Commissioner of Income Tax v. D.K. Garg

250 Taxmann 104High Court2017#3418 most cited

What is Commissioner of Income Tax v. D.K. Garg authority for?

An assessee who acts as an accommodation entry provider and cannot explain the sources of deposits and corresponding payments is not entitled to the benefit of peak credit.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2019 to 2025.

Also referred to as

CIT v. D.K. Garg · peak credit theory · accommodation entry provider · unexplained deposits · unexplained payments · section 69 · section 68 · section 153A · Delhi High Court

Also reported as

404 ITR 757

Sections most often in play

Section 69Section 153ASection 142(1)Section 132Section 68Section 143(2)Section 139(1)Section 147
Read the full judgment

Issues it is cited on

peak credit theorysection 256(2)section 106section 256section 124(3)(a)section 113section 124(3)income tax settlement commissionsection 127section 124section 144aaccommodation entry

Judgments citing Commissioner of Income Tax v. D.K. Garg

DCIT Central Circle-I, Greater Noida vs. Sanjay Singh, Noida

In the result, both appeals filed by the Revenue are dismissed and C

ITA 6942/DEL/2019[2016-17]Status: DisposedITAT Delhi28 Nov 2024AY 2016-17

Bench: Shri Yogesh Kumar Us & Shri Avdhesh Kumar Mishra

Section 132(4)Section 269SSection 69A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’: NEW DELHI BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No.6942/Del/2019, A.Y. 2016-17 Deputy Commissioner of Vs. Sanjay Singh, Income Tax, B-28, Gamma-I, Central Circle-1, Greater Noida, Noida (UP) Gautam Budh Nagar (UP) PAN: ADSPN2029H (Appellant) (Respondent) ITA No.2276/Del/2023, A.Y. 2016-17 Deputy Commissioner of Vs. Sanjay Singh, Income Tax, B-28, Gamma-I, Central Circle-1, Greater Noida, Noida (UP) Gautam Budh Nagar (UP) PAN: ADSPN2029H (Appellant) (Respondent) C.O.No.84/Del/2024, A.Y. 2016-17 (A…

ACIT, Central Circle-2, Jaipur vs. Chandra Mohan Badaya, Jaipur

In the result the four appeals filed by the assessee stands

ITA 464/JPR/2024[2017-18]Status: DisposedITAT Jaipur27 Nov 2024AY 2017-18

Bench: Him In The Case Of The Assessee For All These Four Assessment Year.

For Appellant: Shri S. L. GuptaFor Respondent: Shri Ajay Malik (CIT-DR)
Section 143Section 69

…` आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA. Nos. 404 & 421 to 423/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2014-15 to 2017-18 cuke Chandra Mohan Badaya DCIT, Vs. 178, Surya Nagar, Taron Ki Central Circle-2, Jaipur Koot, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AEPPB 8451 D vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. Nos. 427, 462 to 464/JP/2024 fu/kZkj.k…

ACIT, Central Circle-2, Jaipur vs. Chandra Mohan Badaya, Jaipur

In the result the four appeals filed by the assessee stands

ITA 463/JPR/2024[2016-17]Status: DisposedITAT Jaipur27 Nov 2024AY 2016-17

Bench: Him In The Case Of The Assessee For All These Four Assessment Year.

For Appellant: Shri S. L. GuptaFor Respondent: Shri Ajay Malik (CIT-DR)
Section 143Section 69

…` आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA. Nos. 404 & 421 to 423/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2014-15 to 2017-18 cuke Chandra Mohan Badaya DCIT, Vs. 178, Surya Nagar, Taron Ki Central Circle-2, Jaipur Koot, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AEPPB 8451 D vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. Nos. 427, 462 to 464/JP/2024 fu/kZkj.k…

ACIT, Central Circle-2, Jaipur vs. Chandra Mohan Badaya, Jaipur

In the result the four appeals filed by the assessee stands

ITA 462/JPR/2024[2015-16]Status: DisposedITAT Jaipur27 Nov 2024AY 2015-16

Bench: Him In The Case Of The Assessee For All These Four Assessment Year.

