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 148Section 147Section 37(1)Section 153ASection 132Section 133(6)Section 68

Issues it is cited on

section 292csection 44absection 69csection 131commissioner (appeals)section 132(4)accommodation entrysection 145section 37(1)section 133(6)escapement of incomeunexplained expenditure

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

M/S. Spr Spirits Private Limited (Formerly Known As Spr Group Holdings Private Limited), Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(3), Bangalore

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 131/BANG/2023[2008-2009]Status: DisposedITAT Bangalore24 Jul 2023AY 2008-2009

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Ms. Neera Malhotra, D.R

…lore Page 42 of 51 taken into consideration. In the absence of any material to the contrary being pointed out on behalf of the Revenue, the order of the Tribunal could not be found fault with.” 6.11 Further in the case of CIT Vs. Bholanath Poly Fab (P) Ltd. 355 ITR 290 the Hon’ble Gujarat High Court has held as under: “Held, dismissing the appeal, that whether the purchases themselves were bogus or whether the parties from whom such purchases were allegedly made were bogus was essentially a question of fact. The Tribunal having examined the evidence on record came to the conclusion that the assessee did purchas…

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

…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/2010 9. Madhukant B. Gandhi vs ITO ITA No. 1950/Mum/2009 10. CIT vs. President Industries 258 ITR 654 (Guj-HC) 11. CIT Vs. Leaders Valves (P) Ltd 285 ITR…

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

…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/2010 9. Madhukant B. Gandhi vs ITO ITA No. 1950/Mum/2009 10. CIT vs. President Industries 258 ITR 654 (Guj-HC) 11. CIT Vs. Leaders Valves (P) Ltd 285 ITR…

Diamond Tradex Co. Ltd, New Delhi vs. ACIT, Central Circle-17, New Delhi

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

ITA 7385/DEL/2018[2010-11]Status: DisposedITAT Delhi17 Jul 2023AY 2010-11

Bench: Sh. N. K. Billaiya & Sh. Anubhav Sharmaassessment Year: 2010-11

Section 147Section 148

…acts and circumstances of the case and in law the CIT (A) was not justified in sustaining 25% of addition made by the Ld. AO being 25% of 1,39,21,785/- by relying on the deision of Hon'ble High Court of Gujrat in the case of CIT vs Bholanath Poly Fab Pvt ltd 355 ITR 290. 4. That on the facts and circumstances of the case and in law the CIT(A) was not justified in sustaining the addition made by AO on account of alleged bogus purchase from M/s Kothari Impex and M/s Khushi Gems Pvt Ltd . 5. That on the facts and circumstances of the case and in law, the CIT (A) was not justified and has erred in sustaining addit…

ITO, 20(2)(1), Mumbai vs. M/S J S Jube Traders, Mumbai

In the result, appeal filed by the Revenue is dismissed and cross objection filed by the assessee is partly allowed

ITA 410/MUM/2023[2011-12]Status: DisposedITAT Mumbai12 Jul 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms Kavitha Rajagopal, Hon'Ble & Income Tax Officer-20(2)(1) V. M/S. J.S Tube Traders Room No. 216, 2Nd Floor 337, Signal Hill Piramal Chambers, Lalbaug Opp Vihar Hotel, Avenue Road Darukhana, Mumbai- 400010 Parel, Mumbai- 400012 Pan: Aaafj2901K (Appellant) (Respondent)

Section 133(6)Section 143(1)Section 143(2)Section 147Section 148

…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…

M/S Ameya Industries, Mumbai vs. Income Tax Officer 28(1)(1), Mumbai

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

ITA 239/MUM/2023[2011-12]Status: DisposedITAT Mumbai23 Jun 2023AY 2011-12

Bench: Shri B R Bakaran, Am & Ms. Kavitha Rajagopal, Jm M/S. Ameya Industries Ito-28(1)(1) A-141, Midc Plot Ttc Area, Mumbai Vs. Khairne, Navi Mumbai-400 709

For Appellant: Shri Shashank MehtaFor Respondent: Shri Vaibhav Jain
Section 133(6)Section 143(1)Section 143(3)Section 147Section 148Section 250

…les made by the assessee and proceeded to add only the profit element embedded in the bogus purchases instead of the entire sales by placing reliance on the decision of the Hon’ble Gujarat High Court in the case of CIT vs. Bhola Nath Poly Fab (P.) Ltd. [2013] 355 ITR 290 (Guj) and also the 4 M/s. Ameya Industries vs. ITO decision of Hon’ble Gujarat High Court in the case of Vijay Proteins Ltd. vs. CIT [2015] 58 Taxmann.com 44 (Guj). The first appellate authority confirmed the said addition by way of an ex parte order dated 15/12/2022. On perusal of the decision cited by the ld.AR for AY 2010-11 in ITA No. 675/…

