Omar Salay Mohamed Sait v. CIT

37 ITR 151Supreme Court of India1959#197 most cited

What is Omar Salay Mohamed Sait v. CIT authority for?

An income tax assessment or addition cannot be made based solely on suspicion, surmises, or conjectures. The income tax department requires evidence or material to justify an addition, as suspicion, however strong, does not constitute proof.

372

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2026.

Also referred to as

Omar Salay Mohamed Sait v. CIT · 37 ITR 151 · suspicion not proof · assessment without evidence · no addition on conjecture · surmises and suspicion · sections 143(3) 147 68 · income tax assessment evidence · burden of proof income tax · evidentiary value

Sections most often in play

Section 143(3)Section 132(4)Section 132Section 147Section 148Section 153ASection 142(1)Section 68

Issues it is cited on

price riggingthird party informationbogus long term capital gaindumb documentsbogus ltcgsection 132(4a)penny stocksection 10(38)rejection of books of accountloose paperslong term capital gainssection 34

Judgments citing Omar Salay Mohamed Sait v. CIT

The DCIT, Central Circle-1, Vadodara vs. M/S. Safal Homes, Ahmedabad

ITA 90/AHD/2021[2011-12]Status: DisposedITAT Ahmedabad24 Apr 2024AY 2011-12

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

For Appellant: Shri Vartik Chokshi, ARFor Respondent: Shri Sudhendu Das, CIT-DR
Section 132(4)Section 143(3)Section 147Section 148

…eived cash against repayment of booking amount. It is observed that entire transaction is held to be accommodative merely on presumption, which is not tenable. Reliance is placed on decision of Hon'ble Supreme Court Decision in Omar Salay Mohamed Sait v. CIT (37 ITR 151) (Para 4.18 of the order). (e) The appellant has provided complete details of the transactions along with affidavit of USPL. The Assessing Officer having not made any further enquiry with such party, impugned addition made by Assessing Officer on presumptive basis cannot be sustained, following the decision of Honorable Delhi High Court in case o…

Rohit Devendra Goyal, Mumbai vs. Income Tax Officer-33(3)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 3704/MUM/2023[2014-15]Status: DisposedITAT Mumbai10 Apr 2024AY 2014-15
Section 10(38)Section 68Section 69ASection 69C

…SEBI, which regulates the trading in stock exchange. It is trite law that additions merely on the basis of suspicious, conjectures or surmises could not be sustained in the eyes of law as held by Hon'ble Supreme Court in Omar Salay Mohamed Sait V /s CIT (1959 37 ITR 151). The suspicion however strong could not partake the character of legal evidence as held by Hon'ble Supreme Court in Umacharan Shaw & Bros. V/s CIT (1959 37 ITR 271). Therefore, we find that onus as cast upon revenue to corroborate the impugned additions by controverting the documentary evidences furnished by the assessee and by bringing on record…

Income Tax Officer, Ward-1(2), Jaipur vs. Mukesh Kumar Soni, Jaipur

In the result appeal of the revenue is dismissed and the cross

ITA 656/JPR/2023[2018-19]Status: DisposedITAT Jaipur04 Mar 2024AY 2018-19

Bench: Moving Towards The Facts Of The Case We Would Like To Mention

For Appellant: Sh. S. B. Natani (FCA)For Respondent: Sh. Arvind Kumar (CIT)
Section 143(1)Section 143(3)Section 144BSection 147Section 148A

…736 d) Lal chand Bhagat Ambika Ram (1959) 37 ITR 288 e) State Vs Guljari lal Tondan AIR 1979 (SC) f) J A Naidoo Vs State of Maharastra AIR 1979 SC 1537 g) Krishnand Vs State of MP AIR 1977 SC 796 h) Dhakeshwari Cotton Mills 26 ITR 775 SC 40 I) Omar Saha 37 ITR 151 (SC) Assessment has been completed and additions have been made on the following ground “It is clearly evident from the above that the sale claimed are in the round figure of thousand mostly. It is clarified that the rate of the Gold and silver changed on daily basis or couple of day basis, then how it is possible that the retails customers who m…

Alka Dilip Doshi, Mumbai vs. ITO-19(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1837/MUM/2023[2014-15]Status: DisposedITAT Mumbai28 Feb 2024AY 2014-15

