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 367,164 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

Jagdish Bhutt, Uttar Pradesh vs. DCIT, Circle-1, Uttar Pradesh

In the result, appeal filed by assessee is allowed for statistical purposes

ITA 527/DEL/2022[2013-14]Status: DisposedITAT Delhi16 Nov 2022AY 2013-14

Bench: Shri N.K.Billaiya & Shri Kul Bharat[Assessment Year : 2013-14] Jagdish Bhutt, Vs Dcit, F-115, Sector-56, Noida, Circle-1, Uttar Pradesh-201301. Noida. Pan-Aylpb6080G Appellant Respondent Appellant By Shri Rishi Gautam, Adv. Respondent By Shri Sanjay Tripathi, Sr. Dr Date Of Hearing 16.11.2022 Date Of Pronouncement 16.11.2022

Section 144Section 69A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI BEFORE SHRI N.K.BILLAIYA, ACCOUNTANT MEMBER & SHRI KUL BHARAT, JUDICIAL MEMBER [Assessment Year : 2013-14] Jagdish Bhutt, vs DCIT, F-115, Sector-56, Noida, Circle-1, Uttar Pradesh-201301. Noida. PAN-AYLPB6080G APPELLANT RESPONDENT Appellant by Shri Rishi Gautam, Adv. Respondent by Shri Sanjay Tripathi, Sr. DR Date of Hearing 16.11.2022 Date of Pronouncement 16.11.2022 ORDER PER KUL BHARAT, JM : This appeal filed by the assessee for the assessment year 2013-14 is directed against the order of Ld. CIT(A), Noida dated 30.04.2017. 2. The assessee has r…

Shri Baldev Singh, Abohar vs. Income Tax Officer Ward- 3 (2), Ferozepur

In the result, the appeal bearing ITA No

ITA 48/ASR/2022[2017-18]Status: DisposedITAT Amritsar11 Nov 2022AY 2017-18

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(1)Section 250o

…aning of solar modules cannot be charged to tax as income and only the profits embedded in the gross receipts are liable to be charged to tax on account of principle of law as settled by the Hon’ble Gujrat High Court in the case of CIT vs President Industries 258 ITR 654. 3. That the Ld. CIT(A), NFAC erred on facts and law in confirming the addition of Rs.8,86,320/- made by the DCIT, CPC, Bengaluru while processing the return u/s 143(1) vide order dated 11.12.2018 while rejecting the contention of the assessee that the amount of Rs. 8,86,320/-, being the gross receipts of cleaning of solar modules, cannot be char…

Saila Behari Chakravorty, Kolkata vs. I.T.O., Ward-3(2), Kolkata

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

ITA 300/KOL/2019[2011-12]Status: DisposedITAT Kolkata21 Oct 2022AY 2011-12

Bench: Dr. Manish Borad & Sonjoy Sarmaआयकर अपील संख्या: 300/कोल/2019 धनिाारण वषाः 2011-12

Section 144Section 148Section 250Section 44A

…disclosed sales of the assessee. Now, whether the assessee should be liable to tax on the sale amount or on the profit element in the sale amount. Hon’ble Gujarat High Court in the case of Commissioner of Income-tax vs. President Industries reported in [2002] 258 ITR 654 (Gujarat) order dated 20.04.1999 has held that “The sales only represent the price received by the seller of the goods for the acquisition of which it has incurred the cost. It is the realisation of excess over the cost incurred that only forms part of the profit included in the consideration of sales. Therefore, unless there is a finding to the…

Shri Ram Hakmaji Purohit, Ahmedabad vs. The ITO, Ward-6(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2354/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad11 Oct 2022AY 2014-15
For Appellant: Shri S.N. Divatia, A.RFor Respondent: Shri Alok Kumar, CIT-D.R
Section 250Section 68