Vinod Karsanbhai Patel, Delhi vs. ACIT, Central Circle- 17, Delhi

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

ITA 7384/DEL/2018[2010-11]Status: DisposedITAT Delhi23 Jun 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Assessment Year: 2010-11 Vinod Karsanbhai Patel, The Acit, Central Circle-17, 208/2885, 2Nd Floor, Haryana Singh Road, Delhi Karol Bagh, Delhi 110005 Vs. Pan Aacpp 0956 G (Appellant) (Respondent) For Assessee : Shri Hiren Mehta, Ca Shri Nirbhay Mehta, Ca For Revenue : Shri Om Prakash, Sr. Dr Date Of Hearing : 11.04.2023 Date Of Pronouncement : 23.06.2023 Order Per Chandra Mohan Garg:- This Appeal Filed By The Assessee Is Directed Against The Order Dated 05.12.2022 Of The Ld. Nfac, New Delhi, Relating To Assessment Year 2020-21. 2. The Ld. Assessee Representative (Ar) Submitted That The Assessee Does Not Want To Press Ground No. 1 & 2 & Hence The Same Are Dismissed Has Not Pressed. Ground No. 6 Is General In Nature Which Requires No Specific Adjudication. Remaining Effective Grounds For Adjudication Are As Follows:-

For Appellant: Shri Hiren Mehta, CAFor Respondent: Shri Om Prakash, Sr. DR

…acts and circumstances of the case and in law the CIT(A) was not justified in sustaining 25% of addition made by the Ld. AO being 25% of 30,68,100/- by relying on the decision of Hon’ble High Court of Gujarat in the case of CIT vs. Bhlanath Poly Fab Pvt. Ltd. 355 ITR 290. 4. That on the facts and circumstances of the case and in law the CIT(A) was not justified in sustaining the addition made by AO on account of alleged bogus purchase from M/s. Mani Prabha Impex Pvt. Ltd. 5. That on the facts and circumstances of the case and in law, the CIT(A) was not justified and has erred in sustaining addition of Rs. 61,362/…

Sagar International, Mumbai vs. Income Tax Offficer-19(3)(1), Mumbai

In the result, appeals filed by the assessee are partly allowed

ITA 964/MUM/2023[2007-2008]Status: DisposedITAT Mumbai07 Jun 2023AY 2007-2008

Bench: Shri Pavan Kumar Gadale & Shri S Rifaur Rahmansagar International Ito – 19(3)(1) C/O Himanshu Gandhi 2Nd Floor, बनाम/ Ca, 16Th Floor D Wing, Matru Mandir, Vs. Trade World Tower, Nana Chowk, Kamala Mills, Grant Road (W), Compound, Mumbai-400007. Lower Parel, Mumbai 400013. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaafs6934R (""थ" / Respondent) (अपीलाथ" /Appellant)

For Appellant: Mr. Himanshu Gandhi.ARFor Respondent: Ms. Kavita Kaushik.DR
Section 143(2)Section 143(3)Section 148Section 234BSection 250Section 271(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 6 M/s. Sagar International, Mumbai 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. S…

Kl Crescent Infrastructure Pvt Ltd., Navi Mumbai vs. Income Tax Officer-15(2)(1), Mumbai

Appeal is partly allowed

ITA 172/MUM/2023[2010-11]Status: DisposedITAT Mumbai30 May 2023AY 2010-11

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blekl Crescent Infrastructure Pvt Ltd V. Ito 15(2)(1) A-390/39, Ttc Industrial Zone Aayakar Bhavan Midc, Mahape, Post Ghansoli Mumbai- 400020 Navi Mumbai- 400701 Pan: Aadck3832C (Appellant) (Respondent) Kl Crescent Infrastructure Pvt Ltd V. Acit 15(2)(2) A-390/39, Ttc Industrial Zone Aayakar Bhavan Midc, Mahape, Post Ghansoli Mumbai- 400020 Navi Mumbai- 400701 Pan: Aadck3832C (Appellant) (Respondent)

Section 143(1)Section 143(2)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “H”, MUMBAI BEFORE SHRI VIKAS AWASTHY, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER KL Crescent Infrastructure Pvt Ltd v. ITO 15(2)(1) A-390/39, TTC Industrial Zone Aayakar Bhavan MIDC, Mahape, Post Ghansoli Mumbai- 400020 Navi Mumbai- 400701 PAN: AADCK3832C (Appellant) (Respondent) KL Crescent Infrastructure Pvt Ltd v. ACIT 15(2)(2) A-390/39, TTC Industrial Zone Aayakar Bhavan MIDC, Mahape, Post Ghansoli Mumbai- 400020 Navi Mumbai- 400701 PAN: AADCK3832C (Appellant) (Respondent) Assessee Represented by : Shri Bhupendra Shah Depar…

