Nirmal Fashions (P) ltd. v. DCIT

25 SOT 387Income Tax Appellate Tribunal2008#4750 most cited

What is Nirmal Fashions (P) ltd. v. DCIT authority for?

Additions based on loose papers found during a search cannot be sustained if they are inconsistent with other evidence on record and no significant unrecorded assets or ostensible expenditure are found. The presumption under section 292C is rebuttable and must consider the totality of facts.

25

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

Nirmal Fashions (P) Ltd v. DCIT · search and seizure · loose papers · undisclosed income · section 132 · section 143(3) · section 147 · section 292C · rebuttal presumption · evidence on record

Also reported as

123 TTJ 180

Sections most often in play

Section 132 Section 132(1)Section 132(3)Section 132(4)Section 139 Section 143(3)Section 144 Section 147

Judgments citing Nirmal Fashions (P) ltd. v. DCIT

Professional Automotives Private Limited, Jammu vs. Assistant Commissioner of Income Tax, Central Circle-1, Jaipur

In the result the appeal of the assessee in ITA no

ITA 812/JPR/2025[2016-17]Status: DisposedITAT Jaipur23 Jul 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, आयकर अपील /ITA Nos.809 to 815/JP/2025 निर्धारण वर्ष /Assessment Years :2013-14 to 2019-20 Professional Automotives Pvt. बनाम ACIT, Ltd. Bahu Plaza, Bahu Plaza, Jammu Vs. Central Circle- 1, and Kashmir Jaipur स्थायी लेखा सं./जी.आई.आर. सं./PAN/GIR No.:AAACP9608E अपीलार्थी/Appellant प्र]त्यर्थी/Respondent निर्धारिती की ओर से / Assessee by :Shri Tarun Mittal, CA राजस्व की ओर से /Revenue by: Shri Ajey Malik, CIT (Th. V.C)

For Appellant: Shri Tarun Mittal, CAFor Respondent: Shri Ajey Malik, CIT (Th. V.C)

Section 143(3)Section 37(1)

…Hon’ble ITAT Ahmedabad Bench in case of DCIT v. Royal Marwar Tobacco Product Pvt. Ltd (2009) 29 SOT 53 held that the Assessing Officer was not justified in making estimated additions for earlier assessment years based on the documents seized for A.Y. 2004-05. 123 TTJ 180 Nirmal Fashions (P) Ltd. Vs. Dy. CIT (Kol ‘B’) Search and seizure – Assessment u/s 153A – Computation of undisclosed income – Additions made by the AO, inter alia, on the basis of loose papers found during search by making certain presumptions which are found to be inconsistent or contrary to other evidence on record cannot be upheld, especially…

Birendra Kumar Sharma, Gwalior vs. ACIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 542/IND/2017[09-10]Status: DisposedITAT Indore04 Jun 2019

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Dharmendra Kumar Choudhary, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 710/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Vijay Kumar Shrivastava, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 709/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Ramesh Chandra Parashar, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 708/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Pradeep Kumar Sharma, Dabra vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 707/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Lalta Prasad Choudhary, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 706/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Santosh Kumar Sharma, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 705/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Kamlesh Kumar Choudhary, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 704/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Khemraj Singh Chauhan, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 703/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Sukhdev Singh Dhariwal, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 702/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

Shri Sanjay Kumar Sahu, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 701/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

The ACIT- 1(1), Bhopal vs. Shri Vinod Vaish, Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 189/IND/2013[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…ddition 16 Chand Nahta v. CIT permissible on the basis of dumb papers 12 (2007) 295 ITR That seized document must be Para 84- 352(Jabalpur speaking document no addition 29 110 I.T.A.T.) ACIT v. permissible on the basis of dumb Satyapal Wassam papers 13 (2008) 25 SOT 387 Since paper/documents seized on 111- (Kol) Nirmal search were found to be untenable 118 Fashions (P) L. v. and contrary to ther evidence on DCIT record impugned addition was not justified 14 (1997) 224 ITR 180 That suspicion however strong Para 5 119- CIT vs. Ram Narain cannot take the place of evidence & 6 121 Goel or proof 15 (2003) 262 ITR 295…

