CIT v. President Industries

258 ITR 654High Court2002#148 most cited

What is CIT v. President Industries authority for?

When books of account are rejected and unaccounted sales or receipts are discovered, the income addition is restricted to the net profit element embedded in these undisclosed transactions, not the entire sale proceeds or receipts, especially if corresponding purchases are not proven to be outside the books.

471

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. President Industries · 258 ITR 654 · Gujarat High Court · rejection of books of account · unaccounted sales · undisclosed sales · on-money receipts · profit element · net profit embedded · section 145(3) · section 132 · section 153A

Also reported as

124 Taxmann 654158 CTR 372134 TTJ 129

Sections most often in play

Section 143(3)Section 147Section 132Section 148Section 153ASection 115BBESection 142(1)Section 133A

Issues it is cited on

section 256(1)on money receiptsection 256project completion methodsurrender of incomeon-moneysection 69bsection 292crejection of books of accountloose paperssection 145(3)retracted statement

Judgments citing CIT v. President Industries

Shreem Soil Development Pvt. Ltd., Ahmedabad vs. The Dy. CIT, Central Circle-1(4), Ahmedabad

In the result, the appeal filed by the Revenue is hereby dismissed

ITA 1557/AHD/2019[2014-15]Status: DisposedITAT Ahmedabad09 Feb 2024AY 2014-15

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132Section 143(3)

…y the assessee are all relating to the developers who are engaged in the construction of flats/building, wherein net profit rate is adopted. Further the landmark judgment of the Jurisdictional High Court in the case of CIT vs. President Industries reported in 258 ITR 654, is a case about discrepancies noted in the production of the assessee by the Central Excise Authority on production of man-made fabrics, wherein the Hon’ble High Court held that the entire addition is to be made not in respect of the sale consideration, but only in respect of the profit element embedded therein. But the facts in the present case…

Ajmer Industries LLP, Naya Bazar Ajmer vs. DCIT Central Circle Ajmer, Jaipur Road Ajmer

In the result, three appeals of the assessee are allowed

ITA 760/JPR/2023[2018-19]Status: DisposedITAT Jaipur09 Feb 2024AY 2018-19

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. C. M. Agarwal (CA)For Respondent: Sh. Ajay Malik (CIT)
Section 132Section 153ASection 271ASection 274

…2021 for A.Y.2018-19 has also submitted that "It is also an established position of law that on unaccounted sales/turnover what is to be taxed is the profit embedded in these sales. The Hon'ble Guj. High Court in the case of CIT Vs. President Industries Ltd., 258 ITR 654 (Guj) has held that addition cannot be entire undisclosed sales proceeds. Only the profit embedded in sales proceeds can be taxed." The assessee has also placed his reliance on various other judicial pronouncements in this regard, which have been duly considered. 10. The bench also noted that the ld. AO accepted the additional income offered by…

Prem Prakash Agarwal, Naya Bazar Ajmer vs. DCIT Central Circle Ajmer, Jaipur Road Ajmer

In the result, three appeals of the assessee are allowed

ITA 759/JPR/2023[2019-20]Status: DisposedITAT Jaipur09 Feb 2024AY 2019-20

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. C. M. Agarwal (CA)For Respondent: Sh. Ajay Malik (CIT)
Section 132Section 153ASection 271ASection 274

…2021 for A.Y.2018-19 has also submitted that "It is also an established position of law that on unaccounted sales/turnover what is to be taxed is the profit embedded in these sales. The Hon'ble Guj. High Court in the case of CIT Vs. President Industries Ltd., 258 ITR 654 (Guj) has held that addition cannot be entire undisclosed sales proceeds. Only the profit embedded in sales proceeds can be taxed." The assessee has also placed his reliance on various other judicial pronouncements in this regard, which have been duly considered. 10. The bench also noted that the ld. AO accepted the additional income offered by…

Prem Prakash Agarwal, Naya Bazar Ajmer vs. DCIT Central Circle Ajmer, Jaipur Road Ajmer

In the result, three appeals of the assessee are allowed

ITA 758/JPR/2023[2018-19]Status: DisposedITAT Jaipur09 Feb 2024AY 2018-19

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. C. M. Agarwal (CA)For Respondent: Sh. Ajay Malik (CIT)
Section 132Section 153ASection 271ASection 274