Bench: Justice (Retd.) C.V. Bhadang & Shri B.R. Baskaran: A.Y : 2014-15

For Appellant: Shri Dharmesh Shah &For Respondent: Shri Manoj Kumar Sinha
Section 10(38)Section 131Section 143(1)Section 148Section 68Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE JUSTICE (RETD.) C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : A.Y : 2014-15 Alka Dilip Doshi Vs. ITO – 19(1)(1), Mumbai. 20, 4th Floor, Hanuman Sharan, (Respondent) Nr. Parsi Hospital, Kemps Corner, Mumbai 400 036. PAN : AJIPD6974F (Appellant) Appellant by : Shri Dharmesh Shah & Ms. Mitali Gopani Respondent by : Shri Manoj Kumar Sinha Date of Hearing : 20/02/2024 Date of Pronouncement : 28/02/2024 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER : The assessee has filed this appeal challenging the order dated 24-03- 20…

Udayan Grover, Mumbai vs. National Faceless Appeal Centre(NFAC), Delhi

In the result, appeal filed by the assessee is allowed

ITA 2880/MUM/2023[2015-16]Status: DisposedITAT Mumbai07 Feb 2024AY 2015-16

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleudayan Grover V. National Faceless Appeal Centre Panch Mahal Delhi Panch Sristhi Complex {Acit – 26(3), Bkc, Mumbai} Powai, Mumbai - 400072 Pan: Aclpg0572G (Appellant) (Respondent) Assessee Represented By : Shri Vimal Punmiya Department Represented By : Ms. Kavitha Kaushik

Section 10(38)Section 131Section 133(6)Section 142(1)Section 143(2)Section 57Section 68

…t order should be squashed. WITHOUT PREJUDICE TO ABOVE RELIANCE IS PLACED ON VARIOUS JUDGMENT WHERE ADDITION MADE ON THE BASIS OF THIRD PARTY STATEMENTS HAVE BEEN DELETED:- A. The Hon'ble Supreme Court in the case of Omar Salav Mohamed Sait reported in (1959) 37 ITR 151 (SC) had held that no addition can be made on the basis of surmises, suspicion and conjectures. B. The Hon'ble Supreme Court in the case of Umacharan Shah & Bros. Vs. CIT 37 ITR 271 held that suspicion however strong, cannot take the place of evidence. C. Hon’ble Calcutta High Court in the case of CIT vs. Bhagwati Prasad Agarwal in I.T.A. No. 22/K…

Mohd Hussain Kagdi, Ratlam vs. The It&Tp, Bhopal

Appeal is allowed

ITA 120/IND/2021[2011-12]Status: DisposedITAT Indore05 Feb 2024AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year:2011-12 Mohd. Hussain Kagdi, Ito (I.T. & T.P.), 15, Tripoliya Gate, Bhopal बनाम/ Ratlam Vs. (Appellant/Assessee) (Respondent/Revenue) Pan: Atzpk 4811 B Assessee By Shri Rajesh Mehta, Ca & Shri Apurva Mehta, Ca Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 04.01.2024 Date Of Pronouncement 05.02.2024

Section 143(2)Section 143(3)Section 147Section 148Section 149Section 151Section 254(2)Section 69Section 69A

…on assumption, presumption or suspicion and made/upheld addition but it is a trite that no addition can be made on mere suspicion or presumption as held in Dhakeshwari Cotton Mills Limited Vs. CIT (1954) 26 ITR 775 (SC), Omar Salay Mohd. Sait vs. CIT (1959) 37 ITR 151 (SC) and Umacharan Shaw & Bros. Vs. CIT (1959) 37 ITR 271 (SC). Page 6 of 10 Mohd. Hussain Kagdi , Ratlam vs. ITO (IT & TP), Bhopal I.T.A.No. 120/Ind/2021 – A.Y. 2011-12 8. Per contra, Ld. DR for Revenue submitted that the assessee has purchased the impugned land through a Registered-Deed and not by sale- agreement on 04.02.2011 and still it…

The DCIT, Central Circle-3, Vadodara vs. M/S. Aarya Developers, Vadodara

In the result, the appeal filed by the Revenue is hereby dismissed

ITA 973/AHD/2019[2014-15]Status: DisposedITAT Ahmedabad12 Jan 2024AY 2014-15

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI T.R. SENTHIL KUMAR (Judicial Member)

For Appellant: Shri Sudhendu Das, CIT. DRFor Respondent: Shri S. N. Soparkar, Sr. Advocate
Section 131Section 131(1)Section 133ASection 143(3)

