CIT v. Simit P. Sheth

356 ITR 451High Court2013#27 most cited

What is CIT v. Simit P. Sheth authority for?

Additions for alleged bogus purchases should be restricted to the profit element, not the entire turnover. The profit element is often estimated at 12.5% of the purported bogus purchases.

1,465

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Simit P. Sheth · section 69C · bogus purchases · undisclosed income · addition on profit element · gross profit · net profit · reassessment · assessment procedure

Also reported as

38 Taxmann 385

Sections most often in play

Section 143(3)Section 147Section 148Section 132Section 131Section 69CSection 133(6)Section 143(2)

Issues it is cited on

section 69csection 131section 133(6)reassessment proceedingsundisclosed incomesearch and seizuresection 69section 132section 13section 148businesssection 147

Judgments citing CIT v. Simit P. Sheth

DCIT-7(1)(1), Mumbai vs. Monsher Fire Protection Systems Private Limited, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 7002/MUM/2025[2011-12]Status: DisposedITAT Mumbai27 Feb 2026AY 2011-12

Bench: Shri Sandeep Gosain & Shri Bijayananda Prusethdcit – 7(1)(1) Vs. Monsher Fire Protection Systems Pvt. Ltd. Room No. 126, 1St Floor, 403, Tantia Jogani Estate 403, Tantia Aayakar Bhavan, M.K. Jogani Estate, Off. N.M. Joshi Marg, Next Road, To Lodha, Pavilion, Lower Parel, Mumbai - 400020 Mumbai-400011 Pan/Gir No: Aaccm4650R (Appellant) (Respondent) Appellant By None Respondent By Shri Akhtar Hussain Ansari, (Sr. Dr) Date Of Hearing 23.02.2026 Date Of Pronouncement 27.02.2026 O R D E R Per Bijyananda Pruseth, Am:

Section 143(3)Section 147Section 250Section 69C

…assessee filed appeal before the CIT(A), who partly allowed the appeal by directing the AO to restrict the disallowance Rs. 11,76,931/- (12.5% of Rs. 94,50,446/-). He has relied upon various decisions of the Hon’ble High Court mainly CIT v. Simit P. Sheth (356 ITR 451-Guj.), PCIT vs. S. V. Jiwani (2022) 145 2 Monsher Fire Protection Systems Pvt. Ltd. taxmann.com 230 (Bom.) and PCIT vs. Ashwin Purshotam Bajaj (ITA 576 of 2018 dated 12.07.2023). 4. Aggrieved by the order of CIT(A), the revenue filed appeal before the Tribunal. The case was posted for hearing on 29.12.2025 and 23.02.2026. The respondent assess…

Income Tax Officer, Civic Centre vs. Mahesh Kumar Aggarwal, Delhi

In the result the appeal of Revenue is dismissed

ITA 6242/DEL/2025[2021-22]Status: DisposedITAT Delhi06 Feb 2026AY 2021-22

Bench: Sh.Sudhir Kumar & Smt. Renu Jauhriassessment Year: 2021-22 Income Tax Officer Vs. Mahesh Kumar Aggarwal 19/176 Near Usha Mata Mandir Old Rohtak Road , North West Delhi 110035 Pan No. Adupa7276 K (Appellant) (Respondent)

Section 133(6)Section 145(3)

…esse cannot be punished since sale prices accepted by the revenue. Therefore, even if 6 percent gross profit is taken into account, the corresponding cost price is required to be deducted and tax cannot be levied on the same price." d. CIT v/s Simit P. Sheth 356 ITR 451 (Gujarat) AY2006-07 "when the total sale is accepted by the AO, he could not have questioned the vary basis of purchases." The purchase parties could not reply to notices u/s 133(6) and there can be various reasons for that like shifting their business premises etc. but the appellant has produced the copies of bank statements, where the payments…

K V Tex Firm, Chennai vs. Asst. Commissioner of Income Tax, Chennai

In the result, all the three appeals of the assessee stand allowed

ITA 1860/CHNY/2025[2020-21]Status: DisposedITAT Chennai04 Feb 2026AY 2020-21

Bench: Shri George George K & Shri S.R. Raghunatha

For Appellant: Shri. D. Anand, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139(1)Section 143Section 147Section 44A

