Commissioner of Sales Tax v. H.M. Esufali H.M. Abdulali

90 ITR 271Supreme Court of India1973#380 most cited

What is Commissioner of Sales Tax v. H.M. Esufali H.M. Abdulali authority for?

The Supreme Court established principles for best judgment assessments, stating that some guesswork is inevitable but the assessment must be bona fide, rational, and free from bias or capriciousness. An appellate authority cannot substitute its judgment for that of the Assessing Officer unless the AO's assessment is shown to be biased, irrational, vindictive, or capricious, especially when the assessee fails to provide proper accounts or counter-evidence.

232

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2010 to 2026.

Also referred to as

H.M. Esufali H.M. Abdulali · best judgment assessment · rejection of books of account · Section 144 Income Tax Act · Section 145(3) Income Tax Act · appellate authority power · substitution of AO's judgment · rational basis assessment · estimation of income · assessee non-compliance · arbitrary or capricious assessment · bona fide estimate

Also reported as

32 STC 77

Sections most often in play

Section 148Section 132(4)Section 132Section 133ASection 139Section 147Section 144Section 145(3)

Issues it is cited on

section 132(3)section 13(1)(c)section 131(1)section 13(1)section 132(4a)dumb documentssection 153a(1)(b)best judgment assessmentloose papersretracted statementrejection of books of accountsection 250(4)

Judgments citing Commissioner of Sales Tax v. H.M. Esufali H.M. Abdulali

Late Shri Mahabir Prasad(Legal Heir Ms. Parul Kansaria), Bengaluru vs. Deputy Commissioner of Income Tax, Central Circle - 1(3), Bengaluru

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

ITA 411/BANG/2024[2019-20]Status: DisposedITAT Bangalore26 Sept 2025AY 2019-20

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

Section 132Section 143(3)Section 144Section 153CSection 153D

…ble during search proceedings amounting to ₹ 45,197,700/– and so additions if any must be restricted to this figure only and there cannot be any extrapolation of any figures. The learned assessing officer relied on the decision of the Hon’ble Supreme Court in 90 ITR 271 wherein income was ITA Nos.410-412-169-170- CO 6/Bang/2024 Page 8 of 40 estimated based on the documents found during survey. He held that where it is purely a question of making estimate, it has been held by the honourable Supreme Court that the estimate of the assessing officer should not be disturbed, provided it is fair and bonafide. iii. The…

Late Shri Mahabir Prasad(Legal Heir Ms. Parul Kansaria), Bengaluru vs. Deputy Commissioner of Income Tax, Central Circle-1(3), Bengaluru

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

ITA 410/BANG/2024[2018-19]Status: DisposedITAT Bangalore26 Sept 2025AY 2018-19

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

Section 132Section 143(3)Section 144Section 153CSection 153D

…ble during search proceedings amounting to ₹ 45,197,700/– and so additions if any must be restricted to this figure only and there cannot be any extrapolation of any figures. The learned assessing officer relied on the decision of the Hon’ble Supreme Court in 90 ITR 271 wherein income was ITA Nos.410-412-169-170- CO 6/Bang/2024 Page 8 of 40 estimated based on the documents found during survey. He held that where it is purely a question of making estimate, it has been held by the honourable Supreme Court that the estimate of the assessing officer should not be disturbed, provided it is fair and bonafide. iii. The…

DCIT, Central Circle-1(3), Bengaluru vs. Late Shri Mahabir Prasad (Legal Heir Ms. Parul Kansaria), Bengaluru

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

ITA 170/BANG/2024[2018-19]Status: DisposedITAT Bangalore26 Sept 2025AY 2018-19

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

Section 132Section 143(3)Section 144Section 153CSection 153D

…ble during search proceedings amounting to ₹ 45,197,700/- and so additions if any must be restricted to this figure only and there cannot be any extrapolation of any figures. The learned assessing officer relied on the decision of the Hon'ble Supreme Court in 90 ITR 271 wherein income was Page 8 of 40 ITA Nos.410-412-169-170- CO 6/Bang/2024 estimated based on the documents found during survey. He held that where it is purely a question of making estimate, it has been held by the honourable Supreme Court that the estimate of the assessing officer should not be disturbed, provided it is fair and bonafide. iii. The…

DCIT, Central Circle-1(3), Baengaluru vs. Late Shri Mahabir Prasad(Legal Heir Ms. Parul Kansaria), Bengaluru

