CIT v. Smt. Santosh Jain

296 ITR 324High Court2008#2129 most cited

What is CIT v. Smt. Santosh Jain authority for?

When business income is estimated, disallowances under Section 40A(3) for cash payments and Section 40(a)(ia) for non-deduction of TDS should not be made.

54

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. Smt. Santosh Jain · 296 ITR 324 · Section 40A(3) disallowance · Section 40(a)(ia) disallowance · estimated income · best judgment assessment · cash expenditure · TDS default · search assessment

Sections most often in play

Section 40A(3)Section 143(3)Section 153ASection 131Section 132Section 132(4)Section 153DSection 40(a)(ia)

Issues it is cited on

section 153aofsection 153b(1)(b)unexplained jewellerylegal expensesannual valuesection 40a(3)section 132(4a)rule of consistencysection 40aappeal before cit(a)section 40section 194c

Judgments citing CIT v. Smt. Santosh Jain

Income Tax Officer, Ward 1(4), Kalyan vs. Subhash D. Chaudhary, Mumbai

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

ITA 5144/MUM/2017[2009-10]Status: DisposedITAT Mumbai30 Jan 2019AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Nishit GandhiFor Respondent: Shri Chaudhary Arun Kumar Singh
Section 133(6)Section 143(1)Section 143(3)Section 145(3)Section 148Section 40A(3)

…s of Accounts are rejected invoking provisions of section 145(3) of the Act there is no justification in invoking provisions of section 40A(3) of the Act for making separate addition. Reliance is placed on the decisions in the case of CIT v. Smt. Santosh Jan [296 ITR 324] and CIT v. Aggarwal Engg. Co. [302 ITR 246]. (A.Ys: 2009-10, 2010-11 & 2011-12) Shri Subhash D. Chaudhary 6. Ld. Counsel for the assessee further submits that assessee is into wholesale trader in paper and the gross profit margin of the assessee is allowed 5 to 8% and therefore the estimation of profit element on purchases @12.5% is not justifie…

Subhash D. Chaudhary, Mumbai vs. Income Tax Officer, Ward 1(4), Kalyan

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

ITA 5044/MUM/2017[2011-12]Status: DisposedITAT Mumbai30 Jan 2019AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Nishit GandhiFor Respondent: Shri Chaudhary Arun Kumar Singh
Section 133(6)Section 143(1)Section 143(3)Section 145(3)Section 148Section 40A(3)

…s of Accounts are rejected invoking provisions of section 145(3) of the Act there is no justification in invoking provisions of section 40A(3) of the Act for making separate addition. Reliance is placed on the decisions in the case of CIT v. Smt. Santosh Jan [296 ITR 324] and CIT v. Aggarwal Engg. Co. [302 ITR 246]. (A.Ys: 2009-10, 2010-11 & 2011-12) Shri Subhash D. Chaudhary 6. Ld. Counsel for the assessee further submits that assessee is into wholesale trader in paper and the gross profit margin of the assessee is allowed 5 to 8% and therefore the estimation of profit element on purchases @12.5% is not justifie…

Subhash D. Chaudhary, Mumbai vs. Income Tax Officer, Ward 1(4), Kalyan

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

ITA 5043/MUM/2017[2010-11]Status: DisposedITAT Mumbai30 Jan 2019AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Nishit GandhiFor Respondent: Shri Chaudhary Arun Kumar Singh
Section 133(6)Section 143(1)Section 143(3)Section 145(3)Section 148Section 40A(3)

…s of Accounts are rejected invoking provisions of section 145(3) of the Act there is no justification in invoking provisions of section 40A(3) of the Act for making separate addition. Reliance is placed on the decisions in the case of CIT v. Smt. Santosh Jan [296 ITR 324] and CIT v. Aggarwal Engg. Co. [302 ITR 246]. (A.Ys: 2009-10, 2010-11 & 2011-12) Shri Subhash D. Chaudhary 6. Ld. Counsel for the assessee further submits that assessee is into wholesale trader in paper and the gross profit margin of the assessee is allowed 5 to 8% and therefore the estimation of profit element on purchases @12.5% is not justifie…

