vinod MehtaFor Respondent: Shri Sanjay J. Sethi

Section 133(6)Section 143(1)Section 147

…not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a 5 M/s. Designer Watches Pvt. Ltd., natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth…

Shri. Manish Kanji Patel, Mumbai vs. ITO 4 (1)(4), Mumbai

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

ITA 6660/MUM/2019[2011-12]Status: DisposedITAT Mumbai23 Sept 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Nishit GandhiFor Respondent: Shri Sunil Deshpande

Section 143(2)Section 143(3)Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “D” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA.NO. 6660/MUM/2019 (A.Y: 2011-12) Shri Manish Kanji Patel v. Income Tax Officer – 4(1)(4) 6th Floor, Aayakar Bhavan Room No. 22, 2nd Floor M.K. Road, Mumbai - 400020 52-A, Mani Mahal, C.P. Tank Road Mumbai -400004 PAN: AAAP9055C (Appellant) (Respondent) ITA.NO. 6690/MUM/2019 (A.Y: 2011-12) Income Tax Officer – 4(1)(4) v. Shri Manish Kanji Patel 6th Floor, Aayakar Bhavan Room No. 22, 2nd Floor 52-A, Mani Mahal, C.P. Tank Road M.K. Road, M…

Deputy Commissioner of Income-Tax, Nashik vs. M/S. Ashoka Buildcon Ltd, Nashik

In the result, appeal of the assessee in ITA No

ITA 1135/PUN/2017[2011-12]Status: DisposedITAT Pune22 Sept 2021AY 2011-12

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No. 1088/Pun/2017 धनधाारण वषा / Assessment Year : 2011-12

For Appellant: Shri Pramod ShingteFor Respondent: Shri S.P Walimbe

Section 143(3)Section 147Section 148Section 234C

…rchases made from hawala suppliers are held to be inflated 1 bogus. Similar view has also been taken by the Gujarat High Court in the case of Sanjay Oilcake Industries V. CIT (316 ITR 274) and later on followed in case of CIT Vs. Bholanath Poly Fab Pvt. Ltd. (355 ITR 290). This would result in disallowance of Rs.51,85,086/- on account of non-genuine purchases. Appellant gets relief of Rs.1,55,55,256/- and the ground raised by the appellant is partly allowed.” 10. The Ld. CIT(Appeals) in his order observed that the assessee‟s claim that MS channels, GI nuts, cables etc. totaling to Rs.2,07,04,180/- purchased ( ex…

Ashoka Buildcon Limited, Nashik vs. Assistant Commissioner of Income Tax, Nashik

In the result, appeal of the assessee in ITA No

ITA 1088/PUN/2017[2011-12]Status: DisposedITAT Pune22 Sept 2021AY 2011-12

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No. 1088/Pun/2017 धनधाारण वषा / Assessment Year : 2011-12

For Appellant: Shri Pramod ShingteFor Respondent: Shri S.P Walimbe

Section 143(3)Section 147Section 148Section 234C

Smt. Sheetal M. Patel, Mumbai vs. ITO- 17(3)(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 1517/MUM/2020[2010-11]Status: DisposedITAT Mumbai16 Sept 2021AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Vimal PunmiyaFor Respondent: Shri Sanjay J. Sethi

Section 143(1)Section 147

…not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply becaus…

Macleods Pharmaceuticals Ltd, Mumbai vs. Deputy Commissioner of Income Tax 10(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above

ITA 7167/MUM/2017[2009-10]Status: DisposedITAT Mumbai14 Sept 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

For Appellant: Shri Ashok BansalFor Respondent: Shri Bharat Andhale

Section 115JSection 133(6)Section 143(3)Section 147Section 148Section 80I

…not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non- genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble 16 ITA.NO. 7167/MUM/2017 (A.Y: 2009-10) M/s. Macleods Pharmaceuticals Ltd., Gujarat High…

Ramniklal Sivji Savla, Mumbai vs. ITO, Ward 19 (3)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 6696/MUM/2019[2011-12]Status: DisposedITAT Mumbai03 Aug 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Bleshri Ramniklal Sivji Savla V. Income Tax Officer -19(3)(1) 74, Muljibai Building 3Rd & 4Th Floor, Pratshtha Bhawan Khetwadi Main Road M.K. Road, Mumbai - 400020 Behind Alankar Cinema Mumbai - 400004 Pan: Aacps7486C (Appellant) (Respondent) Assessee By : None Department By : Smita Verma

For Appellant: NoneFor Respondent: Smita Verma

Section 143(1)Section 147Section 251(1)(c)

…not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply becaus…

Vinod C. Sanghavi, Mumbai vs. ITO 19 (3)(5), Mumbai

In the result, appeals of the assessee are partly allowed

ITA 6210/MUM/2018[2009-10]Status: DisposedITAT Mumbai03 Aug 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri Vinod C. Sanghavi V. Income Tax Officer -19(3)(5) Room No. 7, Ground Floor Matru Mandir, Tardev Road Shop No. 124/138, Suryadarshan Mumbai – 400007 2Nd Kumbharwada, Mumbai -400004 Pan: Batps4691H (Appellant) (Respondent) Assessee By : Shri Dhaval Shah Department By : Shri Sanjay J. Sethi

For Appellant: Shri Dhaval ShahFor Respondent: Shri Sanjay J. Sethi

Section 143(1)Section 147

…not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [38 taxman.com 385]. Simply becaus…

Mesers Supertech Forgings(India) Pvt.Ltd., Jalandhar vs. Deputy Commissioner of Income Tax, Circle IV, Jalandhar

In the result, the appeal of the Assessee is allowed

ITA 563/ASR/2018[2010-11]Status: DisposedITAT Amritsar02 Aug 2021AY 2010-11

Section 143(3)Section 147

…ioner of Income-tax v. Bholanath Poly Fab (P.) Ltd. [refer page No. 419-489 relevant page no 419-421 of case law paper book] The account books of the assessee were never rejected by the Assessing officer, In the case of CIT v Bholanath Poly Fab Pvt Ltd (2013) 355 ITR 290 (Gujarat), the Hon'ble High Court held as under:- “5. Having come to such a conclusion, however, the Tribunal was of the opinion that the purchases may have been made from bogus parties, nevertheless, the purchasesthemselves were not bogus. The Tribunal adverted to the facts and data on record and came to the conclusion that the entire quantity o…

M/S Roopa Trading Co., Mumbai vs. ITO Ward 17(3)(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 712/MUM/2020[2011-12]Status: DisposedITAT Mumbai02 Aug 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Blem/S. Roopa Trading Co. V. Income Tax Officer -17(3)(2) 138, 2Nd Floor Kautilya Bhavan, 1St Floor Bkc, Bandra (E), Mumbai -400051 Gagdevi Street Masjid Bunder Mumbai - 400003 Pan: Aajfr5373A (Appellant) (Respondent) Assessee By : None Department By : Smita Verma

For Appellant: NoneFor Respondent: Smita Verma

Section 133(6)Section 143(1)Section 147

…not in dispute that sales have been accepted as genuine from out of these purchases. When the sales have been accepted as genuine the entire purchases cannot be treated as non-genuine. The Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered under such purchases would be subject to tax but only the profit element embedded therein. Similar view has been taken by the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth [356 ITR 451]. Simply because the…