CIT v. Padamchand Ramgopal (SC)

199 ITR 247High Court1983#7307 most cited

What is CIT v. Padamchand Ramgopal (SC) authority for?

No addition can be made to income in subsequent years merely because an addition was made in earlier years. Additions cannot be based on presumption, assumption, or guesswork without supporting evidence.

15

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Padamchand Ramgopal · 199 ITR 247 · addition in subsequent years · presumption · assumption · guesswork · no incriminating material · adverse inference

Sections most often in play

Section 1961Section 133(6)Section 142(1) of the IT ActSection 143(2) of the Income Tax ActSection 143(3) of the I.T. ActSection 145(3) of the IT ActSection 147 of the IT ActSection 148 of the I.T. Act

Judgments citing CIT v. Padamchand Ramgopal (SC)

Heera Lal Kasara, Udaipur vs. ITO, Ward-2(1), Udaipur

In the result, appeal of the assessee is allowed

ITA 303/JODH/2024[2009-10]Status: DisposedITAT Jodhpur25 Jun 2025AY 2009-10

Bench: Its Hearing Before Your Honours.”

Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 250

…ar Singh (2009) 178 Taxman 47 (Jabalpur) 17. Even where the account books are found unreliable, the assessment cannot be made arbitrarily and in order that an assessment can sustained, it must have nexus to the material on record. (CIT v. Mahesh Chand (1993) 199 ITR 247 (All.) 18. Where the Order passed within four weeks from date of rejection of assessee’s objections-Reassessment was held to be bad in law in the case of Bharat Jayantilal Patel v. UOI (2015) 378 ITR 596 (Bom.). 19. An assessment done purely by making a guess and without evidence is bad and to be set aside vide Dhakeshwari Cotton Mills Ltd. v/s…

Shri Patel Enterprises, Korba(Cg) vs. Dy. Commissioner of Income Tax, Circle- Korba

In the result, the appeal of the assessee is partly allowed for statistical purpose in terms of our observations as discussed herein above

ITA 112/BIL/2017[2012-13]Status: DisposedITAT Raipur21 Sept 2022AY 2012-13

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अऩीऱ सं./Ita No.112/Rpr/2017 (ननधाारण वषा / Assessment Year : 2012-2013) M/S Patel Enterprises, Vs Dcit, Circle-Korba A-3, Vikas Complex, First Floor, Power House Road, Korba (C.G.) Pan No. : Aajfm 0718 Q (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri Prakash Chand Agrawal, CAFor Respondent: Shri P.K.Mishra, CIT-DR
Section 143(1)Section 251

…ical calculation of turnover and estimation of profit rate merely on presumptions and surmises, are not sustainable. For this proposition, reliance was placed on the decisions in (1) Dhakeshwari Cotton Mills (1954) 26 ITR 775(SC); (2) Maheshchand v CIT (1993) 199 ITR 247 (All.); (3) R.Y Durlabhij, (1995) 211 ITR 178 (Raj.) and various other decisions mentioned therein. (a) The impugned addition made on presumptions and surmises is unsustainable in view of the Supreme Court decision in 219 ITR 330 (SC) wherein it was held that there cannot be tax on income on presumptive basis. Income in fact earned is only taxabl…

Income Tax Officer, Ward-3(2), Hyderabad vs. R P Projects Private Limited, Hyderabad

ITA 26/HYD/2019[2015-16]Status: DisposedITAT Hyderabad08 Feb 2022AY 2015-16

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: Shri Biswal Narahari, ARFor Respondent: Shri Rajendra Kumar, CIT-DR
Section 143(2)Section 143(3)

…y expenditure on such other source income which has the effect of computing total income which is 111 times of returned income is a clear case of arbitrary assessment order which is not sustainable in law. 15.2.1 In the case of CIT vs Mahesh Chand reported in 199 ITR 247, Hon'ble Allahabad High Court have held that although the ITO has very wide powers and is not fettered by technical rules of evidence and pleadings, there is one overriding restriction on his judgment and that is that he must act honestly on the material however inadequate before him and not vindictively, capriciously or arbitrarily. 15.2.2 When…

