CIT v. Sharraf Trading Co.

376 ITR 534High Court2015#8067 most cited

What is CIT v. Sharraf Trading Co. authority for?

The peak credit theory applies only to credits and withdrawals that are held to be genuine. It cannot be used to explain subsequent credit entries where the source of the credit is concealed income not disclosed in any prior proceedings.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2017 to 2026.

Also referred to as

CIT v. Sharraf Trading Co. · peak credit theory · section 153A · section 68 · section 145(3) · concealed income · source of credit · assessment proceedings · unexplained money

Also reported as

67 Taxmann.com 176

Sections most often in play

Section 153ASection 68Section 145(3)Section 144Section 153DSection 250Section 269SSSection 271(1)(c)

Issues it is cited on

section 155bbesection 2(9)section 66peak credit theoryonus of proofsection 155section 269sssurvey under section 133asection 271dsection 269section 132(4a)section 127

Judgments citing CIT v. Sharraf Trading Co.

Balan Logeswaran, Namakkal vs. ITO, Ward-1, Tiruchengode

The appeal of the assessee is partly allowed

ITA 2312/CHNY/2025[2017-18]Status: DisposedITAT Chennai30 Jan 2026AY 2017-18

Bench: Shri George George Kand Ms. Padmavathy.Sआयकर अपील सं./Ita No.2312/Chny/2025 िनधा"रण वष" /Assessment Year: 2017-18

For Respondent: Ms. R.Kavitha, Addl. CIT
Section 115BSection 145(3)Section 250Section 69A

…आयकर अपीलीय अिधकरण, ‘ए’ "ायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी जॉज" जॉज" के, उपा"", एवं सु"ी पदमावती यस, लेखा सद$ के सम" BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2312/Chny/2025 िनधा"रण वष" /Assessment Year: 2017-18 Balan Logeswaran, The Income Tax Officer, 317/2, Opp, Syndicate Bank, Vs. Ward-1, Salem Road, Tiruchengode, Tiruchengode. Namakkal – 637 211. PAN: AHJPL 5084D (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ( की ओर से/ Appellant by Mr. T.S. Lakshmi Venkataraman, FCA : *+थ( की ओर से /Respondent by : Ms. R.K…

Sanjay Kumar Karnani, Jaipur vs. ACIT, Central Circle-3, Jaipur

ITA 675/JPR/2025[2018-19]Status: DisposedITAT Jaipur15 Oct 2025AY 2018-19
Section 153ASection 250Section 68

…dgement of Hon'ble Hon'ble Madras High Court in the case of Commissioner of Income-tax v. K. Palaniappan [2000] 242 ITR 719 (Madras), it is observed by the Hon'ble Allahabad High Court in the case of CIT v. Sharraf Trading Co. [2016] 67 taxmann.com 176/[2015] 376 ITR 534 (All.) as under:- "26. The Court noticed that various courts have taken a view, where certain additions were made in the earlier years, that would constitute source for the credit entry in subsequent years. But, having said so, found that in the case which was up for consideration before Madras High Court, there was a concealed income which was…

Sanjay Kumar Karnani, Jaipur vs. ACIT, Central Circle-3, Jaipur

In the result, all appeals of the assessee are disposed off in terms of

ITA 673/JPR/2025[2016-17]Status: DisposedITAT Jaipur15 Oct 2025AY 2016-17

Bench: AO on 12-04-2021 18. Reply filed before AO on 15-07-2021 19. Additional Written Submissions filed before CIT(A) for AY 2014-15 on 11-11-2024 20. Written Submissions filed before CIT(A) for AY 2014-15 21. Written Submissions filed before CIT(A) for AY 2015-16 on 10-10-2024 22. Written Submissions filed before CIT(A) for AY 2016-17 on 10-10-2024 23. Written Submissions filed before CIT(A) for AY 2017-18 on 15-10-2024 24. Written Submissions filed before CIT(A) for AY 2018-19 on 15-10-2024 25.

