ITO v. Surana Traders

92 ITD 212Income Tax Appellate Tribunal2005#4252 most cited

What is ITO v. Surana Traders authority for?

Additions cannot be made under Section 68 solely because purchasers were not traceable if the assessee provides necessary sales details, maintains complete books of accounts, and a stock register, especially when payments are made through banking channels. The onus is on the revenue to prove the incorrectness or incompleteness of accounts or the accounting method.

28

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2018 to 2026.

Also referred to as

ITO v. Surana Traders · Section 68 · Section 143(3) · Section 147 · cash credits · unexplained money · onus of proof · creditworthiness of creditor · source of source · rejection of books of account · hawala transaction · genuine purchases · banking channel

Also reported as

93 TTJ 875

Sections most often in play

Section 143(3)Section 68Section 115BBESection 69ASection 132Section 144BSection 147Section 250

Issues it is cited on

section 69dfirst proviso to section 147creditworthiness of the creditorcolourable devicesource of sourceaddition under section 68section 44absection 44aaddition u/s 68rejection of books of accountsection 44section 145(3)

Judgments citing ITO v. Surana Traders

Krishna Steel Rolling Mills, Palakkad vs. ITO, Circle-1, Palakkad

In the result, appeal filed by the assessee is partly allowed for statistical purposes

ITA 576/COCH/2022[2017-2018]Status: DisposedITAT Cochin14 Sept 2022AY 2017-2018

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2017-18

For Appellant: Shri Anil Kumar P.J., A.RFor Respondent: Smt. J.M. Jamuna Devi, Sr. DR
Section 115BSection 133(6)Section 143(2)Section 68

…the Act. Simply, due to this reason, the learned State Income Tax officer, rejected the cash books. Merely because of the parties are not traceable, the assessee cannot be penalized. The stand taken support from the judgment in the case ITO vs. Surana Traders 93 TTJ 875 (Mum.), wherein it was held that "Merely because for the reasons that the purchase parties were not traceable, the assessee could not be penalized. In the sale documents the assessee has made available all necessary details i.e. the total weight sold as well as the rate per kilogram. Undisputedly, the assessee has maintained completed books of acc…

ITO, War-4(1), Jaipur vs. Shri Amit Agarwal, Jaipur

In the result, this appeal of the Revenue is dismissed

ITA 267/JPR/2020[2014-15]Status: DisposedITAT Jaipur13 Sept 2021AY 2014-15

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am

For Appellant: Shri G.M. Mehta (CA)For Respondent: Shri B.K. Gupta (PCIT-DR) fu/kZkfjrh dh vksj ls@
Section 143(3)Section 41Section 41(1)Section 68

…ls available on record. In view of the above, there is no justification for the revenue authorities to treat these cash advances as unexplained cash credit u/s 68". The Hon'ble ITAT, Mumbai Bench in the case of ITO vs. Surana Traders, (2005)93 TTJ 875: (2005)92 ITD 212, while dealing with a similar issue, observed as under:- "So merely because for the reasons that the purchaser parties were not traceable, the assessee could not be penalized. In the sales documents, the assessee has made available all necessary details, i.e. the total weight sold as well as the rate per kilogram. Undisputedly, the assessee has m…

Abc Electricals Pvt. Ltd., Kolkata vs. ITO, Ward - 4(3), Kolkata

Appeals are dismissed

ITA 156/KOL/2018[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकर अपीलसं./I.T.A Nos.153 & 154/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Ito, Ward-4(3), Kolkata Vs. Abc Electricals Pvt. Ltd. Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Revenue/Department) .. (Assessee ) & आयकर अपीलसं./I.T.A Nos.155 & 156/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Abc Electricals Pvt. Ltd. Vs. Ito, Ward-4(3), Kolkata Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Assessee) .. (Revenue/Department) Revenue/Department By : Shri A. K. Nayak, Cit Assessee By : Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 03/09/2019 घोषणाक"तार"ख/Date Of Pronouncement : 15/11/2019 आदेश / O R D E R Per Shri S. S. Godara: The Revenue & Assessee Have Filed Their Instant Cross-Appeals For Assessment Years 2013-14 To 2014-15 Arise Against The Commissioner Of Income Tax (A) - 2, Kolkata’S Separate Orders; Both Dated 01.12.2017 Passed In Case No.10147/Cit(A)-2/2016-17 & No.10919/Cit(A)-2/2016-17 Restricting The Assessing Officer’S Action Disallowing The Entire Purchases Of Rs.4,90,30,444/-

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri A. K. Nayak, CIT
Section 143(3)

