Rajnik & Co. v. ACIT

251 ITR 561High Court2001#3132 most cited

What is Rajnik & Co. v. ACIT authority for?

Loose papers found during a search, indicating suppressed sales not recorded in books, can be used as material to assess undisclosed income. The authorities can require the filing of a return for a block period based on such seized materials.

38

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

Rajnik & Co. v. ACIT · section 132 · loose papers · suppressed sales · undisclosed income · search and seizure · block period assessment · seized documents

Also reported as

117 Taxmann 675

Sections most often in play

Section 132Section 132(4)Section 143(3)Section 144Section 148Section 153ASection 115BBESection 131(1A)

Issues it is cited on

section 127loose papersdocuments seizedsection 131undisclosed incomeassistant commissionersection 139section 132search and seizuresection 153section 153asection 68

Judgments citing Rajnik & Co. v. ACIT

DCIT, Ernakulam vs. Matha Enterprises, Angamally

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

ITA 269/COCH/2010[2001-02]Status: DisposedITAT Cochin16 Dec 2019AY 2001-02

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…18.4 The Ld. AR relied on the following judicial pronouncements in support of his case in respect of both the assessees for the relevant assessment years: (1) PP Jose vs. ACIT in IT(SS)A No.31/Coch/2003 dt. 27/02/2004 (ITAT, Cochin) (2) Rajnik& Co. vs. ACIT (251 ITR 561) (AP) (3) CIT vs. Sinhgad Technical Education Society (397 ITR 344) (SC) (4)Pr. CIT vsDevangi alias Rupa (394 ITR 184) (Guj.) (5) CIT vs. Deepak Kumar Agarwal&Ors. (398 ITR 586) (Bom.) (6) CIT vs. JagdishNarainRatan Kumar (373 ITR 394) (Raj.-Jaipur) (7) CIT vs. SKS Ispat and Power Ltd. (398 ITR 584) (Bom.) (8) Pr. CIT vs. Best Infrastructure (Ind…

Mokama Munger Highway Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-16(2), Hyderabad

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

ITA 2146/HYD/2018[2015-16]Status: DisposedITAT Hyderabad03 Jul 2019AY 2015-16

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman

For Appellant: Shri D.V. AnjaneyuluFor Respondent: Shri Y.V.S.T. Sai, (CIT) DR
Section 143(1)Section 143(2)

…ee firm for all the years and accordingly, the decision in the case of Hotel Meriya is not applicable to the facts of the present case. Regarding the learned Departmental Representative‟s reliance on the ratio in the case of Rajnik & Co. vs. Asst. CIT [(2001) 251 ITR 561(AP)], we find that the assessee firm was engaged in the business of dealing in cycle spare parts. There was a search conducted on the assessee on 13 th November, 1996. In the course of search, incriminating material was seized for indicating suppression of sales for a period of 24 days in A.Y. 1996 - 97 and for a period of 15 days in A.Y. 1997 -…

Mokama Munger Highway Limited, Hyderabad vs. Income Tax Officer, Ward-16(4), Hyderabad

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

ITA 2145/HYD/2018[2014-15]Status: DisposedITAT Hyderabad03 Jul 2019AY 2014-15

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman

For Appellant: Shri D.V. AnjaneyuluFor Respondent: Shri Y.V.S.T. Sai, (CIT) DR
Section 143(1)Section 143(2)

…ee firm for all the years and accordingly, the decision in the case of Hotel Meriya is not applicable to the facts of the present case. Regarding the learned Departmental Representative‟s reliance on the ratio in the case of Rajnik & Co. vs. Asst. CIT [(2001) 251 ITR 561(AP)], we find that the assessee firm was engaged in the business of dealing in cycle spare parts. There was a search conducted on the assessee on 13 th November, 1996. In the course of search, incriminating material was seized for indicating suppression of sales for a period of 24 days in A.Y. 1996 - 97 and for a period of 15 days in A.Y. 1997 -…

Mokama Munger Highway Limited, Hyderabad vs. Asst. Commissioner of Income Tax, Circle-16(2), Hyderabad

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

ITA 1729/HYD/2018[2013-14]Status: DisposedITAT Hyderabad03 Jul 2019AY 2013-14

Bench: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman

For Appellant: Shri D.V. AnjaneyuluFor Respondent: Shri Y.V.S.T. Sai, (CIT) DR
Section 143(1)Section 143(2)

…ee firm for all the years and accordingly, the decision in the case of Hotel Meriya is not applicable to the facts of the present case. Regarding the learned Departmental Representative‟s reliance on the ratio in the case of Rajnik & Co. vs. Asst. CIT [(2001) 251 ITR 561(AP)], we find that the assessee firm was engaged in the business of dealing in cycle spare parts. There was a search conducted on the assessee on 13 th November, 1996. In the course of search, incriminating material was seized for indicating suppression of sales for a period of 24 days in A.Y. 1996 - 97 and for a period of 15 days in A.Y. 1997 -…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 261/COCH/2018[2012-13]Status: DisposedITAT Cochin27 May 2019AY 2012-13

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

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…es 9.2 For making the above addition, the Assessing Officer relied on the judgment of the Jurisdictional High Court in the case of CIT vs. Hotel Meriya (332 ITR 537) and also the judgment of the Andhra Pradesh High Court in the case of Rajnik & Co.vs. ACIT (251 ITR 561). 9.3 In the case of Meriya Hotel cited supra which is a bar cum restaurant, there was a search conducted u/s. 132 of the Act on 28th June, 2001. During the search, a seized material was found showing undisclosed sales turnover. The cash book was seen recorded upto 25th June, 2001. The cash book showed cash balance of Rs.21,31,523/- but the phy…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 260/COCH/2018[2011-12]Status: DisposedITAT Cochin27 May 2019AY 2011-12

