Indwell Constructions v. CIT

232 ITR 776High Court1998#500 most cited

What is Indwell Constructions v. CIT authority for?

When an assessee's income is estimated after rejecting their books of account, further additions or disallowances for specific expenses are generally not permissible, as the estimation already accounts for these.

188

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

Indwell Constructions v. CIT · 232 ITR 776 · rejection of books of account · estimation of income · net profit rate · disallowance of expenses · section 145(3) · business income · gross profit rate

Sections most often in play

Section 143(3)Section 145(3)Section 153ASection 132(4)Section 132Section 40(a)(ia)Section 68Section 144

Issues it is cited on

section 132(3)section 108section 10brejection of books of accountsection 30section 145(3)section 142(2a)section 145on-moneysection 132(4a)section 29dumb documents

Judgments citing Indwell Constructions v. CIT

Assistant Commissioner of Income-Tax, Madurai vs. Beach Minerals Sands Company, Tirunelveli

ITA 1474/CHNY/2023[2016-17]Status: DisposedITAT Chennai26 Nov 2024AY 2016-17

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.1473 To 1475/Chny/2023 िनधा"रणवष"/Assessment Years: 2015-16 To 2017-18 & Cross-Objection Nos. 28 To 30/Chny/2024 िनधा"रणवष"/Assessment Years: 2015-16 To 2017-18 & आयकर अपील सं./Ita Nos.13 & 14/Chny/2024 िनधा"रणवष"/Assessment Years: 2013-14 & 2014-15 & Cross-Objection Nos. 26 & 27/Chny/2024 िनधा"रणवष"/Assessment Years: 2013-14 & 2014-15

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh –
Section 132Section 132(4)Section 143(3)Section 153A

…1475/Chny/2023 (AYs 2015-16 to 2017-18) CO Nos.28 to 30/Chny/2024 (AYs 2015-16 to 2017-18) ITA Nos.13 & 14/Chny/2024 (AYs 2013-14 & 2014-15) CO Nos.26 & 27/Chny/2024 (AYs 2013-14 & 2014-15) M/s.Beach Minerals Sands Co. :: 21 :: Indwell Constructions Vs. CIT (232 ITR 776) and Hon’ble Allahabad High Court in the case of CIT vs Banwari Lal Banshidhar (229 ITR 229). For these reasons, we do not agree with this plea of the Revenue. 13. In light of the above, we do not see any infirmity in the order of the Ld. CIT(A) in rejecting the books of accounts and estimating the total income of the assessee. We accordingly…

Assistant Commissioner of Income-Tax, Madurai vs. Beach Minerals Sands Company, Tirunelveli

ITA 1473/CHNY/2023[2015-16]Status: DisposedITAT Chennai26 Nov 2024AY 2015-16

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita Nos.1473 To 1475/Chny/2023 िनधा"रणवष"/Assessment Years: 2015-16 To 2017-18 & Cross-Objection Nos. 28 To 30/Chny/2024 िनधा"रणवष"/Assessment Years: 2015-16 To 2017-18 & आयकर अपील सं./Ita Nos.13 & 14/Chny/2024 िनधा"रणवष"/Assessment Years: 2013-14 & 2014-15 & Cross-Objection Nos. 26 & 27/Chny/2024 िनधा"रणवष"/Assessment Years: 2013-14 & 2014-15

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh –
Section 132Section 132(4)Section 143(3)Section 153A

…1475/Chny/2023 (AYs 2015-16 to 2017-18) CO Nos.28 to 30/Chny/2024 (AYs 2015-16 to 2017-18) ITA Nos.13 & 14/Chny/2024 (AYs 2013-14 & 2014-15) CO Nos.26 & 27/Chny/2024 (AYs 2013-14 & 2014-15) M/s.Beach Minerals Sands Co. :: 21 :: Indwell Constructions Vs. CIT (232 ITR 776) and Hon’ble Allahabad High Court in the case of CIT vs Banwari Lal Banshidhar (229 ITR 229). For these reasons, we do not agree with this plea of the Revenue. 13. In light of the above, we do not see any infirmity in the order of the Ld. CIT(A) in rejecting the books of accounts and estimating the total income of the assessee. We accordingly…

