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 367,154 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

Scott Edil Pharmacia Ltd., Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 832/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh03 Mar 2025AY 2016-17
Section 127Section 153DSection 2(22)(e)

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Scott Edil Pharmacia Ltd., Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 829/CHANDI/2023[2013-14]Status: DisposedITAT Chandigarh03 Mar 2025AY 2013-14

Bench: Shri Sanjay Garg & Shri Krinwant Sahayआयकर अपील सं./Ita No. 579/Chd /2023 निर्धारण वर्ष / Assessment Year : 2017-18 & आयकर अपील सं./Ita Nos.582 To 584/Chd/ 2023 निर्धारण वर्ष / Assessment Years : 2014-15 To 2016-17 & आयकर अपील सं./Ita No. 591/Chd /2023 निर्धारण वर्ष / Assessment Year : 2018-19

Section 127Section 132Section 153ASection 153D

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 732/CHANDI/2023[2018-19]Status: DisposedITAT Chandigarh03 Mar 2025AY 2018-19
Section 127Section 132Section 153ASection 153D

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 731/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh03 Mar 2025AY 2017-18
Section 127Section 132Section 153ASection 153DSection 2(22)

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 730/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh03 Mar 2025AY 2016-17
Section 127Section 132Section 153ASection 153DSection 2

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 728/CHANDI/2023[2014-15]Status: DisposedITAT Chandigarh03 Mar 2025AY 2014-15

Bench: Shri Sanjay Garg & Shri Krinwant Sahayआयकर अपील सं./Ita No. 579/Chd/2023 निर्धारण वर्ष / Assessment Year : 2017-18 & आयकर अपील सं./Ita Nos.582 To 584/Chd/2023 निर्धारण वर्ष / Assessment Years : 2014-15 To 2016-17 & आयकर अपील सं./Ita No. 591/Chd/2023 निर्धारण वर्ष / Assessment Year : 2018-19 Maxport India Pvt. Ltd. C/O Parikshit Aggarwal, Chartered Accountant, H. No. 3035, Sector 27D, Chandigarh- 160019. स्था.लेखा सं./Pan No: Aaicm9120E अपीलाथ/Appellant बनाम प्रथीय/Respondent Deputy Commissioner Of Income-Tax, Centre Circle-1, Chandigarh. & आयकर अपील सं./Ita Nos.482 & 483/Chd/2023 निर्धारण वर्ष / Assessment Years : 2017-18 & 2018-19 Vaishali Aggarwal C/O Parikshit Aggarwal, Chartered Accountant, H No. 3035, Sector 27D, Chandigarh- 160022. स्था.लेखा सं./Pan No: Aaqpa4025M अपीलाथ/Appellant बनाम प्रथीय/Respondent Deputy Commissioner Of Income-Tax, Centre Circle-1, Chandigarh. & आयकर अपील सं./Ita No. 846/Chd/2023

Section 127Section 132Section 153ASection 153DSection 2(22)(e)

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon'ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 726/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh03 Mar 2025AY 2012-13
Section 153A

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Maxport India Private Limited, Chandigarh vs. Dy. Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 583/CHANDI/2023[2015-16]Status: DisposedITAT Chandigarh03 Mar 2025AY 2015-16
Section 127Section 132Section 153ASection 153DSection 2(22)(e)

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Maxport India Private Limited, Chandigarh vs. Dy. Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 582/CHANDI/2023[2014-15]Status: DisposedITAT Chandigarh03 Mar 2025AY 2014-15
Section 127Section 132Section 153ASection 153D

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Sanjeev Aggarwal, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 489/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh03 Mar 2025AY 2017-18
Section 127Section 132Section 153ASection 153D