ITO, New Delhi vs. Sh. Sandeep Singh Khinda, New Delhi

In the result, both the appeals of the revenue stand

ITA 4858/DEL/2014[2008-09]Status: DisposedITAT Delhi27 Jul 2018AY 2008-09

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaassessment Year: 2007-08 Assessment Year: 2008-09 Income Tax Officer, Vs Shri Sandeep Singh Khinda, Ward 17(3), 2 Golden Gate, Westend Greens, New Delhi. Rajokari, New Delhi-110038 (Pan: Atvpk2160R) (Appellant) (Respondent) Department By: Shri K. Tewari, Sr. Dr Assessee By: Shri Kapil Goel, Adv.

For Appellant: Shri Kapil Goel, AdvFor Respondent: Shri K. Tewari, Sr. DR

Section 132Section 143(2)Section 153ASection 271(1)Section 271(1)(c)Section 292C

…69 of 2009 dated 10.8.2010 CIT vs. BM Transport -The Hon’ble High Court of Gujarat at Ahmedabad has held that unsigned loose paper may be clue for further investigation but cannot be a conclusive evidence to make addition. - Nirmal Fashions (P) Ltd. vs. DCIT 123 TTJ 180 - - it was observed that the presumption under section 292C is rebuttal presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. 17. In the background of the aforesaid discussion and r…

ITO, New Delhi vs. Sh. Sandeep Singh Khinda, New Delhi

In the result, both the appeals of the revenue stand

ITA 4857/DEL/2014[2007-08]Status: DisposedITAT Delhi27 Jul 2018AY 2007-08

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaassessment Year: 2007-08 Assessment Year: 2008-09 Income Tax Officer, Vs Shri Sandeep Singh Khinda, Ward 17(3), 2 Golden Gate, Westend Greens, New Delhi. Rajokari, New Delhi-110038 (Pan: Atvpk2160R) (Appellant) (Respondent) Department By: Shri K. Tewari, Sr. Dr Assessee By: Shri Kapil Goel, Adv.

For Appellant: Shri Kapil Goel, AdvFor Respondent: Shri K. Tewari, Sr. DR

Section 132Section 143(2)Section 153ASection 271(1)Section 271(1)(c)Section 292C

…69 of 2009 dated 10.8.2010 CIT vs. BM Transport -The Hon’ble High Court of Gujarat at Ahmedabad has held that unsigned loose paper may be clue for further investigation but cannot be a conclusive evidence to make addition. - Nirmal Fashions (P) Ltd. vs. DCIT 123 TTJ 180 - - it was observed that the presumption under section 292C is rebuttal presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. 17. In the background of the aforesaid discussion and r…

Kartikeyas Manganese & Iron Ores Private Limited, Bellary vs. DCIT, Bangalore

In the result, the assessee's appeals for Assessment Years 2008-09

ITA 832/BANG/2015[2008-09]Status: DisposedITAT Bangalore10 Apr 2018AY 2008-09

Bench: Shri Sunil Kumar Yadav & Shri Jason P Boaz

For Appellant: Shri K.R. Pradeep, C.AFor Respondent: Shri K.V.Arvind, Standing Counsel for Dept

Section 132Section 143(3)Section 145(3)Section 153ASection 153C

…d cash receipts nor is actual cash available with the assessee. In the absence of any such asset or valuable, it would be wholly inconsistent to make the above additions. In this regard, the assessee relies on the decision in Nirmal Fashions (P) Ltd vs DCIT - 123 TTJ 180 - Kolkata ITAT (CLPB page 306/317) wherein the tribunal has held as under: ‘’… As per the presumption of the AO, the assessee is carrying on the business of purchase and sale of saree outside the books on large scale which has resulted in the huge income which is not recorded in the assessee’s books of account every year. However, during the cour…

