CIT v. S C Kothari

The DCIT Central Circle-1, Rajkot vs. Shri Shamjibhai Sadhabhai Kangad, Gandhidham-Kutch

In the result, appeal filed by the Revenue, in IT(SS) No

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआ.(खो और ज).सं./It(Ss)A Nos.11 To 20/Rjt/2022 "नधा"रण वष"/ Assessment Years:2011-12 To 2020-21 बनाम/ Shri Shamjibhai Sadhabhai Deputy Commissioner Of Kangad Income Tax, Central Circle-1, Vs. Bbz-S-60, Zanda Chowk, “Amruta Estate”, 2Nd Floor, Gandhidham-370 201 M.G. Road, Rajkot-360001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.:Adepk 3471 E (अपीलाथ"/Assessee) (""यथ"/Respondent) आ.(खो और ज).सं./It(Ss)A Nos.21 To 23/Rjt/2022 "नधा"रण वष"/ Assessment Years:2014-15, 2016-17 &2017-18 बनाम/ Deputy Commissioner Of Income Shri Shamjibhai Sadhabhai Tax, Central Circle-1, “Amruta Kangad Vs. Estate”, 2Nd Floor, M.G. Road, Bbz-S-60, Zanda Chowk, Rajkot-360001 Gandhidham-370 201 "थायीलेखासं./जीआइआरसं./Pan/Gir No.:Aabca 8202 E (अपीलाथ"/Assessee) (""यथ"/Respondent) आ.(खो और ज).सं./It(Ss)A Nos.15/Rjt/2023 "नधा"रण वष"/ Assessment Year:2019-20 बनाम/ Deputy Commissioner Of Shri Hetab Shamjibhai Kangad Income Tax, Central Circle-1, Bbz-South-60, Zanda Chowk, Vs. “Amruta Estate”, 2Nd Floor, Gandhidham-370 201 M.G. Road, Rajkot-360001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.:Aqtpk 7484 M (अपीलाथ"/Assessee) (""यथ"/Respondent)

…आयकर अपील"य अ"धकरण, राजकोट "यायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आ.(खो और ज).सं./IT(SS)A Nos.11 to 20/RJT/2022 "नधा"रण वष"/ Assessment Years:2011-12 to 2020-21 बनाम/ Shri Shamjibhai Sadhabhai Deputy Commissioner of Kangad Income Tax, Central Circle-1, Vs. BBZ-S-60, Zanda Chowk, “Amruta Estate”, 2nd Floor, Gandhidham-370 201 M.G. Road, Rajkot-360001 "थायीलेखासं./जीआइआरसं./PAN/GIR No.:ADEPK 3471 E (अपीलाथ"/Assessee) (""यथ"/Respondent) आ.(खो और ज).सं./IT(SS)A Nos.21 to 23/RJT/2022 "नधा…

ACIT, Central Circle-2, Udaipur vs. M/S Mewar Hospital Pvt. Ltd., Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

ACIT, Central Circle-2, Udaipur vs. M/S Mewar Hospital Pvt. Ltd., Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

ACIT, Central Circle-2, Udaipur vs. M/S Mewar Hospital Pvt. Ltd., Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

…courts. (ix) It is also well settled position of law that tax can be levied only on the net income/profits and not on gross receipts for which reliance is placed on the judgement of Hon'ble Supreme Court in the case of CIT vs. Gujarat vs. S.C. Kothari (1971) 82 ITR 794 wherein it has been held that- "....the tax collector cannot be heard to say that he will bring the gross receipts to tax. He can only tax profits of a trade or business. That cannot be done without deducting the losses and the legitimate expenses of the business..." (x) In Man Mohan Sadani vs. Commissioner of Income-tax [2010] 188 Taxman 277 (Mad…

The Assistant Commr. of Income Tax, Cen. Circle-1, Rajkot-Gujarat vs. Shri Aniruddhsinh J. Solanki, Rajkot-Gujarat

In the result, the appeal filed by the Assessee is allowed and the appeal filed by the Revenue is hereby dismissed

…not have charged the same as escaped assessment under the provisions of Income Tax Act. 8.3. We are further guided by Hon’ble Supreme Court Judgment not only the income but also the losses for the purpose of taxation in the case of CIT vs. SC. Kothari [1971] 82 ITR 794 wherein the Apex Court held that for the purpose of section 10(1) of the Act, a loss incurred in carrying on an illegal business must be deducted before the true figure of profits brought to tax can be computed. Grover, J., speaking for the Court, observed: "If a business is illegal, neither the profits earned nor the losses incurred would be enfo…