Subhash D. Chaudhary, Mumbai vs. Income Tax Officer, Ward 1(4), Kalyan

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

ITA 5042/MUM/2017[2009-10]Status: DisposedITAT Mumbai30 Jan 2019AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Nishit GandhiFor Respondent: Shri Chaudhary Arun Kumar Singh
Section 133(6)Section 143(1)Section 143(3)Section 145(3)Section 148Section 40A(3)

…s of Accounts are rejected invoking provisions of section 145(3) of the Act there is no justification in invoking provisions of section 40A(3) of the Act for making separate addition. Reliance is placed on the decisions in the case of CIT v. Smt. Santosh Jan [296 ITR 324] and CIT v. Aggarwal Engg. Co. [302 ITR 246]. (A.Ys: 2009-10, 2010-11 & 2011-12) Shri Subhash D. Chaudhary 6. Ld. Counsel for the assessee further submits that assessee is into wholesale trader in paper and the gross profit margin of the assessee is allowed 5 to 8% and therefore the estimation of profit element on purchases @12.5% is not justifie…

Iqbal Ahmed Khalilamed Subedar, Mumbai vs. ITO 22(1)(2), Navi Mumbai

In the result, the appeal of the assessee for the A

ITA 4896/MUM/2015[2008-09]Status: DisposedITAT Mumbai04 Oct 2017AY 2008-09

Bench: Shri C.N Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 2135/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No.4896/Mum/2015 (नििाारण वर्ा / Assessment Year : 2008-09)

For Appellant: Shri. S.C. Tiwari & RutejaFor Respondent: Shri B.C.S. Naik(CIT-DR)
Section 143(3)Section 253(3)Section 40A(3)

…ITA No. 2135/M/2013 & 4896/M/2015 आयकर अपीऱीय अधिकरण “I” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI C.N PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No. 2135/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No.4896/Mum/2015 (नििाारण वर्ा / Assessment Year : 2008-09) बिाम/ Shri. Iqbal Ahmed Khalil ITO 22(1)(2) Ahmed Subedar, Shop no. 1, Mumbai Jamnabhai Chawl, Opp. v. Navel Depot, Chirag Nagar, Ghatkopar(W), Mumbai- 400086 स्थायी ऱेखा सं./ PAN : AGPPS6788L (अपीऱाथी /Appellant) (प्रत्यथी / Respondent)…

Iqbal Ahmaed Khalil Ahmed Subedar, Mumbai vs. ITO 22(1)(2), Mumbai

In the result, the appeal of the assessee for the A

ITA 2135/MUM/2013[2009-10]Status: DisposedITAT Mumbai04 Oct 2017AY 2009-10

Bench: Shri C.N Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 2135/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No.4896/Mum/2015 (नििाारण वर्ा / Assessment Year : 2008-09)

For Appellant: Shri. S.C. Tiwari & RutejaFor Respondent: Shri B.C.S. Naik(CIT-DR)
Section 143(3)Section 253(3)Section 40A(3)

…ITA No. 2135/M/2013 & 4896/M/2015 आयकर अपीऱीय अधिकरण “I” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI C.N PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No. 2135/Mum/2013 (नििाारण वर्ा / Assessment Year : 2009-10 ) आयकर अपीऱ सं./I.T.A. No.4896/Mum/2015 (नििाारण वर्ा / Assessment Year : 2008-09) बिाम/ Shri. Iqbal Ahmed Khalil ITO 22(1)(2) Ahmed Subedar, Shop no. 1, Mumbai Jamnabhai Chawl, Opp. v. Navel Depot, Chirag Nagar, Ghatkopar(W), Mumbai- 400086 स्थायी ऱेखा सं./ PAN : AGPPS6788L (अपीऱाथी /Appellant) (प्रत्यथी / Respondent)…

