CIT v. Pact Securities and Financials Ltd.

86 ITD 115Income Tax Appellate Tribunal2003#10778 most cited

What is CIT v. Pact Securities and Financials Ltd. authority for?

The accounting methods prescribed by the ICAI can be relied upon for computing the turnover of shares and derivatives transactions.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2012 to 2025.

Also referred to as

CIT v. Pact Securities and Financials Ltd. · 86 ITD 115 · ITAT Hyderabad · accounting method · ICAI · turnover computation · shares · derivatives · section 44AB

Sections most often in play

Section 143(3)Section 44ABSection 144Section 271BSection 153DSection 250Section 271ASection 273B

Issues it is cited on

speculative transactionsection 271bsection 44absection 44prescribedtransfersection 143(3)businessindianfactotal income

Judgments citing CIT v. Pact Securities and Financials Ltd.

Tulika Kedia, New Delhi, Delhi vs. Assistant Commissioner of Income Tax, Central Circle-1, Raipur

ITA 147/RPR/2025[2020-21]Status: DisposedITAT Raipur20 Nov 2025AY 2020-21

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita No: 147/Rpr/2025 (िनधा"रण वष" Assessment Year: 2020-21)

For Appellant: Shri S. R. Rao, AdvFor Respondent: Dr. Priyanka Patel, Sr. DR
Section 143(3)Section 153DSection 250Section 271BSection 44A

…ds prescribed by the ICAI, which are held to be adoptable by the Hon’ble Supreme Court in the case of CIT vs. Punjab Stainless Industries (2014) 364 ITR 144 (SC) and Hon’ble Hyderabad High Court in the case of CIT vs. Pact Securities and Financials Ltd (2003) 86 ITD 115 (HYD), wherein it is observed that the method of accounting prescribed by ICAI can be relied upon for computing turnover in case of share and derivatives. We also concur with and take support from the decision of ITAT, Mumbai in the case of Shri Sanjay Marotrao Modak (Supra) on this aspect. 11 Tuleka Kedia, New Delhi vs. ACIT, Central Circle-1,…

Sahil Gupta, Delhi vs. CIT(A), Delhi

In the result, appeal of the assessee is allowed

ITA 1708/DEL/2025[2022-23]Status: DisposedITAT Delhi29 Aug 2025AY 2022-23

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishraita No.1708/Del/2025, (A.Y.2022-23) Sahil Gupta, Dy. Commissioner Of Income D-304, Vivek Vihar, Tax, Central Circle 58(1), New Delhi- 110095 Vs. Ara Building, Jhandewalan, Pan: Aoipg4087K New Delhi (Appellant) (Respondent) Appellant By None Respondent By Sh. Manish Gupta, Sr. Dr Date Of Hearing 21/08/2025 Date Of Pronouncement 29/08/2025 Order Per Avdhesh Kumar Mishra, Am This Appeal Of The Assessee For The Assessment Year (‘Ay’) 2022-23 Is Directed Against The Order Dated 02.12.2024 Of The Ld. Commissioner Of Income Tax (Appeals), Nfac, New Delhi (‘Cit(A)’).

Section 143(3)Section 271ASection 44A

…taken as turnover. 4. I would like to rely on the following judicial pronouncement. Sachin Marotrao Rangari v ACIT 2022 TaxPub(DT) 6494 (Rkt Trib) CIT vs. Punjab Stainless Industries (2014) 364 ITR 144 (SC) CIT vs. Pact Securities and Financials Ltd. (2003) 86 ITD 115 (Hyd.), which held that the method of accounting, prescribed by ICAI can be relied upon for computing turnover in case of shares and derivatives. 5. Section 44AA requires certain specific records for tax purposes which are maintained and provided during the course of assessment and penalty proceedings. 6. Books of accounts i.e P&L and Balance Sh…

Sahil Gupta, Delhi vs. CIT(A), Delhi

In the result, the appeal of the assessee in ITA No

ITA 1739/DEL/2025[2022-23]Status: DisposedITAT Delhi22 Aug 2025AY 2022-23

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

For Appellant: Shri Sahil Gupta, [Assessee himself]For Respondent: Shri Manish Gupta, Sr. DR
Section 143(3)Section 271BSection 44A

…ld. counsel for the assessee relied on the following judicial pronouncements: • Sachin Marotrao Rangari v ACIT 2022 TaxPub(DT) 6494 (Rkt Trib) • CIT vs. Punjab Stainless Industries (2014) 364 ITR 144 (SC) • CIT vs. Pact Securities and Financials Ltd. (2003) 86 ITD 115 (Hyd.), Wherein it has been held that the method of accounting, prescribed by ICAI can be relied upon for computing turnover in case of shares and derivatives. Page 3 of 10 [A.Y. 2022-23] Shri Sahil Gupta 7. Per contra, the ld. DR relied on the orders of the authorities below. 8. We have heard the rival submissions and have perused the releva…