…2021 for A.Y.2018-19 has also submitted that "It is also an established position of law that on unaccounted sales/turnover what is to be taxed is the profit embedded in these sales. The Hon'ble Guj. High Court in the case of CIT Vs. President Industries Ltd., 258 ITR 654 (Guj) has held that addition cannot be entire undisclosed sales proceeds. Only the profit embedded in sales proceeds can be taxed." The assessee has also placed his reliance on various other judicial pronouncements in this regard, which have been duly considered. 10. The bench also noted that the ld. AO accepted the additional income offered by…

ACIT, Central Circle- 28, New Delhi vs. Yogender Mohan Rustagi, New Delhi

In the result, the Revenue’s appeal is dismissed

ITA 8270/DEL/2019[2017-18]Status: DisposedITAT Delhi10 Jan 2024AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmaacit, Central Circle 28, Vs. Yogender Mohan Rustagi, Newdelhi. 288, Kucha Ghasi Ram, Chandni Chowk, Delhi – 110 006. (Pan : Agupr9629J) (Appellant) (Respondent) Assessee By : Shri Vibhu Gupta, Advocate Revenue By : Shri Amit Katoch, Sr. Dr Date Of Hearing : 08.01.2024 Date Of Order : 10.01.2024

For Appellant: Shri Vibhu Gupta, AdvocateFor Respondent: Shri Amit Katoch, Sr. DR
Section 256(1)

…came to Rs.3,86,65,998/- and on the same, three years average profit was 3.18% which was sustained by the ld. CIT(A). We find that ld. CIT (A) order gets support from the decision of Hon’ble Gujarat 4 High Court in the case of CIT vs. President Industries 258 ITR 654 wherein the Hon’ble Court, while affirming the decision of the Tribunal restricting addition of income on the suppressed amount of sales to the extent of net profit, held as under :- "Having perused the assessment order made by the Assessing Officer, the order made by the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribu…

Shrifal Impex Private Limited, Surat vs. Income Tax Officer, Ward - 2(1)(3), Surat

ITA 250/SRT/2023[2014-15]Status: DisposedITAT Surat29 Dec 2023AY 2014-15

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.190 To 191/Srt/2023 Assessment Year: (2011-12 To 2012-13) (Physical Hearing) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent) आयकर अपील सं./Ita No.250/Srt/2023 Assessment Year: (2014-15) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent)

Section 143(3)Section 148

…on of entire disputed purchase of Rs.1,92,19,31,021/- would be seriously unjustified and utmost the real profits embedded in the disputed purchase could utmost be brought to tax. {38 Taxmann.com 38S (Guj), 355 ITR 290 (Guj), 283 ITR 610 (MP), 304 ITR 52 (MP), 258 ITR 654 (Guj)}. ITA Nos. 190 - 191 &250/SRT/2023 Shrifal Impex Pvt. Ltd. The assesses makes a prayer to adopt the concept of real income and estimate the disallowance of meager amount which would take care of alleged non-genuine purchase. Even in a case of best judgement assessment u/s 144, the total income is estimated on the basis of honest guess work…

Shrifal Impex Pvt. Ltd., Surat vs. Income Tax Officer, Ward - 2(1)(3), Surat

ITA 191/SRT/2023[2012-13]Status: DisposedITAT Surat29 Dec 2023AY 2012-13

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.190 To 191/Srt/2023 Assessment Year: (2011-12 To 2012-13) (Physical Hearing) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent) आयकर अपील सं./Ita No.250/Srt/2023 Assessment Year: (2014-15) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent)

Section 143(3)Section 148

…on of entire disputed purchase of Rs.1,92,19,31,021/- would be seriously unjustified and utmost the real profits embedded in the disputed purchase could utmost be brought to tax. {38 Taxmann.com 38S (Guj), 355 ITR 290 (Guj), 283 ITR 610 (MP), 304 ITR 52 (MP), 258 ITR 654 (Guj)}. ITA Nos. 190 - 191 &250/SRT/2023 Shrifal Impex Pvt. Ltd. The assesses makes a prayer to adopt the concept of real income and estimate the disallowance of meager amount which would take care of alleged non-genuine purchase. Even in a case of best judgement assessment u/s 144, the total income is estimated on the basis of honest guess work…

