Dhansiram Agarwalla v. CIT

201 ITR 192High Court1993#6573 most cited

What is Dhansiram Agarwalla v. CIT authority for?

Statements made on oath to banks regarding stock held and hypothecated by assessees cannot be disregarded, even if a practice of under-declaration is assumed to exist. Courts should not take judicial notice of such practices to allow assessees to resile from their sworn statements.

17

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2022.

Also referred to as

Dhansiram Agarwalla v. CIT · sworn statements to banks · stock statements · hypothecation · undisclosed sales · unaccounted WIP · commercial practice · substandard morality

Judgments citing Dhansiram Agarwalla v. CIT

Assistant Commissioner of Income-Tax, Circle - 3, Aurangabad vs. M/S. Shyam Trading Company, Beed

In the result, the appeal filed the assessee stands allowed

ITA 2529/PUN/2017[2014-15]Status: DisposedITAT Pune16 Mar 2022AY 2014-15
For Appellant: Shri Chetan KariaFor Respondent: Shri Piyushkumar Singh Yadav
Section 131Section 143(3)Section 145(3)Section 36(1)(iii)Section 69

…ed placing reliance on the following decisions :- (i) Estee Exports (P.) Ltd. vs. ITO, 31 taxmann.com 70. (ii) Ramanlal Kacharulal Tejmal vs. CIT, 146 ITR 368. (iii) Coimbatore Spinning & Weaving Co. Ltd. vs. CIT, 95 ITR 375. (iv) Dhansiram Agarwalla vs. CIT, 201 ITR 192. 4. However, the ld. CIT(A) had granted relief to the assessee by directing the Assessing Officer to adopt the value shown in the stock statements furnished to the bank in its entirety and not to ignore the negative stock of the cotton lint by holding that the assessee would have made undisclosed sales. Thus, the ld. CIT(A) reduced the value of R…

M/S. Shyam Trading Company, Beed vs. Income-Tax Officer, Ward – 2, Beed

In the result, the appeal filed the assessee stands allowed

ITA 2706/PUN/2017[2014-15]Status: DisposedITAT Pune16 Mar 2022AY 2014-15
For Appellant: Shri Chetan KariaFor Respondent: Shri Piyushkumar Singh Yadav
Section 131Section 143(3)Section 145(3)Section 36(1)(iii)Section 69

…ed placing reliance on the following decisions :- (i) Estee Exports (P.) Ltd. vs. ITO, 31 taxmann.com 70. (ii) Ramanlal Kacharulal Tejmal vs. CIT, 146 ITR 368. (iii) Coimbatore Spinning & Weaving Co. Ltd. vs. CIT, 95 ITR 375. (iv) Dhansiram Agarwalla vs. CIT, 201 ITR 192. 4. However, the ld. CIT(A) had granted relief to the assessee by directing the Assessing Officer to adopt the value shown in the stock statements furnished to the bank in its entirety and not to ignore the negative stock of the cotton lint by holding that the assessee would have made undisclosed sales. Thus, the ld. CIT(A) reduced the value of R…

The ACIT, Circle-2(1)(2), Ahmedabad vs. Jas Infraspace Private Limited, Ahmedabad

In the result, appeal of the Revenue is dismissed

ITA 547/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad28 Jan 2022AY 2014-15

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 133ASection 150Section 292CSection 34Section 69B

…tted that Rs.41,60,76,489/- is unaccounted WIP in the project. The appellant's contention that WIP estimation was for bank purpose does not mean that WIP worked out was not correct. The Honourable Gauhati High Court in the case of Dhansiram Agarwalla Vs. CIT [201 ITR 192] has observed as under:- ITA No.2130&2131/Ahd/2017 & ITA No. 398/Ahd/2018 & 547/Ahd/2018 A.Ys. 2012-13&2013-14 & 2014-15 22 "We are not convinced that any such practice is shown to exist or that it has been recognised in the commercial circles or by courts. Even assuming that such a practice exists the Tribunal is not expected to take judicial…

Jas Infraspace Pvt. Ltd., Ahmedabad vs. DCIT, Circle-2(2)(1), Ahmedabad

In the result, appeal of the Revenue is dismissed

ITA 398/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad28 Jan 2022AY 2014-15