DCIT, Jaipur vs. Jadau Jewellers & Mfg (P) Ltd., Jaipur

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

ITA 502/JPR/2016[2010-11]Status: DisposedITAT Jaipur28 Feb 2017AY 2010-11
For Appellant: Shri Vijay Goyal and Shri Gulshan Agarwal, CAFor Respondent: Shri R.A. Verma, Addl.CIT - DR
Section 142Section 144Section 153A

…te after rejecting the books of accounts by invoking the provisions of Section 145(3)of the Act then no separate addition can be made on account of cash credit u/s 68 of the Act. The Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Smt.Santosh Jain, 296 ITR 324 held that Section 40A(3) cannot be invoked when the income is estimated by applying the gross profit rate. The Hon'ble Punjab & Haryana High Court followed the decision of The Hon'ble Allahabad High Court in the case of CIT Vs. Banwari Lal Bansi Dhar, 229 ITR 229. The Jaipur Tribunal in the case of Singhal Builders Contractor Vs. Addl. CIT, 133 T…

Ashok Pandurang Gaikwad, Mumbai vs. ITO WD 2(1), Mumbai

In the result, the appeal u/s 263 stands allowed and appeal bearing no

ITA 22/MUM/2010[2005-06]Status: DisposedITAT Mumbai27 Oct 2016AY 2005-06

Bench: Shri Mahavir Singh, Jm & Shri Rajesh Kumar, Am आयकर अपीऱ सं./I.T.A. No.6191/Mum/2009 (ननधधारण वषा / Assessment Year : 2005-06) Shri Ashok Pandurang Gaikwad, बनधम/ Commissioner Of Income Tax – 10, Rudra Kautir Apartment, Circle-Iii, Vs. Opp Dutta Temple, 3Rd Floor, Quoreshi Mansion, Ambernath -421501 Gokhale Road, Naupada, Thane(W)-400602 आयकर अपीऱ सं./I.T.A. No.22/Mum/2010 (ननधधारण वषा / Assessment Year : 2005-06) बनधम/ Shri Ashok Pandurang Gaikwad, Income Tax Officer-Ward 2(1), 10, Rudra Kautir Apartment, Kalyan. Vs. Opp Dutta Temple, Ambernath -421501 स्थधयी ऱेखध सं./ Pan :Aevpg3266M अपीऱार्थी ओर से / Assessee By Shri Vijay Mehta प्रत्यर्थी की ओर से/Revenue By Shri A.K Srivastava सुनवाई की तारीख / Date Of Hearing : 21.09.2016 घोषणा की तारीख /Date Of Pronouncement : 27.10.2016 आदेश / O R D E R Per Rajesh Kumar, Am These Two Appeals By The Assessee Are Directed Against The Order Dated 31.1.2008 Passed By The Ld.Cit(A)-Iii, Thane Under Section 263 Of The Income

Section 143(3)Section 144Section 194CSection 263Section 40Section 40a

…the CIT has not disputed or doubted the estimation of income which, the AO calculated. The ld. AR also relied upon the following decision in support of his claim: A. Decision of the Honble Punjab & Harayana High Court in the case of C1T v Smt. Santosh [ain (296 ITR 324) ; B. Decision of the Hon'ble Madhya Pradesh High Court in the case of CIT v Purushottamlal Tamrakar (270 ITR 314); C. Order of the Tribunal, Special Bench, Kolkata in the case of ITO v Kenaram Shah and Subhash Saha (301 ITR (AT) 171 (relevant pages only) D. Order of the Hon'ble Tribunal, Jaipur Bench, in the case of Singhal Builders Contractor v…

