National Textiles v. CIT

249 ITR 125High Court2001#763 most cited

What is National Textiles v. CIT authority for?

The levy of penalty under Section 271(1)(c) requires material evidence that the assessed amount does not represent the assessee's income and proof of conscious concealment or furnishing inaccurate particulars. A penalty cannot be sustained merely because income is assessed on an estimation basis without positive evidence of concealment.

134

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2015 to 2026.

Also referred to as

National Textiles v. CIT · penalty under section 271(1)(c) · concealment of income · furnishing inaccurate particulars · income assessed on estimation · levy of penalty · animus · 249 ITR 125 · Gujarat High Court

Also reported as

164 CTR 2009

Sections most often in play

Section 271(1)(c)Section 143(3)Section 250Section 133(6)Section 142(1)Section 143(1)Section 143(2)Section 145(3)

Issues it is cited on

penalty under section 271(1)(c)furnishing inaccurate particulars of incomefurnishing inaccurate particularsconcealment of incomepenalty u/s 271(1)(c)section 274levy of penaltysection 271(1)commissioner (appeals)section 44section 271section 271(1)(c)

Judgments citing National Textiles v. CIT

M/S. Veer Gems, Surat vs. The Dy. CIT, Central Circle-3, Surat

In the result, the appeal of the assessee stands allowed

ITA 1767/AHD/2017[2010-11]Status: DisposedITAT Surat26 Jul 2019AY 2010-11

Bench: Shri Bhavnesh Saini & Shri O. P. Meenaआ.अ.सं./I.T.A No.1767/Ahd/2017: िनधा"रण वष"/Assessment Year: 2010- 11 M/S. Veer Gems V. Deputy Commissioner Of 7/2982/ Parsi Sheri Income, Saiyedpura Surat 395003 Central Circle-3 Surat Pan: Aabfv 6446 L अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 153CSection 271(1)Section 271(1)(c)Section 92C

…t had made all the necessary disclosures on a bonafide belief, which is not agreeable to the AO, it will not automatically lead to a case for penalty under section 271(1)(c) of the Act. Similarly, the Hon’ble Gujarat High Court in the case of National Textile 249 ITR 125 (Gujarat) held that addition made is not conclusive, where the assessee has furnished evidence; it was held that no penalty is leviable. We are therefore of the considered view that the penalty is Veer Gems v. DCIT-CC-3 Surat / I.T.A. No.1767/AHD/2017/A.Y.10-11 Page 4 of 4 not sustainable in view of decision of the Hon’ble Supreme Court in case…

Shri Piyushkumar Ambalal Shroff, HUF, Ahmedabad vs. The Dy.CIT, Bharuah Circle, Bharuch

In the result, the appeal of the assessee stands allowed

ITA 1692/AHD/2014[2003-04]Status: DisposedITAT Surat26 Jul 2019AY 2003-04

Bench: Shri Bhavnesh Saini & Shri O. P. Meenaआ.अ.सं./I.T.A No.1692/Ahd/2014 िनधा"रण वष"/Assessment Year: 2003-04 Shri Piyushkumr A. Shroff (Huf), V Deputy Commissioner Of C/O Ketan H Shah, Advocate, . Income-Tax, 93 Sapphire Complex, C G Road, Bharuch Circle, Bharuch Navrangpura, Ahmedabad 380009 Pan: Aachp 9491 E अपीलाथ" Appellant ""यथ"/Respondent

Section 143Section 271(1)Section 271(1)(c)

…enalty could not be levied merely because the addition has been confirmed by the Appellate Authorities. In support of his contentions, the learned counsel for the assessee placed reliance in the case of Durga Kamal Rice 265 ITR 25 (Gujarat), National Textiles 249 ITR 125 (Gujarat) and CIT v Reliance Petroproducts Pvt. Ltd. [2010] 322 ITR 158 (SC); [2010] 189 Taxman 322(SC) . Piyush A Shroff (HUF) v. DCIT- Bharuch/ I.T.A. No.1692/AHD/2014/A.Y.03-04 Page 4 of 6 6. Au contraire, the ld. Sr. D.R. supported the orders of lower authorities. 7. We have heard the rival submissions and perused the relevant material on r…