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

ITA 169/BANG/2024[2017-18]Status: DisposedITAT Bangalore26 Sept 2025AY 2017-18

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

Section 132Section 143(3)Section 144Section 153CSection 153D

…ble during search proceedings amounting to ₹ 45,197,700/– and so additions if any must be restricted to this figure only and there cannot be any extrapolation of any figures. The learned assessing officer relied on the decision of the Hon’ble Supreme Court in 90 ITR 271 wherein income was ITA Nos.410-412-169-170- CO 6/Bang/2024 Page 8 of 40 estimated based on the documents found during survey. He held that where it is purely a question of making estimate, it has been held by the honourable Supreme Court that the estimate of the assessing officer should not be disturbed, provided it is fair and bonafide. iii. The…

Secure Matrix Solutions Private Limited, Mumbai vs. Income Tax Officer Ward 8(1)(1), Mumbai

Appeal is allowed for statistical purposes

ITA 4737/MUM/2024[2015-16]Status: DisposedITAT Mumbai11 Sept 2025AY 2015-16

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Appellant: NoneFor Respondent: 04.09.2025
Section 115JSection 250Section 271(1)(c)Section 37Section 43(5)

…nish any document to counter the decision of the AO this office is left with no option but to accept the decision of the AO. In this context, reliance may be placed for the decision of the Hon'ble Supreme Court in the case of H.M. Esufali H.M. Abdulali (1973) 90 ITR 271 wherein the apex court has held that the appellate authority cannot substitute its own judgement in place on of the judgement of the AO unless it is shown that the judgement of the AO was biased, irrational, vindictive or capricious. 5.4.3 I have carefully gone through the facts of the case, assessment order and submissions of the appellant. The A…

Suresh Kumar Reddy Krishnapuram, Kurnool vs. ACIT., Central Circle-2(3), Hyderabad

ITA 539/HYD/2025[2022-23]Status: DisposedITAT Hyderabad20 Aug 2025AY 2022-23

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Suresh Kumar Reddy Krishnapuram, Kurnool vs. ACIT., Central Circle - 2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 538/HYD/2025[2021-22]Status: DisposedITAT Hyderabad20 Aug 2025AY 2021-22

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Suresh Kumar Reddy Krishnapuram, Kurnool vs. ACIT., Central Circle-2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 537/HYD/2025[2020-21]Status: DisposedITAT Hyderabad20 Aug 2025AY 2020-21

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Skandhanshi Infra Projects, Kurnool vs. ACIT., Central Circle-2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 534/HYD/2025[2019-20]Status: DisposedITAT Hyderabad20 Aug 2025AY 2019-20

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Skanda Developers & Builders, Kurnool vs. ACIT., Central Circle-2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 533/HYD/2025[2019-20]Status: DisposedITAT Hyderabad20 Aug 2025AY 2019-20

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Skandhanshi Developers, Kurnool vs. ACIT., Central Circle-2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 527/HYD/2025[2020-21]Status: DisposedITAT Hyderabad20 Aug 2025AY 2020-21

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Skanda Infra Projects, Kurnool vs. ACIT., Central Circle-2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 522/HYD/2025[2019-20]Status: DisposedITAT Hyderabad20 Aug 2025AY 2019-20

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Skanda Infra Projects India Private Limited, Kurnool vs. ACIT., Central Circle-2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 517/HYD/2025[2022-23]Status: DisposedITAT Hyderabad20 Aug 2025AY 2022-23

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Skanda Infra Projects India Private Limited, Kurnool vs. ACIT, Central Circle-2(3), Hyderabad

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 514/HYD/2025[2019-20]Status: DisposedITAT Hyderabad20 Aug 2025AY 2019-20

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

ACIT., Central Circle-2(3), Hyderabad vs. Skandhanshi Infra Projects India Pvt. Ltd., Bangalore

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 310/HYD/2025[2021-22]Status: DisposedITAT Hyderabad20 Aug 2025AY 2021-22

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

ACIT., Central Circle-2(3), Hyderabad vs. Skandhanshi Infra Projects India Pvt. Ltd., Bangalore

In the result, all the appeals filed by the different Assessee’s are allowed

ITA 308/HYD/2025[2019-20]Status: DisposedITAT Hyderabad20 Aug 2025AY 2019-20

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

…on turnover ignoring the other part of the seized documents which contain the unaccounted expenditure. In this regard, he relied upon certain judicial precedents i.e., Judgment of Hon’ble Supreme Court in the case of CST vs., H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 (SC). Therefore, he submitted that, the addition made by the Assessing Officer towards 18% estimation of profit and sustained by the learned CIT(A) to the extent of 15% profit should be deleted. 18. Sri Narender Kumar Naik, learned CIT-DR along with Dr. Sachin Kumar, Sr. AR for the Revenue, on the other hand, supporting the order of the learned C…