…to double taxation of the same trading cycle and is therefore impermissible in law. 44. The correct approach, as upheld in a catena of judicial pronouncements including CIT v. President Industries [(2002) 258 ITR 654 (Guj)] and CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj)], is to bring to tax only the profit element embedded in the unaccounted sales. The AO’s failure to recognize this basic accounting reality renders the addition of the entire turnover wholly unsustainable. 45. The ld.AR contended that the addition made by the AO by treating the entire quantum of alleged suppressed sales as income is fundam…

Gunasekaran Mannar, Villupuram vs. Asst. Commissioner of Income Tax, Chennai

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

ITA 1864/CHNY/2025[2018-19]Status: DisposedITAT Chennai22 Jan 2026AY 2018-19

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.1863, 1864, 1855, 1856, 1857 & 1858/Chny/2025 िनधा"रण वष"/Assessment Years: 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 Gunasekaran Mannar, Vs. The Assistant Commissioner Of No. 91, Kamaraj Street, Income Tax, Villupuram 605 602, Villupuram. Central Circle 1(1), Chennai. [Pan:Aacpg0230G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri D. Anand, Advocate ""थ" की ओर से/Respondent By : Shri Shiva Srinivas, Cit सुनवाई की तारीख/ Date Of Hearing : 29.10.2025 घोषणा की तारीख /Date Of Pronouncement : 22.01.2026 आदेश /O R D E R Per Bench: These Six Appeals Filed By The Assessee Are Directed Against Different Orders All Dated 24.04.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals) - 18, Chennai For The Assessment Years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23. 2. Since, The Issues Raised In These Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We Proceed To 2

For Appellant: Shri D. Anand, AdvocateFor Respondent: Shri Shiva Srinivas, CIT
Section 115BSection 132Section 139(1)Section 147Section 148

…ion of the same trading cycle and is therefore not justified. We find support from the decision of Hon’ble High Court of Gujarat, as relied on by the Ld.AR, in the case of CIT v. President Industries (2002) 258 ITR 654 (Guj)] and CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj)], which held, to bring to tax only the profit element embedded in the unaccounted sales, in our opinion, the Assessing Officer's failure to recognize this basic established accounting reality, renders the addition of the entire turnover wholly unsustainable. 29. The above said principle has also been accepted by the Jurisdictional High Cou…

Gunasekaran Mannar, Villupuram vs. Asst. Commissioner of Income Tax, Chennai

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

ITA 1863/CHNY/2025[2017-18]Status: DisposedITAT Chennai22 Jan 2026AY 2017-18
For Appellant: Shri D. Anand, AdvocateFor Respondent: Shri Shiva Srinivas, CIT
Section 115BSection 132Section 139(1)Section 147Section 148

…ion of the same trading cycle and is therefore not justified. We find support from the decision of Hon'ble High Court of Gujarat, as relied on by the Ld.AR, in the case of CIT v. President Industries (2002) 258 ITR 654 (Guj)] and CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj)], which held, to bring to tax only the profit element embedded in the unaccounted sales, in our opinion, the Assessing Officer's failure to recognize this basic established accounting reality, renders the addition of the entire turnover wholly unsustainable. 29. The above said principle has also been accepted by the Jurisdictional High Cour…

Gunasekaran Mannar, Villupuram vs. Asst. Commissioner of Income Tax, Chennai

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

ITA 1858/CHNY/2025[2022-23]Status: DisposedITAT Chennai22 Jan 2026AY 2022-23

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.1863, 1864, 1855, 1856, 1857 & 1858/Chny/2025 िनधा"रण वष"/Assessment Years: 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 Gunasekaran Mannar, Vs. The Assistant Commissioner Of No. 91, Kamaraj Street, Income Tax, Villupuram 605 602, Villupuram. Central Circle 1(1), Chennai. [Pan:Aacpg0230G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri D. Anand, Advocate ""थ" की ओर से/Respondent By : Shri Shiva Srinivas, Cit सुनवाई की तारीख/ Date Of Hearing : 29.10.2025 घोषणा की तारीख /Date Of Pronouncement : 22.01.2026 आदेश /O R D E R Per Bench: These Six Appeals Filed By The Assessee Are Directed Against Different Orders All Dated 24.04.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals) - 18, Chennai For The Assessment Years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23. 2. Since, The Issues Raised In These Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We Proceed To 2