Shrifal Impex Pvt. Ltd., Surat vs. Income Tax Officer, Ward - 2(1)(3), Surat

ITA 190/SRT/2023[2011-12]Status: DisposedITAT Surat29 Dec 2023AY 2011-12

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.190 To 191/Srt/2023 Assessment Year: (2011-12 To 2012-13) (Physical Hearing) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent) आयकर अपील सं./Ita No.250/Srt/2023 Assessment Year: (2014-15) Shrifal Impex Private Limited, Vs. The Ito, No.504, 5Th Floor, H. No.6/B/1739- Ward-2(1)(3), 1380, Parshwa Complex Thoba Sheri, Surat Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaocs4409E (Appellant) (Respondent)

Section 143(3)Section 148

…on of entire disputed purchase of Rs.1,92,19,31,021/- would be seriously unjustified and utmost the real profits embedded in the disputed purchase could utmost be brought to tax. {38 Taxmann.com 38S (Guj), 355 ITR 290 (Guj), 283 ITR 610 (MP), 304 ITR 52 (MP), 258 ITR 654 (Guj)}. ITA Nos. 190 - 191 &250/SRT/2023 Shrifal Impex Pvt. Ltd. The assesses makes a prayer to adopt the concept of real income and estimate the disallowance of meager amount which would take care of alleged non-genuine purchase. Even in a case of best judgement assessment u/s 144, the total income is estimated on the basis of honest guess work…

DCIT, Vapi vs. Gujarart Polysol Chemical Ltd, Vapi

In the result, the appeal of assessee is partly allowed whereas appeal of Revenue is dismissed

ITA 595/SRT/2023[2018-19]Status: DisposedITAT Surat28 Dec 2023AY 2018-19

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.513 & 595/Srt/2023 (Ay 2018-19) (Hearing In Physical Court) Gujarat Polysol Chemicals Ltd. Assistant Commissioner Of 1, Plot No.1734, 3Rd Phase. Income Tax, Central Circle-1, Vs Gidc, Vapi-396195 Vapi, 8Th Floor, Fortune Square- Pan No. Aaacg 8908 Q Ii, Above Tbz, Chala-396191 अपीलाथ"/Appellant ""थ" /Respondent /Ita No.595/Srt/2023 (Ay 2018-19) Deputy Commissioner Of Gujarat Polysol Chemicals Ltd., Income Tax, Central Circle, I, Plot No.1734, 3Rd Phase, Gidc, Vs Vapi, 9Th Floor, Fortune Vapi-396195 Pan No.Aaacg 8908 Q Square-Ii, Daman Road, Chala, Vapi-396191 अपीलाथ"/Appellant ""थ" /Respondent

Section 147Section 148Section 156Section 254(1)Section 270A

…de the book, is to be brought to tax. The Ld. CIT(A) by referring the decision of Hon’ble jurisdictional High Court in the case of Bholanath Polyfab (2013) 40 taxmann.com 494 (Guj), CIT vs. Simit P. Sheth 38 taxmann.com 385 (Guj); CIT vs. President Industries 258 ITR 654 (Guj) held that only net profit embedded in the sales are not the whole proceed itself to be treated as “income” when assessee incurring cost in acquired goods, which had been sold by assessee. On the basis of aforesaid observation, the Ld. CIT(A) noted 9 ITA Nos. 513 & 595/SRT/2023 (A.Y 18-19) Gujarat Polysol Chemicals Ltd. that assessee has p…

Gujarat Polysol Chemicals Limited Limited, Vapi vs. The Asst. Commissioner of Income Tax, Central Circle-1, Vapi

In the result, the appeal of assessee is partly allowed whereas appeal of Revenue is dismissed

ITA 513/SRT/2023[2018-19]Status: DisposedITAT Surat28 Dec 2023AY 2018-19

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.513 & 595/Srt/2023 (Ay 2018-19) (Hearing In Physical Court) Gujarat Polysol Chemicals Ltd. Assistant Commissioner Of 1, Plot No.1734, 3Rd Phase. Income Tax, Central Circle-1, Vs Gidc, Vapi-396195 Vapi, 8Th Floor, Fortune Square- Pan No. Aaacg 8908 Q Ii, Above Tbz, Chala-396191 अपीलाथ"/Appellant ""थ" /Respondent /Ita No.595/Srt/2023 (Ay 2018-19) Deputy Commissioner Of Gujarat Polysol Chemicals Ltd., Income Tax, Central Circle, I, Plot No.1734, 3Rd Phase, Gidc, Vs Vapi, 9Th Floor, Fortune Vapi-396195 Pan No.Aaacg 8908 Q Square-Ii, Daman Road, Chala, Vapi-396191 अपीलाथ"/Appellant ""थ" /Respondent

