NK Proteins Ltd. v. DCIT

292 CTR 354Supreme Court of India2017#921 most cited

What is NK Proteins Ltd. v. DCIT authority for?

When purchases are unverifiable or alleged to be bogus, only the profit element embedded in such transactions is taxable, not the entire purchase amount; the onus lies on the assessee to prove the genuineness of the transactions.

115

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2017 to 2026.

Also referred to as

NK Proteins Ltd v DCIT · 292 CTR 354 SC · 84 taxmann.com 195 SC · unverifiable purchases · bogus purchases · profit element · Section 69C · addition to income · onus of proof · genuineness of transactions · unexplained expenditure

Sections most often in play

Section 143(3)Section 69CSection 147Section 133(6)Section 153ASection 250Section 148Section 153C

Issues it is cited on

section 245c(1)section 101section 245hsection 245csection 245d(4)section 245dfull and true disclosuresection 245section 156section 69csection 194cloose papers

Judgments citing NK Proteins Ltd. v. DCIT

Pratibha Pipes and Structurals Ltd, Mumbai vs. DCIT Cen Cir 17 & 28, Mumbai

In the result, appeal filed by the assessee is dismissed

ITA 3874/MUM/2015[2007-08]Status: DisposedITAT Mumbai10 Apr 2019AY 2007-08

Bench: Shri G Manjunatha () & Shri. Ravish Sood ()

Section 143(3)Section 153D

…uch identification has been made. This fact has been admitted by the assessee and its directors. Therefore, we are of the considered view that under these facts, the ratio laid down by the Hon’ble Supreme Court in the case of NK Proteins Ltd vs DCIT (2017) 292 CTR 354 (SC) is squarely applicable to the facts of assessee case, 29 Pratibha Pipes & Structurals Ltd where the Hon’ble Supreme Court dismissed appeal filed by the assessee and confirmed the findings of Hon’ble Gujarat High Court in respect of bogus purchases, where the Hon’ble Gujarat High Court, after analysing necessary facts at para 6 of the ord…

M/S. Asian Colour Coated Ispat Ltd., New Delhi vs. DCIT, Faridabad

In the result, ground nos

ITA 2841/DEL/2015[2009-10]Status: DisposedITAT Delhi15 Mar 2019AY 2009-10

Bench: Shri G.D.Agrawal & Shri Sudhanshu Srivastava

For Appellant: Sh. Ved Jain, Adv, Miss Umang Luthra, AdvFor Respondent: Shri J.K.Mishra, CIT-DR
Section 143(3)Section 153ASection 68

…HC-DEL-IT] (Delhi) 57. GTC Industries Ltd. Vs. ACIT [1998] 65 ITD 380 (BOM) 58. N K Proteins Ltd. Vs. CIT (2017-TIOL-23-SC-IT) 59. N K Proteins Ltd. Vs. CIT (2016-TIOL-3165-HC-AHM-IT) 60. N.K.Industries Ltd. Vs. DCIT [2016] 72 taxmann.com 289 (Gujarat)/[2017] 292 CTR 354 (Gujarat) 61. CIT vs. Arun Malhotra 47 taxmann.com 385 (Delhi)/[2014] 363 ITR 195 62. CIT Vs. La Medica [2001] 117 Taxman 628 (Delhi)/[2001] 250 ITR 575 (Delhi)/[2001]168 CTR 314 (Delhi) Assessment year 2009-10, 2008-09 63. Vijay Proteins Ltd. Vs. ACIT [2015] 58 taxmann.com 44 (Gujarat) 64. Sanjay Oilcake Industries Vs. CIT [2009] 316 ITR 274 (G…

M/S. Asian Colour Coated Ispat Ltd., New Delhi vs. DCIT, Faridabad

In the result, ground nos

ITA 2840/DEL/2015[2008-09]Status: DisposedITAT Delhi15 Mar 2019AY 2008-09

Bench: Shri G.D.Agrawal & Shri Sudhanshu Srivastava

For Appellant: Sh. Ved Jain, Adv, Miss Umang Luthra, AdvFor Respondent: Shri J.K.Mishra, CIT-DR
Section 143(3)Section 153ASection 68