…transactions by way of commission could be subjected to tax. In this regard the appellant relied on the decision in the case of Gold star Finvest (P.) Ltd v ITO (33 taxmann.com 129)(Mum), Manoj Aggrawal v DCIT ( 113 JTD 377)(Del), CIT v. President Industries (258 ITR 654), CIT v. Guru Bachhan Singh Juneja (302 ITR 364), ACIT vs. Buniyad Chemicals Ltd., ITA No, 2787/Mum/2015, 7.6.2017 and CIT v. Samir Synthetic Mills (326 ITR 410). 4.1 However, the Ld. CIT(Appeals) dismissed the assessee’s appeal with the following observations: After considering all facts and circumstances of the case, I am not inclined to agre…

The Income Tax Officer, Ward-2(3)(7), Surat vs. Shri Abhishek L. Jain, Surat

In the result, the grounds of appeal raised by the revenue is partly allowed

ITA 344/SRT/2019[2007-08]Status: DisposedITAT Surat26 Sept 2022AY 2007-08

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.344/Srt/2019 (Ay 2007-08) (Hearing In Virtual Court) Income Tax Officer, Ward- Shri Abhishek L.Jain 2(3)(7), Room No. 414, 4Th Prop Of Manglam Export, Vs Floor, Anavil Business Centre, 302, Pipla Sheri, Adajan-Hajira Road, Mahidharpura, Adajan, Surat-395003 Pan : Abxpj 0344 G Surat-395009 अपीलाथ"/Appellant ""यथ" /Respondent

Section 143(2)Section 143(3)Section 147Section 148Section 254(1)

…आयकर अपील"य अ"धकरण, सुरत "यायपीठ, 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.344/SRT/2019 (AY 2007-08) (Hearing in Virtual Court) Income Tax Officer, Ward- Shri Abhishek L.Jain 2(3)(7), Room No. 414, 4th Prop of Manglam Export, Vs Floor, Anavil Business Centre, 302, Pipla Sheri, Adajan-Hajira Road, Mahidharpura, Adajan, Surat-395003 PAN : ABXPJ 0344 G Surat-395009 अपीलाथ"/Appellant ""यथ" /Respondent "नधा"रती क" ओर से /Assessee by Shri Mehul Shah, C.A राज"व क" ओर से /Revenue by Shri H.P. Meena, CI…

Dy. CIT CC -7(40), Mumbai vs. Shree Ambica Gems, Mumbai

In the result, both the appeals of the revenue are dismissed and Cross Objection filed by the assessee are dismissed

ITA 1769/MUM/2022[2018-19]Status: DisposedITAT Mumbai23 Sept 2022AY 2018-19

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Biren ShahFor Respondent: Pitta Samuel
Section 133ASection 69A

…l's decision in the case of Vijay Proteins Ltd vs. Asstt CIT [1996] 58 ITD 428 (Ahd) On appeal by the Department. the Hon'ble Gujarat High Court held "We are of the opinion that the Tribunal committed no error……….” 9.3.15 In CIT vs President Industries (2002) 258 ITR 654(Guj)(HC) it was held that only profit embodied on sale proceeds can be taxed In CIT vs Balachand Ajit Kumar(2003) 263 ITR 610(MP)(HC)(612-613) it was held that suppressed sale cannot be the income only net profit can be assessed In Sanjeev Woolen Mills vs CIT(2005) 279 ITR 434(SC) it was observed that it is a settled principle of income- tax law…

DCIT Circle-3(3), Ahmedabad vs. Shri Alpeshkumar C.Patel, Ahmedabad

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

ITA 1991/AHD/2018[2011-12]Status: DisposedITAT Ahmedabad09 Sept 2022AY 2011-12

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumarआयकर अपील सं./Ita No. 1908/Ahd/2018 िनधा"रण वष"/Asstt. Year: 2011-2012 Alpeshkumar C. Patel, A.C.I.T., 503, Milestone Building, Vs. Circle-3(3), Drive In Road, Ahmedabad. Thaltej, Ahmedabad-380052. Pan: Aeapp9489G

For Appellant: Shri Deepak R. Shah, A.RFor Respondent: Shri Ajay Pratap Singh CIT. D.R with Shri V.K. Singh, Sr.D.R
Section 41(1)Section 54F