…y them was incorrect. However, neither the search party nor both the lower authorities could rebut the same. The Ld. counsel in this respect has placed reliance upon the decision of the hon’ble Gujarat High Court in the case of “ CIT vs. President Industries (258 ITR 654) (Guj HC), wherein it has been held that estimation-based methods should not replace actual recorded transactions unless books of accounts are rejected u/s 145(3), which was not done in this case. The said decision, in our view, is squarely applicable in this case. 81. Further, the allegation that the assessee did not maintain properly the stock…

Vasant Nivrutti Zimur, Thane vs. Income Tax Officer, WD-17(2)(4), Mumbai

In the result the appeal filed by the assessee is partly allowed and appeal of the revenue is dismissed

ITA 1693/MUM/2024[2017-18]Status: DisposedITAT Mumbai24 Feb 2025AY 2017-18

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankarvs. Ito, Ward – 17(2)(4) Vasant Nivrutti Zimur, Room No. 112, 1St A 401, Osho Siddharth Floor, Kautilya Osho Dhara Residency, Bhavan, Bkc, Godrej Hill Road, Bandra Khandakpada, Kalyan West 421301. Pan/Gir No. Aagpz4209C (Applicant) (Respondent) Ito, Ward – 28(3)(1) Vs. Vasant Nivrutti Zimur, 316, 3Rd Floor, No.6, A 401, Osho Siddharth Vashi Rlw Stn Complex, Osho Dhara Residency, Vashi, Mumbai - 400703 Godrej Hill Road, Khandakpada, Kalyan West - 421301. Pan/Gir No. Aagpz4209C (Applicant) (Respondent)

Section 131Section 133(6)Section 144Section 147Section 148Section 250Section 69A

…decisions wherein, it has been held that the entire receipts cannot be brought to tax and only the income embedded on disputed receipts could be brought to tax and in this regard, we draw strength from the decisions in the case of CIT vs. President Industries 258 ITR 654 (Guj- High court), wherein it was held as under: "It cannot be a matter of an argument that the amount of sales by itself cannot represent the income of the assessee who has not disclosed the sales. The sales only represented the price received by the seller of the goods for the acquisition of which it has already incurred the cost It is the rea…

Harshang Kaushikkumar Rami, Ahmedabad vs. The ITO, Ward 1(2)(3), Ahmedabad

In the result, appeal of the assessee is partly allowed for statistical purpose

ITA 1316/AHD/2024[2017-2018]Status: DisposedITAT Ahmedabad12 Feb 2025AY 2017-2018

Bench: Smt. Annapurna Gupta & Ms. Suchitra Kambleassessment Year: 2017-18

Section 133(6)Section 144Section 144BSection 147Section 148Section 69A

…es. Rajkot Bench or Tribunal held that profit rate of 1.25% is reasonable. The assessee has relied on various decisions of Rajkot Bench of ITAT. The Ld. AR also relied upon the decision of Hon’ble Gujarat High Court in the case of CIT vs. President Industries 258 ITR 654, decision of Hon’ble Apex Court in the case of State of Orissa vs. Maharaja Shri B.P. Singh Deo, 76 ITR 690 and various other case always including that of PCIT vs. Shitalben Saurabh Vora. the Ld. AR submitted that the said deposits made be treated as sales and not undisclosed investments at all as the past history of the assessee clearly shows t…

Vanavil Estate, Chennai vs. PCIT Central, Chennai

In the result, the appeal for both AYs 2017

ITA 926/CHNY/2024[2018-19]Status: DisposedITAT Chennai12 Feb 2025AY 2018-19

Bench: Shri Aby T. Varkey & Shri Jagadishआयकरअपीलसं./Ita Nos.925 & 926/Chny/2024 िनधा"रणवष"/Assessment Years: 2017-18 & 2018-19 V. Vanavil Estate, The Pcit (Central), 4/20, Duraiswamy Reddy Street, Chennai-1. West Tambaram, Chennai-600 045. [Pan: Aalfv 0770 H] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri R. Clement Ramesh-
Section 133ASection 148Section 263