…HC-DEL-IT] (Delhi) 57. GTC Industries Ltd. Vs. ACIT [1998] 65 ITD 380 (BOM) 58. N K Proteins Ltd. Vs. CIT (2017-TIOL-23-SC-IT) 59. N K Proteins Ltd. Vs. CIT (2016-TIOL-3165-HC-AHM-IT) 60. N.K.Industries Ltd. Vs. DCIT [2016] 72 taxmann.com 289 (Gujarat)/[2017] 292 CTR 354 (Gujarat) 61. CIT vs. Arun Malhotra 47 taxmann.com 385 (Delhi)/[2014] 363 ITR 195 62. CIT Vs. La Medica [2001] 117 Taxman 628 (Delhi)/[2001] 250 ITR 575 (Delhi)/[2001]168 CTR 314 (Delhi) Assessment year 2009-10, 2008-09 63. Vijay Proteins Ltd. Vs. ACIT [2015] 58 taxmann.com 44 (Gujarat) 64. Sanjay Oilcake Industries Vs. CIT [2009] 316 ITR 274 (G…

Sopan D. Patil, Kolhapur vs. Deputy Commissioner of Income-Tax

In the result, the appeal for the A

ITA 903/PUN/2015[2010-11]Status: DisposedITAT Pune20 Dec 2018AY 2010-11

Bench: Shri R.S. Syal & Shri Partha Sarathi Chadhury

Section 132Section 132(4)Section 143(2)Section 143(3)Section 153A

…s purchases cannot be added but only the profit element embedded therein would be subjected to tax. The Hon’ble High Court in that case restricted the disallowance to 25% of cost of such purchases. In another judgment in NK Industries Ltd. Vs. DCIT (2016) 292 CTR 354 (Gujarat), their Lordships held that the Tribunal was justified in retaining the addition on account of alleged bogus purchases at 25%. If we apply the percentage of 25% to the total bogus purchases recorded by the assessee in its Sopan D. Patil books of account to the tune of Rs.5.23 crore for both the years, the total amount of addition comes…

Sopan D. Patil, Kolhapur vs. Deputy Commissioner of Income-Tax

In the result, the appeal for the A

ITA 902/PUN/2015[2009-10]Status: DisposedITAT Pune20 Dec 2018AY 2009-10

Bench: Shri R.S. Syal & Shri Partha Sarathi Chadhury

Section 132Section 132(4)Section 143(2)Section 143(3)Section 153A

…s purchases cannot be added but only the profit element embedded therein would be subjected to tax. The Hon’ble High Court in that case restricted the disallowance to 25% of cost of such purchases. In another judgment in NK Industries Ltd. Vs. DCIT (2016) 292 CTR 354 (Gujarat), their Lordships held that the Tribunal was justified in retaining the addition on account of alleged bogus purchases at 25%. If we apply the percentage of 25% to the total bogus purchases recorded by the assessee in its Sopan D. Patil books of account to the tune of Rs.5.23 crore for both the years, the total amount of addition comes…

Shri Dineshkumar C. Doshi, Mumbai vs. Income Tax Officer 19(1)(4), Mumbai

The appeals of the assessee are dismissed

ITA 1730/MUM/2018[2011-12]Status: DisposedITAT Mumbai11 Oct 2018AY 2011-12

Bench: Shri Joginder Singh

Section 133(6)Section 139Section 142Section 143Section 147Section 148

…. DCIT (2017) 250 Taxman 22 on the issue of income from undisclosed sources and bogus purchases shown on the basis of fictitious invoices where the assessee filed SLP against the decision of Hon'ble Gujarat High Court in N K Industries Ltd. vs. DCIT (2016) 292 CTR 354 (Guj), wherein it was held that addition on the basis of undisclosed income could not be restricted to certain percentage when the entire transaction was found to be bogus, the Hon'ble Apex Court dismissed the SLP and confirmed the decision of Hon'ble Gujarat High Court. 7.12. Admittedly, in such type of cases, there is no option but to estim…

Pushpak Auxichem P. Ltd, Thane vs. ITO WD 1(3), Kalyan

The appeal of the assessee is partly allowed

ITA 499/MUM/2018[2011-12]Status: DisposedITAT Mumbai25 Sept 2018AY 2011-12

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year: 2011-12 M/S Pushpak Auxichem Pvt. Income Tax Officer Ltd. Ward-1(3), बनाम/ 241/Business-2, Kasturi Mohan Plaza, 1St Floor, Vs. Plaza, 2Nd Floor, Manpada Wayle Nagar, Road, Dombivali (East), Khadak Pada, Thane-421201 Kalyan-421301 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aabcp0099E