…of these loose papers, no addition is justified. No interference is, therefore, called for in the order of the Tribunal.” 6.3. It is appropriate to place on record the Hon'ble Supreme Court decisions in the case of Omar Salav Mohamed Sait reported in (1989) [37 ITR 151] (SC) where it is held that no addition can be made on the basis of surmises, suspicion and conjectures. In the case of CIT(Central), Kolkata vs. Daulat Ram Rawatmull reported in [87 ITR 349], the Hon'ble Apex Court held that, the onus to prove that the apparent is not the real is on the party who claims it to be so. The burden of proving a transa…

Rukmani Jewellers Private Limited, Jaipur vs. DCIT Cir.-4 Jaipur, Jaipur

In the result, the appeal of the assessee is allowed

ITA 539/JPR/2023[2017-18]Status: DisposedITAT Jaipur20 Dec 2023AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Shrawan Kumar Gupta (Adv.)For Respondent: Shri A. S. Nehra (Addl. CIT) a
Section 115BSection 143(2)Section 143(3)Section 145(3)Section 234ASection 68

…w on this subject has been fairly and rightly stated by the Lahore High Court in the case of Seth Gurmukh Singh v. Commissioner of Income-Tax, Punjab (1944) 12 I.T.R. 393” Also refer DhirajlalGirdharilal v CIT (26 ITR 736 (SC), Omar Salary MohanmedSait v CIT (37 ITR 151) (SC), Lekchabnd Bhagat Ambica Ram v CIT (37 ITR 285) (SC), CIT v Nandini C. (1989) 230 ITR 679, 689 (Cal). 17. On perusal of the assessment order it is revealed that the Ld. AO did not disturb the Net Profit as deduced/declared by the Books of Accounts as followed by Audited Financial statement but making addition on the basis of Cash deposited t…

DCIT, Chennai vs. M/S New Delta Gear Manufacturers Pvt Ltd, Chennai

In the result, the appeal stands dismissed

ITA 829/CHNY/2022[2013-2014]Status: DisposedITAT Chennai18 Dec 2023AY 2013-2014

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.829/Chny/2022 (िनधा*रण वष* / Assessment Year: 2013-14) Dcit M/S. New Delta Gear Manufacturers Pvt.Ltd. बनाम/ Central Circle-2(3), 2, Palayakaran Street, Ekkattuthangal, Vs. Chennai. Chennai-600 097. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacn-3576-F (अपीलाथ"/Appellant) : (" थ" / Respondent) Assessee By : Shri T. N. Seetharaman (Advocate) -Ld.Ar Revenue By : Shri S. Senthil Kumaran (Cit)- Ld. Dr सुनवाईकीतारीख/Date Of Final Hearing : 01-12-2023 घोषणाकीतारीख /Date Of Pronouncement : 19-12-2023 आदेश / O R D E R

For Appellant: Shri T. N. Seetharaman (Advocate) -Ld.ARFor Respondent: Shri S. Senthil Kumaran (CIT)- Ld. DR
Section 131Section 132(4)Section 143(3)

…g the course of search operations. The aforesaid circular emphasized collection of evidences rather that relying upon admission statements. Reliance was placed on the decision of Hon’ble Apex Court, inter-alia, rendered in the case of Omar Salay Mohamed Sait (37 ITR 151) to support the submission that additions could not have been made merely on the basis of suspicion, conjectures or surmises. Reliance was also placed on the decision of Hon’bles High Court of Madras in the case of M. Narayanan & Bros. (339 ITR 192) which held that statement could not be the sole material to frame the assessment. In this decision,…

Vipul M Shah (HUF), Mumbai vs. ITO -17(3)(5), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1030/MUM/2023[2014-15]Status: DisposedITAT Mumbai16 Oct 2023AY 2014-15

Bench: Shri Amit Shukla & Shri Amarjit Singhvipul M Shah (Huf) Vs. The Ito 17(3)(5) 404, Commerce House, Mumbai 140, N.M. Road, Fort, Maharashtra – 400001 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aabhv3153Q Appellant .. Respondent [ Appellant By : Vimal Punamiya Respondent By : Gotimukul Santosh Kumar Date Of Hearing 20.07.2023 Date Of Pronouncement 16.10.2023

For Appellant: Vimal PunamiyaFor Respondent: Gotimukul Santosh Kumar
Section 10(38)Section 143(2)Section 68