Assistant Commissioner of Income Tax, Madurai vs. Bala Murugan Company, Chennai

ITA 1472/CHNY/2023[2014-15]Status: DisposedITAT Chennai26 Nov 2024AY 2014-15

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh –
Section 132Section 132(4)Section 143(3)Section 153A

…imate. Useful reference in this regard may be made to Useful reference in this regard may be made to the decision of Hon’ble the decision of Hon’ble Andhra Pradesh High Cour High Court in the case of Indwell Constructions Vs. Indwell Constructions Vs. CIT (232 ITR 776) and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of CIT vs Banwari Lal Banshidhar (229 ITR 229) vs Banwari Lal Banshidhar (229 ITR 229). For these reasons, we do For these reasons, we do not agree with this plea of the Revenue. not agree with this plea…

Assistant Commissioner of Income Tax, Madurai vs. Bala Murugan Company, Chennai

ITA 1471/CHNY/2023[2013-14]Status: DisposedITAT Chennai26 Nov 2024AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh –
Section 132Section 132(4)Section 143(3)Section 153A

…imate. Useful reference in this regard may be made to Useful reference in this regard may be made to the decision of Hon’ble the decision of Hon’ble Andhra Pradesh High Cour High Court in the case of Indwell Constructions Vs. Indwell Constructions Vs. CIT (232 ITR 776) and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of CIT vs Banwari Lal Banshidhar (229 ITR 229) vs Banwari Lal Banshidhar (229 ITR 229). For these reasons, we do For these reasons, we do not agree with this plea of the Revenue. not agree with this plea…

Assistant Commissioner of Income Tax, Madurai vs. Beach Mineraals Company, Tirunelveli

ITA 1466/CHNY/2023[2016-17]Status: DisposedITAT Chennai26 Nov 2024AY 2016-17

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh –
Section 132Section 132(4)Section 143(3)Section 153A

…Ys 20 2015-16 & 2016-17) CO Nos.33 & 34/Chny/2024 (AYs 20 2015-16 & 2016-17) M/s. Beach Minerals Co. M/s. Beach Minerals Co. :: 17 :: Andhra Pradesh High Court in the case of High Court in the case of Indwell Constructions Vs. Indwell Constructions Vs. CIT (232 ITR 776) and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of CIT vs Banwari Lal Banshidhar (229 ITR 229) vs Banwari Lal Banshidhar (229 ITR 229). For these reasons, we do For these reasons, we do not agree with this plea of the Revenue. not agree with this plea…

Assistant Commissioner of Income Tax, Madurai vs. Beach Mineraals Company, Tirunelveli

ITA 1465/CHNY/2023[2015-16]Status: DisposedITAT Chennai26 Nov 2024AY 2015-16

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. S. Sridhar, AdvocateFor Respondent: Mr. R. Clement Ramesh –
Section 132Section 132(4)Section 143(3)Section 153A

…Ys 20 2015-16 & 2016-17) CO Nos.33 & 34/Chny/2024 (AYs 20 2015-16 & 2016-17) M/s. Beach Minerals Co. M/s. Beach Minerals Co. :: 17 :: Andhra Pradesh High Court in the case of High Court in the case of Indwell Constructions Vs. Indwell Constructions Vs. CIT (232 ITR 776) and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of and Hon’ble Allahabad High Court in the case of CIT vs Banwari Lal Banshidhar (229 ITR 229) vs Banwari Lal Banshidhar (229 ITR 229). For these reasons, we do For these reasons, we do not agree with this plea of the Revenue. not agree with this plea…

