CIT v. Piara Singh

124 ITR 40Supreme Court of India1980#1187 most cited

What is CIT v. Piara Singh authority for?

When dealing with unaccounted transactions of purchase and sale, including those from an illegal business, only the profit or income earned from such sales can be assessed as undisclosed income and subjected to tax, not the entire sale proceeds.

95

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2006 to 2026.

Also referred to as

Piara Singh SC 1980 · 124 ITR 40 · unaccounted sales · undisclosed income · illegal business income · profit from unrecorded transactions · entire sale cannot be taxed · only profit taxable · section 145(3) · rejection of books of account

Also reported as

3 Taxmann 67

Sections most often in play

Section 147Section 148Section 143(3)Section 145(3)Section 133ASection 142(1)Section 132Section 143(2)
Read the full judgment

Issues it is cited on

on money receiptsection 145(2)project completion methodsection 199rejection of books of accounticdson-moneyreasoned orderspecified authorityloose paperssection 145(3)approval under section 151

Judgments citing CIT v. Piara Singh

M/S Popular Finance Company, Pathanamthitta vs. The ACIT, Cir-1, Thiruvalla

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

ITA 204/COCH/2019[2014-15]Status: DisposedITAT Cochin03 Dec 2019AY 2014-15

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(2)Section 143(3)Section 263Section 37(1)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM ITA Nos. 202 to 204/Cochh/2019 Assessment Year:2014-15 Vs. The Assistant Commissioner of 1. M/s. Popular Finance Income-tax, Circle-1, Thiruvalla. Company, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:AADFP 9578M] 2 .M/s. Popular Finance, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:ABFP 6302K] 3. M/s. Mini Finance, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:AABFP 6665P] (Assessee-Appellant) (Revenue-Respondent) Assessee by…

M/S.Popular Finance, Pathanamthitta vs. The ACIT, Circle-1, Thiruvalla

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

ITA 203/COCH/2019[2014-15]Status: DisposedITAT Cochin03 Dec 2019AY 2014-15

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(2)Section 143(3)Section 263Section 37(1)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM ITA Nos. 202 to 204/Cochh/2019 Assessment Year:2014-15 Vs. The Assistant Commissioner of 1. M/s. Popular Finance Income-tax, Circle-1, Thiruvalla. Company, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:AADFP 9578M] 2 .M/s. Popular Finance, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:ABFP 6302K] 3. M/s. Mini Finance, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:AABFP 6665P] (Assessee-Appellant) (Revenue-Respondent) Assessee by…

M/S Popular Finance Company, Pathanamthitta vs. The ACIT, Cir-1, Thiruvalla

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

ITA 202/COCH/2019[2014-15]Status: DisposedITAT Cochin03 Dec 2019AY 2014-15

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(2)Section 143(3)Section 263Section 37(1)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM ITA Nos. 202 to 204/Cochh/2019 Assessment Year:2014-15 Vs. The Assistant Commissioner of 1. M/s. Popular Finance Income-tax, Circle-1, Thiruvalla. Company, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:AADFP 9578M] 2 .M/s. Popular Finance, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:ABFP 6302K] 3. M/s. Mini Finance, Popular Towers, Vakayar P.O., Konni, Pathanamthitta-689 698. PAN:AABFP 6665P] (Assessee-Appellant) (Revenue-Respondent) Assessee by…

JCIT (OSD)(It) 3(2)(1), Mumbai vs. Merrill Lynch Capital Market, Espana Sasv, Mumbai

In the result, the appeal is dismissed

ITA 6109/MUM/2018[2013-14]Status: DisposedITAT Mumbai11 Oct 2019AY 2013-14
Section 143(3)

…cted to tax as "profits" under section 10(1) of the Act of 1922 (which is pari materia with Section 28 of the Income Tax Act, 1961)”. In other words, even profits of illegal business were held to be taxable as ‘business profits’. In CIT Vs Piara Singh [(1980) 124 ITR 40 (SC)], the same position was reiterated. Of course, there are subsequent legislative developments with respect to admissibility, or rather inadmissibility, of deduction for “any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law” but that aspect of the matter is not relevant for the present purpos…

JCIT (OSD)(It) 3(2)(1), Mumbai vs. Merrill Lynch Capital Market, Espana Sasv, Mumbai

In the result, the appeal is dismissed

ITA 6108/MUM/2018[2014-15]Status: DisposedITAT Mumbai11 Oct 2019AY 2014-15
Section 143(3)

