CIT v. S C Kothari
82 ITR 794Supreme Court of India1971#966 most cited
What is CIT v. S C Kothari authority for?
Income tax is levied on the real profit of a trade or business, not on gross receipts. Even for unaccounted transactions, only the profit component, after deducting legitimate expenses and cost of goods sold, can be brought to tax as undisclosed income.
111
judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2026.
Also referred to as
CIT v. S.C. Kothari · 82 ITR 794 · real income · profit not gross receipts · deduction of legitimate expenses · unaccounted sales income · undisclosed business profit · section 145(3) · rejection of books of account · on-money assessment · section 147 · section 132