Quartz Infra and Engineering Private Limited, Hyderabad vs. Shri B. R. Ramesh Deputy Commissioner of Income Tax Central Circle16-(1), Hyderabad

In the result appeal of the assessee is allowed in part

ITA 98/HYD/2021[2011-12`]Status: DisposedITAT Hyderabad27 Aug 2024

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdiaआ.अपी.सं / Ita No.98/Hyd/2021 (निर्धारण वर्ा / Assessment Year: 2011-12) M/S Quartz Infra & Engineering P.Ltd. Vs. Dcit, Circle-16(1) Hyderabad Hyderabad [Pan :Aaacq1546N] अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती द्वधरध/Assessee By: Sri Pavan Kumar Chakrapani, Ar रधजस्‍व द्वधरध/Revenue By: Sri Kumar Pranav, Cit-Dr सुिवधई की तधरीख/Date Of Hearing: 30 /07/2024 घोर्णध की तधरीख/Pronouncement On: 27/08/2024 आदेश / Order Per K. Narasimha Chary, J.M: Aggrieved By The Order Dated 27/02/2020 Passed By The Learned Commissioner Of Income Tax (Appeals) (“Learned Cit(A)”)-4, Hyderabad In The Case Of M/S Quartz Infra & Engineering Private Ltd.(“The Assessee”) For The Assessment Year 2011-12, Assessee Preferred This Appeal, With A Delay Of 264 Days.

For Appellant: Sri Pavan Kumar Chakrapani, ARFor Respondent: Sri Kumar Pranav, CIT-DR
Section 115JSection 143(1)Section 143(3)Section 147Section 148

…esort to rely on the rejected books of accounts. For this proposition, he placed reliance on the decision of the Hon'ble jurisdictional High Court in the case of Maddi Sudarsanam Oil Mills Co. Vs. CIT (1959) 37 ITR 369 and Indwell Constructions Vs. CIT (1998) 232 ITR 776, wherein, the proposition laid down in Maddi Sudarsanam Oil Mills Co. was relied upon. 8. The next argument of the Ld.AR is that no concluded assessment could be reopened for the purpose of making any addition on protective basis, because, the jurisdiction to reopen a concluded assessment has to be exercised only when the learned Assessing Offic…

Deputy Commissioner of Income Tax Circle-2, Nagpur vs. M/S Central Cables Ltd, Nagpur

Appeal is partly allowed in above

ITA 105/NAG/2020[2013-14]Status: DisposedITAT Nagpur15 May 2024AY 2013-14

Bench: Shri Satbeer Singh Godara

For Appellant: Shri Soumitra Choudhary A.RFor Respondent: Shri Kailash C. Kanojiya, CIT-DR
Section 144Section 40

…rtly accepted in above terms. 6. Coming to the Revenue’s latter twin substantive grounds seeking to revive sec.40(a)(ia) and other expenditure disallowance(s) involving varying sums; I find no merit therein in light of Indwell Constructions vs. CIT [1998] 232 ITR 776 (AP) that the same would not be applicable once the corresponding book results already stand rejected. It is reiterated here that I have already estimated the assessee’s income declared in preceding paragraph and therefore, these twin substantive grounds must fail. Ordered accordingly. 7 ITA.No.105/NAG./2020 7. This Revenue’s appeal is partl…

Vineet Agarwal, Kolkata vs. ITO, Ward 43(1), Kolkata

In the result, the appeal of the assessee being

ITA 1003/KOL/2023[2016-17]Status: DisposedITAT Kolkata04 Mar 2024AY 2016-17

Bench: Shri Sanjay Garg & Shri Rajesh Kumar

Section 133(6)Section 143(2)Section 143(3)Section 145(3)

