Namasivayam Chettiar v. CIT

38 ITR 579Supreme Court of India1960#2091 most cited

What is Namasivayam Chettiar v. CIT authority for?

Once books of account are rejected under section 145(3), the income should be estimated, and no further additions can be made by disallowing expenditure or referring to unsubstantiated statements.

55

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2010 to 2026.

Also referred to as

Namasivayam Chettiar v. CIT · section 145(3) · rejection of books of account · estimation of income · addition of expenditure · unsubstantiated statements

Also reported as

191 CTR 168

Sections most often in play

Section 145(3)Section 143(3)Section 144Section 115BBESection 133(6)Section 145Section 147Section 148

Issues it is cited on

section 145(1)rejection of books of accountsection 145(3)section 145section 131section 133section 133afirst appealincome from other sourcessection 69section 13section 143

Judgments citing Namasivayam Chettiar v. CIT

Laxmi Narain Agarwal, Jaipur vs. ACIT, Central Circle-3, Jaipur

In the result, for the assessment years 2009-10 and 2010-11

ITA 849/JPR/2015[2010-11]Status: DisposedITAT Jaipur21 Mar 2018AY 2010-11
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Smt. Roli Agarwal (CIT) &
Section 143(3)Section 153A

…herefore, in view of the facts discussed above, the books of accounts of the assessee are being rejected by invoking provision of section 145(3) of the IT Act, 1961. In view of Hon'ble Supreme Court's decision in the case of S. N. Namasivayam Chettiar V/s CIT 38 ITR 579 and reliance can be placed on the case of Ved Prakash V/s CIT 191 CTR 168/ 210 ITR 486. 8. In view of the facts mentioned above and circumstance of the case, provisions of section 145(3) are invoked and books of account are rejected. The Net Profit rate of 5.75% is applied on total contract receipts of Rs. 58,80,71,121/-, which gives net profit of…

Laxmi Narain Agarwal, Jaipur vs. ACIT, Central Circle-3, Jaipur

In the result, for the assessment years 2009-10 and 2010-11

ITA 848/JPR/2015[2009-10]Status: DisposedITAT Jaipur21 Mar 2018AY 2009-10
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Smt. Roli Agarwal (CIT) &
Section 143(3)Section 153A

…herefore, in view of the facts discussed above, the books of accounts of the assessee are being rejected by invoking provision of section 145(3) of the IT Act, 1961. In view of Hon'ble Supreme Court's decision in the case of S. N. Namasivayam Chettiar V/s CIT 38 ITR 579 and reliance can be placed on the case of Ved Prakash V/s CIT 191 CTR 168/ 210 ITR 486. 8. In view of the facts mentioned above and circumstance of the case, provisions of section 145(3) are invoked and books of account are rejected. The Net Profit rate of 5.75% is applied on total contract receipts of Rs. 58,80,71,121/-, which gives net profit of…

ACIT, Central Circle-3, Jaipur vs. Laxmi Narain Agarwal, Jaipur

In the result, for the assessment years 2009-10 and 2010-11

ITA 1023/JPR/2015[2010-11]Status: DisposedITAT Jaipur21 Mar 2018AY 2010-11
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Smt. Roli Agarwal (CIT) &
Section 143(3)Section 153A

…herefore, in view of the facts discussed above, the books of accounts of the assessee are being rejected by invoking provision of section 145(3) of the IT Act, 1961. In view of Hon'ble Supreme Court's decision in the case of S. N. Namasivayam Chettiar V/s CIT 38 ITR 579 and reliance can be placed on the case of Ved Prakash V/s CIT 191 CTR 168/ 210 ITR 486. 8. In view of the facts mentioned above and circumstance of the case, provisions of section 145(3) are invoked and books of account are rejected. The Net Profit rate of 5.75% is applied on total contract receipts of Rs. 58,80,71,121/-, which gives net profit of…

ACIT, Central Circle-3, Jaipur vs. Laxmi Narain Agarwal, Jaipur

In the result, for the assessment years 2009-10 and 2010-11

ITA 1022/JPR/2015[2009-10]Status: DisposedITAT Jaipur21 Mar 2018AY 2009-10
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Smt. Roli Agarwal (CIT) &
Section 143(3)Section 153A