…assessee has claimed all the expenses in the profit and loss account it is a case only of suppression of the sale consideration. In our opinion, irf this regard, the judgment of foe jurisdiction al High Court in the case of CIT vs. President Industries [2002} 258 ITR 654 (Guj.) is fully applicable." In another'case of CIT Vs. Bholanaih Polyfab Pvt Ltd. - (2013) 40 Taxmann 494(Guj), Hon'ble Gujarat High Court has held "the facts were that suppliers were not found at their addresses, A.O. disallowe'd as bogus purchases. Though purchases were made from bogus parties, purchases themselves were not bogus as entire qua…

Yugaandhar Housing Pvt Ltd, Vijayawada vs. ACIT, Central Cercle, Vijayawada

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

ITA 88/VIZ/2022[2018-2019]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2018-2019

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

For Appellant: Sri MV Prasad, CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 132(4)Section 143(3)

…आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री दुव्िूरु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाकृष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. Nos. 83, 84, 85, 86, 87 & 88/Viz/2022 (ननधधारण वषा / AYs: 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2018-19) M/s. Yugaandhar Housing Pvt Vs. Asst. Commissioner of Ltd., Income Tax, Vijayawada. Central Circle, PAN: AAACY 4328 C Vijayawada. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अ…

Yugaandhar Housing Pvt Ltd, Vijayawada vs. ACIT, Central Cercle, Vijayawada

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

ITA 87/VIZ/2022[2016-2017]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2016-2017

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

For Appellant: Sri MV Prasad, CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 132(4)Section 143(3)

…आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री दुव्िूरु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाकृष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. Nos. 83, 84, 85, 86, 87 & 88/Viz/2022 (ननधधारण वषा / AYs: 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2018-19) M/s. Yugaandhar Housing Pvt Vs. Asst. Commissioner of Ltd., Income Tax, Vijayawada. Central Circle, PAN: AAACY 4328 C Vijayawada. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अ…

Yugaandhar Housing Pvt Ltd, Vijayawada vs. ACIT, Central Cercle, Vijayawada

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

ITA 86/VIZ/2022[2015-2016]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2015-2016

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

For Appellant: Sri MV Prasad, CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 132(4)Section 143(3)

…आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री दुव्िूरु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाकृष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. Nos. 83, 84, 85, 86, 87 & 88/Viz/2022 (ननधधारण वषा / AYs: 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2018-19) M/s. Yugaandhar Housing Pvt Vs. Asst. Commissioner of Ltd., Income Tax, Vijayawada. Central Circle, PAN: AAACY 4328 C Vijayawada. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अ…

Yugaandhar Housing Pvt Ltd, Vijayawada vs. ACIT, Central Cercle, Vijayawada

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

ITA 85/VIZ/2022[2014-2015]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2014-2015

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

For Appellant: Sri MV Prasad, CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 132(4)Section 143(3)

…आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री दुव्िूरु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाकृष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. Nos. 83, 84, 85, 86, 87 & 88/Viz/2022 (ननधधारण वषा / AYs: 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2018-19) M/s. Yugaandhar Housing Pvt Vs. Asst. Commissioner of Ltd., Income Tax, Vijayawada. Central Circle, PAN: AAACY 4328 C Vijayawada. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अ…

Yugaandhar Housing Pvt Ltd, Vijayawada vs. ACIT, Central Cercle, Vijayawada

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

ITA 84/VIZ/2022[2013-2014]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2013-2014

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

For Appellant: Sri MV Prasad, CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 132(4)Section 143(3)

…आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री दुव्िूरु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाकृष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. Nos. 83, 84, 85, 86, 87 & 88/Viz/2022 (ननधधारण वषा / AYs: 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2018-19) M/s. Yugaandhar Housing Pvt Vs. Asst. Commissioner of Ltd., Income Tax, Vijayawada. Central Circle, PAN: AAACY 4328 C Vijayawada. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अ…

Yugaandhar Housing Pvt Ltd, Vijayawada vs. ACIT, Central Cercle, Vijayawada

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

ITA 83/VIZ/2022[2012-2013]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2012-2013