Section 147Section 148Section 156Section 254(1)Section 270A

…de the book, is to be brought to tax. The Ld. CIT(A) by referring the decision of Hon’ble jurisdictional High Court in the case of Bholanath Polyfab (2013) 40 taxmann.com 494 (Guj), CIT vs. Simit P. Sheth 38 taxmann.com 385 (Guj); CIT vs. President Industries 258 ITR 654 (Guj) held that only net profit embedded in the sales are not the whole proceed itself to be treated as “income” when assessee incurring cost in acquired goods, which had been sold by assessee. On the basis of aforesaid observation, the Ld. CIT(A) noted 9 ITA Nos. 513 & 595/SRT/2023 (A.Y 18-19) Gujarat Polysol Chemicals Ltd. that assessee has p…

Income Tax Officer, Ward-2(1), Vijayawada vs. Ajay Electronics, Vijayawada

In the result, appeal of the Revenue is partly allowed

ITA 272/VIZ/2023[2017-18]Status: DisposedITAT Visakhapatnam22 Dec 2023AY 2017-18

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri GVN Hari, ARFor Respondent: Sri Madhukar Aves, Sr. AR
Section 132Section 142(1)Section 143(1)Section 143(3)Section 69A

…Tax Act. What is to chargeable to tax under the Income Tax Act is the profit and gains of a year. What is chargeable to tax under the Income Tax Act is not gross receipts but income…..” Hon’ble Gujarat High Court in the case of CIT vs. President Industries [258 ITR 654] (Gujarat HC) has held that it cannot be the matter of an argument that the amount of sales by itself cannot represent the income of the assessee. It is the realization of excess over the cost incurred that only forms part of the profit included in the configuration of sale. Similar view was taken in the case of CIT vs. Gurubachhan Singh J. Jun…

Joint Commissioner of Income Tax, Ajmer vs. M/S R.P.Wood Products Pvt. Ltd., Ajmer

In the result, appeal of the assessee is allowed

ITA 370/JPR/2023[2018-19]Status: DisposedITAT Jaipur30 Nov 2023AY 2018-19

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri C.M. Agarwal, CAFor Respondent: Mrs. Monisha Choudhary, Addl. CIT fu/kZkfjrh dh vksjls@
Section 132Section 132(4)Section 153ASection 271A

…2021 for A.Y.2018-19 has also submitted that "It is also an established position of law that on unaccounted sales/turnover what is to be taxed is the profit embedded in these sales. The Hon'ble Guj. High Court in the case of CIT Vs. President Industries Ltd., 258 ITR 654 (Guj) has held that addition cannot be entire undisclosed sales proceeds. Only the profit embedded in sales proceeds can be taxed." The assessee has also placed his reliance on various other judicial pronouncements in this regard, which have been duly considered. 10. The bench also noted that the ld. AO accepted the additional income offered by…

Assistant Commissioner of Income Tax, Central Cir.-4, Surat vs. M/S Shree Narayan Corporation, Surat

ITA 107/SRT/2021[2014-15]Status: DisposedITAT Surat31 Oct 2023AY 2014-15

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Physical Hearing) A.C.I.T., M/S Shree Narayan Corporation, Central Circle- 4, Bl No. 85, Blue Bells, Near Vs. Surat. Vaishnodevi Township, Adajan, Surat. Pan No. Accfs 9265 P Appellant/ Respondent Respondent/ Assessee

Section 132Section 133ASection 254(1)

…is 5 ACIT Vs M/s Shree Narayan Corporation settled position under law that only profit component of such unaccounted sale and not the whole sale to be added as has been held by the Hon'ble Jurisdictional High Court in the case of CIT Vs. President Industries 258 ITR 654 (Guj). The assessee also relied on some other case laws and submitted that in an unreported decision of Tribunal in ITO Vs. Anand Builders, only 8% of gross receipt in case of builder was treated as on money income component. 6. The Assessing officer not accepted the reply furnished by assessee. The Assessing Officer held that the contention of a…