D.C.I.T. Central Cricle, Raipur vs. Mahamaya Steel Industries Ltd, Raipur

In the result, cross objections preferred by the assessee in CO

ITA 233/BIL/2014[2010-11]Status: DisposedITAT Raipur07 Nov 2019AY 2010-11

Bench: Shri Anil Chaturvedi, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita Nos.232 To 235/Rpr/2014 धनधाारण वषा / Assessment Years : 2009-10 To 2012-13

For Appellant: Shri Veekaas S. SharmaFor Respondent: Shri Santosh Kumar
Section 132

…fancies which is not the spirit of the circular issued by the board on scrutiny assessment. An assessment cannot be made arbitrary and another that an assessment can be sustained, it must have Nexus to the material on record. (CIT versus Mahesh Chandra (1983) 199 ITR 247 249 (All). It is the settled position that though the AO has very wide powers and is not fettered by technical rules of evidence and pleadings, there is one overriding restriction on his judgment and that is, that, he must act honestly and diligently on the material, howsoever inadequate it was, and not vindictively, capriciously or arbitrarily.…

D.C.I.T. Central Cricle, Raipur vs. Mahamaya Steel Industries Ltd, Raipur

In the result, cross objections preferred by the assessee in CO

ITA 232/BIL/2014[2009-10]Status: DisposedITAT Raipur07 Nov 2019AY 2009-10

Bench: Shri Anil Chaturvedi, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita Nos.232 To 235/Rpr/2014 धनधाारण वषा / Assessment Years : 2009-10 To 2012-13

For Appellant: Shri Veekaas S. SharmaFor Respondent: Shri Santosh Kumar
Section 132

…fancies which is not the spirit of the circular issued by the board on scrutiny assessment. An assessment cannot be made arbitrary and another that an assessment can be sustained, it must have Nexus to the material on record. (CIT versus Mahesh Chandra (1983) 199 ITR 247 249 (All). It is the settled position that though the AO has very wide powers and is not fettered by technical rules of evidence and pleadings, there is one overriding restriction on his judgment and that is, that, he must act honestly and diligently on the material, howsoever inadequate it was, and not vindictively, capriciously or arbitrarily.…

Deputy Commissioner of Income Tax, Central Circle-3, Jaipur vs. Shri Nirmak Kumar Kedia, Jaipur

In the result, appeals of the revenue are dismissed whereas the appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 288/JPR/2019[2017-18]Status: DisposedITAT Jaipur03 Jun 2019AY 2017-18
For Appellant: Shri Vijay Goyal (FCA) &For Respondent: Shri Varinder Mehta (CIT-DR)
Section 131Section 132Section 132(1)Section 133ASection 143(3)Section 153ASection 19

…ks of accounts than in such case no addition can be made on the basis of presumption, assumption and guess work. Also the judgment of Hon’ble Apex Court in the case of CIT V/s Padamchand Ramgopal (SC) 76 ITR 719 and Allahabad High Court in CIT Vs Mahesh Chand 199 ITR 247 very clearly state that no addition in subsequent years can be made merely because some addition has been made in earlier years. Similarly in our case no adverse inference can be drawn on extrapolation, assumption, presumption and on guesswork ad infinitum especially when the department has carried out intensive search operations and as the resul…

Assistant Commissioner of Income Tax, Central Circle-3, Jaipur vs. Shri Nirmal Kumar Kedia, Jaipur

In the result, appeals of the revenue are dismissed whereas the appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 287/JPR/2019[2016-17]Status: DisposedITAT Jaipur03 Jun 2019AY 2016-17
For Appellant: Shri Vijay Goyal (FCA) &For Respondent: Shri Varinder Mehta (CIT-DR)
Section 131Section 132Section 132(1)Section 133ASection 143(3)Section 153ASection 19

…ks of accounts than in such case no addition can be made on the basis of presumption, assumption and guess work. Also the judgment of Hon’ble Apex Court in the case of CIT V/s Padamchand Ramgopal (SC) 76 ITR 719 and Allahabad High Court in CIT Vs Mahesh Chand 199 ITR 247 very clearly state that no addition in subsequent years can be made merely because some addition has been made in earlier years. Similarly in our case no adverse inference can be drawn on extrapolation, assumption, presumption and on guesswork ad infinitum especially when the department has carried out intensive search operations and as the resul…

Assistant Commissioner of Income Tax, Central Circle-3, Jaipur vs. Shri Nitin Kedia, Jaipur