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

For Appellant: Sri MV Prasad, CAFor Respondent: Sri MN Murthy Naik, CIT-DR
Section 132(4)Section 143(3)

…आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री दुव्िूरु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाकृष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. Nos. 83, 84, 85, 86, 87 & 88/Viz/2022 (ननधधारण वषा / AYs: 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 & 2018-19) M/s. Yugaandhar Housing Pvt Vs. Asst. Commissioner of Ltd., Income Tax, Vijayawada. Central Circle, PAN: AAACY 4328 C Vijayawada. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अ…

M/S. Sarswati Extrusion Pvt.Ltd, Aurangabad vs. Income-Tax Officer, Ward - 2(4), Aurangabad

ITA 1716/PUN/2017[2011-12]Status: DisposedITAT Pune29 Aug 2022AY 2011-12

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपीलसं. / Ita No.1546/Pun/2017 िनधा"रणवष" / Assessment Year : 2011-12 The Income Tax Officer, M/S.Saraswati Extrusions Ward-2(4), Aurangabad. Vs Pvt. Ltd., . H-20, Midc, Waluj, Aurangabad – 431136. Pan: Aajcs 6024 J Appellant/ Assessee Respondent /Revenue आयकर अपीलसं. / Ita No.1716/Pun/2017 िनधा"रणवष" / Assessment Year : 2011-12 M/S.Saraswati Extrusions Pvt. The Income Tax Officer, Ltd., Vs Ward-2(4), Aurangabad. H-20, Midc, Waluj, . Aurangabad – 431136. Pan: Aajcs 6024 J Appellant/ Assessee Respondent /Revenue Assessee By Shri Pramod Shingte – Ar Revenue By Shri M.G.Jasnani – Dr Date Of Hearing 11/07/2022 Date Of Pronouncement 29/08/2022 आदेश/ Order Per S.S.Godara, Jm: These Revenue’S & Assessee’S Cross Appeals Ita No.1546 & 1716/Pun/2017 For A.Y. 2011-12 Arising Against The Ld.Cit(A)- 2, Aurangabad’S Order Dated 12.04.2017 Passed In Appeal No.Abd/Cit(A)-2/E-File/57/2016-17, In Proceedings Under Section 143(3) Of The Income Tax Act, 1961 [In Short “The Act”].

Section 143(3)

…he assessing officer has disregarded the payments made by cheque to the immediate purchasers. Finally, it was stated that addition if at all should have been restricted to the amount of actual profit as held in the cases of CIT Vs. President Industries [2002] 258 ITR 654 (Guj.) wherein it has been held that only profits embedded in the sale proceeds can be taxed. Further, the assessee relied on the decision given in the case of Sanjeev Woolen Mills Vs. CIT [2005] 279 ITR 434 (SC) to state that it is only the real income which is taxable under the Act. ITA No.1546/PUN/2017 [R] & ITA No.1716/PUN/2017 [A] M/s.Saras…

Income-Tax Officer, Ward - 2(4), Aurangabad vs. M/S. Saraswati Extrusions Pvt.Ltd, Aurangabad

ITA 1546/PUN/2017[2011-12]Status: DisposedITAT Pune29 Aug 2022AY 2011-12

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपीलसं. / Ita No.1546/Pun/2017 िनधा"रणवष" / Assessment Year : 2011-12 The Income Tax Officer, M/S.Saraswati Extrusions Ward-2(4), Aurangabad. Vs Pvt. Ltd., . H-20, Midc, Waluj, Aurangabad – 431136. Pan: Aajcs 6024 J Appellant/ Assessee Respondent /Revenue आयकर अपीलसं. / Ita No.1716/Pun/2017 िनधा"रणवष" / Assessment Year : 2011-12 M/S.Saraswati Extrusions Pvt. The Income Tax Officer, Ltd., Vs Ward-2(4), Aurangabad. H-20, Midc, Waluj, . Aurangabad – 431136. Pan: Aajcs 6024 J Appellant/ Assessee Respondent /Revenue Assessee By Shri Pramod Shingte – Ar Revenue By Shri M.G.Jasnani – Dr Date Of Hearing 11/07/2022 Date Of Pronouncement 29/08/2022 आदेश/ Order Per S.S.Godara, Jm: These Revenue’S & Assessee’S Cross Appeals Ita No.1546 & 1716/Pun/2017 For A.Y. 2011-12 Arising Against The Ld.Cit(A)- 2, Aurangabad’S Order Dated 12.04.2017 Passed In Appeal No.Abd/Cit(A)-2/E-File/57/2016-17, In Proceedings Under Section 143(3) Of The Income Tax Act, 1961 [In Short “The Act”].