Section 148

…DCIT (2017) 250 Taxman 22 on the issue of income from undisclosed sources and bogus purchases shown on the basis of fictitious invoices where the assessee filed SLP against the decision of Hon'ble Gujarat High Court in N K Industries Ltd. vs. DCIT (2016) 292 CTR 354 (Guj), wherein it was held that addition on the basis of undisclosed income could not be restricted to certain percentage when the entire transaction was found to be bogus, the Hon'ble Apex Court dismissed the SLP and confirmed the decision of Hon'ble Gujarat High Court. 5.12. Admittedly, in such type of cases, there is no option but to estimat…

ITO 6(3)(2), Mumbai vs. Jaydeep Profiles P.Ltd, Mumbai

ITA 3236/MUM/2016[2009-10]Status: DisposedITAT Mumbai25 Sept 2018AY 2009-10

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2009-10 Income Tax Officer 6(3)(2), Jaydeep Profiles P. Ltd., R No.503, 5Th Floor, Aayakar 142/7 Lakdi Bunder Road, बनाम/ Bhavan, M.K.Road, Darukhana, Reay Road, Vs. Mumbai 400 020 Mumbai 400 086 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aaacj8998B Assessment Year: 2009-10 Jaydeep Profiles P. Ltd., Income Tax Officer 6(3)(2), 142/7 Lakdi Bunder Road, R No.503, 5Th Floor, Aayakar बनाम/ Darukhana, Reay Road, Bhavan, M.K.Road, Vs. Mumbai 400 086 Mumbai 400 020 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaacj8998B 2 & 2698/Mum/2016

Section 133(6)Section 139Section 142Section 143Section 147Section 148

…DCIT (2017) 250 Taxman 22 on the issue of income from undisclosed sources and bogus purchases shown on the basis of fictitious invoices where the assessee filed SLP against the decision of Hon'ble Gujarat High Court in N K Industries Ltd. vs. DCIT (2016) 292 CTR 354 (Guj), wherein it was held that addition on the basis of undisclosed income could not be restricted to certain percentage when the entire transaction was found to be bogus, the Hon'ble Apex Court dismissed the SLP and confirmed the decision of Hon'ble Gujarat High Court. 7.12. Admittedly, in such type of cases, there is no option but to estima…

Jaydeep Profiles Pvt. Ltd., Mumbai vs. ITO WD 6 (3)(2), Mumbai

ITA 2698/MUM/2016[2009-10]Status: DisposedITAT Mumbai25 Sept 2018AY 2009-10

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2009-10 Income Tax Officer 6(3)(2), Jaydeep Profiles P. Ltd., R No.503, 5Th Floor, Aayakar 142/7 Lakdi Bunder Road, बनाम/ Bhavan, M.K.Road, Darukhana, Reay Road, Vs. Mumbai 400 020 Mumbai 400 086 (राज"व /Revenue) ("नधा"रती /Assessee) P.A. No. Aaacj8998B Assessment Year: 2009-10 Jaydeep Profiles P. Ltd., Income Tax Officer 6(3)(2), 142/7 Lakdi Bunder Road, R No.503, 5Th Floor, Aayakar बनाम/ Darukhana, Reay Road, Bhavan, M.K.Road, Vs. Mumbai 400 086 Mumbai 400 020 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No. Aaacj8998B 2 & 2698/Mum/2016

Section 133(6)Section 139Section 142Section 143Section 147Section 148

…DCIT (2017) 250 Taxman 22 on the issue of income from undisclosed sources and bogus purchases shown on the basis of fictitious invoices where the assessee filed SLP against the decision of Hon'ble Gujarat High Court in N K Industries Ltd. vs. DCIT (2016) 292 CTR 354 (Guj), wherein it was held that addition on the basis of undisclosed income could not be restricted to certain percentage when the entire transaction was found to be bogus, the Hon'ble Apex Court dismissed the SLP and confirmed the decision of Hon'ble Gujarat High Court. 7.12. Admittedly, in such type of cases, there is no option but to estima…