In the result, appeals of the revenue are dismissed whereas the appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 286/JPR/2019[2015-16]Status: DisposedITAT Jaipur03 Jun 2019AY 2015-16
For Appellant: Shri Vijay Goyal (FCA) &For Respondent: Shri Varinder Mehta (CIT-DR)
Section 131Section 132Section 132(1)Section 133ASection 143(3)Section 153ASection 19

…ks of accounts than in such case no addition can be made on the basis of presumption, assumption and guess work. Also the judgment of Hon’ble Apex Court in the case of CIT V/s Padamchand Ramgopal (SC) 76 ITR 719 and Allahabad High Court in CIT Vs Mahesh Chand 199 ITR 247 very clearly state that no addition in subsequent years can be made merely because some addition has been made in earlier years. Similarly in our case no adverse inference can be drawn on extrapolation, assumption, presumption and on guesswork ad infinitum especially when the department has carried out intensive search operations and as the resul…

Shri Nirmak Kumar Kedia, Jaipur vs. Deputy Commissioner of Income Tax, Central Circle-3, Jaipur

In the result, appeals of the revenue are dismissed whereas the appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 126/JPR/2019[2017-18]Status: DisposedITAT Jaipur03 Jun 2019AY 2017-18
For Appellant: Shri Vijay Goyal (FCA) &For Respondent: Shri Varinder Mehta (CIT-DR)
Section 131Section 132Section 132(1)Section 133ASection 143(3)Section 153ASection 19

…ks of accounts than in such case no addition can be made on the basis of presumption, assumption and guess work. Also the judgment of Hon’ble Apex Court in the case of CIT V/s Padamchand Ramgopal (SC) 76 ITR 719 and Allahabad High Court in CIT Vs Mahesh Chand 199 ITR 247 very clearly state that no addition in subsequent years can be made merely because some addition has been made in earlier years. Similarly in our case no adverse inference can be drawn on extrapolation, assumption, presumption and on guesswork ad infinitum especially when the department has carried out intensive search operations and as the resul…

Shri Nirmal Kumar Kedia, Jaipur vs. Deputy Commissioner of Income Tax, Central Circle-3, Jaipur

In the result, appeals of the revenue are dismissed whereas the appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 125/JPR/2019[2016-17]Status: DisposedITAT Jaipur03 Jun 2019AY 2016-17
For Appellant: Shri Vijay Goyal (FCA) &For Respondent: Shri Varinder Mehta (CIT-DR)
Section 131Section 132Section 132(1)Section 133ASection 143(3)Section 153ASection 19

…ks of accounts than in such case no addition can be made on the basis of presumption, assumption and guess work. Also the judgment of Hon’ble Apex Court in the case of CIT V/s Padamchand Ramgopal (SC) 76 ITR 719 and Allahabad High Court in CIT Vs Mahesh Chand 199 ITR 247 very clearly state that no addition in subsequent years can be made merely because some addition has been made in earlier years. Similarly in our case no adverse inference can be drawn on extrapolation, assumption, presumption and on guesswork ad infinitum especially when the department has carried out intensive search operations and as the resul…

Shri Nirmal Kumar Kedia, Jaipur vs. Deputy Commissioner of Income Tax, Central Circle-3, Jaipur

In the result, appeals of the revenue are dismissed whereas the appeals of the assessee are allowed in part in terms indicated hereinabove

ITA 124/JPR/2019[2015-16]Status: DisposedITAT Jaipur03 Jun 2019AY 2015-16
For Appellant: Shri Vijay Goyal (FCA) &For Respondent: Shri Varinder Mehta (CIT-DR)
Section 131Section 132Section 132(1)Section 133ASection 143(3)Section 153ASection 19

…ks of accounts than in such case no addition can be made on the basis of presumption, assumption and guess work. Also the judgment of Hon’ble Apex Court in the case of CIT V/s Padamchand Ramgopal (SC) 76 ITR 719 and Allahabad High Court in CIT Vs Mahesh Chand 199 ITR 247 very clearly state that no addition in subsequent years can be made merely because some addition has been made in earlier years. Similarly in our case no adverse inference can be drawn on extrapolation, assumption, presumption and on guesswork ad infinitum especially when the department has carried out intensive search operations and as the resul…

Asstt. Commissioner of Income Tax01(2), Raipur (Cg) vs. M/S Ishwar Ispat Industries Pvt. Ltd, Raipur (Cg)