…ITA Nos. 1002 & 1003/KOL/2023 A.Ys. 2015-2016 & 2016-2017 Vineet Agarwal IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Sanjay Garg, Judicial Member & Shri Rajesh Kumar,Accountant Member I.T.A. Nos. 1002 & 1003/KOL/2023 Assessment Years: 2015-2016 & 2016-2017 Vineet Agarwal,.........................................Appellant C/o. Shree Shakambari Emporium, 194, Jamunalal Bajaj Street, 1st Floor, Burrabazar, Kolkata-700007 [PAN:APTPA9425R] -Vs.- Income Tax Officer,.................................Respondent Ward-43(1), Kolkata, 3, Government Place (West), Kolkata-700001 Appearances by: Shri…

Vineet Agarwal, Kolkata vs. ITO, Ward 43(1), Kolkata

In the result, the appeal of the assessee being

ITA 1002/KOL/2023[2015-16]Status: DisposedITAT Kolkata04 Mar 2024AY 2015-16

Bench: Shri Sanjay Garg & Shri Rajesh Kumar

Section 133(6)Section 143(2)Section 143(3)Section 145(3)

…ITA Nos. 1002 & 1003/KOL/2023 A.Ys. 2015-2016 & 2016-2017 Vineet Agarwal IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Sanjay Garg, Judicial Member & Shri Rajesh Kumar,Accountant Member I.T.A. Nos. 1002 & 1003/KOL/2023 Assessment Years: 2015-2016 & 2016-2017 Vineet Agarwal,.........................................Appellant C/o. Shree Shakambari Emporium, 194, Jamunalal Bajaj Street, 1st Floor, Burrabazar, Kolkata-700007 [PAN:APTPA9425R] -Vs.- Income Tax Officer,.................................Respondent Ward-43(1), Kolkata, 3, Government Place (West), Kolkata-700001 Appearances by: Shri…

DCIT, Circle-2(1), Hyderabad vs. Kmc Constructions Limited, Hyderabad

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

ITA 32/HYD/2017[2011-12]Status: DisposedITAT Hyderabad11 Jan 2024AY 2011-12

Bench: Shri Rama Kanta Panda & Shri K. Narasimha Chary

For Appellant: Shri S. Rama Rao, ARFor Respondent: Shri K. Madhusudan, CIT-DR
Section 145(3)

…not open for the Revenue to say that such payments are not justified. 29. It is the settled principle of law as laid down by the Hon’ble High Courts in the cases of CIT vs. Banwari Lal Banshidhar [1998] 229ITR229 (ALL.), Indwell Constructions vs. CIT [1998] 232 ITR 776 (Andhra Pradesh) and CIT vs. Smt. Santosh Jain [2007] 159 Taxman 392 (Punjab & Haryana) that when once income of assessee was computed by applying gross profit rate or by estimation, provisions of section 40A(3) could not be invoked. Apart from this, the order of the learned Assessing Officer does not spell out as to the distance of the sites fro…

Kmc Contructions Limited, Hyderabad vs. Addl. CIT, Range-2, Hyderabad

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

ITA 1734/HYD/2016[2011-12]Status: DisposedITAT Hyderabad11 Jan 2024AY 2011-12

Bench: Shri Rama Kanta Panda & Shri K. Narasimha Chary

For Appellant: Shri S. Rama Rao, ARFor Respondent: Shri K. Madhusudan, CIT-DR
Section 145(3)

…not open for the Revenue to say that such payments are not justified. 29. It is the settled principle of law as laid down by the Hon’ble High Courts in the cases of CIT vs. Banwari Lal Banshidhar [1998] 229ITR229 (ALL.), Indwell Constructions vs. CIT [1998] 232 ITR 776 (Andhra Pradesh) and CIT vs. Smt. Santosh Jain [2007] 159 Taxman 392 (Punjab & Haryana) that when once income of assessee was computed by applying gross profit rate or by estimation, provisions of section 40A(3) could not be invoked. Apart from this, the order of the learned Assessing Officer does not spell out as to the distance of the sites fro…

M/S. Shivabyay Project Pvt. Ltd., Gandhidham-Kutch vs. The Income Tax Officer, Ward-2, Gandhidham-Kutch