DCIT Cir.7(3)(1), Mumbai vs. Pjl Clothing India Ltd., Mumbai

The appeal of the Revenue is allowed for statistical purposes

ITA 2596/MUM/2016[2010-11]Status: DisposedITAT Mumbai08 Feb 2018AY 2010-11

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2010 - 2011 Dcit Circle 7(3)(1) Pjl Clothing India Ltd., Mumbai बनाम/ Unit No.19, Shree Madhu Estate, Pandurang Budhakar Vs. Marg, Worli, Mumbai 400 018 (याजस्व /Revenue) (यनधाारयती /Assessee) P.A. No. Aaacp2782R

Section 133(6)Section 143(1)Section 143(2)

…22 on the issue of income from undisclosed sources and bogus purchases shown on the basis of fictitious invoices 92 PJL Clothing India Ltd. where the assessee filed SLP against the decision of Hon'ble Gujarat High Court in N K Industries Ltd. vs. DCIT (2016) 292 CTR 354 (Guj), wherein it was held that addition on the basis of undisclosed income could not be restricted to certain percentage when the entire transaction was found to be bogus, the Hon'ble Apex Court dismissed the SLP and confirmed the decision of Hon'ble Gujarat High Court. 3.14. Admittedly, in such type of cases, there is no option but to estimate…

Synbiotics Limited, Baroda vs. The Income Tax Officer, Ward-4(1), Baroda

In the result, all the appeals filed by the Revenue and all the appeals filed by the assessee are dismissed

ITA 2638/AHD/2015[1992-93]Status: DisposedITAT Ahmedabad13 Dec 2017AY 1992-93

Bench: Shri N.K. Billaiya & Shri Mahavir Prasad

For Appellant: Urvashi Shodhan, A.RFor Respondent: Shri O.P. Pathak, Joint CIT

…uthority, after considering the facts and submissions, restricted the disallowance to 25% of the purchases. 6. We find that an identical issue was considered by the Hon’ble jurisdictional High Court of Gujarat in the case of N.K. Industries Limited vs. DCIT, 292 CTR 354 (Guj) and the relevant findings of the Hon’ble jurisdictional High Court read as under :- “6. The Tribunal in the case of Vijay Proteins Ltd. (supra) has observed that it would be just and proper to direct the Assessing Officer to restrict the addition in respect of the undisclosed income relating to the purchase to 25% of the total purchases. T…

The ACIT, Circle-4, Baroda vs. M/S. Synbiotics Ltd., Baroda

In the result, all the appeals filed by the Revenue and all the appeals filed by the assessee are dismissed

ITA 1537/AHD/2014[1994-95]Status: DisposedITAT Ahmedabad13 Dec 2017AY 1994-95

Bench: Shri N.K. Billaiya & Shri Mahavir Prasad

For Appellant: Urvashi Shodhan, A.RFor Respondent: Shri O.P. Pathak, Joint CIT

…uthority, after considering the facts and submissions, restricted the disallowance to 25% of the purchases. 6. We find that an identical issue was considered by the Hon’ble jurisdictional High Court of Gujarat in the case of N.K. Industries Limited vs. DCIT, 292 CTR 354 (Guj) and the relevant findings of the Hon’ble jurisdictional High Court read as under :- “6. The Tribunal in the case of Vijay Proteins Ltd. (supra) has observed that it would be just and proper to direct the Assessing Officer to restrict the addition in respect of the undisclosed income relating to the purchase to 25% of the total purchases. T…

The ACIT, Circle-4, Baroda vs. M/S. Synbiotics Ltd., Baroda

In the result, all the appeals filed by the Revenue and all the appeals filed by the assessee are dismissed

ITA 1536/AHD/2014[1993-94]Status: DisposedITAT Ahmedabad13 Dec 2017AY 1993-94

Bench: Shri N.K. Billaiya & Shri Mahavir Prasad

For Appellant: Urvashi Shodhan, A.RFor Respondent: Shri O.P. Pathak, Joint CIT

…uthority, after considering the facts and submissions, restricted the disallowance to 25% of the purchases. 6. We find that an identical issue was considered by the Hon’ble jurisdictional High Court of Gujarat in the case of N.K. Industries Limited vs. DCIT, 292 CTR 354 (Guj) and the relevant findings of the Hon’ble jurisdictional High Court read as under :- “6. The Tribunal in the case of Vijay Proteins Ltd. (supra) has observed that it would be just and proper to direct the Assessing Officer to restrict the addition in respect of the undisclosed income relating to the purchase to 25% of the total purchases. T…