For Appellant: Shri D. Anand, AdvocateFor Respondent: Shri Shiva Srinivas, CIT
Section 115BSection 132Section 139(1)Section 147Section 148

…ion of the same trading cycle and is therefore not justified. We find support from the decision of Hon’ble High Court of Gujarat, as relied on by the Ld.AR, in the case of CIT v. President Industries (2002) 258 ITR 654 (Guj)] and CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj)], which held, to bring to tax only the profit element embedded in the unaccounted sales, in our opinion, the Assessing Officer's failure to recognize this basic established accounting reality, renders the addition of the entire turnover wholly unsustainable. 29. The above said principle has also been accepted by the Jurisdictional High Cou…

Gunasekaran Mannar, Villupuram vs. Asst. Commissioner of Income Tax, Chennai

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

ITA 1857/CHNY/2025[2021-22]Status: DisposedITAT Chennai22 Jan 2026AY 2021-22
Section 115BSection 132Section 139(1)Section 147Section 148

…ion of the same trading cycle and is therefore not justified. We find support from the decision of Hon'ble High Court of Gujarat, as relied on by the Ld.AR, in the case of CIT v. President Industries (2002) 258 ITR 654 (Guj)] and CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj)], which held, to bring to tax only the profit element embedded in the unaccounted sales, in our opinion, the Assessing Officer's failure to recognize this basic established accounting reality, renders the addition of the entire turnover wholly unsustainable. 29. The above said principle has also been accepted by the Jurisdictional High Cour…

Gunasekaran Mannar, Villupuram vs. Asst. Commissioner of Income Tax, Chennai

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

ITA 1856/CHNY/2025[2020-21]Status: DisposedITAT Chennai22 Jan 2026AY 2020-21

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.1863, 1864, 1855, 1856, 1857 & 1858/Chny/2025 िनधा"रण वष"/Assessment Years: 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 Gunasekaran Mannar, Vs. The Assistant Commissioner Of No. 91, Kamaraj Street, Income Tax, Villupuram 605 602, Villupuram. Central Circle 1(1), Chennai. [Pan:Aacpg0230G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri D. Anand, Advocate ""थ" की ओर से/Respondent By : Shri Shiva Srinivas, Cit सुनवाई की तारीख/ Date Of Hearing : 29.10.2025 घोषणा की तारीख /Date Of Pronouncement : 22.01.2026 आदेश /O R D E R Per Bench: These Six Appeals Filed By The Assessee Are Directed Against Different Orders All Dated 24.04.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals) - 18, Chennai For The Assessment Years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23. 2. Since, The Issues Raised In These Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We Proceed To 2

For Appellant: Shri D. Anand, AdvocateFor Respondent: Shri Shiva Srinivas, CIT
Section 115BSection 132Section 139(1)Section 147Section 148

…ion of the same trading cycle and is therefore not justified. We find support from the decision of Hon’ble High Court of Gujarat, as relied on by the Ld.AR, in the case of CIT v. President Industries (2002) 258 ITR 654 (Guj)] and CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj)], which held, to bring to tax only the profit element embedded in the unaccounted sales, in our opinion, the Assessing Officer's failure to recognize this basic established accounting reality, renders the addition of the entire turnover wholly unsustainable. 29. The above said principle has also been accepted by the Jurisdictional High Cou…

Gunasekaran Mannar, Villupuram vs. Asst. Commissioner of Income Tax, Chennai

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

ITA 1855/CHNY/2025[2019-20]Status: DisposedITAT Chennai22 Jan 2026AY 2019-20

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.1863, 1864, 1855, 1856, 1857 & 1858/Chny/2025 िनधा"रण वष"/Assessment Years: 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 Gunasekaran Mannar, Vs. The Assistant Commissioner Of No. 91, Kamaraj Street, Income Tax, Villupuram 605 602, Villupuram. Central Circle 1(1), Chennai. [Pan:Aacpg0230G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri D. Anand, Advocate ""थ" की ओर से/Respondent By : Shri Shiva Srinivas, Cit सुनवाई की तारीख/ Date Of Hearing : 29.10.2025 घोषणा की तारीख /Date Of Pronouncement : 22.01.2026 आदेश /O R D E R Per Bench: These Six Appeals Filed By The Assessee Are Directed Against Different Orders All Dated 24.04.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals) - 18, Chennai For The Assessment Years 2017-18, 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23. 2. Since, The Issues Raised In These Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We Proceed To 2