…herefore, in view of the facts discussed above, the books of accounts of the assessee are being rejected by invoking provision of section 145(3) of the IT Act, 1961. In view of Hon'ble Supreme Court's decision in the case of S. N. Namasivayam Chettiar V/s CIT 38 ITR 579 and reliance can be placed on the case of Ved Prakash V/s CIT 191 CTR 168/ 210 ITR 486. 8. In view of the facts mentioned above and circumstance of the case, provisions of section 145(3) are invoked and books of account are rejected. The Net Profit rate of 5.75% is applied on total contract receipts of Rs. 58,80,71,121/-, which gives net profit of…

Realstone Exports Ltd, Mumbai vs. ITO WD 8(3)(3), Mumbai

In the result, this appeal filed by the assessee stands dismissed

ITA 3444/MUM/2014[2010-11]Status: DisposedITAT Mumbai03 Oct 2017AY 2010-11

Bench: Shri Shamim Yahya, Am & Shri Shaktijit Dey, Jm

For Appellant: --- None ---For Respondent: Shri V.Vidhyadhar
Section 133(6)Section 14Section 142(1)Section 144Section 145Section 234

…r showing the quantitative details, the action of the A.O. in rejecting the books of account of the assessee is upheld. To strengthen the view of the A.O. reliance is placed on the decision of hon'ble Supreme Court in case of S.N.Namassivayam Chettiar Vs. CIT 38 ITR 579, Dhandiram Dhalichand Vs. CIT 81 ITR 609, 12 ITA No.3444/Mum/2014. M/s.Realstone Exports Limited. Punjab Trading Company Vs. CIT 53 ITR 335, Raja Textiles Ltd. Vs. CIT 86 ITR 673 and in case of Royal Medical Hall Vs. DCIT 46 ITR 748 where it is held that in absence of vouchers and quantitative tally of stock, profit can be estimated by the I.T.O.…

Addl CIT 2(1), Mumbai vs. Gtl Ltd, Mumbai

ITA 5419/MUM/2010[2006-07]Status: DisposedITAT Mumbai31 May 2017AY 2006-07

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwal

Section 10BSection 143(1)

…spector of Taxes) (1971) 2 WLR 1313 (HL) CIT vs. Sarangpur Cotton Manufacturing Co. Ltd. (1938) 6 ITR 36 (PC) : TC1R.109, CIT vs. A. Krishnaswami Mudaliar & Ors. (1964) 53 ITR 122 (SC) : (1964) TAX 18(3) 88 : TC1R.131, S.N. Namasivayam Chettair vs. CIT (1960) 38 ITR 579 (SC) : (1960) TAX 13(3) -105 : TC1R.532, IRC vs. Cock, Rusell and Co. Ltd. (1949) 29 Tax Cases 387, Whimster and Co. vs. IRC (1917-26) 12 Tax Cases 813 and Chainrup Sampatram vs. CIT (1953) 24 ITR 481 (SC) : TC2R.124 relied on. xxxxxxxxxxxxxxxxxxxxxxxxxx 5.6. Broadly, in the aforesaid case, the Hon'ble Court has held that where the market value ha…

DCIT, New Delhi vs. M/S. Rexam Htw Beverages Can(India) Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 6100/DEL/2013[2009-10]Status: DisposedITAT Delhi21 Apr 2017AY 2009-10

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2009-10 Vs. M/S. Rexam Htw Beverages Dcit, Circle -15(1), New Delhi Can(India) Ltd., 448, Bartan Market, Sadar Bazar, New Delhi Pan : Aabch7101B (Appellant) (Respondent) Appellant By Sh. F.R. Meena, Sr.Dr Respondent By S/Sh. Salil Aggarwal, Adv. & Shailesh Gupta, Ca Date Of Hearing 22.03.2017 Date Of Pronouncement 21.04.2017 Order Per O.P. Kant, A.M.: This Appeal By The Revenue Is Directed Against Order Dated 27/08/2013 Of Ld. Commissioner Of Income-Tax( Appeals)-Xviii, New Delhi (In Short ‘The Cit-A’) For Assessment Year 2009-10 Raising Following Grounds: “1. On The Facts & In The Circumstances Of The Case, The Ld.Cit(A) Has Erred In Allowing The Appeal Of The Assessee Without Appreciating Die Reasons For Rejecting The Books Of Accounts Given By The Assessing Officer In The Order Itself. 2. On The Facts & In The Circumstances Of The Case, The Ld. Cit(A) Has Erred In Not Appreciating The Facts That During Assessment Proceedings, Gross Disparities Between The Results Shown By The Assessee Were Found Which Is An Appropriate Reason-To- Invoke The Provision Of Section 145(3) Of The Act.