Professional Automotives Private Limited, Jammu vs. Assistant Commissioner of Income Tax, Central Circle-1, Jaipur

ITA 813/JPR/2025[2017-18]Status: DisposedITAT Jaipur23 Jul 2025AY 2017-18
For Appellant: Shri Tarun Mittal, CAFor Respondent: Shri Ajey Malik, CIT (Th. V.C)
Section 132(4)Section 143(3)Section 37(1)

…of GopalLalBhadruka v. Deputy Commissioner of Income-tax [2012] 27 taxmann.com 167 (Andhra Pradesh)/[2012] 346 ITR 106 (Andhra Pradesh)/[2012] 253 CTR 80 (Andhra Pradesh) (15-12-2011] that principles of judgement of CST v. H. M. Esufali, H. M. Abdulali [1973] 90 ITR 271 (SC) would equally apply to the case of receipt of on money by the assessee in that case. The relevant para are as under- "20. It was contended by learned counsel for the assessees that there was no evidence before the Assessing Officer to concludethat on-money was received by Ahura Holdings in respect of all the sale transactions. It was submitte…

Professional Automotives Private Limited, Jammu vs. Assistant Commissioner of Income Tax, Central Circle-1, Jaipur

In the result the appeal of the assessee in ITA no

ITA 812/JPR/2025[2016-17]Status: DisposedITAT Jaipur23 Jul 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, आयकर अपील /ITA Nos.809 to 815/JP/2025 निर्धारण वर्ष /Assessment Years :2013-14 to 2019-20 Professional Automotives Pvt. बनाम ACIT, Ltd. Bahu Plaza, Bahu Plaza, Jammu Vs. Central Circle- 1, and Kashmir Jaipur स्थायी लेखा सं./जी.आई.आर. सं./PAN/GIR No.:AAACP9608E अपीलार्थी/Appellant प्र]त्यर्थी/Respondent निर्धारिती की ओर से / Assessee by :Shri Tarun Mittal, CA राजस्व की ओर से /Revenue by: Shri Ajey Malik, CIT (Th. V.C)

For Appellant: Shri Tarun Mittal, CAFor Respondent: Shri Ajey Malik, CIT (Th. V.C)
Section 143(3)Section 37(1)

…able income by making such computation as he considers appropriate in the given situation. Professional Automotives Private Limited vs. ACIT It is held by the Hon'ble Supreme Court in the case of Commissioner of Sales Tax v. H.M. Esufali H.M. Abdulali [1973] 90 ITR 271 that "In estimating any escaped turnover, it is inevitable that there is some guesswork The assessing authonty while making the best judgment assessment, no doubt, should arrive at his conclusion without any bias and on a rational basis. That authority should not be vindictive or capricious. If the estimate made by the assessing authority is a bon…

DCIT, Mumbai vs. J Kumar Infraprojects Limited, Mumbai

The Appeal of the Assessee is partly allowed and that of the department is dismissed

ITA 4593/MUM/2024[2017-18]Status: DisposedITAT Mumbai03 Jul 2025AY 2017-18

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…ssee himself who is to blame as he did not submitproper accounts. In our opinion, there was no arbitrariness in the presentcase on the part of the income-tax authorities” 6.11. Similarly, in the case of Commissioner of Sales-tax vs H.M. Esufali H.M.Abdulali, 90 ITR 271, the Hon’ble Apex Court has held as under:- “The task of the assessing authority in finding out the escaped turnover was byno means easy. In estimating any escaped turnover, it is inevitable that thereis some guess-work. The assessing authority while making the "bestjudgment" assessment, no doubt, should arrive at its conclusion without anybias an…

DCIT CC 5-1, Mumbai vs. J Kumar Infraprojects Limited, Mumbai

The Appeal of the Assessee is partly allowed and that of the department is dismissed

ITA 4591/MUM/2024[2018-19]Status: DisposedITAT Mumbai03 Jul 2025AY 2018-19

Bench: Hon’Ble Shri Sandeep Gosain & Shri Prabhash Shankar

Section 250Section 69A

…ssee himself who is to blame as he did not submitproper accounts. In our opinion, there was no arbitrariness in the presentcase on the part of the income-tax authorities” 6.11. Similarly, in the case of Commissioner of Sales-tax vs H.M. Esufali H.M.Abdulali, 90 ITR 271, the Hon’ble Apex Court has held as under:- “The task of the assessing authority in finding out the escaped turnover was byno means easy. In estimating any escaped turnover, it is inevitable that thereis some guess-work. The assessing authority while making the "bestjudgment" assessment, no doubt, should arrive at its conclusion without anybias an…