Dinesh Kumar Jain, Mumbai vs. ITO-22(1)(2), Mumbai

In the result, the appeal of the Assessee is dismissed

ITA 373/JODH/2019[2010-11]Status: DisposedITAT Jodhpur27 Oct 2023AY 2010-11
Section 143

…d placing reliance on the various judgments namely Hon’ble ITAT Ahmedabad Bench in the case of Vijay Protein Ltd. vs. ACIT (58 ITR 428) and N.K. Proteins Ltd. vs. DCIT [4 SOT 0479] (Ahd)], Hon’ble Gujrat High Court in the case of CIT vs. Presdient Industries (258 ITR 654) and Hon’ble Madhya Pradesh High Court in the case of CIT vs. Balchand Ajit Kumar (263 ITR 610), DCIT vs. Shri Jitendra S. Motani in ITA No. 3024 to 3028 Bench “J” dated 04.08.2009 (AYs 2000-01 to 2005-06) and ITA Sh. Dinesh Kumar Jain vs. ITO No.6178/M/2007 dated 30.11.2011 Bench “J” (AY. 2004-05), Hon’ble Delhi High Court in the case of CIT v…

Dy. Commissioner of Income Tax, Central Circle-3, Surat vs. Dmc Construction Pvt. Ltd., Mumbai

In the result, the grounds of Revenue’s appeal are dismissed

ITA 112/SRT/2021[2012-13]Status: DisposedITAT Surat10 Oct 2023AY 2012-13

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.112/Srt/2021 (Ay 2012-13) (Hearing In Physical Court) Deputy Commissioner Of Dmc Construction Pvt. Ltd Income-Tax, Central Circle-3, 9Th Trivedi Niwas, Rashtriya Vs Surat, Room No. 507, 5Th Floor, Shala Road, Ville Parle West, Aayakar Bhawan, Majura Gate, Mumbai-400056 Surat-395001 Pan No. Aadcd 2089 C अपीलाथ"/Appellant ""थ" /Respondent

Section 132Section 133ASection 143(2)Section 143(3)Section 148Section 254(1)

…आयकर अपीलीय अिधकरण, सुरत "ायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr ARJUN LAL SAINI, ACCOUNTANT MEMBER आ.अ.सं./ITA No.112/SRT/2021 (AY 2012-13) (Hearing in Physical Court) Deputy Commissioner of DMC Construction Pvt. Ltd Income-tax, Central Circle-3, 9th Trivedi Niwas, Rashtriya Vs Surat, Room No. 507, 5th Floor, Shala Road, Ville Parle West, Aayakar Bhawan, Majura Gate, Mumbai-400056 Surat-395001 PAN No. AADCD 2089 C अपीलाथ"/Appellant ""थ" /Respondent िनधा"रती की ओर से /Assessee by Shri P. M. Jagasheth, C.A राज" की ओर से /Revenue by Shr…

Das Karmakar Brick Field, Kolkata vs. ITO, WD.23(1), Kolkata, Hooghly

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

ITA 8/KOL/2017[2013-14]Status: DisposedITAT Kolkata06 Oct 2023AY 2013-14

Bench: Shri Sonjoy Sarma & Shri Girish Agrawal]

Section 133ASection 143(2)Section 40A(3)Section 44A

…the judgement of Hon’ble Kolkata High Court in the case of CIT vs S.M. Umer 201 ITR 608 where net profit rate is applied. Further he brought to our notice regarding the judgement of Hon’ble Gujarat High Court in the case of CIT vs President Industries (2002) 258 ITR 654 (net profit rate applied). The same principles have been followed by the Tribunal in the case of Manumati Boro by the Guwahati Bench of ITAT in ITA No. 111/GTY/2020 pronounced on 20.02.2023 which was also a survey case wherein also net profit rate was applied. Hence the AO may be directed to apply the net profit rate of 8.54% on the alleged undis…

Assistant Commissioner of Income Tax Circle-Satna, Satna vs. M/S. Ram Kumar Suresh Kumar, Satna