For Appellant: Shri D. Anand, AdvocateFor Respondent: Shri Shiva Srinivas, CIT
Section 115BSection 132Section 139(1)Section 147Section 148

…ion of the same trading cycle and is therefore not justified. We find support from the decision of Hon’ble High Court of Gujarat, as relied on by the Ld.AR, in the case of CIT v. President Industries (2002) 258 ITR 654 (Guj)] and CIT v. Simit P. Sheth [(2013) 356 ITR 451 (Guj)], which held, to bring to tax only the profit element embedded in the unaccounted sales, in our opinion, the Assessing Officer's failure to recognize this basic established accounting reality, renders the addition of the entire turnover wholly unsustainable. 29. The above said principle has also been accepted by the Jurisdictional High Cou…

Amar Kumar Agarwal, Kolkata vs. D.C.I.T., CC - 4(3), Kolkata

In the result, the appeals of the assessee are partly allowed and appeals of the Revenue are dismissed

ITA 2007/KOL/2025[2021-2022]Status: DisposedITAT Kolkata18 Dec 2025AY 2021-2022

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri Siddarth Jhajharia, ARFor Respondent: S/shri Raja Sengupta &
Section 132Section 153ASection 44ASection 69A

…nking channel but are rooted through journal entries. The AO has further stated that there is no evidence of transportation of the goods from buyer to the seller. Therefore, following the decision of the honourableGujarat High Court in CIT versus Smit P Sheth 356 ITR 451 he sustained the disallowance in court to 12.5% of bogus purchases he noted that the total purchases of Rs. 888,827,942/- is made from specialty papers private limited and Rs 14,848,200/- is from another sister concern global paper Impex Ltd amounting in all to Rs. 903,676,142/- and 12.5% of the same comes to Rs. 112,959,517/-. He sustained this…

Deputy Commissioner of Income Tax, Central Circle-4(3), Kolkata vs. Amar Kumar Agarwal, Kolkata

In the result, the appeals of the assessee are partly allowed and appeals of the Revenue are dismissed

ITA 1499/KOL/2025[2021-22]Status: DisposedITAT Kolkata18 Dec 2025AY 2021-22

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri Siddarth Jhajharia, ARFor Respondent: S/shri Raja Sengupta &
Section 132Section 153ASection 44ASection 69A

…nking channel but are rooted through journal entries. The AO has further stated that there is no evidence of transportation of the goods from buyer to the seller. Therefore, following the decision of the honourableGujarat High Court in CIT versus Smit P Sheth 356 ITR 451 he sustained the disallowance in court to 12.5% of bogus purchases he noted that the total purchases of Rs. 888,827,942/- is made from specialty papers private limited and Rs 14,848,200/- is from another sister concern global paper Impex Ltd amounting in all to Rs. 903,676,142/- and 12.5% of the same comes to Rs. 112,959,517/-. He sustained this…

Deputy Commissioner of Income Tax, Central Circle-4(3), Kolkata vs. Amar Kumar Agarawal, Kolkata

In the result, the appeals of the assessee are partly allowed and appeals of the Revenue are dismissed

ITA 1498/KOL/2025[2020-21]Status: DisposedITAT Kolkata18 Dec 2025AY 2020-21

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri Siddarth Jhajharia, ARFor Respondent: S/shri Raja Sengupta &
Section 132Section 153ASection 44ASection 69A

…nking channel but are rooted through journal entries. The AO has further stated that there is no evidence of transportation of the goods from buyer to the seller. Therefore, following the decision of the honourableGujarat High Court in CIT versus Smit P Sheth 356 ITR 451 he sustained the disallowance in court to 12.5% of bogus purchases he noted that the total purchases of Rs. 888,827,942/- is made from specialty papers private limited and Rs 14,848,200/- is from another sister concern global paper Impex Ltd amounting in all to Rs. 903,676,142/- and 12.5% of the same comes to Rs. 112,959,517/-. He sustained this…

Deputy Commssioner of Income Tax, Central Circle-4(3), Kolkata vs. Amar Kumar Agarwal, Kolkata

In the result, the appeals of the assessee are partly allowed and appeals of the Revenue are dismissed

ITA 1497/KOL/2025[2018-19]Status: DisposedITAT Kolkata18 Dec 2025AY 2018-19

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri Siddarth Jhajharia, ARFor Respondent: S/shri Raja Sengupta &
Section 132Section 153ASection 44ASection 69A