For Appellant: Shri Deepak Sharma, AdvFor Respondent: Mrs. Alka Gautam, CIT
Section 153ASection 250Section 68

…dgement of Hon'ble Hon'ble Madras High Court in the case of Commissioner of Income-tax v. K. Palaniappan [2000] 242 ITR 719 (Madras), it is observed by the Hon'ble Allahabad High Court in the case of CIT v. Sharraf Trading Co. [2016] 67 taxmann.com 176/[2015] 376 ITR 534 (All.) as under:- "26. The Court noticed that various courts have taken a view, where certain additions were made in the earlier years, that would constitute source for the credit entry in subsequent years. But, having said so, found that in the case which was up for consideration before Madras High Court, there was a concealed income which was n…

Sanjay Kumar Karnani, Jaipur vs. ACIT, Central Circle-3, Jaipur

In the result, all appeals of the assessee are disposed off in terms of

ITA 672/JPR/2025[2015-16]Status: DisposedITAT Jaipur15 Oct 2025AY 2015-16

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri Deepak Sharma, AdvFor Respondent: Mrs. Alka Gautam, CIT
Section 153ASection 250Section 68

…dgement of Hon'ble Hon'ble Madras High Court in the case of Commissioner of Income-tax v. K. Palaniappan [2000] 242 ITR 719 (Madras), it is observed by the Hon'ble Allahabad High Court in the case of CIT v. Sharraf Trading Co. [2016] 67 taxmann.com 176/[2015] 376 ITR 534 (All.) as under:- "26. The Court noticed that various courts have taken a view, where certain additions were made in the earlier years, that would constitute source for the credit entry in subsequent years. But, having said so, found that in the case which was up for consideration before Madras High Court, there was a concealed income which was n…

Shri Ambica Garments, Jodhpur vs. ACIT, Central Circle-3, Jaipur

In the result, all appeals of the assessee are disposed off in terms of

ITA 61/JPR/2025[2019-20]Status: DisposedITAT Jaipur15 Oct 2025AY 2019-20

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri Deepak Sharma, AdvFor Respondent: Mrs. Alka Gautam, CIT
Section 153ASection 250Section 68

…dgement of Hon'ble Hon'ble Madras High Court in the case of Commissioner of Income-tax v. K. Palaniappan [2000] 242 ITR 719 (Madras), it is observed by the Hon'ble Allahabad High Court in the case of CIT v. Sharraf Trading Co. [2016] 67 taxmann.com 176/[2015] 376 ITR 534 (All.) as under:- "26. The Court noticed that various courts have taken a view, where certain additions were made in the earlier years, that would constitute source for the credit entry in subsequent years. But, having said so, found that in the case which was up for consideration before Madras High Court, there was a concealed income which was n…

Shri Ambica Garments, Jodhpur vs. ACIT, Cental Circle-3, Jaipur, Jodhpur

In the result, all appeals of the assessee are disposed off in terms of

ITA 59/JPR/2025[2017-18]Status: DisposedITAT Jaipur15 Oct 2025AY 2017-18
For Appellant: Shri Deepak Sharma, AdvFor Respondent: Mrs. Alka Gautam, CIT
Section 153ASection 250Section 68

…dgement of Hon'ble Hon'ble Madras High Court in the case of Commissioner of Income-tax v. K. Palaniappan [2000] 242 ITR 719 (Madras), it is observed by the Hon'ble Allahabad High Court in the case of CIT v. Sharraf Trading Co. [2016] 67 taxmann.com 176/[2015] 376 ITR 534 (All.) as under:- "26. The Court noticed that various courts have taken a view, where certain additions were made in the earlier years, that would constitute source for the credit entry in subsequent years. But, having said so, found that in the case which was up for consideration before Madras High Court, there was a concealed income which was n…

Shri Ambica Garments, Jodhpur vs. ACIT, Cental Circle-3, Jaipur

In the result, all appeals of the assessee are disposed off in terms of

ITA 57/JPR/2025[2015-16]Status: DisposedITAT Jaipur15 Oct 2025AY 2015-16
For Appellant: Shri Deepak Sharma, AdvFor Respondent: Mrs. Alka Gautam, CIT
Section 153ASection 250Section 68