In the result, the appeal of the assessee is allowed

ITA 6/RJT/2018[2014-15]Status: HeardITAT Rajkot08 Nov 2023AY 2014-15

Bench: Shri Waseem Ahmed (Accountant Member), Shri Siddhartha Nautiyal (Judicial Member)

For Appellant: Written SubmissionFor Respondent: Shri K.L. Solanki, Sr. D.R
Section 144Section 145(3)Section 40

…IT vs. Banwarilal Banshidhar 229 ITR 229 held that where income is computed by applying gross profit rate, separate addition u/s 40A(3) cannot be made. Similar view is also taken by Andhra Pradesh High Court in the case of Indwell Constructions vs. CIT (1998) 232 ITR 776 and ITAT Ahmedabad Bench in the case of New Narayan Builders vs ITO (1992) 43 TTJ 508. It is pertinent to note that in the impugned order, Id. CIT(A) has followed the aforesaid three decisions. We therefore, inclined to uphold the order of Id. CIT(A)." Respectfully following the above binding decision of Honourable Jurisdictional HAT, I am of th…

The Income Tax Officer, Ward-2, Gandhidham-Kutch vs. M/S. Shivabyay Project Pvt. Ltd., Gandhidham-Kutch

In the result, the appeal of the assessee is allowed

ITA 37/RJT/2018[2014-15]Status: HeardITAT Rajkot08 Nov 2023AY 2014-15

Bench: Shri Waseem Ahmed (Accountant Member), Shri Siddhartha Nautiyal (Judicial Member)

For Appellant: Written SubmissionFor Respondent: Shri K.L. Solanki, Sr. D.R
Section 144Section 145(3)Section 40

…IT vs. Banwarilal Banshidhar 229 ITR 229 held that where income is computed by applying gross profit rate, separate addition u/s 40A(3) cannot be made. Similar view is also taken by Andhra Pradesh High Court in the case of Indwell Constructions vs. CIT (1998) 232 ITR 776 and ITAT Ahmedabad Bench in the case of New Narayan Builders vs ITO (1992) 43 TTJ 508. It is pertinent to note that in the impugned order, Id. CIT(A) has followed the aforesaid three decisions. We therefore, inclined to uphold the order of Id. CIT(A)." Respectfully following the above binding decision of Honourable Jurisdictional HAT, I am of th…

ACIT, Central Circle-2(3), Hyderabad vs. Skill Promoters, Hyderabad

ITA 688/HYD/2022[2016-17]Status: DisposedITAT Hyderabad31 Oct 2023AY 2016-17

Bench: Shri R.K. Panda, Vice- & Shri K. Narasimha Charyappeal In Ita No Assessee Revenue A.Y 628/Hyd/2022 Skill Promoters, Acit, Central Circle 2014-15 Hyderabad 2(3) Hyderabad Pan:Aayfs9165Q 686/Hyd/2022 Acit, Central Circle Skill Promoters, 2014-15 2(3) Hyderabad Hyderabad Pan:Aayfs9165Q 629/Hyd/2022 -Do- -Do- 2015-16 687/Hyd/2022 -Do- -Do- 2015-16 630/Hyd/2022 -Do- -Do- 2016-17 677/Hyd/2022 Acit, Central Circle Skill Promoters (P) 2016-17 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 688/Hyd/2022 -Do- Skill Promoters, 2016-17 Hyderabad Pan:Aayfs9165Q 622/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2016-17 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 678/Hyd/2022 -Do- -Do- 2017-18 623/Hyd/2022 -Do- -Do- 2017-18 679/Hyd/2022 -Do- -Do- 2018-19 624/Hyd/2022 -Do- -Do- 2018-19 680/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2019-20 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 625/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2019-20 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 681/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2020-21 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 626/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2020-21 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri Jeevanlal Lavidiya,CIT (DR)
Section 132Section 132(4)Section 139(4)Section 143(2)Section 153ASection 269SSection 40ASection 40A(3)