For Appellant: Shri S. L. GuptaFor Respondent: Shri Ajay Malik (CIT-DR)
Section 143Section 69

…` आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA. Nos. 404 & 421 to 423/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2014-15 to 2017-18 cuke Chandra Mohan Badaya DCIT, Vs. 178, Surya Nagar, Taron Ki Central Circle-2, Jaipur Koot, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AEPPB 8451 D vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. Nos. 427, 462 to 464/JP/2024 fu/kZkj.k…

ACIT, CC-2, Jaipur, Income Tax Department vs. Chandra Mohan Badaya, Jaipur

In the result the four appeals filed by the assessee stands

ITA 427/JPR/2024[2014-15]Status: DisposedITAT Jaipur27 Nov 2024AY 2014-15

Bench: Him In The Case Of The Assessee For All These Four Assessment Year.

For Appellant: Shri S. L. GuptaFor Respondent: Shri Ajay Malik (CIT-DR)
Section 143Section 69

…` आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA. Nos. 404 & 421 to 423/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2014-15 to 2017-18 cuke Chandra Mohan Badaya DCIT, Vs. 178, Surya Nagar, Taron Ki Central Circle-2, Jaipur Koot, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AEPPB 8451 D vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. Nos. 427, 462 to 464/JP/2024 fu/kZkj.k…

Chandra Mohan Badaya, Jaipur vs. DCIT, Central Circle-2, Jaipur

In the result the four appeals filed by the assessee stands

ITA 423/JPR/2024[2017-18]Status: DisposedITAT Jaipur27 Nov 2024AY 2017-18

Bench: Him In The Case Of The Assessee For All These Four Assessment Year.

For Appellant: Shri S. L. GuptaFor Respondent: Shri Ajay Malik (CIT-DR)
Section 143Section 69

…` आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA. Nos. 404 & 421 to 423/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2014-15 to 2017-18 cuke Chandra Mohan Badaya DCIT, Vs. 178, Surya Nagar, Taron Ki Central Circle-2, Jaipur Koot, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AEPPB 8451 D vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. Nos. 427, 462 to 464/JP/2024 fu/kZkj.k…

Income Tax Officer 13(1)(1) Mumbai, Mumbai vs. Nirnay Commodities and Derivatives Pvt Ltd, Mumbai

ITA 3013/MUM/2024[2012]Status: HeardITAT Mumbai23 Aug 2024

Bench: Shri Prashant Maharishi & Shri Raj Kumar Chauhan

Section 133(6)Section 143Section 148Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA Nos. 2962, 3010, 3011 & 3013/Mum/2024 Assessment Year: 2011-12, 2012-13 & 2013-14 Income Tax Officer 13(1)(1), Mumbai Nirnay Commodities and Derivatives Pvt. Ltd. Vs. 26B, Dattani Apartment, 2nd Floor, Chitabhai Patel Road, Kandivali East, Maharashtra-400101. (Appellant) (Respondent) Present for: Assessee by Revenue by Date of Hearing Date of Pronouncement : None : Shri S. Srinivasu, CIT, DR & Shri Ashok Kumar Ambastha, Sr. DR : 29.07.2024 : 23.08.2024 O…

Income Tax Officer 13(1)(1) Mumbai, Mumbai vs. Nirnay Commodities and Derivatives Pvt Ltd, Mumbai

In the result all the appeals filed by the assessing officer are allowed

ITA 3011/MUM/2024[2013]Status: HeardITAT Mumbai23 Aug 2024

Bench: Shri Prashant Maharishi & Shri Raj Kumar Chauhan

For Appellant: None
Section 133(6)Section 143Section 148Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA Nos. 2962, 3010, 3011 & 3013/Mum/2024 Assessment Year: 2011-12, 2012-13 & 2013-14 Income Tax Officer Nirnay Commodities and 13(1)(1), Mumbai Derivatives Pvt. Ltd. Vs. 26B, Dattani Apartment, (Appellant) 2nd Floor, Chitabhai Patel Road, Kandivali East, Maharashtra-400101. (Respondent) Present for: Assessee by : None : Shri S. Srinivasu, CIT, DR & Shri Ashok Kumar Ambastha, Sr. DR Date of Hearing : 29.07.2024 Date of Pronouncement : 23.08.2024 ORDER PER PR…

