CIT v. President Industries

Lexus Softmac, Surat vs. DCIT, Circle 1(1)(1), Surat

In the result, assessee’s appeal ITA No

Bench: Ms. Suchitra Raghunath Kamble & Shri Bijayananda Prusethआयकर अपील सं./Ita Nos.702 & 703/Srt/2024 Ays: (2014-15 &2015-16) (Hybrid Hearing) Lexus Softmac, Deputy Commissioner Of F -3 To F-6, Gujarat Hira Bourse, Income-Tax, Circle 1(1)(1), बनाम/ Gems & Jewellery Park, Surat Room No.108, Vs. Ichchhapore, Aayakar Bhawan, Majura Surat - 394510 Gate, Opp. New Civil Hospital, Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aabfl 0495 P (अपीलाथ"/Appellant) (""थ" /Respondent) िनधा"रती की ओर से /Appellant By Shri Deven K Kapadia, C.A. राज" की ओर से /Respondent By Shri Ajay Uke, Sr. Dr सुनवाई की तारीख/Date Of Hearing 19/08/2025 उद्घोषणा की तारीख/Date Of Pronouncement 25/09/2025

…ements, ledger accounts, confirmations, and demonstrated consumption of material in its manufacturing process. It is pertinent to note that sales have not been doubted. In similar situations, Hon’ble Gujarat High Court in cases of CIT vs. President Industries 258 ITR 654 (Guj), Bholanath Polyfab Pvt. Ltd. (supra), Simit P. Sheth (supra), Vijay Proteins (supra), held that entire purchases cannot be disallowed; only profit element embedded needs to be taxed. We also find that facts of instant case are similar to those in the case of Sudeep Mahendrabhai Shah in ITA 2423/Ahd/2016 dated 29.05.2018, where the Tribunal…

Lexus Softmac, Surat vs. DCIT, Circle1(1)(1), Surat

In the result, assessee’s appeal ITA No

Bench: Ms. Suchitra Raghunath Kamble & Shri Bijayananda Prusethआयकर अपील सं./Ita Nos.702 & 703/Srt/2024 Ays: (2014-15 &2015-16) (Hybrid Hearing) Lexus Softmac, Deputy Commissioner Of F -3 To F-6, Gujarat Hira Bourse, Income-Tax, Circle 1(1)(1), बनाम/ Gems & Jewellery Park, Surat Room No.108, Vs. Ichchhapore, Aayakar Bhawan, Majura Surat - 394510 Gate, Opp. New Civil Hospital, Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aabfl 0495 P (अपीलाथ"/Appellant) (""थ" /Respondent) िनधा"रती की ओर से /Appellant By Shri Deven K Kapadia, C.A. राज" की ओर से /Respondent By Shri Ajay Uke, Sr. Dr सुनवाई की तारीख/Date Of Hearing 19/08/2025 उद्घोषणा की तारीख/Date Of Pronouncement 25/09/2025

…ements, ledger accounts, confirmations, and demonstrated consumption of material in its manufacturing process. It is pertinent to note that sales have not been doubted. In similar situations, Hon’ble Gujarat High Court in cases of CIT vs. President Industries 258 ITR 654 (Guj), Bholanath Polyfab Pvt. Ltd. (supra), Simit P. Sheth (supra), Vijay Proteins (supra), held that entire purchases cannot be disallowed; only profit element embedded needs to be taxed. We also find that facts of instant case are similar to those in the case of Sudeep Mahendrabhai Shah in ITA 2423/Ahd/2016 dated 29.05.2018, where the Tribunal…

Assistant Commissioner of Income Tax, Income Tax Department vs. Suresh Jewellers, Shakuntla Palace