…ur attention was invite our attention was invited to the following findings following findings rendered by the Hon’ble Gujarat High Court in the case of ble Gujarat High Court in the case of ble Gujarat High Court in the case of CIT Vs President Industries (258 ITR 654) President Industries (258 ITR 654). "3. Having perused the assessment order made by the Assessing Officer, "3. Having perused the assessment order made by the Assessing Officer, "3. Having perused the assessment order made by the Assessing Officer, the order made by the Commissioner (Appeals) and the Tri the order made by the Commissioner (Appe…

Vanavil Estate, Chennai vs. PCIT(Central), Chennai

In the result, the appeal for both AYs 2017

ITA 925/CHNY/2024[2017-18]Status: DisposedITAT Chennai12 Feb 2025AY 2017-18

Bench: Shri Aby T. Varkey & Shri Jagadishआयकरअपीलसं./Ita Nos.925 & 926/Chny/2024 िनधा"रणवष"/Assessment Years: 2017-18 & 2018-19 V. Vanavil Estate, The Pcit (Central), 4/20, Duraiswamy Reddy Street, Chennai-1. West Tambaram, Chennai-600 045. [Pan: Aalfv 0770 H] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri R. Clement Ramesh-
Section 133ASection 148Section 263

…ur attention was invite our attention was invited to the following findings following findings rendered by the Hon’ble Gujarat High Court in the case of ble Gujarat High Court in the case of ble Gujarat High Court in the case of CIT Vs President Industries (258 ITR 654) President Industries (258 ITR 654). "3. Having perused the assessment order made by the Assessing Officer, "3. Having perused the assessment order made by the Assessing Officer, "3. Having perused the assessment order made by the Assessing Officer, the order made by the Commissioner (Appeals) and the Tri the order made by the Commissioner (Appe…

Ganraj Homes LLP, Pune vs. Income Tax, Central Circle 2(3), Pune

In the result, all the three appeals filed by the assessee are allowed

ITA 879/PUN/2024[2018-19]Status: DisposedITAT Pune07 Feb 2025AY 2018-19

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Neelesh KhandelwalFor Respondent: S/Shri Amol Khairnar CIT-DR &
Section 132Section 133ASection 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.878, 879 & 874/PUN/2024 Assessment years : 2017-18, 2018-19 & 2019-20 Ganraj Homes LLP ACIT, Central Circle 2(3), San Mahu Complex, Office N5, Pune Vs. Bund Garden Road, Opp. Poona Club, Pune – 411001 PAN: AAPFG7304Q (Appellant) (Respondent) Assessee by : Shri Neelesh Khandelwal Department by : S/Shri Amol Khairnar CIT-DR & Ramnath P Murkunde Date of hearing : 12-11-2024 Date of pronouncement : 07-02-2025 O R D E R PER BENCH : The above three appeals filed by the as…

Ganraj Homes LLP, Pune vs. Income Tax, Central Circle 2(3), Pune

In the result, all the three appeals filed by the assessee are allowed

ITA 878/PUN/2024[2017-18]Status: DisposedITAT Pune07 Feb 2025AY 2017-18

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Neelesh KhandelwalFor Respondent: S/Shri Amol Khairnar CIT-DR &
Section 132Section 133ASection 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.878, 879 & 874/PUN/2024 Assessment years : 2017-18, 2018-19 & 2019-20 Ganraj Homes LLP ACIT, Central Circle 2(3), San Mahu Complex, Office N5, Pune Vs. Bund Garden Road, Opp. Poona Club, Pune – 411001 PAN: AAPFG7304Q (Appellant) (Respondent) Assessee by : Shri Neelesh Khandelwal Department by : S/Shri Amol Khairnar CIT-DR & Ramnath P Murkunde Date of hearing : 12-11-2024 Date of pronouncement : 07-02-2025 O R D E R PER BENCH : The above three appeals filed by the as…