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 133ASection 150Section 292CSection 34Section 69B

…tted that Rs.41,60,76,489/- is unaccounted WIP in the project. The appellant's contention that WIP estimation was for bank purpose does not mean that WIP worked out was not correct. The Honourable Gauhati High Court in the case of Dhansiram Agarwalla Vs. CIT [201 ITR 192] has observed as under:- ITA No.2130&2131/Ahd/2017 & ITA No. 398/Ahd/2018 & 547/Ahd/2018 A.Ys. 2012-13&2013-14 & 2014-15 22 "We are not convinced that any such practice is shown to exist or that it has been recognised in the commercial circles or by courts. Even assuming that such a practice exists the Tribunal is not expected to take judicial…

The ACIT, Circle-2(1)(2), Ahmedabad vs. Jas Infra Space Private Ltd., Ahmedabad

In the result, appeal of the Revenue is dismissed

ITA 2131/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad28 Jan 2022AY 2013-14

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 133ASection 150Section 292CSection 34Section 69B

…tted that Rs.41,60,76,489/- is unaccounted WIP in the project. The appellant's contention that WIP estimation was for bank purpose does not mean that WIP worked out was not correct. The Honourable Gauhati High Court in the case of Dhansiram Agarwalla Vs. CIT [201 ITR 192] has observed as under:- ITA No.2130&2131/Ahd/2017 & ITA No. 398/Ahd/2018 & 547/Ahd/2018 A.Ys. 2012-13&2013-14 & 2014-15 22 "We are not convinced that any such practice is shown to exist or that it has been recognised in the commercial circles or by courts. Even assuming that such a practice exists the Tribunal is not expected to take judicial…

The ACIT, Circle-2(1)(2), Ahmedabad vs. Jas Infra Space Private Ltd., Ahmedabad

In the result, appeal of the Revenue is dismissed

ITA 2130/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad28 Jan 2022AY 2012-13

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

Section 131Section 133ASection 150Section 292CSection 34Section 69B

…tted that Rs.41,60,76,489/- is unaccounted WIP in the project. The appellant's contention that WIP estimation was for bank purpose does not mean that WIP worked out was not correct. The Honourable Gauhati High Court in the case of Dhansiram Agarwalla Vs. CIT [201 ITR 192] has observed as under:- ITA No.2130&2131/Ahd/2017 & ITA No. 398/Ahd/2018 & 547/Ahd/2018 A.Ys. 2012-13&2013-14 & 2014-15 22 "We are not convinced that any such practice is shown to exist or that it has been recognised in the commercial circles or by courts. Even assuming that such a practice exists the Tribunal is not expected to take judicial…

Smt. Neeta Sharma, Agra vs. A.C.I.T., Circle-2, Agra

In the result, appeal of the Revenue is dismissed and the appeal of the assessee is partly allowed

ITA 299/AGR/2013[2007-08]Status: DisposedITAT Agra19 Aug 2019AY 2007-08

Bench: : Shri Laliet Kumar & Dr. Mitha Lal Meenaassessment Year: 2007-08

Section 234ASection 40A(2)(b)Section 40A(3)Section 46A

…In the Income-Tax Appellate Tribunal, Agra Bench, Agra Before : Shri Laliet Kumar, Judicial Member And Dr. Mitha Lal Meena, Accountant Member Assessment Year: 2007-08 Smt. Neeta Sharma, vs. ACIT, Circle-2, Prop- M/s Sharma International Agra 5-Lata Kunj, Mathura Road, Agra 282007 PAN ABUPS3306C (Appellant) (Respondent) Assessment Year: 2007-08 ACIT, Circle-2, vs. Smt. Neeta Sharma, Agra Prop- M/s Sharma International 5-Lata Kunj, Mathura Road, Agra 282007 PAN ABUPS3306C (Appellant) (Respondent) Appellant by Shri NavinGargh, Advocate Respondent by Shri WashimArashad, Sr. DR Date of Hearing 19.07.2019 Date o…

A.C.I.T.-2, Agra vs. Smt. Neeta Sharma Prop., Agra

In the result, appeal of the Revenue is dismissed and the appeal of the assessee is partly allowed