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyआयकर अपील सं No.244/Pat/2023 (नििाारणवर्ा / Assessment Year :2017-2018) Acit, Central Circle-3, Patna Vs Sachchu Prasad, Kasap, Udwant Nagar, Bhojpur Bihar-802206 Pan No. :Ajspp 8058 Q & आयकर अपील सं No.245/Pat/2023 (नििाारणवर्ा / Assessment Year : 2017-2018) Acit, Central Circle-3, Patna Vs Suresh Prasad, Udwant Nagar, Kasap Bihar-802206 Pan No. :Ajspp 8056 A & आयकर अपील सं No.246/Pat/2023 (नििाारणवर्ा / Assessment Year : 2017-2018) Acit, Central Circle-3, Patna Vs Suresh Jewellers, Shakuntla Palace, Bakarganj, Patna, Bihar-800004 Pan No. :Adhfs 5624 G (अपीलार्थी/Appellant) (प्रत्यर्थी / Respondent) .. नििााररतीकीओरसे /Assessee By : Shri Devesh Poddar, Advocate राजस्वकीओरसे /Revenue By : Shrirajat Datta, Cit-Dr सुनवाईकीतारीख/ Date Of Hearing : 28/07/2025 घोषणाकीतारीख/Date Of Pronouncement : 26/08/2025 आदेश / O R D E R Per Bench: These Are The Appeals Filed By The Revenue Against Three Different Assessees Against The Separate Orders Of The Id.Cit(A), Patna-3,All Dated 31.05.2023For The Assessment Year 2017-2018. 2

…e AO has added gross unrecorded sales of Rs. 42,13,360/- which was not in consonance with the accounting principles and the applicable law. The Ld. AR has relied upon following authorities to buttress his arguments:- 1. CIT vs President Industries Ltd. (2002) 258 ITR 654 (Guj) 2. CIT vs BalchandAjit Kumar (2003) 263 ITR 610 (MP) 3. Man Mohan Sadani vs CIT (2008) 304 ITR 52 4. Kishore Mohanlal Telwala vs ACIT (1999) 64 ITJ 543 (Ahd) 5. Agarwal Motors vs ACIT (1999) 68 ITD 407 (Jab) In all the above cited authorities the accounting principle has been reiterated that it is the net profit contained in the unrecorded…

Assistant Commissioner of Income Tax, Income Tax Department vs. Suresh Prasad, Bhojpur

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyआयकर अपील सं No.244/Pat/2023 (नििाारणवर्ा / Assessment Year :2017-2018) Acit, Central Circle-3, Patna Vs Sachchu Prasad, Kasap, Udwant Nagar, Bhojpur Bihar-802206 Pan No. :Ajspp 8058 Q & आयकर अपील सं No.245/Pat/2023 (नििाारणवर्ा / Assessment Year : 2017-2018) Acit, Central Circle-3, Patna Vs Suresh Prasad, Udwant Nagar, Kasap Bihar-802206 Pan No. :Ajspp 8056 A & आयकर अपील सं No.246/Pat/2023 (नििाारणवर्ा / Assessment Year : 2017-2018) Acit, Central Circle-3, Patna Vs Suresh Jewellers, Shakuntla Palace, Bakarganj, Patna, Bihar-800004 Pan No. :Adhfs 5624 G (अपीलार्थी/Appellant) (प्रत्यर्थी / Respondent) .. नििााररतीकीओरसे /Assessee By : Shri Devesh Poddar, Advocate राजस्वकीओरसे /Revenue By : Shrirajat Datta, Cit-Dr सुनवाईकीतारीख/ Date Of Hearing : 28/07/2025 घोषणाकीतारीख/Date Of Pronouncement : 26/08/2025 आदेश / O R D E R Per Bench: These Are The Appeals Filed By The Revenue Against Three Different Assessees Against The Separate Orders Of The Id.Cit(A), Patna-3,All Dated 31.05.2023For The Assessment Year 2017-2018. 2

…e AO has added gross unrecorded sales of Rs. 42,13,360/- which was not in consonance with the accounting principles and the applicable law. The Ld. AR has relied upon following authorities to buttress his arguments:- 1. CIT vs President Industries Ltd. (2002) 258 ITR 654 (Guj) 2. CIT vs BalchandAjit Kumar (2003) 263 ITR 610 (MP) 3. Man Mohan Sadani vs CIT (2008) 304 ITR 52 4. Kishore Mohanlal Telwala vs ACIT (1999) 64 ITJ 543 (Ahd) 5. Agarwal Motors vs ACIT (1999) 68 ITD 407 (Jab) In all the above cited authorities the accounting principle has been reiterated that it is the net profit contained in the unrecorded…

Assistant Commissioner of Income Tax, Income Tax Department vs. Sachchu Prasad, Bhojpur