Shree Balaji Realty, Pune vs. Income Tax, Central Circle 2(3), Pune

In the result, appeals for

ITA 877/PUN/2024[2019-2020]Status: DisposedITAT Pune07 Feb 2025AY 2019-2020

Bench: Shri R. K. Panda & Ms. Astha Chandra

Section 132Section 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.875 to 877/PUN/2024 Assessment Years : 2017-18 to & 2019-20 Shree Balaji Realty Vs. ACIT, Central Circle 2(3), Pune San Mahu Complex, Office N5, Bund Garden Road, Opp. Poona Club, Pune - 411001 PAN: ABWFS3661A (Appellant) (Respondent) Assessee by Department by Shri Neelesh Khandelwal S/Shri Amol Kharnar CIT-DR & Ramnath P. Murkunde Date of hearing 12-11-2024 Date of pronouncement 07-02-2025 ORDER PER BENCH : The above three appeals filed by the assessee are directed aga…

Shree Balaji Realty, Pune vs. Income Tax, Central Circle 2(3), Pune

In the result, appeals for

ITA 876/PUN/2024[2018-19]Status: DisposedITAT Pune07 Feb 2025AY 2018-19

Bench: Shri R. K. Panda & Ms. Astha Chandra

Section 132Section 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH "A", PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.875 to 877/PUN/2024 Assessment Years : 2017-18 to & 2019-20 Shree Balaji Realty Vs. ACIT, Central Circle 2(3), Pune San Mahu Complex, Office N5, Bund Garden Road, Opp. Poona Club, Pune - 411001 PAN: ABWFS3661A (Appellant) (Respondent) Assessee by Department by Shri Neelesh Khandelwal S/Shri Amol Kharnar CIT-DR & Ramnath P. Murkunde Date of hearing 12-11-2024 Date of pronouncement 07-02-2025 ORDER PER BENCH : The above three appeals filed by the assessee are directed aga…

Shree Balaji Realty, Pune vs. Income Tax, Central Circle 2(3), Pune

In the result, appeals for assessment years 2017-18 and 2018-19 are allowed and the appeal for assessment year 2019-20 is partly allowed

ITA 875/PUN/2024[2017-18]Status: DisposedITAT Pune07 Feb 2025AY 2017-18

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Neelesh KhandelwalFor Respondent: S/Shri Amol Kharnar CIT-DR &
Section 132Section 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.875 to 877/PUN/2024 Assessment Years : 2017-18 to & 2019-20 Shree Balaji Realty ACIT, San Mahu Complex, Office N5, Central Circle 2(3), Pune Vs. Bund Garden Road, Opp. Poona Club, Pune – 411001 PAN: ABWFS3661A (Appellant) (Respondent) Assessee by : Shri Neelesh Khandelwal Department by : S/Shri Amol Kharnar CIT-DR & Ramnath P. Murkunde Date of hearing : 12-11-2024 Date of pronouncement : 07-02-2025 O R D E R PER BENCH : The above three appeals filed by the assessee…

Ganraj Homes LLP, Pune vs. Income Tax, Central Circle 2(3), Pune

In the result, all the three appeals filed by the assessee are allowed

ITA 874/PUN/2024[2019-20]Status: DisposedITAT Pune07 Feb 2025AY 2019-20

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Neelesh KhandelwalFor Respondent: S/Shri Amol Khairnar CIT-DR &
Section 132Section 133ASection 143(2)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.878, 879 & 874/PUN/2024 Assessment years : 2017-18, 2018-19 & 2019-20 Ganraj Homes LLP ACIT, Central Circle 2(3), San Mahu Complex, Office N5, Pune Vs. Bund Garden Road, Opp. Poona Club, Pune – 411001 PAN: AAPFG7304Q (Appellant) (Respondent) Assessee by : Shri Neelesh Khandelwal Department by : S/Shri Amol Khairnar CIT-DR & Ramnath P Murkunde Date of hearing : 12-11-2024 Date of pronouncement : 07-02-2025 O R D E R PER BENCH : The above three appeals filed by the as…