ACIT, New Delhi vs. Ms. Habitat Royale Projects Pvt. Ltd., New Delhi

In the result, all the 04 Appeals filed by the Revenue stand dismissed and 02

ITA 619/DEL/2012[2007-08]Status: DisposedITAT Delhi29 Nov 2016AY 2007-08

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Anil Kumar Gupta, CAFor Respondent: Sh. I.P.S. Bindra, CIT(DR)

…769 of 2009 dated 10.8.2010 CIT vs. BM Transport -The Hon’ble High Court of Gujarat at Ahmedabad has held that unsigned loose paper may be clue for further investigation but cannot be a conclusive evidence to make addition. - Nirmal Fashions (P) Ltd. vs. DCIT 123 TTJ 180 - - it was observed that the presumption under section 292C is rebuttal presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. 17. In the background of the aforesaid discussions a…

ACIT, New Delhi vs. Ms. Sudhiksha Singh, Delhi

In the result, all the 04 Appeals filed by the Revenue stand dismissed and 02

ITA 618/DEL/2012[2008-09]Status: DisposedITAT Delhi29 Nov 2016AY 2008-09

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Anil Kumar Gupta, CAFor Respondent: Sh. I.P.S. Bindra, CIT(DR)

…769 of 2009 dated 10.8.2010 CIT vs. BM Transport -The Hon’ble High Court of Gujarat at Ahmedabad has held that unsigned loose paper may be clue for further investigation but cannot be a conclusive evidence to make addition. - Nirmal Fashions (P) Ltd. vs. DCIT 123 TTJ 180 - - it was observed that the presumption under section 292C is rebuttal presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. 17. In the background of the aforesaid discussions a…

ACIT, New Delhi vs. Ms. Sudhiksha Singh, Delhi

In the result, all the 04 Appeals filed by the Revenue stand dismissed and 02

ITA 617/DEL/2012[2007-08]Status: DisposedITAT Delhi29 Nov 2016AY 2007-08

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Anil Kumar Gupta, CAFor Respondent: Sh. I.P.S. Bindra, CIT(DR)

…769 of 2009 dated 10.8.2010 CIT vs. BM Transport -The Hon’ble High Court of Gujarat at Ahmedabad has held that unsigned loose paper may be clue for further investigation but cannot be a conclusive evidence to make addition. - Nirmal Fashions (P) Ltd. vs. DCIT 123 TTJ 180 - - it was observed that the presumption under section 292C is rebuttal presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. 17. In the background of the aforesaid discussions a…

Sandeep Singh Khinda, New Delhi vs. ACIT, New Delhi

In the result, all the 04 Appeals filed by the Revenue stand dismissed and 02

ITA 335/DEL/2012[2008-09]Status: DisposedITAT Delhi29 Nov 2016AY 2008-09

Bench: Shri H.S. Sidhu & Shri O.P. Kant

For Appellant: Sh. Anil Kumar Gupta, CAFor Respondent: Sh. I.P.S. Bindra, CIT(DR)

…769 of 2009 dated 10.8.2010 CIT vs. BM Transport -The Hon’ble High Court of Gujarat at Ahmedabad has held that unsigned loose paper may be clue for further investigation but cannot be a conclusive evidence to make addition. - Nirmal Fashions (P) Ltd. vs. DCIT 123 TTJ 180 - - it was observed that the presumption under section 292C is rebuttal presumption and the document has to be considered considering the totality of the facts of the case. The deeming provision cannot be applied mechanically ignoring the facts of the case and the surrounding circumstances. 17. In the background of the aforesaid discussions a…

Nirmal Fashions (P) ltd. v. DCIT (25 SOT 387) — Cited in 25 Judgments | BharatTax