…dgement of Hon'ble Hon'ble Madras High Court in the case of Commissioner of Income-tax v. K. Palaniappan [2000] 242 ITR 719 (Madras), it is observed by the Hon'ble Allahabad High Court in the case of CIT v. Sharraf Trading Co. [2016] 67 taxmann.com 176/[2015] 376 ITR 534 (All.) as under:- "26. The Court noticed that various courts have taken a view, where certain additions were made in the earlier years, that would constitute source for the credit entry in subsequent years. But, having said so, found that in the case which was up for consideration before Madras High Court, there was a concealed income which was n…

DCIT(CC)-2(4), Mumbai vs. Aveo Pharmaceuticals Private Limited, Mumbai

ITA 3009/MUM/2024[2020-21]Status: DisposedITAT Mumbai26 Mar 2025AY 2020-21

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: None
Section 68Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND MS. KAVITHA RAJAGOPAL (JUDICIAL MEMBER) ITA Nos. 3009 & 3008/MUM/2024 Assessment Years: 2020-21 & 2021-22 DCIT(CC)-2(4), Aveo Pharmaceuticals Pvt. Ltd., 802, 8th floor, Pratishtha Office No. 01, Gorai Ruby CHSL Plot Vs. Bhavan, No. 51, RDPI Gorai 2, Borivali West, Mumbai-400020. Mumbai-400091. PAN NO. AANCA 2009 B Appellant Respondent CO No. 242 & 243/Mum/2024 (Arising out of ITA Nos. 3009 & 3008/MUM/2024) Assessment Years: 2020-21 & 2021-22 Aveo Pharmaceuticals Pvt. Ltd., DCIT(CC)-2(4), Office No.…

DCIT(CC)-2(4), Mumbai. vs. Aveo Pharmaceuticals Private Limited, Mumbai

ITA 3008/MUM/2024[2021-22]Status: DisposedITAT Mumbai26 Mar 2025AY 2021-22

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: None
Section 68Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND MS. KAVITHA RAJAGOPAL (JUDICIAL MEMBER) ITA Nos. 3009 & 3008/MUM/2024 Assessment Years: 2020-21 & 2021-22 DCIT(CC)-2(4), Aveo Pharmaceuticals Pvt. Ltd., 802, 8th floor, Pratishtha Office No. 01, Gorai Ruby CHSL Plot Vs. Bhavan, No. 51, RDPI Gorai 2, Borivali West, Mumbai-400020. Mumbai-400091. PAN NO. AANCA 2009 B Appellant Respondent CO No. 242 & 243/Mum/2024 (Arising out of ITA Nos. 3009 & 3008/MUM/2024) Assessment Years: 2020-21 & 2021-22 Aveo Pharmaceuticals Pvt. Ltd., DCIT(CC)-2(4), Office No.…

DCIT Central Circle-2(1), Mumbai vs. Shri Jugraj Jain, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 272/MUM/2023[2019-20]Status: DisposedITAT Mumbai18 Apr 2023AY 2019-20

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 132Section 132(4)Section 153ASection 28Section 69

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI ‘F’ BENCH, MUMBAI. Before Shri B.R. Baskaran (AM) & Shri Pavan Kumar Gadale (JM) I.T.A. No. 272/Mum/2023 (A.Y. 2019-20) Vs. Shri Jugraj Jain DCIT, CC-2(1) Old CGO Building 301/302, Vaastu Park 804, 8th Floor A-Wing, Malad West M.K. Road Mumbai-400 064. Mumbai-400 020. PAN : AEHPJ9145A (Appellant) (Respondent) Assessee by Shri Karan Jain Department by Shri Ankush Kapoor Date of Hearing 28.03.2023 Date of Pronouncement 18.04.2023 O R D E R Per B.R.Baskaran (AM) :- The Revenue has filed this appeal challenging the order passed by the learned CIT(A)-48, Mumbai in g…

Labh Singh, New Delhi vs. ITO Ward -02, Panipat

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

ITA 4037/DEL/2019[2010-11]Status: DisposedITAT Delhi14 Oct 2021AY 2010-11

Bench: Shri R.K. Panda

For Appellant: Shri Somil AgarwalFor Respondent: Sh. R.K. Gupta, Sr. DR
Section 142(1)Section 144Section 147Section 148Section 234ASection 69A