Mr. Sanjay Marotrao Modak, Mumbai vs. The DCIT Cir 29(3) NFAC, Mumbai

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

ITA 2041/MUM/2021[2015-16]Status: DisposedITAT Mumbai21 Nov 2022AY 2015-16

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm Shri Sanjay Marotrao Modak Dy. Cit, Circle 29(3), Nfac F-503, Redwoods, Near Swap, Vasant Mumbai Gardens, Mulund (W), Vs. Mumbai-400 080

For Appellant: Shri A. P. Sinha
Section 143(3)Section 250Section 271BSection 44A

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI OM PRAKASH KANT, AM AND MS. KAVITHA RAJAGOPAL, JM Shri Sanjay Marotrao Modak Dy. CIT, Circle 29(3), NFAC F-503, Redwoods, Near Swap, Vasant Mumbai Gardens, Mulund (W), Vs. Mumbai-400 080 PAN/GIR No. (Appellant) : (Respondent) Appellant by : Shri A. P. Sinha : Shri Hoshang B. Irani Respondent by Date of Hearing : 25.08.2022 Date of Pronouncement : 21.11.2022 O R D E R Per Kavitha Rajagopal, J. M.: This appeal is filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short), passed u/s…

CIT vs. Virtual Soft Systems Ltd

ITA/398/2011HC Delhi07 Feb 2012

Bench: The Tribunal The Assessment Years (In Short Ay) In Issue Were: Ays 1996-97 To 2000-01. Thus, The Tribunal, By Virtue Of The Impugned Judgment Dealt In All With Five (5) Appeals Being Ita Nos. 117, 118, 119, 120 & 2292/Del/2006&04. In So Far As The First Appeal

For Appellant: Ms. Rashmi Chopra, AdvocateFor Respondent: Mr. S. Krishnan, Advocate
Section 143(2)Section 143(3)Section 147Section 152Section 234BSection 234CSection 250Section 263Section 271(1)(c)

…AI. Mr Krishnan, also placed reliance on two judgments of different benches of the Tribunal in the case of Indian Railways Finance Corporation Ltd. Vs JCIT (Delhi Tribunal) ITA Nos. 699, 359, 3357 & 2109/Del/04 and JCIT vs Pact Securities & Financial Ltd 86 ITD 115 (Hyd.). The latter being extensively referred to in the former judgment of the Tribunal. 7.5 It was Mr Krishnan‟s contention that lease equalization charge was nothing but a method of adjusting the depreciation claimed in the books of accounts to enable the assessee to represent its real income by adopting an accounting methodology which,…

CIT vs. Virtual Soft Systems Ltd

ITA - 216 / 2011HC Delhi07 Feb 2012

Bench: The Tribunal The Assessment Years (In Short Ay) In Issue Were: Ays 1996-97 To 2000-01. Thus, The Tribunal, By Virtue Of The Impugned Judgment Dealt In All With Five (5) Appeals Being Ita Nos. 117, 118, 119, 120 & 2292/Del/2006&04. In So Far As The First Appeal 2012:Dhc:831-Db

For Appellant: Ms. Rashmi Chopra, AdvocateFor Respondent: Mr. S. Krishnan, Advocate
Section 143(2)Section 143(3)Section 147Section 152Section 234BSection 234CSection 250Section 263Section 271(1)(c)

…AI. Mr Krishnan, also placed reliance on two judgments of different benches of the Tribunal in the case of Indian Railways Finance Corporation Ltd. Vs JCIT (Delhi Tribunal) ITA Nos. 699, 359, 3357 & 2109/Del/04 and JCIT vs Pact Securities & Financial Ltd 86 ITD 115 (Hyd.). The latter being extensively referred to in the former judgment of the Tribunal. 7.5 It was Mr Krishnan‟s contention that lease equalization charge was nothing but a method of adjusting the depreciation claimed in the books of accounts to enable the assessee to represent its real income by adopting an accounting methodology which,…

CIT vs. Virtual Soft Systems Ltd

ITA - 680 / 2011HC Delhi07 Feb 2012

Bench: The Tribunal The Assessment Years (In Short Ay) In Issue Were: Ays 1996-97 To 2000-01. Thus, The Tribunal, By Virtue Of The Impugned Judgment Dealt In All With Five (5) Appeals Being Ita Nos. 117, 118, 119, 120 & 2292/Del/2006&04. In So Far As The First Appeal 2012:Dhc:831-Db

For Appellant: Ms. Rashmi Chopra, AdvocateFor Respondent: Mr. S. Krishnan, Advocate
Section 143(2)Section 143(3)Section 147Section 152Section 234BSection 234CSection 250Section 263Section 271(1)(c)