Section 145Section 145(3)

…. Appellant’s reliance on the following case laws is appreciated:- (i) 26ITR 159 (Punj) Pandit Bros. v. CIT (ii) 38 ITR 152 (Ker) S. Veeriah Reddiar v. CIT (iii) 72 ITR 328 (Mys) P. Venkana v. CIT (iv) 257 ITR 764 (Mad) R. V. S. and Sons Dair Farm vs. CIT (v) 38 ITR 579 (SC) S.N. Namasivayam Chettial vs. CIT 8 7.5 After considering the facts in totality, I find that there is no merit in the finding of the Assessing Officer to reject books of accounts and Assessing Officer should have not applied a flat rate of 5% on the total turnover especially in a case where books of accounts are audited. Grounds of appeal No…

The ITO-3(3), Indore vs. M/S. Mungad Strips & Alloys Pvt. Ltd., Indore

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

ITA 326/IND/2016[2010-11]Status: DisposedITAT Indore28 Feb 2017AY 2010-11

Bench: Shri C. M. Garg & Shri O.P. Meena

Section 115JSection 143(3)Section 145(3)

…ouchers, stock registers, cash memo and expenses bills. The books of accounts were rejected by the AO u/s 145(3) of the Income-tax Act, 1961. In support of rejection of books of accounts, the AO relied in the case of S.N.Namasivayam Chettiar vs. CIT, (1960) 38 ITR 579 ( S. C. ) and Awadesh Pratap Singh Abdul ITO 3(3) Indore vs. M/s. Mungad Strips & Alloys P.Ltd.,Indore.I.T.A.NO. 326/Ind/2016 Page 5 of 13 Rehman & Brothers vs. CIT, (1994) 76 Taxman 106 ( Alld.) Accordingly, the AO has estimated the total income of the assessee by applying net profit rate of 8% on total sales of Rs. 5,58,52,756/-, which was…

Sohan Lal Aggarwal, New Delhi vs. ITO, New Delhi

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

ITA 5711/DEL/2013[2010-11]Status: DisposedITAT Delhi28 Sept 2016AY 2010-11

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. Rajesh Mahna, AdvocateFor Respondent: Sh. B. Ramanjaneyula, Sr. DR
Section 143(1)Section 143(2)Section 145Section 40

…considered with other underlying circumstances, profit can legitimately be estimated by the Assessing Officer, as held by the Hon’ble Supreme Court as well as various High Courts of the land in the following citations: i) S.N. Namasiwayam Chettiar v CIT (SC) 38 ITR 579 (ii) Awadesh Pratap Singh Abdul Rehman & Bros v CIT (All.) 210 ITR 406 (iii). Dhondiram Dalichand vs. CIT (Bom) 81 ITR 609 (iv). Punjab Trading Co. Ltd vs. CIT (Pun.) 53 ITR 335 4 ITA No.5711/Del./2013 (v). Bhai Sunder Das Sardar Singh (P) Ltd. vs. CIT(Del.) 84 ITR 106 In the instant case, the assessee has neither produced bills/vouchers, nor g…

CIT vs. Superior Crafts

ITA/615/2011HC Delhi06 Mar 2012

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 142Section 260

…t these are circumstances which may prov'oke an inquiry. The lncome-tax Office; fiust discover evidence or material aliunde'before he can 33. This decision was referred to by thg i 'l Supreme Court in the UY case of S. N. Namasivayam Chettiai,rv. CIT (1960) 38 ITR 579, 588 (SC) and it was exPlained:- "....1t was rightly argued tirat'the power to. compute profits under thel proviso to s. 13 o arises only where no method of accounting ITA Nos. 24412009, 547 l2O1 1, 5481201 1 & 61 51201 1 has been regularly employe,d b)t the assessee and where the method eqrploled such that the income, profits and gain cEnnot prop…