…ney received during the year. The question now is whether the provisions of Section 40A(3) would apply when the income is estimated after rejecting the books of account? The jurisdictional High court of Andhra Pradesh in M/s.Indwell Corporation vs CIT [1998] (232 ITR 776) (AP) held that no disallowance u/s.40A(3) can be made when the books of account are rejected and the net profit rate is estimated. The rationale for this is that when books are rejected, one cannot talk back on the same books to make specific addition or disallowance by applying a different section of the Act. The relevant extract of the decisio…

ACIT, Central Circle-2(3), Hyderabad vs. Skill Promoters, Hyderabad

ITA 687/HYD/2022[2015-16]Status: DisposedITAT Hyderabad31 Oct 2023AY 2015-16

Bench: Shri R.K. Panda, Vice- & Shri K. Narasimha Charyappeal In Ita No Assessee Revenue A.Y 628/Hyd/2022 Skill Promoters, Acit, Central Circle 2014-15 Hyderabad 2(3) Hyderabad Pan:Aayfs9165Q 686/Hyd/2022 Acit, Central Circle Skill Promoters, 2014-15 2(3) Hyderabad Hyderabad Pan:Aayfs9165Q 629/Hyd/2022 -Do- -Do- 2015-16 687/Hyd/2022 -Do- -Do- 2015-16 630/Hyd/2022 -Do- -Do- 2016-17 677/Hyd/2022 Acit, Central Circle Skill Promoters (P) 2016-17 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 688/Hyd/2022 -Do- Skill Promoters, 2016-17 Hyderabad Pan:Aayfs9165Q 622/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2016-17 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 678/Hyd/2022 -Do- -Do- 2017-18 623/Hyd/2022 -Do- -Do- 2017-18 679/Hyd/2022 -Do- -Do- 2018-19 624/Hyd/2022 -Do- -Do- 2018-19 680/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2019-20 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 625/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2019-20 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 681/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2020-21 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 626/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2020-21 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri Jeevanlal Lavidiya,CIT (DR)
Section 132Section 132(4)Section 139(4)Section 143(2)Section 153ASection 269SSection 40ASection 40A(3)

…ney received during the year. The question now is whether the provisions of Section 40A(3) would apply when the income is estimated after rejecting the books of account? The jurisdictional High court of Andhra Pradesh in M/s.Indwell Corporation vs CIT [1998] (232 ITR 776) (AP) held that no disallowance u/s.40A(3) can be made when the books of account are rejected and the net profit rate is estimated. The rationale for this is that when books are rejected, one cannot talk back on the same books to make specific addition or disallowance by applying a different section of the Act. The relevant extract of the decisio…

ACIT, Central Circle-2(3), Hyderabad vs. Skill Promoters, Hyderabad

ITA 686/HYD/2022[2014-15]Status: DisposedITAT Hyderabad31 Oct 2023AY 2014-15

Bench: Shri R.K. Panda, Vice- & Shri K. Narasimha Charyappeal In Ita No Assessee Revenue A.Y 628/Hyd/2022 Skill Promoters, Acit, Central Circle 2014-15 Hyderabad 2(3) Hyderabad Pan:Aayfs9165Q 686/Hyd/2022 Acit, Central Circle Skill Promoters, 2014-15 2(3) Hyderabad Hyderabad Pan:Aayfs9165Q 629/Hyd/2022 -Do- -Do- 2015-16 687/Hyd/2022 -Do- -Do- 2015-16 630/Hyd/2022 -Do- -Do- 2016-17 677/Hyd/2022 Acit, Central Circle Skill Promoters (P) 2016-17 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 688/Hyd/2022 -Do- Skill Promoters, 2016-17 Hyderabad Pan:Aayfs9165Q 622/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2016-17 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 678/Hyd/2022 -Do- -Do- 2017-18 623/Hyd/2022 -Do- -Do- 2017-18 679/Hyd/2022 -Do- -Do- 2018-19 624/Hyd/2022 -Do- -Do- 2018-19 680/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2019-20 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 625/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2019-20 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 681/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2020-21 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 626/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2020-21 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri Jeevanlal Lavidiya,CIT (DR)
Section 132Section 132(4)Section 139(4)Section 143(2)Section 153ASection 269SSection 40ASection 40A(3)

