Maddi Sudarsanam Oil Mills Co. v. CIT

37 ITR 369High Court1959#2737 most cited

What is Maddi Sudarsanam Oil Mills Co. v. CIT authority for?

When books of account are rejected and income is estimated, tax authorities cannot simultaneously rely on those rejected books to make specific additions, such as unexplained cash credits forming part of the balancing scheme of accounts, or to disallow specific expenses.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2025.

Also referred to as

Maddi Sudarsanam Oil Mills Co. v. CIT · rejection of books of account · Section 145(3) · estimated assessment · flat rate profit · unexplained cash credits Section 68 · disallowance of expenses Section 40 · specific additions after estimation · cannot rely on rejected books · double addition · simultaneous additions

Sections most often in play

Section 115BBESection 133ASection 143(1)Section 145Section 145(3)Section 147Section 148Section 250

Issues it is cited on

section 264asection 264block of assetssection 10aasection 10arejection of books of accountsection 30section 145(3)section 145addition u/s 68section 40(a)(ia)unexplained expenditure

Judgments citing Maddi Sudarsanam Oil Mills Co. v. CIT

Ratan Taxtiles P. Ltd., Jaipur vs. DCIT, Jaipur

In the result, all the appeals of the assessee are allowed and the

ITA 527/JPR/2016[2009-10]Status: DisposedITAT Jaipur21 Apr 2017AY 2009-10
For Appellant: Shri Manish Agarwal &For Respondent: Shri Rajendra Singh (Addl.CIT)
Section 133ASection 143(3)Section 145(3)

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh dqy Hkkjr] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 527/JP/2016 fu/kZkj.k o"kZ@Assessment Year : 2010-11 cuke M/s Ratan textiles P. Ltd., D.C.I.T., Vs. Papriwal Cottage, Ajmer Road, Circle-2, Jaipur. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AABCR 3760 L vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 595/JP/2016 fu/kZkj.k o"kZ@Assessment Year : 2010-11 cuke Dy. Commissioner of M/s Ratan te…

Mohd. Const. Co., Kota vs. Addl. CIT, Kota

ITA 649/JPR/2013[2006-07]Status: DisposedITAT Jaipur30 Jan 2017AY 2006-07
For Appellant: Shri Mahendra Gargieya (Advocate)For Respondent: Shri Rajendra Jha (Addl. CIT)
Section 145(3)Section 44A

…0A(3).” Also Kindly refer CIT Vs Banwari Lal Banshidhar (1998) 229 ITR 229, 232 (All.), CIT vs. G.K. Contractor (2009) (PB 17-18) 19 DTR 305 (Raj.), Indwell Constructions v CIT (1998) (PB 14-16) 232 ITR 776 (AP), Maddi Sudarsanam Oil Mills Co. v/s CIT (1959) 37 ITR 369 (AP), ECI Engineering & Construction Co. Ltd. in ITA No.2048/Hyd/2011, Samurai Techno Trading Co. (P) Ltd. v/s CIT (2010) 37 DTR 386 (Ker.), ITO v/s Kenaram Saha & Subhash Saha (2008) 116 TTJ 289 (Kol.) (SB). In this case the ld. CIT(A) made the estimation of NP @ 10.64% based on the adhoc addition on account of the alleged inflated consumption o…

Shri Hribu Bose, Asansol vs. I.T.O, Ward-1(2), Asansol

In the result, the appeal filed by the assessee in ITA

ITA 2214/KOL/2013[2009-10]Status: DisposedITAT Kolkata30 Sept 2016AY 2009-10

Bench: Shri P.M Jagtap & Shri S.S.Viswanethra Ravi

Section 194Section 40Section 68

…y difficulty in upholding that order. But, when he proposes to add back an exact item in the profit and loss account, he was relying on the rejected books which he could not do as held by the Bench of this court in Maddi Sudarsanam Oil Mills Co. v. CIT [1959] 37 ITR 369. There is also a further difficulty if section 40, as argued by learned counsel, is to be taken into account even after making an estimate. When there are certain other deductions which are to be disallowed such as wealth-tax payment in section 40, can it be said that after making an estimate, the wealth-tax charged in the profit and loss account…