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyआयकर अपील सं No.244/Pat/2023 (नििाारणवर्ा / Assessment Year :2017-2018) Acit, Central Circle-3, Patna Vs Sachchu Prasad, Kasap, Udwant Nagar, Bhojpur Bihar-802206 Pan No. :Ajspp 8058 Q & आयकर अपील सं No.245/Pat/2023 (नििाारणवर्ा / Assessment Year : 2017-2018) Acit, Central Circle-3, Patna Vs Suresh Prasad, Udwant Nagar, Kasap Bihar-802206 Pan No. :Ajspp 8056 A & आयकर अपील सं No.246/Pat/2023 (नििाारणवर्ा / Assessment Year : 2017-2018) Acit, Central Circle-3, Patna Vs Suresh Jewellers, Shakuntla Palace, Bakarganj, Patna, Bihar-800004 Pan No. :Adhfs 5624 G (अपीलार्थी/Appellant) (प्रत्यर्थी / Respondent) .. नििााररतीकीओरसे /Assessee By : Shri Devesh Poddar, Advocate राजस्वकीओरसे /Revenue By : Shrirajat Datta, Cit-Dr सुनवाईकीतारीख/ Date Of Hearing : 28/07/2025 घोषणाकीतारीख/Date Of Pronouncement : 26/08/2025 आदेश / O R D E R Per Bench: These Are The Appeals Filed By The Revenue Against Three Different Assessees Against The Separate Orders Of The Id.Cit(A), Patna-3,All Dated 31.05.2023For The Assessment Year 2017-2018. 2

…e AO has added gross unrecorded sales of Rs. 42,13,360/- which was not in consonance with the accounting principles and the applicable law. The Ld. AR has relied upon following authorities to buttress his arguments:- 1. CIT vs President Industries Ltd. (2002) 258 ITR 654 (Guj) 2. CIT vs BalchandAjit Kumar (2003) 263 ITR 610 (MP) 3. Man Mohan Sadani vs CIT (2008) 304 ITR 52 4. Kishore Mohanlal Telwala vs ACIT (1999) 64 ITJ 543 (Ahd) 5. Agarwal Motors vs ACIT (1999) 68 ITD 407 (Jab) In all the above cited authorities the accounting principle has been reiterated that it is the net profit contained in the unrecorded…

Assistant Commissioner of Income-Tax, Central Circle-2, Surat vs. Ms. Janani Exports, Mumbai

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethआयकर अपील सं./Ita No.604/Srt/2024 (Assessment Year:2019-20) (Hybrid Hearing) Acit, Vs. M/S Janani Exports, Central Circle – 2, 704, Vastu Slip Apt., 7Th Floor, Nr. Surat Parsi Colony, Pump House, Andheri (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent) It(Ss)A Nos.9, 10 & 19/Srt/2024 (Ays:2013-14, 2014-15 & 2018-19) Acit, Vs. M/S Janani Exports, Central Circle – 2, 704, Vastu Slip Apt., 7Th Floor, Nr. Surat Parsi Colony, Pump House, Andheri (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent) It(Ss)A Nos.20 To 22/Srt/2024 (Ays: 2013-14 To 2015-16) M/S Janani Exports, Vs. Acit, 704, Vastu Slip Apt., 7Th Floor, Nr. Central Circle – 2, Parsi Colony, Pump House, Andheri Surat (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent) It(Ss)A Nos.35 To 38/Srt/2024 (Ays: 2016-17 To 2019-20) M/S Janani Exports, Vs. Acit, 704, Vastu Slip Apt., 7Th Floor, Nr. Central Circle – 2, Parsi Colony, Pump House, Andheri Surat (E), Mumbai - 400093 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaefj3969P (Appellant) (Respondent)

…4 & IT(SS)A Nos.9, 10, 19, 20 to 22 & 35 to 38/SRT/2024 M/s Janani Exports under consideration. The Hon’ble Gujarat High Court and other Hon’ble High Courts and ITATs in the following cases have approved adoption of NP rate: (i) CIT vs. President Industries, 258 ITR 654 (Guj.), (ii) CIT vs. Abhishek Corporation, 158 CTR (Guj.) 374, (iii) ITO vs. Om Silk Mills, 55 taxmann.com 295 (Guj.), (iv) CIT vs. Balchand Ajitkumar, 263 ITR 610 (MP), (v) DCIT, CC-3, Surat vs. Mehul T. Desai, (2019) 101 taxmann.com 234 (Surat – Trib.), (vi) ITO vs. Sai Kripa Construction, (2007) 13 SOT 459 (Mum.) and (vii) Eagel Seeds and Biot…