…ney received during the year. The question now is whether the provisions of Section 40A(3) would apply when the income is estimated after rejecting the books of account? The jurisdictional High court of Andhra Pradesh in M/s.Indwell Corporation vs CIT [1998] (232 ITR 776) (AP) held that no disallowance u/s.40A(3) can be made when the books of account are rejected and the net profit rate is estimated. The rationale for this is that when books are rejected, one cannot talk back on the same books to make specific addition or disallowance by applying a different section of the Act. The relevant extract of the decisio…

ACIT., Central Circle-2(3), Hyderabad vs. Skill Promoters Private Limited, Hyderabad

ITA 681/HYD/2022[2020-21]Status: DisposedITAT Hyderabad31 Oct 2023AY 2020-21

Bench: Shri R.K. Panda, Vice- & Shri K. Narasimha Charyappeal In Ita No Assessee Revenue A.Y 628/Hyd/2022 Skill Promoters, Acit, Central Circle 2014-15 Hyderabad 2(3) Hyderabad Pan:Aayfs9165Q 686/Hyd/2022 Acit, Central Circle Skill Promoters, 2014-15 2(3) Hyderabad Hyderabad Pan:Aayfs9165Q 629/Hyd/2022 -Do- -Do- 2015-16 687/Hyd/2022 -Do- -Do- 2015-16 630/Hyd/2022 -Do- -Do- 2016-17 677/Hyd/2022 Acit, Central Circle Skill Promoters (P) 2016-17 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 688/Hyd/2022 -Do- Skill Promoters, 2016-17 Hyderabad Pan:Aayfs9165Q 622/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2016-17 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 678/Hyd/2022 -Do- -Do- 2017-18 623/Hyd/2022 -Do- -Do- 2017-18 679/Hyd/2022 -Do- -Do- 2018-19 624/Hyd/2022 -Do- -Do- 2018-19 680/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2019-20 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 625/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2019-20 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 681/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2020-21 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 626/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2020-21 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri Jeevanlal Lavidiya,CIT (DR)
Section 132Section 132(4)Section 139(4)Section 143(2)Section 153ASection 269SSection 40ASection 40A(3)

…ney received during the year. The question now is whether the provisions of Section 40A(3) would apply when the income is estimated after rejecting the books of account? The jurisdictional High court of Andhra Pradesh in M/s.Indwell Corporation vs CIT [1998] (232 ITR 776) (AP) held that no disallowance u/s.40A(3) can be made when the books of account are rejected and the net profit rate is estimated. The rationale for this is that when books are rejected, one cannot talk back on the same books to make specific addition or disallowance by applying a different section of the Act. The relevant extract of the decisio…

ACIT., Central Circle-2(3), Hyderabad vs. Skill Promoters Private Limited, Hyderabad