Income Tax Officer 13(1)(1) Mumbai, Mumbai vs. Nirnay Commodities and Derivatives Pvt Ltd, Mumbai

In the result all the appeals filed by the assessing officer are allowed for statistical purposes

ITA 3010/MUM/2024[2012]Status: HeardITAT Mumbai23 Aug 2024

Bench: Shri Prashant Maharishi & Shri Raj Kumar Chauhan

For Appellant: NoneFor Respondent: Shri S. Srinivasu, CIT, DR & Shri
Section 133(6)Section 143Section 148Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA Nos. 2962, 3010, 3011 & 3013/Mum/2024 Assessment Year: 2011-12, 2012-13 & 2013-14 Income Tax Officer Nirnay Commodities and 13(1)(1), Mumbai Derivatives Pvt. Ltd. Vs. 26B, Dattani Apartment, 2nd Floor, Chitabhai Patel Road, Kandivali East, Maharashtra-400101. (Appellant) (Respondent) Present for: Assessee by : None Revenue by : Shri S. Srinivasu, CIT, DR & Shri Ashok Kumar Ambastha, Sr. DR Date of Hearing : 29.07.2024 Date of Pronouncement : 23.08…

Income Tax Officer 13(1)(1) Mumbai, Mumbai vs. Nirnay Commodities and Derivatives Pvt Ltd, Mumbai

In the result all the appeals filed by the assessing officer are allowed for statistical purposes

ITA 2962/MUM/2024[2011]Status: HeardITAT Mumbai23 Aug 2024

Bench: Shri Prashant Maharishi & Shri Raj Kumar Chauhan

For Appellant: NoneFor Respondent: Shri S. Srinivasu, CIT, DR & Shri
Section 133(6)Section 143Section 148Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA Nos. 2962, 3010, 3011 & 3013/Mum/2024 Assessment Year: 2011-12, 2012-13 & 2013-14 Income Tax Officer Nirnay Commodities and 13(1)(1), Mumbai Derivatives Pvt. Ltd. Vs. 26B, Dattani Apartment, 2nd Floor, Chitabhai Patel Road, Kandivali East, Maharashtra-400101. (Appellant) (Respondent) Present for: Assessee by : None Revenue by : Shri S. Srinivasu, CIT, DR & Shri Ashok Kumar Ambastha, Sr. DR Date of Hearing : 29.07.2024 Date of Pronouncement : 23.08…

Chintan Niketan Bhandari, Ahmedabad vs. The DCIT, Central Circle-1(4), Ahmedabad

In the result, appeal of the assessee is partly allowed for assessment years 2014-15

ITA 1604/AHD/2019[2017-18]Status: DisposedITAT Ahmedabad29 Nov 2022AY 2017-18
For Appellant: Shri B.R. Popat, A.RFor Respondent: Shri Ritesh Kumar, CIT-D.R
Section 143(3)Section 69

…THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member IT(SS)A Nos. 495, 496, 497, 498, 499, 500 & 1604/Ahd/2019 Assessment Years 2011-12 to 2017-18 Chintan Niketan Bhandari, DCIT, B-101, Scarlet Heights, Central Circle-1(4), Anandnagar Cross Road, Vs Ahmedabad Statellite, (Respondent) Ahmedabad-380015 PAN: AFVPB7221E (Appellant) Assessee by: Shri B.R. Popat, A.R. Revenue by: Shri Ritesh Kumar, CIT-D.R. Date of hearing : 18-10-2022 Date of pronouncement : 29-11-2022 आदेश/ORDER PER BENCH:- These seven appeals f…

Sri. Venkataramanappa Ravikumar, Bangalore vs. Assistant Commissioner of Income Tax, Central Circle- 3(2)(1), Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 2660/BANG/2019[2014-15]Status: DisposedITAT Bangalore14 Jul 2021AY 2014-15

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2014-15

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Shri Muzaffar Hussain, D.R
Section 133ASection 37(1)Section 40