ITA 286/AGR/2013[2007-08]Status: DisposedITAT Agra19 Aug 2019AY 2007-08

Bench: : Shri Laliet Kumar & Dr. Mitha Lal Meenaassessment Year: 2007-08

Section 234ASection 40A(2)(b)Section 40A(3)Section 46A

…In the Income-Tax Appellate Tribunal, Agra Bench, Agra Before : Shri Laliet Kumar, Judicial Member And Dr. Mitha Lal Meena, Accountant Member Assessment Year: 2007-08 Smt. Neeta Sharma, vs. ACIT, Circle-2, Prop- M/s Sharma International Agra 5-Lata Kunj, Mathura Road, Agra 282007 PAN ABUPS3306C (Appellant) (Respondent) Assessment Year: 2007-08 ACIT, Circle-2, vs. Smt. Neeta Sharma, Agra Prop- M/s Sharma International 5-Lata Kunj, Mathura Road, Agra 282007 PAN ABUPS3306C (Appellant) (Respondent) Appellant by Shri NavinGargh, Advocate Respondent by Shri WashimArashad, Sr. DR Date of Hearing 19.07.2019 Date o…

M/S Om Rudra Priya Holiday Resort Pvt. Ltd., Sawai Madhopur vs. Principal Commissioner of Income Tax, Kota

In the result, appeal of the assessee is allowed

ITA 416/JPR/2018[2013-14]Status: DisposedITAT Jaipur20 Dec 2018AY 2013-14
For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri B.K. Gupta (CIT)
Section 143(3)Section 263

…ons of Hon’ble Madras High Court in the case of M/s. Coimbatore Spinning & Weaving Co. Ltd. vs. CIT, 95 ITR 375 (Mad.) and Hon’ble Gauhati High Court in the case of 6 M/s. Om Rudra Priya Holiday Resort Pvt. Ltd., Sawai Madhopur. Dhansiram Agarwalla vs. CIT, 201 ITR 192 (Gau.). Thus the ld. D/R has submitted that once the AO has failed to conduct a proper enquiry on the issue, then it renders the order passed by the AO erroneous in so far as it is prejudicial to the interest of the revenue. The ld. Principal CIT was justified in invoking the provisions of section 263 when there is a tangible material showing t…

The DCIT(OSD), Circle-8, Ahmedabad vs. M/S. Torrent Cables Ltd., Ahmedabad

In the result, appeal filed by the Department is dismissed

ITA 1293/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad26 Oct 2018AY 2010-11

Bench: Shri Pramod Kumar & Shri Mahavir Prasad)

For Appellant: Shri Lalit P. Shah, Sr. D.RFor Respondent: Shri P. M. Mehta, A.R
Section 145Section 145ASection 14SSection 43B

…in support of his finding has relied on the decision of the hon'ble Madras High Court in the case of Coimbatore Spinning and Weaving Co. Ltd. v. CIT [1974] 95 ITR 375. the decision of the hon'ble Supreme Court in the case of Dhansiram Aganvalla v. CIT [1993] 201 ITR 192 (Gauhati) and concluded that the assessee was unable to discharge the onus to prove that books of account alone give the correct picture and the statement given to the bank was motivated. In the present case at hand, it is not disputed by the Revenue that in order to avail of cash credit facility against hypothecation of stock to the bank, the as…