…AI. Mr Krishnan, also placed reliance on two judgments of different benches of the Tribunal in the case of Indian Railways Finance Corporation Ltd. Vs JCIT (Delhi Tribunal) ITA Nos. 699, 359, 3357 & 2109/Del/04 and JCIT vs Pact Securities & Financial Ltd 86 ITD 115 (Hyd.). The latter being extensively referred to in the former judgment of the Tribunal. 7.5 It was Mr Krishnan‟s contention that lease equalization charge was nothing but a method of adjusting the depreciation claimed in the books of accounts to enable the assessee to represent its real income by adopting an accounting methodology which,…

CIT vs. Virtual Soft Systems Ltd

ITA - 404 / 2011HC Delhi07 Feb 2012

Bench: The Tribunal The Assessment Years (In Short Ay) In Issue Were: Ays 1996-97 To 2000-01. Thus, The Tribunal, By Virtue Of The Impugned Judgment Dealt In All With Five (5) Appeals Being Ita Nos. 117, 118, 119, 120 & 2292/Del/2006&04. In So Far As The First Appeal 2012:Dhc:831-Db

For Appellant: Ms. Rashmi Chopra, AdvocateFor Respondent: Mr. S. Krishnan, Advocate
Section 143(2)Section 143(3)Section 147Section 152Section 234BSection 234CSection 250Section 263Section 271(1)(c)

…AI. Mr Krishnan, also placed reliance on two judgments of different benches of the Tribunal in the case of Indian Railways Finance Corporation Ltd. Vs JCIT (Delhi Tribunal) ITA Nos. 699, 359, 3357 & 2109/Del/04 and JCIT vs Pact Securities & Financial Ltd 86 ITD 115 (Hyd.). The latter being extensively referred to in the former judgment of the Tribunal. 7.5 It was Mr Krishnan‟s contention that lease equalization charge was nothing but a method of adjusting the depreciation claimed in the books of accounts to enable the assessee to represent its real income by adopting an accounting methodology which,…

CIT vs. Virtual Soft Systems Ltd

ITA - 403 / 2011HC Delhi07 Feb 2012

Bench: The Tribunal The Assessment Years (In Short Ay) In Issue Were: Ays 1996-97 To 2000-01. Thus, The Tribunal, By Virtue Of The Impugned Judgment Dealt In All With Five (5) Appeals Being Ita Nos. 117, 118, 119, 120 & 2292/Del/2006&04. In So Far As The First Appeal 2012:Dhc:831-Db

For Appellant: Ms. Rashmi Chopra, AdvocateFor Respondent: Mr. S. Krishnan, Advocate
Section 143(2)Section 143(3)Section 147Section 152Section 234BSection 234CSection 250Section 263Section 271(1)(c)

…AI. Mr Krishnan, also placed reliance on two judgments of different benches of the Tribunal in the case of Indian Railways Finance Corporation Ltd. Vs JCIT (Delhi Tribunal) ITA Nos. 699, 359, 3357 & 2109/Del/04 and JCIT vs Pact Securities & Financial Ltd 86 ITD 115 (Hyd.). The latter being extensively referred to in the former judgment of the Tribunal. 7.5 It was Mr Krishnan‟s contention that lease equalization charge was nothing but a method of adjusting the depreciation claimed in the books of accounts to enable the assessee to represent its real income by adopting an accounting methodology which,…

CIT vs. Virtual Soft Systems Ltd

ITA - 398 / 2011HC Delhi07 Feb 2012

Bench: The Tribunal The Assessment Years (In Short Ay) In Issue Were: Ays 1996-97 To 2000-01. Thus, The Tribunal, By Virtue Of The Impugned Judgment Dealt In All With Five (5) Appeals Being Ita Nos. 117, 118, 119, 120 & 2292/Del/2006&04. In So Far As The First Appeal 2012:Dhc:831-Db

For Appellant: Ms. Rashmi Chopra, AdvocateFor Respondent: Mr. S. Krishnan, Advocate
Section 143(2)Section 143(3)Section 147Section 152Section 234BSection 234CSection 250Section 263Section 271(1)(c)

…AI. Mr Krishnan, also placed reliance on two judgments of different benches of the Tribunal in the case of Indian Railways Finance Corporation Ltd. Vs JCIT (Delhi Tribunal) ITA Nos. 699, 359, 3357 & 2109/Del/04 and JCIT vs Pact Securities & Financial Ltd 86 ITD 115 (Hyd.). The latter being extensively referred to in the former judgment of the Tribunal. 7.5 It was Mr Krishnan‟s contention that lease equalization charge was nothing but a method of adjusting the depreciation claimed in the books of accounts to enable the assessee to represent its real income by adopting an accounting methodology which,…

CIT v. Pact Securities and Financials Ltd. (86 ITD 115) — Cited in 10 Judgments | BharatTax