…holding that when the particulars and details of purchases along with payments through account payee cheque numbers; bills bearing sales-tax numbers are produced along with the addresses thereof, the purchases cannot be disallowed. (ii) ITO Vs. Surana Traders 92 ITD 212 (Mum.) - For the proposition that when quantitative tally of sales is furnished along with the details of purchases, in such eventuality even if the purchasers are not available, no addition can be made merely on assumption or surmises. (iii) Umacharan Shaw& Bros Vs. CIT (1959) 37 ITR 271 (SC)-for the proposition that it is settled law that suspic…

Abc Electricals Pvt. Ltd., Kolkata vs. ITO, Ward - 4(3), Kolkata

Appeals are dismissed

ITA 155/KOL/2018[2013-14]Status: DisposedITAT Kolkata15 Nov 2019AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकर अपीलसं./I.T.A Nos.153 & 154/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Ito, Ward-4(3), Kolkata Vs. Abc Electricals Pvt. Ltd. Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Revenue/Department) .. (Assessee ) & आयकर अपीलसं./I.T.A Nos.155 & 156/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Abc Electricals Pvt. Ltd. Vs. Ito, Ward-4(3), Kolkata Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Assessee) .. (Revenue/Department) Revenue/Department By : Shri A. K. Nayak, Cit Assessee By : Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 03/09/2019 घोषणाक"तार"ख/Date Of Pronouncement : 15/11/2019 आदेश / O R D E R Per Shri S. S. Godara: The Revenue & Assessee Have Filed Their Instant Cross-Appeals For Assessment Years 2013-14 To 2014-15 Arise Against The Commissioner Of Income Tax (A) - 2, Kolkata’S Separate Orders; Both Dated 01.12.2017 Passed In Case No.10147/Cit(A)-2/2016-17 & No.10919/Cit(A)-2/2016-17 Restricting The Assessing Officer’S Action Disallowing The Entire Purchases Of Rs.4,90,30,444/-

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri A. K. Nayak, CIT
Section 143(3)

…holding that when the particulars and details of purchases along with payments through account payee cheque numbers; bills bearing sales-tax numbers are produced along with the addresses thereof, the purchases cannot be disallowed. (ii) ITO Vs. Surana Traders 92 ITD 212 (Mum.) - For the proposition that when quantitative tally of sales is furnished along with the details of purchases, in such eventuality even if the purchasers are not available, no addition can be made merely on assumption or surmises. (iii) Umacharan Shaw& Bros Vs. CIT (1959) 37 ITR 271 (SC)-for the proposition that it is settled law that suspic…

ITO, Ward - 4(3), Kolkata vs. Abc Electricals Pvt. Ltd., Kolkata

Appeals are dismissed

ITA 154/KOL/2018[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकर अपीलसं./I.T.A Nos.153 & 154/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Ito, Ward-4(3), Kolkata Vs. Abc Electricals Pvt. Ltd. Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Revenue/Department) .. (Assessee ) & आयकर अपीलसं./I.T.A Nos.155 & 156/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Abc Electricals Pvt. Ltd. Vs. Ito, Ward-4(3), Kolkata Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Assessee) .. (Revenue/Department) Revenue/Department By : Shri A. K. Nayak, Cit Assessee By : Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 03/09/2019 घोषणाक"तार"ख/Date Of Pronouncement : 15/11/2019 आदेश / O R D E R Per Shri S. S. Godara: The Revenue & Assessee Have Filed Their Instant Cross-Appeals For Assessment Years 2013-14 To 2014-15 Arise Against The Commissioner Of Income Tax (A) - 2, Kolkata’S Separate Orders; Both Dated 01.12.2017 Passed In Case No.10147/Cit(A)-2/2016-17 & No.10919/Cit(A)-2/2016-17 Restricting The Assessing Officer’S Action Disallowing The Entire Purchases Of Rs.4,90,30,444/-

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri A. K. Nayak, CIT
Section 143(3)

…holding that when the particulars and details of purchases along with payments through account payee cheque numbers; bills bearing sales-tax numbers are produced along with the addresses thereof, the purchases cannot be disallowed. (ii) ITO Vs. Surana Traders 92 ITD 212 (Mum.) - For the proposition that when quantitative tally of sales is furnished along with the details of purchases, in such eventuality even if the purchasers are not available, no addition can be made merely on assumption or surmises. (iii) Umacharan Shaw& Bros Vs. CIT (1959) 37 ITR 271 (SC)-for the proposition that it is settled law that suspic…