…cted to tax as "profits" under section 10(1) of the Act of 1922 (which is pari materia with Section 28 of the Income Tax Act, 1961)”. In other words, even profits of illegal business were held to be taxable as ‘business profits’. In CIT Vs Piara Singh [(1980) 124 ITR 40 (SC)], the same position was reiterated. Of course, there are subsequent legislative developments with respect to admissibility, or rather inadmissibility, of deduction for “any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law” but that aspect of the matter is not relevant for the present purpos…

The ACIT, Thiruvalla vs. M/S.Muthoot Properties & Investments, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 75/COCH/2018[2005-06]Status: HeardITAT Cochin21 Feb 2019AY 2005-06

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. Nos.69-72/Coch/2018 Assessment Years : 2002-03 to 2007-08 The Assistant Commissioner of Vs. M/s. Mar Gregorious Memorial Income-tax, Circle-1, Thiruvalla. Muthoot Medical Centre, Kozhencherry, Pathanamthitta. [PAN: AACFM 7331E] (Revenue-Appellant) (Assessee-Respondent) I.T.A. Nos.73-75/Coch/2018 Assessment Years : 2002-03, 2004-05 & 2005-06 The Assistant Commissioner of Vs. Muthoot Properties & Investments, Income-tax, Circle-1, Thiruvalla. Muthoot Building, Kozhencherry, Patha…

DCIT, Thiruvalla vs. Muthoot Properties & Investments, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 74/COCH/2018[2003-04]Status: HeardITAT Cochin21 Feb 2019AY 2003-04

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. Nos.69-72/Coch/2018 Assessment Years : 2002-03 to 2007-08 The Assistant Commissioner of Vs. M/s. Mar Gregorious Memorial Income-tax, Circle-1, Thiruvalla. Muthoot Medical Centre, Kozhencherry, Pathanamthitta. [PAN: AACFM 7331E] (Revenue-Appellant) (Assessee-Respondent) I.T.A. Nos.73-75/Coch/2018 Assessment Years : 2002-03, 2004-05 & 2005-06 The Assistant Commissioner of Vs. Muthoot Properties & Investments, Income-tax, Circle-1, Thiruvalla. Muthoot Building, Kozhencherry, Patha…

The ACIT, Thiruvalla vs. M/S.Muthoot Properties & Investments, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 73/COCH/2018[2002-03]Status: HeardITAT Cochin21 Feb 2019AY 2002-03

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. Nos.69-72/Coch/2018 Assessment Years : 2002-03 to 2007-08 The Assistant Commissioner of Vs. M/s. Mar Gregorious Memorial Income-tax, Circle-1, Thiruvalla. Muthoot Medical Centre, Kozhencherry, Pathanamthitta. [PAN: AACFM 7331E] (Revenue-Appellant) (Assessee-Respondent) I.T.A. Nos.73-75/Coch/2018 Assessment Years : 2002-03, 2004-05 & 2005-06 The Assistant Commissioner of Vs. Muthoot Properties & Investments, Income-tax, Circle-1, Thiruvalla. Muthoot Building, Kozhencherry, Patha…

DCIT, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 72/COCH/2018[2007-08]Status: HeardITAT Cochin21 Feb 2019AY 2007-08

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. Nos.69-72/Coch/2018 Assessment Years : 2002-03 to 2007-08 The Assistant Commissioner of Vs. M/s. Mar Gregorious Memorial Income-tax, Circle-1, Thiruvalla. Muthoot Medical Centre, Kozhencherry, Pathanamthitta. [PAN: AACFM 7331E] (Revenue-Appellant) (Assessee-Respondent) I.T.A. Nos.73-75/Coch/2018 Assessment Years : 2002-03, 2004-05 & 2005-06 The Assistant Commissioner of Vs. Muthoot Properties & Investments, Income-tax, Circle-1, Thiruvalla. Muthoot Building, Kozhencherry, Patha…

DCIT, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 71/COCH/2018[2004-05]Status: HeardITAT Cochin21 Feb 2019AY 2004-05

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. Nos.69-72/Coch/2018 Assessment Years : 2002-03 to 2007-08 The Assistant Commissioner of Vs. M/s. Mar Gregorious Memorial Income-tax, Circle-1, Thiruvalla. Muthoot Medical Centre, Kozhencherry, Pathanamthitta. [PAN: AACFM 7331E] (Revenue-Appellant) (Assessee-Respondent) I.T.A. Nos.73-75/Coch/2018 Assessment Years : 2002-03, 2004-05 & 2005-06 The Assistant Commissioner of Vs. Muthoot Properties & Investments, Income-tax, Circle-1, Thiruvalla. Muthoot Building, Kozhencherry, Patha…