The ACIT, Central Circle-1(1), Ahmedabad vs. M/S. Deep Cotton Industries, Patan

In the result, respective appeals of both Revenue and Assessee are dismissed

ITA 948/AHD/2012[2008-09]Status: DisposedITAT Ahmedabad02 Nov 2017AY 2008-09

Bench: Shri S.S. Godara & Shri Pradip Kumar Kedia1. आयकर अपील सं./I.T.A. No.948/Ahd/2012 2. आयकर अपील सं./I.T.A. No.1460/Ahd/2012 ("नधा"रण वष" / Ay : 2008-09) 1.Acit 1. Deep Cotton बनाम/ Central Cirle-1(1) Industries Vs. Ahmedabad Prop.Of Nitesh Gunvantilal Thakkar Jaska Road, Harji, Dist.Patan -384 240 2. The Acit 2. M/S.Deep Cotton Industries Central Circle-1(1) Prop.Of Nitesh Gunvantlal Ahmedabad Thakkar Dist.Patan-384 240 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Adwpt 3924 H .. (अपीलाथ" /Appellants) (""यथ" / Respondents) Revenue By : Shri K.Madhusudan, Sr.Dr Assessee By : Shri M.J. Shah, Ar

For Appellant: Shri M.J. Shah, ARFor Respondent: Shri K.Madhusudan, Sr.DR
Section 271(1)(c)

…o have given any relief to the assessee based on symbolic bills obtained from the fictitious supplier for set purposes. To buttress its case, the Ld.DR relied upon the decision of Hon’ble Gujarat High Court in the case of N.K.Industries Ltd. vs. Dy.CIT (2016) 292 CTR 354(Guj.). He accordingly urged the Tribunal to reverse the action of the CIT(A) granting the relief and restore the order of the AO. 10. The Ld.AR for the assessee, on the other hand, challenged the sustenance of disallowance of Rs.52,37,420/- out of purchases made from M/s.Vishal Traders. The ld.AR submitted that the Revenue has wrongly placed rel…

Shri Nitesh G.Thakkar, Patan vs. The ACIT., Cent.Circle-1(1), Ahmedabad

In the result, respective appeals of both Revenue and Assessee are dismissed

ITA 1460/AHD/2012[2008-09]Status: DisposedITAT Ahmedabad02 Nov 2017AY 2008-09

Bench: Shri S.S. Godara & Shri Pradip Kumar Kedia1. आयकर अपील सं./I.T.A. No.948/Ahd/2012 2. आयकर अपील सं./I.T.A. No.1460/Ahd/2012 ("नधा"रण वष" / Ay : 2008-09) 1.Acit 1. Deep Cotton बनाम/ Central Cirle-1(1) Industries Vs. Ahmedabad Prop.Of Nitesh Gunvantilal Thakkar Jaska Road, Harji, Dist.Patan -384 240 2. The Acit 2. M/S.Deep Cotton Industries Central Circle-1(1) Prop.Of Nitesh Gunvantlal Ahmedabad Thakkar Dist.Patan-384 240 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Adwpt 3924 H .. (अपीलाथ" /Appellants) (""यथ" / Respondents) Revenue By : Shri K.Madhusudan, Sr.Dr Assessee By : Shri M.J. Shah, Ar

For Appellant: Shri M.J. Shah, ARFor Respondent: Shri K.Madhusudan, Sr.DR
Section 271(1)(c)

…o have given any relief to the assessee based on symbolic bills obtained from the fictitious supplier for set purposes. To buttress its case, the Ld.DR relied upon the decision of Hon’ble Gujarat High Court in the case of N.K.Industries Ltd. vs. Dy.CIT (2016) 292 CTR 354(Guj.). He accordingly urged the Tribunal to reverse the action of the CIT(A) granting the relief and restore the order of the AO. 10. The Ld.AR for the assessee, on the other hand, challenged the sustenance of disallowance of Rs.52,37,420/- out of purchases made from M/s.Vishal Traders. The ld.AR submitted that the Revenue has wrongly placed rel…