…mbers.3 and 4 are concerned, the Learned Counsel for the Assessee relying on the decision of the Coordinate Bench of the Tribunal in the case of Chetan Gupta reported in 149 ITD 344 and decision of Hon’ble Allahabad High Court in the case of Sarah Trading Co. 376 ITR 534 (All.) submitted that only peak credit should be added to the total income of the assessee. He accordingly submitted that the matter may be restored to the file of A.O. with a direction to make addition of the peak credit. 7 ITA.No.4037/Del./2019 Shri Labh Singh, Panipat. 7. The Ld. D.R. on the other hand relied on the order of the A.O. and the…

Syed Maqsoodulla, Bangalore vs. Income Tax Officer Ward-3(2)(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 397/BANG/2019[2015-16]Status: DisposedITAT Bangalore11 Sept 2020AY 2015-16

Bench: Shri Chandra Poojari, Am Assessment Year: 2015-16 Syed Maqsoodulla, Vs. The Income Tax Officer, No.14, 7Th “A’ Cross Ward-3(2)(1), Bangalore. ‘D’ Block, Magadi Road Bangalore-560023. [Pan:Cycps 3116F]

Section 115BSection 251(2)Section 44ASection 69A

…1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGULURU BENCH, BENGALURU BEFORE SHRI CHANDRA POOJARI, AM Assessment Year: 2015-16 Syed Maqsoodulla, Vs. The Income Tax Officer, No.14, 7th “A’ Cross Ward-3(2)(1), Bangalore. ‘D’ Block, Magadi Road Bangalore-560023. [PAN:CYCPS 3116F] (Assessee -Appellant) (Revenue-Respondent) Assessee Shri G. Sathyanarayana, CA Revenue Shri Ganesh R. Ghale, SC to Department Date of hearing 10/09/2020 Date of pronouncement 11/09/2020 O R D E R Per CHANDRA POOJARI, AM: This appeal filed by the assesee is directed against the order of the CIT(A) dated 02/01/2019. 2. The assessee has ra…

Sri. Ranga Rao Kamineni, Bellary vs. Income-Tax Officer, Bellary

In the result, the appeal of the assessee is allowed

ITA 910/BANG/2017[2011-12]Status: DisposedITAT Bangalore07 Jun 2017AY 2011-12

Bench: Shri Vijay Pal Raoassessment Year : 2011-12

For Appellant: Shri B.S. Balachander, AdvocateFor Respondent: Shri M.K. Biju, JCIT
Section 143(3)

…e whether there are multiple transaction of deposit and withdrawal on regular basis then only peak credit can be considered for the purpose of making addition on this account. The Hon’ble Allahabad High Court in Page 7 of 8 case of CIT Vs Sharraf Trading Co. (376 ITR 534) has held in para 30 and 31 as under. “30. We may also notice that against Tribunal's earlier order dated 13th February, 2004, department filed appeal under Section 260A before this Court. We are informed that these appeals preferred by department have also been dismissed by this Court. These appeals i.e. ITA No. 179/2004 and other connected ap…

ITO, Bangalore vs. Shri. Basavaraj S Kallur, Vijayapur

In the result the appeal of the revenue is partly allowed

ITA 1230/BANG/2016[2011-12]Status: DisposedITAT Bangalore31 May 2017AY 2011-12

Bench: Shri Vijay Pal Raoassessment Year : 2011-12

For Appellant: Shri M.K. Biju, JCITFor Respondent: Shri S. Ramasubramanian, CA
Section 144

…AR of the assessee has submitted that the principle of peak credit has been well settled by various decisions. In support of his claim he has relied upon the decision of Hon’ble Allahabad Page 5 of 6 High Court in case of CIT Vs Saraf Trading Co. and another (376 ITR 534). Thus he has submitted that the CIT(A) has rightly given the benefit by considering the peak credit in the savings bank account instead of the entire deposits made on different dates. 5. Having considered the rival submissions as well as relevant material on record it is noted that there are deposits as well as withdrawals in the savings bank a…

CIT v. Sharraf Trading Co. (376 ITR 534) — Cited in 14 Judgments | BharatTax