PCIT v. Alag Securities Pvt. Ltd.

425 ITR 658High Court2020#10012 most cited
11

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2021 to 2026.

Also reported as

315 CTR 905

Sections most often in play

Section 132Section 132(4)Section 144Section 147Section 148Section 131Section 133(6)Section 144B

Issues it is cited on

substantive assessmententry operatoraccommodation entrysection 132(4)reason to believesection 131unexplained cash creditreassessment proceedingsincriminating materialsection 69undisclosed incomesection 132

Judgments citing PCIT v. Alag Securities Pvt. Ltd.

JAYDEV MAHADEV ARYA,LATUR vs. ITO WARD 1, LATUR, LATUR

In the result, all the three appeals filed by the assessee are partly allowed

ITA 1272/PUN/2025[2014-15]Status: DisposedITAT Pune16 Feb 2026AY 2014-15

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Ajay D. Kulkarni, Addl.CIT
Section 147Section 148Section 250

…21, order dated 24.04.2023 iii) Geetaben Dineshchandra Gupta vs. ITO reported in (2022) 441 ITR 698 (Guj) iv) M/s. Goldstar Finvest Pvt Ltd vs DCIT vide ITA No.7564 to 7570/MUM/2014 order dated 24.08.2016 v) PCIT vs. Alag Securities Pvt Ltd reported in (2020) 425 ITR 658 (Bom) 10. He accordingly submitted that a reasonable rate of profit may be adopted instead of making the entire deposits as income of the assessee. 11. The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC. He submitted that the assessee was unable to explain the nature and source of the ca…

JAYDEV MAHADEV ARYA,LATUR vs. ITO WARD 1, LATUR, LATUR

In the result, all the three appeals filed by the assessee are partly allowed

ITA 1271/PUN/2025[2013-14]Status: DisposedITAT Pune16 Feb 2026AY 2013-14

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Ajay D. Kulkarni, Addl.CIT
Section 147Section 148Section 250

…21, order dated 24.04.2023 iii) Geetaben Dineshchandra Gupta vs. ITO reported in (2022) 441 ITR 698 (Guj) iv) M/s. Goldstar Finvest Pvt Ltd vs DCIT vide ITA No.7564 to 7570/MUM/2014 order dated 24.08.2016 v) PCIT vs. Alag Securities Pvt Ltd reported in (2020) 425 ITR 658 (Bom) 10. He accordingly submitted that a reasonable rate of profit may be adopted instead of making the entire deposits as income of the assessee. 11. The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC. He submitted that the assessee was unable to explain the nature and source of the ca…

ACIT, CC-4(1), KOLKATA vs. SANJEEV KEJRIWAL, KOLKATA

In the result, appeals of the revenue in IT(SS)A Nos

ITA 2206/KOL/2024[2018]Status: DisposedITAT Kolkata06 May 2025

Bench: Shri George Mathan & Shri Sanjay Awasthiआयकर अपील (तलाशियाां और अशिग्रहण)सं/It(Ss)A Nos.97 To 100/Kol/2024 & आयकर अपील सं /Ita No.1702/Kol/2024 (निर्धारण वर्ा /A.Ys.2014-15, 2016-17, 2017-18, 2012-13 & 2010-11) Rajputana General Commercial Dcit, Central Circle-4(1), Kolkata Vs Corporation Private Limited 33B, Sarat Bose Road, Kolkata Pan No. :Aabcr 2016 H & आयकर अपील सं/Ita No.2206/Kol/2024 (निर्धारण वर्ा /A.Ys.2018-2019) Sanjeev Kejriwal Acit, Central Circle-4(1), Kolkata Vs 6/1B, Palm Avenue, Kolkata Pan No. :Aevpk 7424 H (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) रधजस्व की ओर से /Revenue By : Shri Shri P.N.Barnwal, Cit-Dr, Shri Nicholas Murmu, Sr. Dr & Shri Manas Mondal, Sr.Dr निर्धाररती की ओर से /Assessee By : None सुनवाई की तारीख / Date Of Hearing : 06/05/2025 घोषणा की तारीख/Date Of Pronouncement : 06/05/2025 आदेश / O R D E R Per Bench : These Are The Appeals Filed By The Revenue Against The Separate Orders Dated 24.04.24, 31.05.24 & 03.06.24, Passed In The Case Of The Above Two Assessees By The Cit(A), Kolkata-27, For The Assessment Years 2010-2011, 2012-2013, 2014-2015, 2016-2017, 2017-2018 & 2018-2019, Respectively.