Ashok Pandurang Gaikwad, Ambernath vs. CIT -III, Thane

In the result, the appeal u/s 263 stands allowed and appeal bearing no

ITA 6191/MUM/2009[2005-06]Status: DisposedITAT Mumbai27 Oct 2016AY 2005-06

Bench: Shri Mahavir Singh, Jm & Shri Rajesh Kumar, Am आयकर अपीऱ सं./I.T.A. No.6191/Mum/2009 (ननधधारण वषा / Assessment Year : 2005-06) Shri Ashok Pandurang Gaikwad, बनधम/ Commissioner Of Income Tax – 10, Rudra Kautir Apartment, Circle-Iii, Vs. Opp Dutta Temple, 3Rd Floor, Quoreshi Mansion, Ambernath -421501 Gokhale Road, Naupada, Thane(W)-400602 आयकर अपीऱ सं./I.T.A. No.22/Mum/2010 (ननधधारण वषा / Assessment Year : 2005-06) बनधम/ Shri Ashok Pandurang Gaikwad, Income Tax Officer-Ward 2(1), 10, Rudra Kautir Apartment, Kalyan. Vs. Opp Dutta Temple, Ambernath -421501 स्थधयी ऱेखध सं./ Pan :Aevpg3266M अपीऱार्थी ओर से / Assessee By Shri Vijay Mehta प्रत्यर्थी की ओर से/Revenue By Shri A.K Srivastava सुनवाई की तारीख / Date Of Hearing : 21.09.2016 घोषणा की तारीख /Date Of Pronouncement : 27.10.2016 आदेश / O R D E R Per Rajesh Kumar, Am These Two Appeals By The Assessee Are Directed Against The Order Dated 31.1.2008 Passed By The Ld.Cit(A)-Iii, Thane Under Section 263 Of The Income

Section 143(3)Section 144Section 194CSection 263Section 40Section 40a

…the CIT has not disputed or doubted the estimation of income which, the AO calculated. The ld. AR also relied upon the following decision in support of his claim: A. Decision of the Honble Punjab & Harayana High Court in the case of C1T v Smt. Santosh [ain (296 ITR 324) ; B. Decision of the Hon'ble Madhya Pradesh High Court in the case of CIT v Purushottamlal Tamrakar (270 ITR 314); C. Order of the Tribunal, Special Bench, Kolkata in the case of ITO v Kenaram Shah and Subhash Saha (301 ITR (AT) 171 (relevant pages only) D. Order of the Hon'ble Tribunal, Jaipur Bench, in the case of Singhal Builders Contractor v…

Mr. Sandeep Mangla, New Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is partly dismissed on ground no

ITA 2099/DEL/2010[2006-07]Status: DisposedITAT Delhi01 Jul 2016AY 2006-07

Bench: Sri C.M.Garg, Jm & Sri O.P. Kant, Am Ita No. 2099/Del./2010 : Asstt. Year : 2006-07

For Appellant: Sh. Suresh Gupta, CAFor Respondent: Smt. Anima Barnwal, Sr. DR
Section 143(2)Section 40A(3)Section 68Section 69

…nd no. 2 and 9 of the assessee : The Ld. AR placing reliance on the decision of Hon’ble MP High Court in the case of CIT vs. Purshottamlal Tamrakar 270 ITR 314 (MP) and decision of Hon’ble Punjab and Haryana High Court in the case of CIT vs. Smt. Santosh Jain 296 ITR 324 (P & H High Court) submitted that where the income of the assessee has been computed by applying gross or net profit rate, then there is no need to look into the provisions of section 40A(3) of the Act, as applying the gross profit rate takes care of expenditure otherwise then by way of crossed cheque also. 13. Replying to the above the Ld. DR s…

Sri Chitta Ranjan Das, Purba Medinipur vs. I.T.O WD - 1, Haldia, Purba Medinipur

In the result, appeals of assessee are partly allowed

ITA 672/KOL/2013[2008-2009]Status: DisposedITAT Kolkata04 May 2016AY 2008-2009

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Manish Tiwari, ARFor Respondent: Shri A. K. Pande, JCIT, Sr. DR
Section 133ASection 143(3)Section 148

