CIT v. Bholanath Polyfeb (P.) Ltd.

40 Taxmann.com 494High Court2013#2872 most cited

What is CIT v. Bholanath Polyfeb (P.) Ltd. authority for?

When bogus purchases are detected but the corresponding sales are not doubted, the addition to income should be restricted to the profit element embedded in such purchases, rather than the entire purchase amount, by estimating a fair rate of profit.

41

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2026.

Also referred to as

CIT v. Bholanath Polyfeb (P.) Ltd. · Section 147 · Section 133(6) · Section 69C · bogus purchases · unverifiable purchases · profit element · addition restricted · estimated profit · fair rate of profit · corresponding sales not doubted · Section 44AD

Also reported as

220 Taxmann 82

Sections most often in play

Section 147Section 133(6)Section 143(3)Section 153ASection 153CSection 44ADSection 69CSection 148

Issues it is cited on

section 245c(1)section 245hsection 245csection 245d(4)section 245dfull and true disclosuresection 245third party informationsection 156section 194csection 44abook profits

Judgments citing CIT v. Bholanath Polyfeb (P.) Ltd.

DCIT 11(2)(1), Mumbai vs. Shaan Lube Equipment P. Ltd, Thane

In the result, the appeal of the Revenue is dismissed

ITA 625/MUM/2015[2010-11]Status: DisposedITAT Mumbai24 Feb 2017AY 2010-11

Bench: Shri B.R.Baskaran & Shri Pawan Singh

For Appellant: Shri Arun Shah (AR)For Respondent: Shri Samuel Darse (CIT-DR)
Section 144Section 253Section 254(1)Section 69C

…rchases claimed are not included anywhere in the stock details. After considering the submission of assessee and the report of AO. The ld. CIT(A) made the following conclusion: “The Hon'ble Gujarat High Court in the case of CIT vs. Bholanath Poly Fab (P). Ltd 40 Taxmann.com 494 has held that where the assessee who purchased cloth and sell goods but purchaser was not traceable. The profit element embedded in the purchases would be subject to tax and not entire amount. Keeping in view the facts and circumstances of the present case that the facts are squarely covered by the decision of Hon'ble Bombay High Court and…