DCIT, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 70/COCH/2018[2003-04]Status: HeardITAT Cochin21 Feb 2019AY 2003-04

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. Nos.69-72/Coch/2018 Assessment Years : 2002-03 to 2007-08 The Assistant Commissioner of Vs. M/s. Mar Gregorious Memorial Income-tax, Circle-1, Thiruvalla. Muthoot Medical Centre, Kozhencherry, Pathanamthitta. [PAN: AACFM 7331E] (Revenue-Appellant) (Assessee-Respondent) I.T.A. Nos.73-75/Coch/2018 Assessment Years : 2002-03, 2004-05 & 2005-06 The Assistant Commissioner of Vs. Muthoot Properties & Investments, Income-tax, Circle-1, Thiruvalla. Muthoot Building, Kozhencherry, Patha…

The ACIT, Circle-1, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Pathanamthitta

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 69/COCH/2018[2002-03]Status: HeardITAT Cochin21 Feb 2019AY 2002-03

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. Nos.69-72/Coch/2018 Assessment Years : 2002-03 to 2007-08 The Assistant Commissioner of Vs. M/s. Mar Gregorious Memorial Income-tax, Circle-1, Thiruvalla. Muthoot Medical Centre, Kozhencherry, Pathanamthitta. [PAN: AACFM 7331E] (Revenue-Appellant) (Assessee-Respondent) I.T.A. Nos.73-75/Coch/2018 Assessment Years : 2002-03, 2004-05 & 2005-06 The Assistant Commissioner of Vs. Muthoot Properties & Investments, Income-tax, Circle-1, Thiruvalla. Muthoot Building, Kozhencherry, Patha…

M/S Rassco Steels Ltd., Kolkata vs. The Pr. CIT-1, Kolkata

In the result, the appeal of assessee is allowed

ITA 904/KOL/2017[2012-13]Status: DisposedITAT Kolkata20 Jul 2018AY 2012-13

Bench: Shri A. T. Varkey, Jm & M.Balaganesh, Am]

Section 133ASection 143(3)Section 263

…come that shall form part of the total income would be so taken after defraying for all expenses that are incurred for earning such income by the assessee. Reference to the principle made in judgment rendered by the Hon’ble Supreme Court in CIT vs Pyara Singh 124 ITR 40 (SC) is relevant when undisclosed income is computed. The Ld. Pr. CIT has not found fault 14 M/s Rassco Steels Ltd. A.Y.2012-13 with the estimation of income made by the AO. No attempt has been made by the Ld. Pr CIT to bring in any comparable cases to show that the difference between income arising from the sales and purchases figures collected…

M/S Obulapuram Mining Co., Pvt. Ltd., Bellary vs. DCIT, Bangalore

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

ITA 653/BANG/2015[2010-11]Status: DisposedITAT Bangalore29 Jul 2016AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri A.K.Garodia, Accounant Member

For Appellant: Shri Mayank Jain, AdvocateFor Respondent: Dr. Sibichen K.Mathew, CIT-III
Section 131Section 37

…was point out that as per this report, there are problems in fixing the boundary leases once the boundary line/stations are disturbed. ITA No.653(B)/2015 Thereafter, reliance has been placed on the following judicial pronouncements a) CIT Vs Piara Singh 124 ITR 40(SC) b) CIT Vs S.C.Kothari 82 ITR 794 (SC) c) Badridas Daga Vs CIT 34 ITR 10 (SC) 10. The ld. DR of the revenue supported the orders of the authorities below. 11. We have considered the rival submissions. First of all we reproduce the relevant portion of report of the three member committee on irregularity in Iron ore mining leases in Bellary a…

T.A. Quereshi vs. Commissioner of Income Tax, Bhopal

The appeal is allowed

C.A. No.-005635-005635 - 2006Supreme Court06 Dec 2006
For Respondent: Commissioner of Income Tax, Bhopal
Section 254(2)Section 37

…and held that the assessee is entitled to claim the deduction as a business loss. In other words, the Tribunal was of the view that since the seizure has resulted in loss in trade hence, relying upon the law laid down by this Court in CIT vs. Piara Singh 124 ITR 40, the Tribunal allowed the deduction of Rs.2 lacs out of the gross total income of the assessee. It is http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 3 against this view of the Tribunal that the revenue felt aggrieved and filed the appeal before the High Court which, as stated above, was admitted for final hearing on the following qu…