CIT vs. Superior Crafts

ITA - 548 / 2011HC Delhi06 Mar 2012
Section 142Section 260

…mstances which may prov'oke an inquiry. The lncome-tax Office; fiust discover evidence or material aliunde'before he can 2012:DHC:9801-DB 33. This decision was referred to by thg i 'l Supreme Court in the UY case of S. N. Namasivayam Chettiai,rv. CIT (1960) 38 ITR 579, 588 (SC) and it was exPlained:- "....1t was rightly argued tirat'the power to. compute profits under thel proviso to s. 13 o arises only where no method of accounting ITA Nos. 24412009, 547 l2O1 1, 5481201 1 & 61 51201 1 has been regularly employe,d b)t the assessee and where the method eqrploled such that the income, profits and gain cEnnot prop…

Commissioner of Income Tax vs. Superior Crafts

The appeals are dismissed holding that no substantial question of law arises for

ITA/244/2009HC Delhi06 Mar 2012
Section 142Section 260A

…ding.” 2012:DHC:1630-DB ITA Nos. 244/2009, 547/2011, 548/2011 & 615/2011 Page 35 of 44 33. This decision was referred to by the Supreme Court in the case of S. N. Namasivayam Chettiar v. CIT (1960) 38 ITR 579, 588 (SC) and it was explained:- “....It was rightly argued that the power to compute profits under the proviso to s. 13 arises only where no method of accounting has been regularly employed by the assessee and where the method employed such that the income, profits and gain cannot properly be deduced therefrom. It means that the method a…

Commissioner of Income Tax vs. Bindals Appareals

ITA/599/2009HC Delhi18 Feb 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 133ASection 143(3)

…pancies, as per the AO, he rejected the books of accounts in view of the following decisions of the Supreme Court and the other High Courts: (i) Orissa Fishers Development Corpn. Ltd. Vs. CIT [111 ITR 923 (ORI)]; (ii) S.N. Namasivayam Chettiar Vs. CIT [38 ITR 579 (SC)]; (iii) Amiya Kumar Roi & Bros. Vs. CIT [2006 ITR 306 (Calcutta); and ITA No.599 of 2009 Page 8 of 11 (iv) Awadesh Pratap Singh Abdul Rehman & Bros. Vs. CIT [210 ITR 406 (Allahabad)]. 4. After rejecting the books of accounts, the AO opined that under the given circumstances GP rate of 21% of sales…

CIT vs. Jackskons House

ITA/651/2010HC Delhi26 Apr 2010

Bench: HON'BLE MR. JUSTICE BADAR DURREZ AHMED,HON'BLE MR. JUSTICE V.K. JAIN

For Appellant: Ms.Suruchii AggarwalFor Respondent: CORAM:-
Section 143(2)Section 145(3)

…ITA No.651/2010 Page 1 of 7 THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Delivered on: 26.04.2010 + ITA 651/2010 COMMISSIONER OF INCOME TAX-IX. … Appellant - versus - M/S JACKSONS HOUSE ... Respondent Advocates who appeared in this case: For the Appellant : Ms.Suruchii Aggarwal For the Respondent : CORAM:- HON’BLE MR JUSTICE BADAR DURREZ AHMED HON’BLE MR JUSTICE V.K. JAIN 1. Whether Reporters of local papers may be allowed to see the judgment? Yes 2. To be referred to…

CIT vs. Jackskons House

ITA - 651 / 2010HC Delhi26 Apr 2010
For Appellant: Ms.Suruchii AggarwalFor Respondent: CORAM:-
Section 143(2)Section 145(3)

…THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Delivered on: 26.04.2010 + ITA 651/2010 COMMISSIONER OF INCOME TAX-IX. … Appellant - versus - M/S JACKSONS HOUSE ... Respondent Advocates who appeared in this case: For the Appellant : Ms.Suruchii Aggarwal For the Respondent : CORAM:- HON’BLE MR JUSTICE BADAR DURREZ AHMED HON’BLE MR JUSTICE V.K. JAIN 1. Whether Reporters of local papers may be allowed to see the judgment? Yes 2. To be referred to the Reporter or not? Yes 3…