Section 143(3)

…he assessing officer has disregarded the payments made by cheque to the immediate purchasers. Finally, it was stated that addition if at all should have been restricted to the amount of actual profit as held in the cases of CIT Vs. President Industries [2002] 258 ITR 654 (Guj.) wherein it has been held that only profits embedded in the sale proceeds can be taxed. Further, the assessee relied on the decision given in the case of Sanjeev Woolen Mills Vs. CIT [2005] 279 ITR 434 (SC) to state that it is only the real income which is taxable under the Act. ITA No.1546/PUN/2017 [R] & ITA No.1716/PUN/2017 [A] M/s.Saras…

DCIT -32(1), Mumbai vs. Jain Naresh Nemichand HUF, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1367/MUM/2022[2010-11]Status: DisposedITAT Mumbai22 Aug 2022AY 2010-11

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms Kavitha Rajagopal, Hon'Bledcit – 32(1) V. Jain Naresh Nemichand Huf Room No. 702, 7Th Floor 202, Ganjawala Elagance Kautilya Bhavan Gnjawala Lane, Borivali (W) Bandra Kurla Complex Mumbai - 400092 Bandra(E), Mumbai - 400051 Pan: Aadhj5277K (Appellant) (Respondent) Assessee By : Shri Bhupendra Shah Department By Vranda U/S. Matkari

For Appellant: Shri Bhupendra Shah
Section 133(6)Section 143(1)Section 143(2)

…nces in the present case. Moreover the question whether entire purchases should be disallowed or addition should be restricted to the profits embedded in the sale proceeds was answered by Hon'ble Gujarat High Court in the case of CIT VS. President Industries (258 ITR 654) and Hon'ble Madhya Pradesh High Court in the case of CIT VS. Balchand Ajit Kumar (263 ITR 610). Considering the above decisions, it is clear that only the profits embedded in sale proceeds can be taxed instead of addition on account of entire purchases. In the instant case, it is also not in dispute that the purchase amount had paid to the alleg…

Sitaram Prints Pvt. Ltd., Surat vs. Dy. Commissioner of Income Tax, C Circle-2Entral Cir., 2, Surat

In the result, this appeal of assessee is dismissed

ITA 157/SRT/2021[2015-16]Status: DisposedITAT Surat17 Aug 2022AY 2015-16

Bench: Shri Pawan Singh & Dr. Arjun Lal Sainiit(Ss)A Nos. 67, 68 & Ita 157/Srt/2021 (Assessment Years: 2013-14, 2014-15 & 2015-16) (Hearing In Physical Court) Sitaram Prints Pvt. Ltd., Dy. Commissioner Of Income Tax, Plot No. 11, Road No. 10, Circle-2, Vs. Udhna Udhyog Nagar, Udhna, Aayakar Bhavan, Near Majura Surat-394210, (Gujarat). Gate, Surat-395001. Pan : Aaecs 2255 C Appellant Respondednt

Section 132Section 143(2)Section 153ASection 254(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER IT(SS)A Nos. 67, 68 & ITA 157/SRT/2021 (Assessment Years: 2013-14, 2014-15 & 2015-16) (Hearing in Physical Court) Sitaram Prints Pvt. Ltd., Dy. Commissioner of Income Tax, Plot No. 11, Road No. 10, Circle-2, Vs. Udhna Udhyog Nagar, Udhna, Aayakar Bhavan, Near Majura Surat-394210, (Gujarat). Gate, Surat-395001. PAN : AAECS 2255 C APPELLANT RESPONDEDNT Assessee by Shri Rasesh Shah, CA Department by Shri H.P. Meena, CIT-DR Date of hearing 17/08/2022 Date of pronouncement 17/0…