For Appellant: NoneFor Respondent: Shri Shri P.N.Barnwal, CIT-DR
Section 132(4)

…the substantive addition was made in the hands of Shri Sanjiv Kejriwal. It was the submission that on appeal before the ld. CIT(A), the ld. CIT(A) relied upon the decision of the Hon’ble Bombay High Court in the case of Alag Securities Pvt. Ltd., reported in 315 CTR 905 (Bom-HC) and held that in the case of an assessee engaged in providing accommodation entries, the entire deposits cannot be assessed as unexplained cash credits and only the commission at the rate of 0.15% earned in providing accommodation entries can be assessed as income. Consequently, the ld. CIT(A) had directed the Assessing Officer to assess…

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 4(1), KOLKATA, INCOME TAX, KOLKATA vs. RAJPUTANA GENERAL COMMERCIAL CORPORATION PRIVATE LIMITED, KOLKATA

In the result, appeals of the revenue in IT(SS)A Nos

ITA 1702/KOL/2024[2010]Status: DisposedITAT Kolkata06 May 2025

Bench: Shri George Mathan & Shri Sanjay Awasthiआयकर अपील (तलाशियाां और अशिग्रहण)सं/It(Ss)A Nos.97 To 100/Kol/2024 & आयकर अपील सं /Ita No.1702/Kol/2024 (निर्धारण वर्ा /A.Ys.2014-15, 2016-17, 2017-18, 2012-13 & 2010-11) Rajputana General Commercial Dcit, Central Circle-4(1), Kolkata Vs Corporation Private Limited 33B, Sarat Bose Road, Kolkata Pan No. :Aabcr 2016 H & आयकर अपील सं/Ita No.2206/Kol/2024 (निर्धारण वर्ा /A.Ys.2018-2019) Sanjeev Kejriwal Acit, Central Circle-4(1), Kolkata Vs 6/1B, Palm Avenue, Kolkata Pan No. :Aevpk 7424 H (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) रधजस्व की ओर से /Revenue By : Shri Shri P.N.Barnwal, Cit-Dr, Shri Nicholas Murmu, Sr. Dr & Shri Manas Mondal, Sr.Dr निर्धाररती की ओर से /Assessee By : None सुनवाई की तारीख / Date Of Hearing : 06/05/2025 घोषणा की तारीख/Date Of Pronouncement : 06/05/2025 आदेश / O R D E R Per Bench : These Are The Appeals Filed By The Revenue Against The Separate Orders Dated 24.04.24, 31.05.24 & 03.06.24, Passed In The Case Of The Above Two Assessees By The Cit(A), Kolkata-27, For The Assessment Years 2010-2011, 2012-2013, 2014-2015, 2016-2017, 2017-2018 & 2018-2019, Respectively.

For Appellant: NoneFor Respondent: Shri Shri P.N.Barnwal, CIT-DR
Section 132(4)

…the substantive addition was made in the hands of Shri Sanjiv Kejriwal. It was the submission that on appeal before the ld. CIT(A), the ld. CIT(A) relied upon the decision of the Hon’ble Bombay High Court in the case of Alag Securities Pvt. Ltd., reported in 315 CTR 905 (Bom-HC) and held that in the case of an assessee engaged in providing accommodation entries, the entire deposits cannot be assessed as unexplained cash credits and only the commission at the rate of 0.15% earned in providing accommodation entries can be assessed as income. Consequently, the ld. CIT(A) had directed the Assessing Officer to assess…

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 4(1), KOLKATA vs. RITU KEJRIWAL, KOLKATA