…ITA No.2660/Bang/2019 Sri Venkataramanappa Ravi Kumar, Bengaluru IN THE INCOME TAX APPELLATE TRIBUNAL “B’’BENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year: 2014-15 Sri Venkataramanappa Ravikumar # 600, 8th Main, 4th B Cross ACIT RPC Layout, Vijayanagar Circle-3(2)(1) Vs. Bengaluru 560 040. Bengaluru PAN NO : ABDPR5035J APPELLANT RESPONDENT Appellant by : Shri V. Srinivasan, A.R. Respondent by : Shri Muzaffar Hussain, D.R. Date of Hearing : 06.04.2021 Date of Pronouncement : 14.07.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: The…

Sh. Varun Gupta, Delhi vs. ITO, New Delhi

ITA 5889/DEL/2015[2011-12]Status: DisposedITAT Delhi22 Oct 2020AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi(Through Video Conferencing) Varun Gupta, Vs. Ito, C52, Shakti Nagar Extension, Ward47(4), Room No. 406, 4Th Floor, Block- Delhi Pan: Alwpg5914G D, Pratyakash Kar Bhawan, Civic Centre, Jl Nehru Marg, New Delhi (Appellant) (Respondent)

For Appellant: Shri R. K. Gupta, Sr. DRFor Respondent: Shri K. Sampath, Adv
Section 133Section 143Section 68

…posited in the bank account of the assessee. 8. With respect to the claim of the assessee to grant the benefit of peak credit we do not find any substantial the argument in view of the decision of the honourable Delhi High Court in case of CIT versus DK Garg (404 ITR 757) it is held that that where an assessee was unable to explain the sources of deposits and the corresponding payments , he was not entitled to get the benefit of “peak credit”. If the assessee, had wanted to avail of the benefit of the “peak credit”, he ought to have disclosed all the facts within his knowledge concerning the credit entries in the…

Realstone Exports Ltd, Thane vs. ITO 11(1)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 3580/MUM/2019[2009-10]Status: DisposedITAT Mumbai04 Oct 2019AY 2009-10

Bench: Shri M.Balaganesh, Am & Shri Ram Lal Negi, Jm M/S. Realstone Exports Ltd., Vs. Income Tax Officer C-204, 2Nd Floor 11(1)(2), Vishal Apartments Aayakar Bhavan Taki Road, Tulinj M.K.Road, Nallasopara (E) Mumbai, Thane, Maharashtra – 400 020 Maharashtra – 401 209 Pan/Gir No. Aaccr8504K (Appellant) .. (Respondent)

Section 115JSection 133(6)Section 14Section 143(1)Section 145(3)Section 148Section 263

…ionary jurisdiction u/s.263 4 M/s. Realstone Exports Ltd., of the Act for the limited purpose of examination of bogus purchases alone by placing reliance on certain decisions as under:- a. Hon’ble Delhi High court in the case of CIT vs. D.K.Garg reported in 404 ITR 757 b. Hon’ble Gujarat High Court in the case of N.K. Industries Ltd., vs. DCIT reported in 292 CTR 354 c. Hon’ble Gujarat High Court in the case of CIT vs. Simit P Sheth reported in 356 ITR 451. 3.2. We also find the ld. CIT while setting aside the order passed by the ld. AO had observed that the ld. AO had failed to carry out proper investigation o…

Mr Tarun Goyal, New Delhi vs. ACIT, Noida

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 6715/DEL/2016[2005-06]Status: DisposedITAT Delhi22 May 2019AY 2005-06

Bench: Shri R.K. Panda & Ms Suchitra Kamble

For Appellant: Shri V.P. Gupta &For Respondent: Shri S.S. Rana, CIT, DR
Section 139Section 153ASection 68

…he Act. We find the SLP filed by the assessee against the said order of the Hon'ble High court was dismissed by the Hon'ble Supreme Court as reported in 239 taxmann.com 64. 13. We find the Hon'ble Delhi High Court in the case of CIT vs. D.K. Garg, reported in 404 ITR 757, has held that where the assessee, an accommodation entry provider, was unable to explain all sources of deposits and corresponding payments, he would not be entitled to benefit of peak credit. In other words, the entire bank deposits added by the Assessing Officer were confirmed. Therefore, the additional ground raised by the assessee that addit…