Three C Universal Developers Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 6, New Delhi

In the result, all the four appeals of the assessee for AYs 2010-11,

ITA 7582/DEL/2018[2014-15]Status: DisposedITAT Delhi01 May 2023AY 2014-15

Bench: Dr. Brr Kumar & Ms. Astha Chandra

For Appellant: NoneFor Respondent: Shri H.K. Chaudhary, CIT-DR
Section 132Section 142(1)Section 153ASection 234A

…of the assessee in para 6.2 of the appellate order. Relying on the principles of law enunciated by the Hon’ble Supreme Court in State Bank of India vs. S.K. Sharma AIR 1996 (SC) 364 and the decision of Hon’ble Gujarat High Court in Bholanath Polyfab Pvt. Ltd. 355 ITR 290 (Guj.), the Ld. CIT(A) recorded the finding that not having doubted the consumption/sales, the motive behind obtaining bogus bills, thus appears to be inflation of purchase price so as to suppress true profits. Accordingly, he estimated the suppressed profits to the extent of 12.5% of the alleged bogus purchases. This resulted in confirmation of…

Three C Universal Developers Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 6, New Delhi

In the result, all the four appeals of the assessee for AYs 2010-11,

ITA 7581/DEL/2018[2013-14]Status: DisposedITAT Delhi01 May 2023AY 2013-14

Bench: Dr. Brr Kumar & Ms. Astha Chandra

For Appellant: NoneFor Respondent: Shri H.K. Chaudhary, CIT-DR
Section 132Section 142(1)Section 153ASection 234A

…of the assessee in para 6.2 of the appellate order. Relying on the principles of law enunciated by the Hon’ble Supreme Court in State Bank of India vs. S.K. Sharma AIR 1996 (SC) 364 and the decision of Hon’ble Gujarat High Court in Bholanath Polyfab Pvt. Ltd. 355 ITR 290 (Guj.), the Ld. CIT(A) recorded the finding that not having doubted the consumption/sales, the motive behind obtaining bogus bills, thus appears to be inflation of purchase price so as to suppress true profits. Accordingly, he estimated the suppressed profits to the extent of 12.5% of the alleged bogus purchases. This resulted in confirmation of…

Three C Universal Developers Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 6, New Delhi

In the result, all the four appeals of the assessee for AYs 2010-11,

ITA 7580/DEL/2018[2011-12]Status: DisposedITAT Delhi01 May 2023AY 2011-12

Bench: Dr. Brr Kumar & Ms. Astha Chandra

For Appellant: NoneFor Respondent: Shri H.K. Chaudhary, CIT-DR
Section 132Section 142(1)Section 153ASection 234A

…of the assessee in para 6.2 of the appellate order. Relying on the principles of law enunciated by the Hon’ble Supreme Court in State Bank of India vs. S.K. Sharma AIR 1996 (SC) 364 and the decision of Hon’ble Gujarat High Court in Bholanath Polyfab Pvt. Ltd. 355 ITR 290 (Guj.), the Ld. CIT(A) recorded the finding that not having doubted the consumption/sales, the motive behind obtaining bogus bills, thus appears to be inflation of purchase price so as to suppress true profits. Accordingly, he estimated the suppressed profits to the extent of 12.5% of the alleged bogus purchases. This resulted in confirmation of…

Three C Universal Developers Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 6, New Delhi

In the result, all the four appeals of the assessee for AYs 2010-11,

ITA 7579/DEL/2018[2010-11]Status: DisposedITAT Delhi01 May 2023AY 2010-11

Bench: Dr. Brr Kumar & Ms. Astha Chandra

For Appellant: NoneFor Respondent: Shri H.K. Chaudhary, CIT-DR
Section 132Section 142(1)Section 153ASection 234A

…of the assessee in para 6.2 of the appellate order. Relying on the principles of law enunciated by the Hon’ble Supreme Court in State Bank of India vs. S.K. Sharma AIR 1996 (SC) 364 and the decision of Hon’ble Gujarat High Court in Bholanath Polyfab Pvt. Ltd. 355 ITR 290 (Guj.), the Ld. CIT(A) recorded the finding that not having doubted the consumption/sales, the motive behind obtaining bogus bills, thus appears to be inflation of purchase price so as to suppress true profits. Accordingly, he estimated the suppressed profits to the extent of 12.5% of the alleged bogus purchases. This resulted in confirmation of…