ITA 680/HYD/2022[2019-20]Status: DisposedITAT Hyderabad31 Oct 2023AY 2019-20

Bench: Shri R.K. Panda, Vice- & Shri K. Narasimha Charyappeal In Ita No Assessee Revenue A.Y 628/Hyd/2022 Skill Promoters, Acit, Central Circle 2014-15 Hyderabad 2(3) Hyderabad Pan:Aayfs9165Q 686/Hyd/2022 Acit, Central Circle Skill Promoters, 2014-15 2(3) Hyderabad Hyderabad Pan:Aayfs9165Q 629/Hyd/2022 -Do- -Do- 2015-16 687/Hyd/2022 -Do- -Do- 2015-16 630/Hyd/2022 -Do- -Do- 2016-17 677/Hyd/2022 Acit, Central Circle Skill Promoters (P) 2016-17 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 688/Hyd/2022 -Do- Skill Promoters, 2016-17 Hyderabad Pan:Aayfs9165Q 622/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2016-17 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 678/Hyd/2022 -Do- -Do- 2017-18 623/Hyd/2022 -Do- -Do- 2017-18 679/Hyd/2022 -Do- -Do- 2018-19 624/Hyd/2022 -Do- -Do- 2018-19 680/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2019-20 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 625/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2019-20 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 681/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2020-21 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 626/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2020-21 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri Jeevanlal Lavidiya,CIT (DR)
Section 132Section 132(4)Section 139(4)Section 143(2)Section 153ASection 269SSection 40ASection 40A(3)

…ney received during the year. The question now is whether the provisions of Section 40A(3) would apply when the income is estimated after rejecting the books of account? The jurisdictional High court of Andhra Pradesh in M/s.Indwell Corporation vs CIT [1998] (232 ITR 776) (AP) held that no disallowance u/s.40A(3) can be made when the books of account are rejected and the net profit rate is estimated. The rationale for this is that when books are rejected, one cannot talk back on the same books to make specific addition or disallowance by applying a different section of the Act. The relevant extract of the decisio…

ACIT., Central Circle-2(3), Hyderabad vs. Skill Promoters Private Limited, Hyderabad

ITA 679/HYD/2022[2018-19]Status: DisposedITAT Hyderabad31 Oct 2023AY 2018-19

Bench: Shri R.K. Panda, Vice- & Shri K. Narasimha Charyappeal In Ita No Assessee Revenue A.Y 628/Hyd/2022 Skill Promoters, Acit, Central Circle 2014-15 Hyderabad 2(3) Hyderabad Pan:Aayfs9165Q 686/Hyd/2022 Acit, Central Circle Skill Promoters, 2014-15 2(3) Hyderabad Hyderabad Pan:Aayfs9165Q 629/Hyd/2022 -Do- -Do- 2015-16 687/Hyd/2022 -Do- -Do- 2015-16 630/Hyd/2022 -Do- -Do- 2016-17 677/Hyd/2022 Acit, Central Circle Skill Promoters (P) 2016-17 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 688/Hyd/2022 -Do- Skill Promoters, 2016-17 Hyderabad Pan:Aayfs9165Q 622/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2016-17 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 678/Hyd/2022 -Do- -Do- 2017-18 623/Hyd/2022 -Do- -Do- 2017-18 679/Hyd/2022 -Do- -Do- 2018-19 624/Hyd/2022 -Do- -Do- 2018-19 680/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2019-20 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 625/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2019-20 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q 681/Hyd/2022 Acit, Central Circle Skill Promoters Pvt 2020-21 2(3) Hyderabad Ltd, Hyderabad Pan:Aawcs1257Q 626/Hyd/2022 Skill Promoters Pvt Acit, Central Circle 2020-21 Ltd, Hyderabad 2(3) Hyderabad Pan:Aawcs1257Q

For Appellant: Shri P. Murali Mohan Rao, CAFor Respondent: Shri Jeevanlal Lavidiya,CIT (DR)
Section 132Section 132(4)Section 139(4)Section 143(2)Section 153ASection 269SSection 40ASection 40A(3)

…ney received during the year. The question now is whether the provisions of Section 40A(3) would apply when the income is estimated after rejecting the books of account? The jurisdictional High court of Andhra Pradesh in M/s.Indwell Corporation vs CIT [1998] (232 ITR 776) (AP) held that no disallowance u/s.40A(3) can be made when the books of account are rejected and the net profit rate is estimated. The rationale for this is that when books are rejected, one cannot talk back on the same books to make specific addition or disallowance by applying a different section of the Act. The relevant extract of the decisio…