Madan Mohan Engineering & Hardware, Hooghly vs. ITO, Ward - 24(2), Hooghly

In the result, the appeal of the assessee is allowed

ITA 181/KOL/2018[2010-11]Status: DisposedITAT Kolkata20 Jun 2018AY 2010-11

Bench: Shri P.M. Jagtap, Am] I.T.A. No. 181/Kol/2018 Assessment Year: 2010-11 M/S. Madan Mohan Engineering & Hardware.................................…………………...Appellant Bhanderhati, Dhaniakhali, Hooghly – 712 301. [Pan: Aajfm 9702 A] Ito, Ward 24(2) Hooghly...................……………………………………………..................Respondent Aayakar Bhawan, G.T. Road, Khadina More, Chinsurah, Hooghly – 712 101. Appearances By: Shri Sanjoy Chatterjee, Fca Appearing On Behalf Of The Assessee. Shri D.C. Mondal, Addl. Cit Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : May 29, 2018 Date Of Pronouncing The Order : June 20, 2018 Order This Appeal Filed By The Assessee Is Directed Against The Order Of Ld. Cit (Appeals) – 6, Kolkata Dated 28.07.2017 & The Solitary Issue Involved Therein Relates To The Addition Of Rs. 10,00,890/- Made By The Ao & Confirmed By The Ld. Cit(A) On Account Of Difference In Valuation Of Stock As Reflected In The Accounts Of The Assessee & As Shown In The Stock Statement Submitted To The Bank.

Section 143(3)Section 263

…on is acceptable, as the alleged practice cannot be given judicial notice. Reliance is placed upon Coimbatore Spinning & Weaving Co. Ltd. V. CIT (1974) 95 ITR 375 (Mad), Ramanlal Kacharulal Tejmal V. CIT (1984) 146 ITR 368 and Dhansiram Agarwala V. CIT (1993) 201 ITR 192 (Gau). 5.2. In this context the ratio laid down by the Hon’ble Madras High Court in the case of “Coimbatore Spinning & Weaving Co. Ltd. V. CIT (1974) 95 ITR 375 (Mad) is mentioned. The Hon’ble High Court observed that the alleged practice said to be followed by business houses of declaring larger stocks to the banks for the purpose of getting hi…

DCIT Cir 29(3), Mumbai vs. Raj Girish Karia, Mumbai

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

ITA 1279/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 Apr 2017AY 2010-11

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11

For Appellant: Shri Dharmesh Shah, ARFor Respondent: Shri Arun Shenoy, DR
Section 36(1)(iii)Section 68

…gh Court in Coimbatore Spinning and Weaving Co. vs. CIT (1974) 95 ITR 375 (Mad). Following the said decision, it was held that in similar circumstances, the addition was justified. We may refer to the decision in the case of Dhansiram Agarwalla vs. CIT (1993) 201 ITR 192 (Gau) assessee’s SLP dismissed in (1993) 204 ITA No. 1279 & 1037/MUM/2015 17 ITR St. 45 (SC). In Ramanlal Kacharulal Tejmal vs. CIT(1983) 12 Taxman 130 (Bom.), the assessee obtained loans from banks for financing certain firms by pledging goods which were found in excess of stock . The Hon’ble Bombay High Court held excess stock represented ass…

Raj Girish Karia, Mumbai vs. JCIT 23(3), Mumbai

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

ITA 1037/MUM/2015[2010-11]Status: DisposedITAT Mumbai28 Apr 2017AY 2010-11

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2010-11

For Appellant: Shri Dharmesh Shah, ARFor Respondent: Shri Arun Shenoy, DR
Section 36(1)(iii)Section 68

…gh Court in Coimbatore Spinning and Weaving Co. vs. CIT (1974) 95 ITR 375 (Mad). Following the said decision, it was held that in similar circumstances, the addition was justified. We may refer to the decision in the case of Dhansiram Agarwalla vs. CIT (1993) 201 ITR 192 (Gau) assessee’s SLP dismissed in (1993) 204 ITA No. 1279 & 1037/MUM/2015 17 ITR St. 45 (SC). In Ramanlal Kacharulal Tejmal vs. CIT(1983) 12 Taxman 130 (Bom.), the assessee obtained loans from banks for financing certain firms by pledging goods which were found in excess of stock . The Hon’ble Bombay High Court held excess stock represented ass…

DCIT, New Delhi vs. M/S. the Basti Sugar Mills Co. Ltd., Delhi

In the result ground No. 1 of the appeal of the revenue is dismissed

ITA 1032/DEL/2014[1999-2000]Status: DisposedITAT Delhi06 Feb 2017AY 1999-2000

Bench: Shri H.S.Sidhu & Shri Prashant Maharishidcit, The Basti Sugar Mills Co. Ltd, Circle-14(1), 207, Essel House, Vs. New Delhi 10 Asaf Ali Road, Delhi Pan: Aaact0490Q (Appellant) (Respondent)