Smt.Asha Menon( Asha Sunil), Cochin vs. The ACIT(Cen, Circle, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 596/COCH/2018[2008-09]Status: DisposedITAT Cochin30 Apr 2019AY 2008-09

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Smt.Asha Menon( Asha Sunil), Cochin vs. The ACIT(Cen, Circle, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 595/COCH/2018[2007-08]Status: DisposedITAT Cochin30 Apr 2019AY 2007-08

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Smt.Asha Menon( Asha Sunil), Cochin vs. The DCIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 594/COCH/2018[2006-07]Status: DisposedITAT Cochin30 Apr 2019AY 2006-07

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Sri.O.G.Sunil, Cochin vs. DCIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 51/COCH/2014[2008-09]Status: DisposedITAT Cochin30 Apr 2019AY 2008-09

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Sri.O.G.Sunil, Cochin vs. DCIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 50/COCH/2014[2007-08]Status: DisposedITAT Cochin30 Apr 2019AY 2007-08

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Sri.O.G.Sunil, Cochin vs. DCIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 49/COCH/2014[2006-07]Status: DisposedITAT Cochin30 Apr 2019AY 2006-07

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Sri.O.G.Sunil, Cochin vs. DCIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 48/COCH/2014[2005-06]Status: DisposedITAT Cochin30 Apr 2019AY 2005-06

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Sri.O.G.Sunil, Cochin vs. DCIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 47/COCH/2014[2004-05]Status: DisposedITAT Cochin30 Apr 2019AY 2004-05

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Sri.O.G.Sunil, Cochin vs. DCIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 46/COCH/2014[2003-04]Status: DisposedITAT Cochin30 Apr 2019AY 2003-04

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

…the explanation tendered by the assessee must be disproved. There is a difference in “facts not proved and “facts disproved”. Penalty can be levied only for the latter. For this proposition, we rely on the following judgments: i) National Textils vs. CIT (249 ITR 125) (Guj.) ii)Durga Kamal Rice Mills vs. CIT (265 ITR 25) (Cal.) iii)CIT vs. Vidya Gowri Natwarlal & Ors. (153 CTR 546) (Guj.) I.T.A. Nos. 45-51/Coch/2014 & ITA Nos. 594 to 596/Coch/2018 S.P. Nos. 51-53/Coch/2018 16.3 Thus, the addition u/s. 68 of the Act is properly made, and confirmed by the Tribunal and higher forum because of unsatisfactory…

Assistant Commissioner of Income Tax, Circle-4, Mumbai vs. Kundan Industries Limited, Mumbai

In the result, this appeal by the revenue is dismissed

ITA 302/MUM/2018[2010-11]Status: DisposedITAT Mumbai26 Apr 2019AY 2010-11

Bench: Shri Shamim Yahya & Shri Ravish Sood & Assessment Year-2010-11 Acit, M/S Kundan Industries Ltd. Circle-4, Kundan House,Goraipada, बनाम/ Room No.02, A-Wing, 6Th Floor, Vasai (E), Dist-Palghar Vs. Ashar It Park, Wagle Industrial Estate, Road No.16-Z, Thane (W)-400604 Pan No.Aaack6811G (राज"व /Revenue) ("नधा"रती /Assessee)

Section 133(6)Section 143(3)Section 271(1)(c)Section 36(1)(iii)Section 50

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “H”, MUMBAI Before Shri Shamim Yahya, Accountant Member and Shri Ravish Sood, Judicial Member and Assessment Year-2010-11 ACIT, M/s Kundan Industries Ltd. Circle-4, Kundan House,Goraipada, बनाम/ Room No.02, A-wing, 6th Floor, Vasai (E), Dist-Palghar Vs. Ashar IT Park, Wagle Industrial Estate, Road No.16-Z, Thane (W)-400604 PAN No.AAACK6811G (राज"व /Revenue) ("नधा"रती /Assessee) राज"व क" ओर से / Revenue by Shri Manoj Kumar Singh "नधा"रती क" ओर से / Assessee by Shri K. Gopal सुनवाई क" तार"ख / Date of Hearing : 24/04/2019 26/04/2019 आदेश क" तार"ख /Date of Order:…

M/S.S.K. Finvest Ltd., Nadiad vs. The ACIT., Kheda Circle, Nadiad

In the result, the appeal of the assessee is allowed

ITA 3103/AHD/2015[1996-97]Status: DisposedITAT Ahmedabad18 Apr 2019AY 1996-97

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 2721 /Ahd/2013 & आयकर अपील सं./Ita No. 3103 /Ahd/2015 "नधा"रण वष"/Asstt. Year: 1996-1997 S.K. Finvest Ltd., The D.C.I.T, C-14, Trimurti Complex, Vs. Circle, Nadiad. Station Road, Nadiad.