In the result, appeal of the revenue is partly allowed for statistical

ITA 188/BIL/2012[2009-10]Status: DisposedITAT Raipur15 Jan 2018AY 2009-10

Bench: S/Shri N.S Saini & Pavan Kumar Gadaleassessment Year : 2009-2010

For Appellant: NoneFor Respondent: Mrs Shabna Parveen, DR
Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER Assessment Year : 2009-2010 ACIT 1(2), Raipur. Vs. M/s. Iswar Ispat Industries Pvt Ltd. Plot No.168, Sector -6, Urla Industrial Area , Raipur PAN/GIR No.AABCI 4258 C (Appellant) .. ( Respondent) Assessee by : None Revenue by : Mrs Shabna Parveen, DR Date of Hearing : 09/01/ 2018 Date of Pronouncement : 15/01/ 2018 O R D E R Per Pavan Kumar Gadale, JM This is an appeal filed by the revenue against the order of the CIT(A)- Raipur, dated 30.7.2012 for the assessment y…

The ACIT, Circle- 1(2), Raipur (Cg) vs. M/S. Balajee Structurals (India) Pvt. Ltd., Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 80/BIL/2013[2010-11]Status: DisposedITAT Raipur11 Jan 2018AY 2010-11

Bench: S/Shri N.S Saini & Pavan Kumar Gadaleassessment Year : 2010-2011

For Appellant: Abhishek Maloo Jain/P.C.Maloo, ARFor Respondent: Shri Ajit kumar Laskar, DR
Section 145(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER Assessment Year : 2010-2011 ACIT, Cirlce-1(2), Vs. Balajee Structural (India) Central Avenue Building, Pvt.Ltd., Civil Lines, Raipur (CG) Ring Road No.2, Telibandha, Raipur (CG) PAN/GIR No.AABCB7575P (Appellant) .. ( Respondent) Revenue by : Shri Ajit kumar Laskar, DR Assessee by : Abhishek Maloo Jain/P.C.Maloo, AR Date of Hearing : 09/01/ 2018 Date of Pronouncement : 11 /01/ 2018 O R D E R Per Pavan Kumar Gadale, JM This is an appeal filed by the Revenue against th…

ACIT, New Delhi vs. M/S Rama Krishna Jeweller (India), New Delhi

In the result, we confirm the finding of ld

ITA 5417/DEL/2010[2005-06]Status: DisposedITAT Delhi11 May 2016AY 2005-06

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Mrs. Nandita Kanchan, CIT DR
Section 153A

…hen evidences are available for only 191 days it cannot be extrapolated for 300 days as done by the ld. AO. For this he referred to several decisions of various tribunals and High Courts as 75 ITD 19 (Pune), 70 STD 77 (Patna), 72 ITD 205 (Hyd) 97 TTJ .. (JP), 199 ITR 247 (All HC), 144 ITR 270 (All HC). 16. Regarding remand report he submitted that during the course of hearing before the ld.CIT (A) ld. AO was asked to submit remand report with respect to additional evidence filed as well as the written submission of the assessee. In response to this ld. AO submitted his remand report on 29.04.2010 but did not offe…

Prakash Fatandas Jassuja, Thane vs. ITO WD 3(2), Thane

The appeals of the assessee are partly allowed

ITA 4933/MUM/2015[2005-06]Status: DisposedITAT Mumbai20 Jan 2016AY 2005-06

Bench: Shri Joginder Singh

Section 133ASection 147

…period of reassessment is not justified. For this proposition, the ratio laid down in following cases supports my view:- a. Samrat Bear Bar vs ACIT (2000) 75 ITD 19 (Pune)(TM) b. D. N. Kamani (HUF) vs DCIT (1999) 70 ITD 77 (TM)(Pat) c. CIT vs Mahesh Chand 199 ITR 247 (All.) d. Dr. S. S. Reddy vs ACIT (2000) 72 ITD 205 (Hyd) 6. So far as, the contention of the ld. counsel for the assessee, that net profit rate should be adopted and not the gross profit is concerned, I am not agreeing with this proposition, because, in the present set off cases, the assessee has not declared anything and the whole profit was…

CIT v. Padamchand Ramgopal (SC) (199 ITR 247) — Cited in 15 Judgments | BharatTax