For Appellant: Ms. Rachna Singh, CIT DRFor Respondent: Sh. KVSR Krishna, CA

…ing stock of the sugar was shown as 310934 quintals therefore on the same day how there can be two stock quantity which can be obtained by the assessee. He further relied upon the decision of the Hon’ble Gauhati High Court in case of Dhansiram Agarwalla V CIT 201 ITR 192, Hon’ble Madras High Court in case of Coimbatore spinning and weaving company Ltd versus CIT 95 ITR 375, Hon’ble Karnataka High Court in case of Recon machine tools private Ltd versus CIT 286 ITR 637, Hon’ble Andhra Pradesh High Court in case of CIT versus mopeds India 173 ITR 347 and Hon’ble Bombay High Court in case of Molmould Corporation vers…

Uttam Sahoo, Purba Medinipur vs. Income Tax Officer-Ward-2, Haldia, Purba Medinipur

In the result the appeal of the assessee is treated as allowed for statistical purposes

ITA 2651/KOL/2013[2006-2007]Status: DisposedITAT Kolkata03 Feb 2016AY 2006-2007

Bench: Hon’Ble Sri N.V.Vasudevan, Jm ] I.T.A No. 2651/Kol/2013 Assessment Year : 2006-07

For Appellant: Shri Miraj D.Shah, AdvocateFor Respondent: Shri Debasish Banerjee, JCIT, Sr.DR

…accept the Assessee’s explanation and treated the difference in the stock as excess unexplained excess stock. He relied upon the following case laws :- i) Coimbatore Spinning and Weaving Co. Ltd. Vs. CIT (1974) 95 IT%R 375.(Mad) ii) Dhansiram Agarwala Vs. CIT 201 ITR 192. (Gau.) iii) CIT Vs. Ashoke Estate (P)Ltd. 141 ITR 785 (Kerala) iv) ACIR vs Vikas Agency 85 ITD 536 (ITAT Ahd.) 3. Before CIT(A) the assessee reiterated the submissions that the stock taking given to the bank ought not to have taken to the AO as true. The assessee pointed out that the business was started only on 01.04.2005 with an opening capit…

ACIT, Circle - 3, Asansol vs. M/S. Bharat Hi Tech (Cement) Pvt. Ltd., Purulia

In the result, the appeal of the revenue is partly allowed

ITA 1626/KOL/2011[2008-09]Status: DisposedITAT Kolkata06 Jan 2016AY 2008-09

Bench: : Shri M. Balaganesh

For Appellant: Shri Rajendra Prasad, JCIT, ld.Sr.DRFor Respondent: Shri K.K. Chhaparia, FCA, ld.AR
Section 143(3)

…Accordingly, he held that the contention of the Learned AO that assessee has submitted false statements of its stock to the bank is not borne out by the records and hence the decision relied upon by the Learned AO in the case of Dansi Ram Agarwal reported in 201 ITR 192 (SC) is not applicable to the facts of the case. We find that none of these findings and observations were controverted by the revenue before us. We also find from the stock reconciliation statement submitted by the Learned AR which was filed based on the directions from the Bench to the Learned AR, that the stock statements contain both raw mate…

Biswanath Saha, Kolkata vs. ITO, WD-52(4), Kolkata

In the result, appeal of assessee is allowed

ITA 785/KOL/2014[2009-2010]Status: DisposedITAT Kolkata11 Dec 2015AY 2009-2010

Bench: Shri Mahavir Singh, Jm]

For Appellant: Shri Soumitra Chowdhury, AdvocateFor Respondent: Shri Rajendra Prasad, JCIT, Sr. DR
Section 143(3)

…’ble Supreme Court and the special leave petition against this judgment was dismissed (2008) 307 ITR (St.) 3. It is also significant that the aforesaid judgment of Hon’ble Gujarat High Court was rendered after considering the case of CIT Vs. Dhansiram Agarwal 201 ITR 192 (Gauhati) relied upon by the A.O. Therefore, following the ratio laid down in the case of Veerdip Rollers Pvt. Ltd. cited supra which has been affirmed by the Hon’ble Supreme Court, it is held that the Assessing Officer was not justified in making the addition. Accordingly, this issue is squarely covered by the decision in the case of Veerdip Rol…