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

ITA 136/JAB/2018[2013-14]Status: PendingITAT Jabalpur22 Sept 2023AY 2013-14

Bench: Shri Om Prakash Kantshri Pavan Kumar Gaaleasst. Commissioner Of Vs Shri Ram Kumar Income Tax, Circle-Satna, Suresh Kumar, Satna Birla Road, Satna (Appellant) (Respondent) Pan No. Aaffr3899D Revenue By Shri Shravan Kumar Gotru, Cit Dr Assessee By Shri Rahul Bardia, Fca Date Of Hearing 13/09/2023 Date Of Pronouncement 22/09/2023 O R D E R Per Om Prakash Kant, A.M.: This Appeal By The Revenue Is Directed Against Order Dated 12.03.2018 Passed By Ld. Commissioner Of Income Tax(Appeals)-1, Jabalpur [In Short “Ld.Cit(A)”] For The Assessment Year 2013-14, Raising Following Grounds:

Section 133(6)Section 68

…account payee cheques. Further, since the sales have been accepted totally bythe A.O. CIT(A) was of the view that only the net profit could be estimated. CIT(A) has also relied on the decision of Gujarat High Court in the case of CIT vs. President Industries 258 ITR 654 and the decision of Madhya Pradesh High Court in the case of Manmohan Sadani vs. CIT 304 ITR 152." (viii) In the case of Andaman timber Industries v Commissioner of Central Excise (2015) 94 CCH 0187 the hon'ble Supreme Court has held as under :- "Not allowing the assessee to cross-examine the witnesses by the Adjudicating Authority though the sta…

Asst. Commissioner of Income Tax, Central Circle-1, Surat vs. Kush Corporation, Surat

In the result, grounds of cross objection raised by assessee is partly allowed

ITA 357/SRT/2022[2016-17]Status: DisposedITAT Surat05 Sept 2023AY 2016-17

Bench: Shri Pawan Singh & Dr. Arjun Lal Sainiit(Ss)A No. 93 & 94/Srt /2022 (Assessment Year: 2014-15 & 2015-16)

Section 133ASection 254(1)

…rate as per SMSs of Rs. 2850 per square feet worked out the total on money of Rs. 1,29,69,000/- as mentioned in para 6.6 of his order. The ld. CIT(A) held that as per the order of Hon’ble Jurisdictional High Court in CIT Vs President Industries reported vide 258 ITR 654 and CIT Vs Gurbachan Singh Juneja 302 ITR 63 (Guj) and Neo Formulation Pvt. Ltd. 363 ITR 322 that only profit element to be taxed and not the entire gross receipt of alleged on money. The ld. CIT(A) recorded that profit element in the activities of builders are IT(SS)A No. 93 & 94 & ITA 357/Srt/2022 & CO 01/Srt/2023 ACIT Vs Kush Corporation rangi…

M/S. Yashaswi Fish Meal and Oil Company, Udupi vs. Deputy Commissioner of Income-Tax, Central Circle-1, Mangalore

In the result, all the appeals of the assessee are partly allowed

ITA 66/BANG/2023[2017-18]Status: DisposedITAT Bangalore01 Sept 2023AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shi V. Srinivasan, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 131Section 132(4)Section 133ASection 143Section 143(1)Section 143(3)Section 147Section 148

…profit element embedded therein which would be subject to tax. It would be appropriate to restrict the disallowance made in this regard to 25 per cent of the cost of such purchases in each year.” 8.19 In the case of CIT Vs. President Industries, reported in 258 ITR 654, the Hon’ble Gujarat High Court held as under: “In the course of survey conducted in the premises of assessee, excise records were found which disclosed godown sales not disclosed in the books of account of the assessee. The Assessing Officer made addition of undisclosed income of the entire sale proceeds thereof. The Commissioner affirmed the ad…

M/S. Yashaswi Fish Meal and Oil Company, Udupi vs. Deputy Commissioner of Income-Tax, Central Circle-1, Mangalore

In the result, all the appeals of the assessee are partly allowed

ITA 65/BANG/2023[2015-16]Status: DisposedITAT Bangalore01 Sept 2023AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shi V. Srinivasan, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 131Section 132(4)Section 133ASection 143Section 143(1)Section 143(3)Section 147Section 148

…profit element embedded therein which would be subject to tax. It would be appropriate to restrict the disallowance made in this regard to 25 per cent of the cost of such purchases in each year.” 8.19 In the case of CIT Vs. President Industries, reported in 258 ITR 654, the Hon’ble Gujarat High Court held as under: “In the course of survey conducted in the premises of assessee, excise records were found which disclosed godown sales not disclosed in the books of account of the assessee. The Assessing Officer made addition of undisclosed income of the entire sale proceeds thereof. The Commissioner affirmed the ad…