…nking channel but are rooted through journal entries. The AO has further stated that there is no evidence of transportation of the goods from buyer to the seller. Therefore, following the decision of the honourableGujarat High Court in CIT versus Smit P Sheth 356 ITR 451 he sustained the disallowance in court to 12.5% of bogus purchases he noted that the total purchases of Rs. 888,827,942/- is made from specialty papers private limited and Rs 14,848,200/- is from another sister concern global paper Impex Ltd amounting in all to Rs. 903,676,142/- and 12.5% of the same comes to Rs. 112,959,517/-. He sustained this…

Deputy Commissioner of Income Tax, Central Circle-4(3), Kolkata vs. Amar Kumar Agarwal, Kolkata

In the result, the appeals of the assessee are partly allowed and appeals of the Revenue are dismissed

ITA 1440/KOL/2025[2019-20]Status: DisposedITAT Kolkata18 Dec 2025AY 2019-20

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri Siddarth Jhajharia, ARFor Respondent: S/shri Raja Sengupta &
Section 132Section 153ASection 44ASection 69A

…nking channel but are rooted through journal entries. The AO has further stated that there is no evidence of transportation of the goods from buyer to the seller. Therefore, following the decision of the honourableGujarat High Court in CIT versus Smit P Sheth 356 ITR 451 he sustained the disallowance in court to 12.5% of bogus purchases he noted that the total purchases of Rs. 888,827,942/- is made from specialty papers private limited and Rs 14,848,200/- is from another sister concern global paper Impex Ltd amounting in all to Rs. 903,676,142/- and 12.5% of the same comes to Rs. 112,959,517/-. He sustained this…

M/S Ls Contractors Private Limited, Delhi vs. Deputy Commissioner of Income Tax, Central Circle- 30, Delhi

In the result, both the appeals of the Assessee are partly

ITA 2208/DEL/2025[2020-21]Status: DisposedITAT Delhi21 Nov 2025AY 2020-21

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishraआ.अ.सं/.I.T.A Nos.2207 & 2208/Del/2025 िनधा"रणवष"/Assessment Years:2019-20 & 2020-21 बनाम M/S Ls Contractors Dcit, Private Limited Vs. Central Circle-30, H-12, Tropical Building, E-2, Ground Floor, Connaught Place, New Delhi. Ara Centre, Pan No.Aabcl8541R Jhandewalan Extension Karol Bagh, New Delhi. अपीलाथ" Appellant ""यथ"/Respondent

Section 153CSection 234ASection 270A

…has to be presumed that the purchases have been made from grey market and accordingly entire purchases cannot be disallowed. • 103 taxmann.com 459 (Bombay High Court) Pr. CIT vs. Mohammad Haji Adam & Co. • 300 Taxman 288 (Guj) Pr. CIT vs. Sunil Mittal (HUF) • 356 ITR 451 (Guj) CIT vs. Simith Sheth • 372 ITR 619 (Bom) CIT vs. Nikunj Exim Enterprises Pvt. Ltd. • 429 ITR 332 (Bom) Pr. CIT vs. Jakharia Fabric Pvt. Ltd. • 194 ITD 579 (Bom) Dy CIT vs. DBM Geotechnics & Construction Pvt. Ltd. • 193 ITD 710 (Bom) Kimaya Impex (P) Ltd. vs. ITO 2. In Civil Construction cases (i) In the case of civil contractors, contracts…

M/S Ls Contractors Private Limited, Delhi vs. Deputy Commissioner of Income Tax, Central Circle- 30, Delhi

In the result, both the appeals of the Assessee are partly

ITA 2207/DEL/2025[2019-20]Status: DisposedITAT Delhi21 Nov 2025AY 2019-20

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishraआ.अ.सं/.I.T.A Nos.2207 & 2208/Del/2025 िनधा"रणवष"/Assessment Years:2019-20 & 2020-21 बनाम M/S Ls Contractors Dcit, Private Limited Vs. Central Circle-30, H-12, Tropical Building, E-2, Ground Floor, Connaught Place, New Delhi. Ara Centre, Pan No.Aabcl8541R Jhandewalan Extension Karol Bagh, New Delhi. अपीलाथ" Appellant ""यथ"/Respondent