Section 234ASection 271Section 271(1)(c)Section 68

…3 proceedings. As such the penalty proceedings being distinct and separate from the assessment proceedings, the AO is under the obligation to carry out the fresh verification as held by the Hon’ble Gujarat High Court in the case of National Textiles reported 249 ITR 125. The relevant extract of the judgment is extracted below: “In the instant case, the cash credits were not satisfactorily explained by evidence and documents. The parties who had advanced the alleged temporary loans were neither disclosed with their particulars nor any supporting documents were on record. Only two entries were explained. The acco…

S.K. Finvest Ltd., Nadiad vs. The Dy.CIT., Nadiad Circle, Nadiad

In the result, the appeal of the assessee is allowed

ITA 2721/AHD/2013[1996-1997]Status: DisposedITAT Ahmedabad18 Apr 2019AY 1996-1997

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 2721 /Ahd/2013 & आयकर अपील सं./Ita No. 3103 /Ahd/2015 "नधा"रण वष"/Asstt. Year: 1996-1997 S.K. Finvest Ltd., The D.C.I.T, C-14, Trimurti Complex, Vs. Circle, Nadiad. Station Road, Nadiad.

Section 234ASection 271Section 271(1)(c)Section 68

…3 proceedings. As such the penalty proceedings being distinct and separate from the assessment proceedings, the AO is under the obligation to carry out the fresh verification as held by the Hon’ble Gujarat High Court in the case of National Textiles reported 249 ITR 125. The relevant extract of the judgment is extracted below: “In the instant case, the cash credits were not satisfactorily explained by evidence and documents. The parties who had advanced the alleged temporary loans were neither disclosed with their particulars nor any supporting documents were on record. Only two entries were explained. The acco…

P.Chhotalal Manufacturers & Exporte, R, Ahmedabad vs. The Dy.CIT., Circle-10, Ahmedabad

In the result, appeal filed by the Assessee is allowed

ITA 711/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad01 Feb 2019AY 2008-09

Bench: Shri Pramod Kumar & Shri Mahavir Prasad)

For Appellant: Shri S.N. Mashruwala, ARFor Respondent: Shri Mudit Nagpal, Sr. D.R
Section 2Section 271Section 271(1)(c)Section 274Section 80Section 801B

…details required by AO were submitted at the time of hearing. The AO has not pointed out any defects in books of account and merely disallowing any expense or income does not attract penalty. 4. The assessee relies on the decision of National Textile V/s. CIT 249 ITR 125 wherein it is held that there must be some material or circumstances leading to the reasonable conclusion that the amount does represent the assessee income. It is not enough for the purpose of penalty that the amount has been assessed as income and circumstances must show that there was animus i.e. conscious concealment or act of furnishing of i…

Income Tax Officer, Bhiwadi vs. Shri Pratap Singh Tanwar, Jaipur

In the result, appeal filed by the Revenue is dismissed

ITA 1027/JPR/2017[2009-10]Status: DisposedITAT Jaipur29 Jan 2019AY 2009-10
For Appellant: Shri P. C. Parwal (CA)For Respondent: Shri Anup Singh (JCIT) fu/kZkfjrh dh vksj ls@
Section 143(3)Section 271(1)(c)Section 68

…light of the settled legal position. Therefore, the Tribunal was justified in law, on the facts and in the circumstances of the case, in holding that the penalty imposed by the IAC under s. 271(1)(c) could not be sustained. • National Textiles Vs. CIT (2000) 249 ITR 125 (Guj.) (HC) Provisions of s. 68 are enabling provisions for making additions where the assessee fails to give an explanation regarding cash credit or where the explanation is not to the satisfaction of the AO. Such addition would not automatically justify imposition of penalty under s. 271(1)(c) r/w Expln. 1 thereto. In order to justify levy of…

Shri Pravinbhai Ghusabhai Singala, Surat vs. Income Tax Officer Ward-3(1)(1), Surat