Abhay Hargovindbhai Patel, Jamnagar vs. The Income Tax Officer, Jamnagar

In the result, the appeal filed by the assessee is partly allowed, in above terms

Bench: Dr. Arjun Lal Saini, Am. & Dinesh Mohan Sinha, Jm आयकर अपीलसं./Ita No. 17/Rjt/2024 निर्धारणवर्ष / Assessment Year: (2017-18) (Hybrid Hearing) Abhay Hargovindbhai Patel Vs. The Income Tax Officer, Ward 305, Dwarkeshdham,B/H. Samudra 1(3), Jamnagar Sales, Rajnagar, Aerodram Road, 1St Floor, Taranjali Building, Pn Jamnagar 361006 Marg, Aubpp7196D Jamnagar 361008 (Assessee) (Respondent) Assessee By : Shri Vimal Desai, Ld. Ar Respondent By : Shri K. L. Solanki, Ld. Sr. (Dr) Date Of Hearing : 27/04/2025 Date Of Pronouncement : 16/07/2025 आदेश / Order Per, Dr. Arjun Lal Saini, Am: Captioned Appeal Filed By The Assessee, Pertaining To Assessment Year 2017-18, Is Directed Against The Order Passed By Commissioner Of Income Tax (Appeals), Vide Order Dated 08/11/2023, Which In Turn Arises Out Of An Order Passed By The Assessing Officer, Dated 26/11/2019, U/S 144 Of The Income Tax Act, 1961. Page 1

…Ita no. 17/rjt/2024 Abhay Hargovindbhai Patel IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, AM. & DINESH MOHAN SINHA, JM आयकर अपीलसं./ITA No. 17/RJT/2024 निर्धारणवर्ष / Assessment Year: (2017-18) (Hybrid Hearing) Abhay Hargovindbhai Patel Vs. The Income Tax Officer, Ward 305, Dwarkeshdham,B/h. Samudra 1(3), Jamnagar Sales, Rajnagar, Aerodram Road, 1st Floor, Taranjali Building, PN Jamnagar 361006 Marg, AUBPP7196D Jamnagar 361008 (Assessee) (Respondent) Assessee by : Shri Vimal Desai, Ld. AR Respondent by : Shri K. L. Solanki, Ld. Sr. (DR) Date of Hearing : 27/04/2025 Date…

ACIT, Allahabad vs. Kesarwani Zarda Bhandar, Allahabad

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

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

…sion of investment in acquiring the alleged suppressed production. Sir total sales or total production cannot be regarded as profit/ income of the assessee. In support of this the assessee rely on following decisions…………. 1- (2003) 263 ITR 610 (MP) 2- (2002) 258 ITR 654 (Guj) 3- (2008) 304 ITR 52 (MP) 4- (2008) 302 ITR 63 (Guj) 5- (2011) 12 ITR 748 (ITAT Delhi Bench) To sum up the whole submissions on the point of the addition of the amount of alleged suppression of production of tobacco and addition of Rs 6,95,66,165/- treating such amount as income of the assessee. The questions to be considered for adjudicat…

M/S Kesarwani Zarda Bhandar, Allahabad vs. Jt.CIT, Allahabad

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

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

…sion of investment in acquiring the alleged suppressed production. Sir total sales or total production cannot be regarded as profit/ income of the assessee. In support of this the assessee rely on following decisions…………. 1- (2003) 263 ITR 610 (MP) 2- (2002) 258 ITR 654 (Guj) 3- (2008) 304 ITR 52 (MP) 4- (2008) 302 ITR 63 (Guj) 5- (2011) 12 ITR 748 (ITAT Delhi Bench) To sum up the whole submissions on the point of the addition of the amount of alleged suppression of production of tobacco and addition of Rs 6,95,66,165/- treating such amount as income of the assessee. The questions to be considered for adjudicat…