ITO, Ward - 4(3), Kolkata vs. Abc Electricals Pvt. Ltd., Kolkata

Appeals are dismissed

ITA 153/KOL/2018[2013-14]Status: DisposedITAT Kolkata15 Nov 2019AY 2013-14

Bench: Shri S. S. Godara, Jm & Dr. A. L. Saini, Am आयकर अपीलसं./I.T.A Nos.153 & 154/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Ito, Ward-4(3), Kolkata Vs. Abc Electricals Pvt. Ltd. Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Revenue/Department) .. (Assessee ) & आयकर अपीलसं./I.T.A Nos.155 & 156/Kol/2018 ("नधा"रण वष" / Assessment Years: 2013-14 & 2014-15) Abc Electricals Pvt. Ltd. Vs. Ito, Ward-4(3), Kolkata Room No.44, 10Th Floor, Fortuna Tower, 23A, Netaji Subhas Road, (Opp. Coal Bhawan), Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca7561P (Assessee) .. (Revenue/Department) Revenue/Department By : Shri A. K. Nayak, Cit Assessee By : Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 03/09/2019 घोषणाक"तार"ख/Date Of Pronouncement : 15/11/2019 आदेश / O R D E R Per Shri S. S. Godara: The Revenue & Assessee Have Filed Their Instant Cross-Appeals For Assessment Years 2013-14 To 2014-15 Arise Against The Commissioner Of Income Tax (A) - 2, Kolkata’S Separate Orders; Both Dated 01.12.2017 Passed In Case No.10147/Cit(A)-2/2016-17 & No.10919/Cit(A)-2/2016-17 Restricting The Assessing Officer’S Action Disallowing The Entire Purchases Of Rs.4,90,30,444/-

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri A. K. Nayak, CIT
Section 143(3)

…holding that when the particulars and details of purchases along with payments through account payee cheque numbers; bills bearing sales-tax numbers are produced along with the addresses thereof, the purchases cannot be disallowed. (ii) ITO Vs. Surana Traders 92 ITD 212 (Mum.) - For the proposition that when quantitative tally of sales is furnished along with the details of purchases, in such eventuality even if the purchasers are not available, no addition can be made merely on assumption or surmises. (iii) Umacharan Shaw& Bros Vs. CIT (1959) 37 ITR 271 (SC)-for the proposition that it is settled law that suspic…

Harish Mittal, Faridabad vs. ITO, Ward-1(3), Faridabad

In the result, the Appeal filed by the Assessee stands allowed

ITA 5313/DEL/2018[2008-09]Status: DisposedITAT Delhi05 Feb 2019AY 2008-09

Bench: Shri H.S. Sidhuassessment Year: 2008-09

For Appellant: SH. R.K. MALHOTRA, ADVOCATEFor Respondent: SH. S.L. ANURAGI, SR. DR
Section 127(1)Section 147Section 234A

…which on the face of it is not reliable, thus disregarding the fact that where sales have been accepted, even if purchases are not available, no addition could be made merely on the assumptions or presumptions or surmises or conjecture ITO vs Surana Traders 92 ITD 212 (Mum). 5. On the fact and circumstances of the case, the Ld. Assessing Officer has erred on facts and in law in making additions of Rs. 4,80,000/- by treating the purchases to the extend of Rs. 4,80,000/- as bogus. The gross profit rate of the assessee comes out to 7.5% as compared to actual gross profit rate of 5.7% which is very reasonable…

DCIT 4(3)(2), Mumbai vs. Sunrise Metallic (India) P.Ld, Mumbai

In the result, appeal of Revenue is dismissed

ITA 3628/MUM/2017[2009-10]Status: DisposedITAT Mumbai23 Mar 2018AY 2009-10

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm Dcit 4(3)(2) Vs. M/S. Sunrise Metallic R.No.649, 6Th Floor (India) Pvt. Ltd., Aayakar Bhavan Shiva Industrial Estate, Mumbai – 400 020 Near Tata Power House Lake Road, Bhandup (W) Mumbai – 400 078 Pan/Gir No.Aajcs2965E Appellant) Respondent) ..

Section 147

…. a. Babulal C Borana V/s ITO 282 1TR 251 (Bom) Where the identity of the persons from whom goods are purchases has been explained, payment are made by account payee cheques, transactions are recorded in books, no addition can be made.. ITO V/s Suhana Trading 92 ITD 212 (M.um)(para 98) Where a quantitative tally of sales is furnished, even if purchasers are not available, no addition could be made merely on assumptions or presumptions or surmises or conjectures. C, CIT V/s Leaders Valves (P) Ltd 206 CTR 463(P&H) Commissioner (A) deleted additions made by AO on account of bogus purchase from seven parties as also…