…statement without there being any tangible material. It is trite law that additions merely on the basis of suspicious, conjectures or surmises could not be sustained in the eyes of law as held by Hon’ble Supreme Court in Omar Salay Mohamed Sait V/s CIT (1959 37 ITR 151). The suspicion however strong could not partake the character of legal evidence as held by Hon’ble Supreme Court in Umacharan Shaw & Bros. V/s CIT (1959 37 ITR 271). Therefore, we find that onus as caster upon revenue to corroborate the impugned additions by controverting the documentary evidences furnished by the assessee and by bringing on reco…

ACIT, Central Circle-2, Udaipur vs. M/S Mewar Hospital Pvt. Ltd., Udaipur

In the result the appeal of the assessee in ITA No

ITA 169/JODH/2022[2018-19]Status: DisposedITAT Jodhpur12 Oct 2023AY 2018-19
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

ACIT, Central Circle-2, Udaipur vs. M/S Mewar Hospital Pvt. Ltd., Udaipur

In the result the appeal of the assessee in ITA No

ITA 168/JODH/2022[2017-18]Status: DisposedITAT Jodhpur12 Oct 2023AY 2017-18
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

ACIT, Central Circle-2, Udaipur vs. M/S Mewar Hospital Pvt. Ltd., Udaipur

In the result the appeal of the assessee in ITA No

ITA 167/JODH/2022[2016-17]Status: DisposedITAT Jodhpur12 Oct 2023AY 2016-17
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 144/JODH/2022[2018-19]Status: DisposedITAT Jodhpur12 Oct 2023AY 2018-19
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 143/JODH/2022[2017-18]Status: DisposedITAT Jodhpur12 Oct 2023AY 2017-18
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 142/JODH/2022[2016-17]Status: DisposedITAT Jodhpur12 Oct 2023AY 2016-17
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 141/JODH/2022[2015-16]Status: DisposedITAT Jodhpur12 Oct 2023AY 2015-16
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 140/JODH/2022[2014-15]Status: DisposedITAT Jodhpur12 Oct 2023AY 2014-15
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

Mewar Hospital Pvt. Ltd., Udaipur vs. ACIT, Central Circle-2, Udaipur

In the result the appeal of the assessee in ITA No

ITA 139/JODH/2022[2012-13]Status: DisposedITAT Jodhpur12 Oct 2023AY 2012-13
Section 143(3)Section 145Section 153A

…tio cannot be considered for making receipts on estimate. To support the report, arguments the ld. AR of the assessee has relied upon the following decisions:- • DCIT vs. Bharat Trading Company in ITA No. 366 & 471/JP/1990. • Omar Salary Mohamed Sait vs. CIT 37 ITR 151 (SC). • Lal Chand Bhagat Ambica Ram vs. CIT 37 ITR 288. 13.5 We have heard the rival contention, perused the material available on record and gone through the judgment relied upon by both the parties to drive home to their respective contentions advanced before us. The Bench noted that the apple of discord in this ground is the estimation of the…

M/S Aadhi Enterprises Private Limited, Chennai vs. ACIT, Central Circle-3(1), Chennai

In the result, the appeal filed by the assessee is allowed

ITA 308/CHNY/2023[2016-17]Status: DisposedITAT Chennai23 Aug 2023AY 2016-17

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.: 308/Chny/2023 िनधा"रण वष"/Assessment Year: 2016-17 Aadhi Enterprises Pvt. Ltd., The Acit, No.1-130, Perambur Barracks V. Central Circle-3(1), Road, Pattalam, Chennai. Chennai – 600 112. Pan: Aanca 0382P (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri B. Ramakrishnan, Fca Shri S. Neelakantan, Fca Shri Shrenik Chordia, Ca ""यथ" क" ओर से/Respondent By : Shri S. Senthil Kumaran, Cit सुनवाई क" तारीख/Date Of Hearing : 11.07.2023 घोषणा क" तारीख/Date Of Pronouncement : 23.08.2023

For Appellant: Shri B. Ramakrishnan, FCAFor Respondent: Shri S. Senthil Kumaran, CIT
Section 132Section 139(1)Section 143(2)Section 153ASection 68

…mise without any corroborative evidences. The Hon'ble Apex Court has held time and again that 'suspicion however strong, cannot take the place of proof" in a plethora of cases as in the case of Omar I.T.A. No.308/CHNY/2023 35 Salay Mohamed Sait vs CIT [1959] 37 ITR 151 (SC) wherein it was held as under: "on no account whatever should the Tribunal base its findings on suspicions, conjectures or surmises: nor should it act on no evidence at all or on improper rejection of material and relevant evidence or partly on evidence and partly on suspicion, conjectures or surmises and if it does anything of the sort, its f…