Ankit Diamonds, Mumbai vs. Deputy Commissioner of Income Tax-19(1), Mumbai

In the result, appeals filed by the assessee are partly allowed

ITA 3127/MUM/2022[2011-12]Status: DisposedITAT Mumbai20 Apr 2023AY 2011-12

Bench: Shri Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 142(1)Section 143(1)Section 147Section 148Section 234BSection 271(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 Page No. | 5 ITA NOs. 3125 & 3127/MUM/2022 (A.Ys: 2009-10 & 2011-12) Ankit diamonds only the profit element embedded therein. Similar view has been taken by the Hon'ble Guja…

Ankit Diamonds, Mumbai vs. Deputy Commissioner of Income Tax-19(1), Mumbai

In the result, appeals filed by the assessee are partly allowed

ITA 3125/MUM/2022[2009-10]Status: DisposedITAT Mumbai20 Apr 2023AY 2009-10

Bench: Shri Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 142(1)Section 143(1)Section 147Section 148Section 234BSection 271(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 Page No. | 5 ITA NOs. 3125 & 3127/MUM/2022 (A.Ys: 2009-10 & 2011-12) Ankit diamonds only the profit element embedded therein. Similar view has been taken by the Hon'ble Guja…

Rohan Tooling Solutions India Pvt. Ltd., Gurgoan vs. ITO, Ward- 21(3), New Delhi

In the result, the appeal is partly allowed

ITA 6583/DEL/2018[2010-11]Status: DisposedITAT Delhi19 Apr 2023AY 2010-11

Bench: Shri Saktijit Deyassessment Year: 2010-11

Section 131Section 133(6)Section 147Section 254(2)

…ogus purchases of Rs.30,00,000/- would not be held as undisclosed income rather profit margin embedded in such purchases would be subject to tax having regard to the ratio of the decision of Hon'ble Gujarat HC in the case of CIT vs. Bholanath Pvt. Ltd. (2013) 355 ITR 290 (Guj.HC). ii) AR of the assessee is humbly praying before your good self to accept the additional ground of appeal raised before date of hearing of appeal having regard to the ratio of the decision of the Hon'ble Supreme Court in the case of National Thermal Power Corporation vs. CIT (1998) 229 ITR 383 (SC).” 3 ITA No.6583/Del./2018 4. Since,…

M/S Winner Impex, Mumbai vs. ACIT-19(3), Mumbai

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

ITA 330/MUM/2023[2009-10]Status: DisposedITAT Mumbai11 Apr 2023AY 2009-10

Bench: Shri S. Rifaur Rahman, Hon'Blem/S. Winner Impex V. Acit – 19(3) G-1, Jaisingh Business Center Mumbai Sahar Road, Parsiwada Andheri (E), Mumbai - 400099 Pan: Aaafw3731A (Appellant) (Respondent)

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

…sales 6 M/s. Winner Impex 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…

Sawailal Surtaram Bhatti, Mumbai vs. Income Tax Officer, 20(3)(2), Mumbai

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

ITA 3191/MUM/2022[2010-2011]Status: DisposedITAT Mumbai10 Apr 2023AY 2010-2011

Bench: Shri Aby T. Varkey, Jm & Shri Om Prakash Kant, Am आयकर अपील सं/I.T.A. No.3191/Mum/2022 (निर्धारणवर्ा/Assessment Year: 2010-11) Sawailal Surtaram Bhatti बिधम Income Tax Officer, 20 161, 4Th Floor, Panchshil (3) (2) Vs. Niwas, 5Th Kamathipura, Matru Mandir, Parel Mumbai-400 008 Mumbai-400 007

For Appellant: Shri Dhaval ShahFor Respondent: Shri Anil K. Das
Section 143(1)Section 144

…een accepted as P a g e | 5 SHRI SAWAILAL BHATTI 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…

Ilesh Jitendra Shah, Mumbai vs. Income Tax Office, Ward 2(3), Thane, Mumbai

In the result, appeals filed by the assessee are partly allowed

ITA 327/MUM/2023[2009-10]Status: DisposedITAT Mumbai06 Apr 2023AY 2009-10

Bench: Shri S. Rifaur Rahman, Hon'Ble

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 [38 taxman.com 385]. Simply becaus…

Ilesh Jintendra Shah, Thane vs. Income Tax Office, Ward 2(3), Thane

In the result, appeals filed by the assessee are partly allowed

ITA 326/MUM/2023[2010-2011]Status: DisposedITAT Mumbai06 Apr 2023AY 2010-2011

Bench: Shri S. Rifaur Rahman, Hon'Ble

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 [38 taxman.com 385]. Simply becaus…