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

ITA 2223/KOL/2024[2018]Status: DisposedITAT Kolkata18 Feb 2025

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 132Section 132(4)Section 147Section 148Section 250

…entry to different parties and the Ld. AO had worked out the total of the accommodation entry provided on the basis of sundry creditors and sundry debtors, he applied the net profit rate of 0.15% instead of 0.45% by relying on PCIT vs. Alag Securities Pvt Ltd 315 CTR 905 (Bom.). The relevant finding in the appeal order for upholding the reopening is extracted as under: “6.2.2. In view of the above judicial pronouncements, it can be inferred that in the case of the assessee as there are several seized incriminating materials which depicts the fact that income for the current AY may had escaped assessment, the reo…

NANDKUMAR NAMDEORAO DIWATE,KOLHAPUR vs. THE INCOME TAX OFFICER, WARD-1(1), KOLHAPUR

In the result, the appeal of the assessee is allowed

ITA 1161/PUN/2023[2011-12]Status: DisposedITAT Pune21 Feb 2024AY 2011-12

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.1161/Pun/2023 Assessment Year : 2011-12 Nandkumar Namdeorao Diwate, Vs. Ito, Ward-1(1), 492, C-Ward, Kolhapur Opp. Main Rajaram Highschool, Juna Rajwada, Karveer, Kolhapur, Maharashtra-416001 Pan : Aeqpd 1603L Appellant Respondent

For Appellant: Shri Kishor B. PhadkeFor Respondent: Shri Ramnath P. Murkunde
Section 143(1)Section 143(3)Section 147Section 148Section 250Section 69

…of tax. In this regard, the ld. AR placed reliance on the following judgments : 1. CIT Vs. Jet Airways(I) Ltd. (2011) 331 ITR 236 (Bombay). 4 2. Bharati Vidyapeeth Vs. ACIT (2013) 33 taxmann.com 576 (Pune-Trib). 3. PCIT Vs. Alag Securities (P) Ltd. (2020) 425 ITR 658 (Bombay). 4. M.s, Laukik Paper Industries Ltd. Vs. DCIT – ITA Nos.507 to 510/PUN/2020 and ITA Nos. 301 to 303/PUN/2021, dt. 24-04-2023 7. On the other hand, the ld. Sr.DR contends that the argument of the ld. AR cannot be accepted that the profit element of Rs.15,884/- for which notice u/s.148 was issued after recording the reasons is embedded…

STANDARD TELE TOWERS PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE-24(2), NEW DELHI

ITA 9761/DEL/2019[2010-11]Status: DisposedITAT Delhi19 Jul 2023AY 2010-11

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharma

Section 132(4)Section 143(3)Section 147Section 148

…e made in any case, Ld. AO has estimated the commission at the rate of 3% which is bad in law as reasonable commission in these type of transaction at best can be taken in between 0.15% to 0.25% for which Ld. Counsel relied : • PCIT vs. Alag Securities Ltd., 425 ITR 658, High Court of Bombay. • Gold Star Finr vest (P.) Ltd., vs. ITO, 57 SOT 409, ITAT Mumbai Bench. 7.6 Ld. DR countered the aforesaid arguments by relying on the order so Ld. Tax authorities below. She submitted that the trail of transaction has been duly examined by the Tax authorities. She also submitted that the statements of witnesses have been…

M/S.SHIVAN GIRI STEEL LIMITED,MUMBAI vs. INCOME TAX OFFICER WARD 13(2)(3), MUMBAI

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

ITA 4250/MUM/2018[2008-09]Status: DisposedITAT Mumbai31 Oct 2022AY 2008-09

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2008-09 M/S Shivan Giri Steel Limited, The Income Tax Officer, M/S Vss & Associates Chartered Ward-13(2)(3), Accountants, 306, Dalamal Vs. Aayakar Bhavan, Chambers, New Marine Lines, Mumbai. Mumbai-400020. Pan No. Aaics 8440 H Appellant Respondent Assessee By : Mr. Parag Jha & Prateek Jha Revenue By : Mr. Ashok Kumar Kardam, Cit-Dr Date Of Hearing : 26/10/2022 Date Of Pronouncement : 31/10/2022

