PCIT v. Jadau Jewellers & Manufacturers (P.) Ltd.

409 ITR 85High Court2018#5281 most cited

What is PCIT v. Jadau Jewellers & Manufacturers (P.) Ltd. authority for?

Disallowance under Section 40A(3) is not warranted when income is estimated based on a Net Profit Rate or gross profit, as such estimation inherently accounts for business expenditure.

22

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2020 to 2025.

Also referred to as

PCIT v. Jadau Jewellers & Manufacturers (P.) Ltd. · 409 ITR 85 · section 40A(3) · estimated income · net profit rate · gross profit · disallowance · cash payments

Sections most often in play

Section 153ASection 40A(3)Section 69ASection 143(3)Section 115BBESection 145(3)Section 37(1)Section 132

Issues it is cited on

section 153aofsection 153b(1)(b)prohibited by lawunexplained jewelleryannual valuesection 40a(3)section 40asection 132(4a)section 145(3)search assessmentsection 153dsection 40

Judgments citing PCIT v. Jadau Jewellers & Manufacturers (P.) Ltd.

Puradakoppalu Battegowda Karigowda, Mandya vs. Deputy Commissioner of Income Tax, Central Circle, Mysuru

In the result, the appeals are allowed in favour of the assessee

ITA 1021/BANG/2022[2016-17]Status: DisposedITAT Bangalore09 Feb 2023AY 2016-17

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S

For Appellant: S/Shri K.R. Vasudevan & Ankur Pai, AdvocatesFor Respondent: Shri Sunil Kumar Singh, CIT-2(DR)(ITAT), Bengaluru
Section 131Section 132Section 143(3)Section 153ASection 40ASection 40A(3)

…na High Court in CIT (Central) v Gobind Ram (2014) 48 taxmann.com 14 (Punjab & Haryana); e. Madras High Court in CIT v Amman Steel & Allied Industries (2015) 377 ITR 568 (Madras); f. Rajasthan High Court in PCIT v Jadau Jewellers & Manufactures (P) Ltd (2018) 409 ITR 85 (Rajasthan). 9. The ld AR also presented arguments with regard to applicability of Rule 6DD exceptions in assessee’s case. However for the purpose of adjudication we will consider only the contentions raised with regard to whether disallowance u/s.40A(3) can be made when the profit is calculated on estimated basis. 10. The ld. DR supported the or…

Gonugunta Venkateswarlu, Kandukur vs. Income Tax Officer, Ward-2, Ongole

In the result, appeal of the assessee is allowed

ITA 1796/HYD/2018[2008-09]Status: DisposedITAT Hyderabad03 Nov 2020AY 2008-09

Bench: Smt. P. Madhavi Devi(Through Virtual Conference)

For Appellant: Shri Subramanyam TFor Respondent: Shri K.A. Sai Prasad
Section 143(3)Section 147Section 148Section 40A(3)

…that the income has escaped assessment and that in such circumstances, assessment cannot be reopened, he placed reliance on the following decisions: 1. Pr. CIT Vs. Smt. Santosh Jain, 296 ITR 324 (P&H). 2 Pr. CIT Vs. Jadau Jewellers and Manufacturers (P) Ltd., 409 ITR 85 (Raj.) 3. CIT Vs. Banwari Lal Bashidhar, 229 ITR 229 (All.) 6. The ld. DR, on the other hand, submitted that the AO during the assessment proceedings u/s 143(3) of the Act, accepted the returned income of the assessee, and it was only subsequently that the incumbent AO, on verification of the cash book filed by the assessee, found that the assesse…