…t rate was applied, that would take care of everything else and there was no need for the AO to make scrutiny of the amount incurred on the purchases made by the assessee. The Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Smt. Santosh Jain (2008) 296 ITR 324 (P&H) has held that where the income of the assessee has been computed by applying a gross profit rate, there is no need to look into the provisions of section 40A(3) of the Act, 1961, as applying the gross profit rate takes care of expenditure otherwise than by way of crossed cheques also. Hence, we are of the view that the addition made by AO a…

Sri Chitta Ranjan Das, Purba Medinipur vs. I.T.O WD - 1, Haldia, Purba Medinipur

In the result, appeals of assessee are partly allowed

ITA 671/KOL/2013[2007-08]Status: DisposedITAT Kolkata04 May 2016AY 2007-08

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Manish Tiwari, ARFor Respondent: Shri A. K. Pande, JCIT, Sr. DR
Section 133ASection 143(3)Section 148

…t rate was applied, that would take care of everything else and there was no need for the AO to make scrutiny of the amount incurred on the purchases made by the assessee. The Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Smt. Santosh Jain (2008) 296 ITR 324 (P&H) has held that where the income of the assessee has been computed by applying a gross profit rate, there is no need to look into the provisions of section 40A(3) of the Act, 1961, as applying the gross profit rate takes care of expenditure otherwise than by way of crossed cheques also. Hence, we are of the view that the addition made by AO a…

Sri Chitta Ranjan Das, Purba Medinipur vs. I.T.O WD - 1, Haldia, Purba Medinipur

In the result, appeals of assessee are partly allowed

ITA 670/KOL/2013[2003-04]Status: DisposedITAT Kolkata04 May 2016AY 2003-04

Bench: Shri Mahavir Singh, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Manish Tiwari, ARFor Respondent: Shri A. K. Pande, JCIT, Sr. DR
Section 133ASection 143(3)Section 148

…t rate was applied, that would take care of everything else and there was no need for the AO to make scrutiny of the amount incurred on the purchases made by the assessee. The Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Smt. Santosh Jain (2008) 296 ITR 324 (P&H) has held that where the income of the assessee has been computed by applying a gross profit rate, there is no need to look into the provisions of section 40A(3) of the Act, 1961, as applying the gross profit rate takes care of expenditure otherwise than by way of crossed cheques also. Hence, we are of the view that the addition made by AO a…

A.C.I.T Cir - 1, Asansol vs. Subhasish Acharyya, Burdwan

In the result, the appeal of the revenue is dismissed and cross objection of the assessee is partly allowed as stated above

ITA 1050/KOL/2013[2008-09]Status: DisposedITAT Kolkata15 Apr 2016AY 2008-09

Bench: : Shri N.V.Vasudevan & Shri M. Balaganesh

For Appellant: Shri U Dasgupta, Advocate, ld.ARFor Respondent: Smt. Ranu Biswas, JCIT, ld.Sr.DR
Section 143(3)Section 40A(3)

…ance/addition u/s. 40A(3) of the Act. We place reliance on the following decisions in support of this proposition:- • CIT Vs. Mohammad Dhurabudeen (2008) 4 DTR (Mad) 218 • CIT Vs. Banwarilal Banshidar (1998) 229 ITR 229(All) • CIT Vs. Smt. Santosh Jain (2008) 296 ITR 324(P&H) 159 Taxman 392(P & H) • CIT Vs. Purushottamlal Tamrakar Uchehra (2003) 184 CTR (MP) 349(2004) 270 ITR 314(MP) • Indwell Construction Vs. CIT (1999) 232 ITR 776(AP) In view of the above, the ground raised by the revenue is dismissed. 10. In the result, the appeal of the revenue is dismissed and cross objection of the assessee is partly allo…