In the result, appeal of the assessee is allowed

ITA 739/SRT/2018[2013-14]Status: DisposedITAT Surat04 Jan 2019AY 2013-14

Bench: Smt. Diva Singh & Shri O.P.Meena

Section 143(3)Section 271(1)(c)Section 68

…The past history of the assessee shows that the assessee has not been earning income outside books of accounts. Therefore, penalty imposed in such circumstances is not justified. The ld.Counsel has laced reliance in the case of National Textile Vs. CIT [2001] 249 ITR 125 (Guj) wherein it was held that provisions of section permitting the AO to treat unexplained cash credit as income are enabling provision for making certain additions where there is failure by the assessee to give an explanation or whether the explanation is not to the satisfaction of the AO. However, the addition made on this account would not ju…

Shri Dipakkumar Keshavlal Patel, Gandhinagar vs. The Income Tax Officer, Ward-1, Gandhinagar

In the result, assessee’s appeal is thus allowed

ITA 419/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad01 Jan 2019AY 2010-11

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri M. J. Shah, A.RFor Respondent: Shri Jayant Jhaveri, Sr. D.R
Section 133(6)Section 143(3)Section 271(1)(c)

…lal Patel vs. ITO Asst.Year – 2010-11 has to be considered from a different angle. [See Anantharam & Co. v. CIT., Andhra Pradesh, 1980 Supp SCC 13]. …… Further that, the operative part of the Judgment pronounced in the case of National Textiles-vs-CIT [2001] 249 ITR 125 (Guj) deciding the ratio on this aspect is also required to be narrated. Relevant portion whereof is as follows: “In the instant case, the cash credits were not satisfactorily explained by evidence and documents. The parties who had advanced the alleged temporary loans were neither disclosed with their particulars nor any supporting documents wer…

Sh. Maninder Singh Prop. M/S Dashmesh Bricks, Bathinda vs. The Income-Tax Officer, Bathinda

In the result, the assessee’s appeal is dismissed

ITA 440/ASR/2017[2011-12]Status: DisposedITAT Amritsar28 Dec 2018AY 2011-12

Bench: Sh. Sanjay Arorai.T.A No.440/Asr/2017 Assessment Year:2011-12

For Appellant: Written SubmissionsFor Respondent: Sh. Charan Dass (D.R)
Section 268ASection 271(1)(c)Section 69A

…that the confirmation of the addition in assessment would not lead to an automatic levy of penalty, adverting to the decision in CIT v. Agrochemicals (India) [2007] 288 ITR 149 (P&H). Reliance was also placed on the decision in National Textiles v. CIT [2001] 249 ITR 125 (Guj), reproducing there-from. Both the deponents, i.e., Shri Babu Singh and Shri Harjeet Singh, had in their respective statements admitted to have advanced cash to the assessee, so that the rejection of their statements, forming part of the assessee’s explanation, as unsubstantiated, was not proper. Finally, reliance is placed on the decision i…

Sanjay Namdeo Bharti, Nashik vs. Income-Tax Officer

In the result, appeal of the assessee is allowed

ITA 155/PUN/2016[2001-02]Status: DisposedITAT Pune05 Oct 2018AY 2001-02

Bench: Shri "ी "ी क"णाकरा राव क"णाकरा राव लेखा सद"य लेखा सद"य एवं "ी िवकास अव"थी एवं "ी िवकास अव"थी "याियक सद"य के सम" "याियक सद"य के सम" D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं आयकर अपील सं. / Ita No. 155/Pun/2016 आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" / Assessment Year : 2001-02 िनधा"रण वष" िनधा"रण वष"

For Appellant: Shri Sanket JoshiFor Respondent: Shri M. K. Verma
Section 271(1)Section 271(1)(c)Section 36(1)(iii)Section 68

…other and the addition was made merely because the assessee could not furnish evidence of sale of agricultural produce by the brother and hence, there was no reason to levy penalty u/s.271(1)(c) in view of the ratio laid down in the case of National Textiles [249 ITR 125 (Guj)]. 4] The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.” 3. Briefly stated relevant facts of the assessee include that the assessee is an individual and is engaged in the business of poultry farming. Assessee filed the return of income on 08-11-2011 declaring total income of Rs.84,502/- after a…