Patel Chemical Works v. CIT

265 ITR 273High Court2004#6938 most cited

What is Patel Chemical Works v. CIT authority for?

Revenue is not obligated to consider the overall tax effect on its receipts when determining penalty for tax avoidance. If tax has been avoided by the assessee, penalty under section 271(1)(c) is exigible.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2024.

Also referred to as

Patel Chemical Works v. CIT · 265 ITR 273 · penalty · section 271(1)(c) · tax avoidance · revenue obligation · sister concern

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Judgments citing Patel Chemical Works v. CIT

Shri.Prakash R. Nair, Kollam vs. DCIT, Kollam

In the result, the assessee’s appeal is partly allowed for statistical purposes

ITA 141/COCH/2021[2000-2001]Status: DisposedITAT Cochin17 Jan 2024AY 2000-2001

Bench: Shri Sanjay Arora & Shri Manomohan Dasprakash R. Nair Dy.Cit, Central Circle Prop. Dhanya Foods Kollam Kochuppilammoodu Vs. Kollam 691001 [Pan:Abfpn4424P] (Appellant) (Respondent)

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(1)Section 148(1)Section 271(1)(c)Section 274Section 80Section 801A(9)Section 80HSection 80I

…manner, penalty was levied for the same reasons, finding the assessee’s offer of an additional sum of Rs.180.40 lakhs in assessment (subject to the deduction u/s. 80HHC), as inadequate. Reliance was placed on the decision in Patel Chemical Works v. CIT [2004] 265 ITR 273 (Guj), wherein it stands held that Revenue is under no obligation to find the overall effect of receipt of tax by the Revenue, i.e., taking into account that, if any, paid by the assessee’s sister concern/s. Once tax is found to have been avoided by the assessee, penalty u/s. 271(1)(c) is exigible. The penalty order was passed without noticing th…

M/S. Vijayalaxmicashew Co., Kollam vs. The ACIT, Kollam

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

ITA 49/COCH/2016[2011-12]Status: DisposedITAT Cochin03 Feb 2020AY 2011-12

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

M/S. Vijayalaxmicashew Co., Kollam vs. The ACIT, Kollam

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

ITA 48/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

M/S. Vijayalaxmicashew Co., Kollam vs. The ACIT, Kollam

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

ITA 47/COCH/2016[2008-09]Status: DisposedITAT Cochin03 Feb 2020AY 2008-09

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.K.Ravindranathan Nair, Kollam vs. The ACIT, Kollam

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

ITA 46/COCH/2016[2008-09]Status: DisposedITAT Cochin03 Feb 2020AY 2008-09

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Smt. T.C. Usha, Kollam vs. The ACIT, Kollam

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

ITA 45/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Smt. T.C. Usha, Kollam vs. The ACIT, Kollam

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

ITA 44/COCH/2016[2009-10]Status: DisposedITAT Cochin03 Feb 2020AY 2009-10

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

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

ITA 43/COCH/2016[2011-12]Status: DisposedITAT Cochin03 Feb 2020AY 2011-12

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

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

ITA 42/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

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

ITA 41/COCH/2016[2009-10]Status: DisposedITAT Cochin03 Feb 2020AY 2009-10

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.R.Prakash, Kollam vs. The ACIT, Kollam

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

ITA 40/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.R. Pratap, Kollam vs. The ACIT, Kollam

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

ITA 39/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.R. Pratap, Kollam vs. The ACIT, Kollam

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

ITA 38/COCH/2016[2010-11]Status: DisposedITAT Cochin03 Feb 2020AY 2010-11

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Sri.R. Pratap, Kollam vs. The ACIT, Kollam

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

ITA 37/COCH/2016[2009-10]Status: DisposedITAT Cochin03 Feb 2020AY 2009-10

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

…age caused to the revenue in the circumstances above, is nothing but outcome of a planned device to reduce the tax which is not tenable by law. The CIT(A) placed reliance on the judgment of the Gujarat High Court in the case of Patel Chemical Works vs CIT (265 ITR 273) wherein it was held that a sale to a sister concern at a price much below to the market price was a device for tax avoidance. 4.2 According to the CIT(A), it is not disputed that the average cost of production of cashew kernels was Rs.178 per kg and the sales to sister concerns were made I.T.A. Nos.37 to 49/Coch/2016 between Rs.153 per kg t…

Govind Pillai Yuvaraj, Chennai vs. ITO, Chennai

In the result, the appeal of the assessee in ITA

ITA 19/CHNY/2015[2011-12]Status: DisposedITAT Chennai29 Jul 2016AY 2011-12

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. A. Satyaseelan &For Respondent: Shri. A.V. Sreekanth, JCIT
Section 143(1)Section 143(2)Section 54F

…arising out of sale of the property should be assessed in the hands of the assessee as there is no transfer for inadequate consideration as claimed by the AR. The above view is fortified by the ratio held in the case of Patel Chemical Works Vs. CIT report in 265 ITR 273(Gujarat). The Brief facts of the case are that the assessee is in 3. individual and She is a Director of M/s. Thiruvonam Impex Pvt. Ltd and filed Return of income electronically on 02.03.2012 with total income of "13,11,890/- and the Return of income was processed u/s.143(1) of ITA No. 19 & 1362/Mds/2015 :- 4 -: the Act on 29.05.2012. Subsequ…

ITO, Chennai vs. Maheshwari Yuvaraj, Chennai

In the result, the appeal of the assessee in ITA

ITA 1362/CHNY/2015[2011-12]Status: DisposedITAT Chennai29 Jul 2016AY 2011-12

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. A. Satyaseelan &For Respondent: Shri. A.V. Sreekanth, JCIT
Section 143(1)Section 143(2)Section 54F

…arising out of sale of the property should be assessed in the hands of the assessee as there is no transfer for inadequate consideration as claimed by the AR. The above view is fortified by the ratio held in the case of Patel Chemical Works Vs. CIT report in 265 ITR 273(Gujarat). The Brief facts of the case are that the assessee is in 3. individual and She is a Director of M/s. Thiruvonam Impex Pvt. Ltd and filed Return of income electronically on 02.03.2012 with total income of "13,11,890/- and the Return of income was processed u/s.143(1) of ITA No. 19 & 1362/Mds/2015 :- 4 -: the Act on 29.05.2012. Subsequ…

Patel Chemical Works v. CIT (265 ITR 273) — Cited in 16 Judgments | BharatTax