The ITO, Ward-9(2), Ahmedabad vs. M/S. Bhailalbhai A.Patel, Ahmedabad

In the result appeal of the revenue is hereby dismissed

ITA 308/AHD/2013[2009-10]Status: DisposedITAT Ahmedabad17 Aug 2022AY 2009-10

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Appellant: ITA Nos. 2610/Ahd/2011 & 308/Ahd/2013 a/w. CO No.64/Ahd/13For Respondent: Shri Alok Kumar, CIT.DR
Section 133ASection 69

…ered view only a percentage of profit embedded in such amount of business transactions can be brought to tax. In this regard, we find support and guidance from the order of the Hon’ble Gujarat High Court in the case of CIT vs. President Industries reported in 258 ITR 654 where it was directed to make the addition only to the extent of gross profit. The relevant extract of the order is reproduced as under: ‘The amount of sales by itself cannot represent the income of the assessee who has not disclosed the sales. The sales only represent the price received by the seller of the goods for the acquisition of which it…

The DCIT, Circle-9, Ahmedabad vs. M/S. Bhailalbhai A.Patel, Ahmedabad

In the result appeal of the revenue is hereby dismissed

ITA 2610/AHD/2011[2008-09]Status: DisposedITAT Ahmedabad17 Aug 2022AY 2008-09

Bench: Shri Mahavir Prasad, Judicial Memebr & Shri Waseem Ahmed, Accountant Memebr

For Appellant: ITA Nos. 2610/Ahd/2011 & 308/Ahd/2013 a/w. CO No.64/Ahd/13For Respondent: Shri Alok Kumar, CIT.DR
Section 133ASection 69

…ered view only a percentage of profit embedded in such amount of business transactions can be brought to tax. In this regard, we find support and guidance from the order of the Hon’ble Gujarat High Court in the case of CIT vs. President Industries reported in 258 ITR 654 where it was directed to make the addition only to the extent of gross profit. The relevant extract of the order is reproduced as under: ‘The amount of sales by itself cannot represent the income of the assessee who has not disclosed the sales. The sales only represent the price received by the seller of the goods for the acquisition of which it…

M/S. Shree Ganesh Builders, Ahmedabad vs. The ITO, Ward-3(2)(10), Ahmedabad

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

ITA 995/AHD/2018[2010-11]Status: DisposedITAT Ahmedabad05 Aug 2022AY 2010-11

Bench: Shri Waseem Ahmed & Ms. Madhumita Royआयकर अपील सं./Ita No. 995/Ahd/2018 िनधा"रण वष"/Asstt. Year: 2010-2011 M/S. Shree Ganesh Builders, I.T.O, 67, Gokuldham Society, Vs. Ward-3(2)(10), Mahalaxmi Society, Ahmedabad. Opp. Smruti Mandir, Ghodasar, Ahmedabad.

For Appellant: Shri S.N. Divetia, A.RFor Respondent: Shri R.R. Makwana, Sr. DR
Section 147

…आयकर अपीलीय अिधकरण, अहमदाबाद "ायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ B” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./ITA No. 995/AHD/2018 िनधा"रण वष"/Asstt. Year: 2010-2011 M/s. Shree Ganesh Builders, I.T.O, 67, Gokuldham Society, Vs. Ward-3(2)(10), Mahalaxmi Society, Ahmedabad. Opp. Smruti Mandir, Ghodasar, Ahmedabad. PAN: AAEFM1186H (Applicant) (Respondent) Assessee by : Shri S.N. Divetia, A.R Revenue by : Shri R.R. Makwana, Sr. DR सुनवाई की तारीख/Date of Hearing : 09/05/2022 घोषणा की तारीख /Date of Pronouncement: 05/08/2022 आदेश/O…