Section 153CSection 234ASection 270A

…has to be presumed that the purchases have been made from grey market and accordingly entire purchases cannot be disallowed. • 103 taxmann.com 459 (Bombay High Court) Pr. CIT vs. Mohammad Haji Adam & Co. • 300 Taxman 288 (Guj) Pr. CIT vs. Sunil Mittal (HUF) • 356 ITR 451 (Guj) CIT vs. Simith Sheth • 372 ITR 619 (Bom) CIT vs. Nikunj Exim Enterprises Pvt. Ltd. • 429 ITR 332 (Bom) Pr. CIT vs. Jakharia Fabric Pvt. Ltd. • 194 ITD 579 (Bom) Dy CIT vs. DBM Geotechnics & Construction Pvt. Ltd. • 193 ITD 710 (Bom) Kimaya Impex (P) Ltd. vs. ITO 2. In Civil Construction cases (i) In the case of civil contractors, contracts…

Income Tax Officer Ward 23(1) Delhi, Delhi vs. Shankarraj Impex Private Limited, Delhi

ITA 4443/DEL/2024[2018-19]Status: DisposedITAT Delhi17 Nov 2025AY 2018-19

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. J. P. Agarwal, AdvFor Respondent: Sh. Manish Gupta, Sr. DR
Section 147

…ularize those purchases and sales. The AO applied the 23.02% GP rate for the total turnover, which resulted in a gross profit of Rs.1,17,32,650/-. The AO also relied on the decision of the Hon’ble Gujrat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451(Gujarat). 12.6 According to the appellant’s submission, they bought moong dal through a broker but were unsure if the supplier sold the goods to them on their own or somebody else’s account. The appellant has further stated that it is not the appellant’s responsibility if the actual supplier was providing bills for others. Since the Shankarraj Im…

Income Tax Officer Ward 23(1), New Delhi vs. Shankarraj Impex Private Limited, Delhi

ITA 4442/DEL/2024[2017-18]Status: DisposedITAT Delhi17 Nov 2025AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. J. P. Agarwal, AdvFor Respondent: Sh. Manish Gupta, Sr. DR
Section 147

…ularize those purchases and sales. The AO applied the 23.02% GP rate for the total turnover, which resulted in a gross profit of Rs.1,17,32,650/-. The AO also relied on the decision of the Hon’ble Gujrat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451(Gujarat). 12.6 According to the appellant’s submission, they bought moong dal through a broker but were unsure if the supplier sold the goods to them on their own or somebody else’s account. The appellant has further stated that it is not the appellant’s responsibility if the actual supplier was providing bills for others. Since the Shankarraj Im…

Income Tax Officer Ward-23(1) Delhi, New Delhi vs. Shankarraj Impex Pvt Ltd, New Delhi

ITA 4441/DEL/2024[2016-17]Status: DisposedITAT Delhi17 Nov 2025AY 2016-17

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. J. P. Agarwal, AdvFor Respondent: Sh. Manish Gupta, Sr. DR
Section 147

…ularize those purchases and sales. The AO applied the 23.02% GP rate for the total turnover, which resulted in a gross profit of Rs.1,17,32,650/-. The AO also relied on the decision of the Hon’ble Gujrat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451(Gujarat). 12.6 According to the appellant’s submission, they bought moong dal through a broker but were unsure if the supplier sold the goods to them on their own or somebody else’s account. The appellant has further stated that it is not the appellant’s responsibility if the actual supplier was providing bills for others. Since the Shankarraj Im…

Shankarraj Impex Pvt. Ltd., Delhi vs. ITO, Ward - 23(1), Delhi

ITA 4105/DEL/2024[2018-19]Status: DisposedITAT Delhi17 Nov 2025AY 2018-19

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. J. P. Agarwal, AdvFor Respondent: Sh. Manish Gupta, Sr. DR
Section 147

…ularize those purchases and sales. The AO applied the 23.02% GP rate for the total turnover, which resulted in a gross profit of Rs.1,17,32,650/-. The AO also relied on the decision of the Hon’ble Gujrat High Court in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451(Gujarat). 12.6 According to the appellant’s submission, they bought moong dal through a broker but were unsure if the supplier sold the goods to them on their own or somebody else’s account. The appellant has further stated that it is not the appellant’s responsibility if the actual supplier was providing bills for others. Since the Shankarraj Im…