For Appellant: Mr. Parag Jha & Prateek JhaFor Respondent: Mr. Ashok Kumar Kardam, CIT-DR

…arned was shared by him and two others. The said fact was also income earned was shared by him and two others. The said fact was also not considered by the assessing officer. not considered by the assessing officer. 3. PCIT v. Alag Securities Pvt. Ltd. [2020] 425 ITR 658 (Bom) PCIT v. Alag Securities Pvt. Ltd. [2020] 425 ITR 658 (Bom) PCIT v. Alag Securities Pvt. Ltd. [2020] 425 ITR 658 (Bom): 20. We are in agreement with the view taken by the Tribunal. In a case of 20. We are in agreement with the view taken by the Tribunal. In a case of 20. We are in agreement with the view taken by the Tribunal. In a case of t…

SHRI NARESH JHANWAR,JAIPUR vs. DCIT, C.C.-3, JAIPUR

In the result, both the appeal of the assessee is partly

ITA 260/JPR/2020[2017-18]Status: DisposedITAT Jaipur17 Aug 2022AY 2017-18
For Appellant: Sh. P. C. Parwal (CA)For Respondent: Shri Sanjay Dhariwal (CIT)
Section 139Section 143(3)Section 153ASection 199CSection 292CSection 68

…nexplained loan. Hence, in the facts and circumstances of the case, the addition made by the A.O. and sustained by the ld. CIT(A) is not justified and the same is deleted.” 8. The Hon’ble Bombay High Court in case of PCIT Vs. Alag Securities Pvt. Ltd. (2020) 425 ITR 658 dt. 12.06.2020 has held that where business of assessee centered around customers/ beneficiaries making deposits in cash amount in lieu thereof taking cheques from assessee, question of adding cash credit in the hands of assessee does not arise. Para 20 of this order reads as under:- “20. We are in agreement with the view taken by the Tribunal. I…

SHRI NARESH JHANWAR,JAIPUR vs. DCIT, C.C.-3, JAIPUR

In the result, both the appeal of the assessee is partly

ITA 259/JPR/2020[2016-17]Status: DisposedITAT Jaipur17 Aug 2022AY 2016-17
For Appellant: Sh. P. C. Parwal (CA)For Respondent: Shri Sanjay Dhariwal (CIT)
Section 139Section 143(3)Section 153ASection 199CSection 292CSection 68

…nexplained loan. Hence, in the facts and circumstances of the case, the addition made by the A.O. and sustained by the ld. CIT(A) is not justified and the same is deleted.” 8. The Hon’ble Bombay High Court in case of PCIT Vs. Alag Securities Pvt. Ltd. (2020) 425 ITR 658 dt. 12.06.2020 has held that where business of assessee centered around customers/ beneficiaries making deposits in cash amount in lieu thereof taking cheques from assessee, question of adding cash credit in the hands of assessee does not arise. Para 20 of this order reads as under:- “20. We are in agreement with the view taken by the Tribunal. I…

AVANCE TECHNOLOGIES LTD,MUMBAI vs. DCIT CENTRAL CIR 2(2), MUMBAI

In the result, appeals of the assessee for all the years are partly allowed for statistical purposes

ITA 3556/MUM/2019[2008-09]Status: DisposedITAT Mumbai05 Aug 2021AY 2008-09
Section 132Section 143Section 143(1)Section 143(3)Section 153C

…ccounts of the assessee and the same would not automatically become income in the hands of the assessee company. The ld. AR placed reliance on the decision of the Hon’ble Jurisdictional High Court in the case of PCIT vs. Alag Securities Pvt. Ltd., reported in 425 ITR 658. 6.4. The ld. DR before us vehemently argued that the entry in the books of accounts representing forfeiture of share application money would only constitute cash credit liable for taxation u/s.68 of the Act when the nature and source of credit is not proved in the hands of the assessee. 6.5. We find that the ld. AO had completely ignored all th…

PCIT v. Alag Securities Pvt. Ltd. (425 ITR 658) — Cited in 11 Judgments | BharatTax