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

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…es 9.2 For making the above addition, the Assessing Officer relied on the judgment of the Jurisdictional High Court in the case of CIT vs. Hotel Meriya (332 ITR 537) and also the judgment of the Andhra Pradesh High Court in the case of Rajnik & Co.vs. ACIT (251 ITR 561). 9.3 In the case of Meriya Hotel cited supra which is a bar cum restaurant, there was a search conducted u/s. 132 of the Act on 28th June, 2001. During the search, a seized material was found showing undisclosed sales turnover. The cash book was seen recorded upto 25th June, 2001. The cash book showed cash balance of Rs.21,31,523/- but the phy…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 259/COCH/2018[2010-11]Status: DisposedITAT Cochin27 May 2019AY 2010-11

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

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…es 9.2 For making the above addition, the Assessing Officer relied on the judgment of the Jurisdictional High Court in the case of CIT vs. Hotel Meriya (332 ITR 537) and also the judgment of the Andhra Pradesh High Court in the case of Rajnik & Co.vs. ACIT (251 ITR 561). 9.3 In the case of Meriya Hotel cited supra which is a bar cum restaurant, there was a search conducted u/s. 132 of the Act on 28th June, 2001. During the search, a seized material was found showing undisclosed sales turnover. The cash book was seen recorded upto 25th June, 2001. The cash book showed cash balance of Rs.21,31,523/- but the phy…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 258/COCH/2018[2009-10]Status: DisposedITAT Cochin27 May 2019AY 2009-10

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

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…es 9.2 For making the above addition, the Assessing Officer relied on the judgment of the Jurisdictional High Court in the case of CIT vs. Hotel Meriya (332 ITR 537) and also the judgment of the Andhra Pradesh High Court in the case of Rajnik & Co.vs. ACIT (251 ITR 561). 9.3 In the case of Meriya Hotel cited supra which is a bar cum restaurant, there was a search conducted u/s. 132 of the Act on 28th June, 2001. During the search, a seized material was found showing undisclosed sales turnover. The cash book was seen recorded upto 25th June, 2001. The cash book showed cash balance of Rs.21,31,523/- but the phy…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 257/COCH/2018[2008-09]Status: DisposedITAT Cochin27 May 2019AY 2008-09

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

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…es 9.2 For making the above addition, the Assessing Officer relied on the judgment of the Jurisdictional High Court in the case of CIT vs. Hotel Meriya (332 ITR 537) and also the judgment of the Andhra Pradesh High Court in the case of Rajnik & Co.vs. ACIT (251 ITR 561). 9.3 In the case of Meriya Hotel cited supra which is a bar cum restaurant, there was a search conducted u/s. 132 of the Act on 28th June, 2001. During the search, a seized material was found showing undisclosed sales turnover. The cash book was seen recorded upto 25th June, 2001. The cash book showed cash balance of Rs.21,31,523/- but the phy…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 256/COCH/2018[2007-08]Status: DisposedITAT Cochin27 May 2019AY 2007-08

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

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…es 9.2 For making the above addition, the Assessing Officer relied on the judgment of the Jurisdictional High Court in the case of CIT vs. Hotel Meriya (332 ITR 537) and also the judgment of the Andhra Pradesh High Court in the case of Rajnik & Co.vs. ACIT (251 ITR 561). 9.3 In the case of Meriya Hotel cited supra which is a bar cum restaurant, there was a search conducted u/s. 132 of the Act on 28th June, 2001. During the search, a seized material was found showing undisclosed sales turnover. The cash book was seen recorded upto 25th June, 2001. The cash book showed cash balance of Rs.21,31,523/- but the phy…

M/S.Kunhitharuvai Memorial Charitable Trust, Calicut vs. The DCIT, Cen-Circle-2, Calicut

In the result, the appeals filed by the assessee are disposed of as follows:

ITA 255/COCH/2018[2006-07]Status: DisposedITAT Cochin27 May 2019AY 2006-07

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

Section 10ASection 11Section 11(5)Section 12ASection 13Section 13(1)(c)Section 132Section 139(1)Section 153A

…es 9.2 For making the above addition, the Assessing Officer relied on the judgment of the Jurisdictional High Court in the case of CIT vs. Hotel Meriya (332 ITR 537) and also the judgment of the Andhra Pradesh High Court in the case of Rajnik & Co.vs. ACIT (251 ITR 561). 9.3 In the case of Meriya Hotel cited supra which is a bar cum restaurant, there was a search conducted u/s. 132 of the Act on 28th June, 2001. During the search, a seized material was found showing undisclosed sales turnover. The cash book was seen recorded upto 25th June, 2001. The cash book showed cash balance of Rs.21,31,523/- but the phy…

The ITO, Kollam vs. M/S.Sunny Jacob Jewellers and Wedding Centre, Kottarakkara

In the result, the appeals of the Revenue are allowed

ITA 477/COCH/2018[2006-07]Status: DisposedITAT Cochin05 Feb 2019AY 2006-07

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

Section 132Section 139(1)Section 153A

…relied upon by I.T.A. Nos.326/Coch/2016 & 476 &477/Coch/2018 (Sunny Jacob Jewellers & Wedding Centre) the AO in holding that there was concealment of income in the form of suppressed turnover and profits earned thereon. In the case of Rajnik & Co, vs. ACIT (251 ITR 561) (AP), it has been held that where a regular pattern of suppression is established the presumption is that there is suppression for whole of the search year. Similar view has been taken in the case of Rajendrakumar Lahoti vs. DCIT (266 ITR 621), In the earlier years the additions could not stand the test of appeal because there was no material av…

The ITO, Kollam vs. M/S.Sunny Jacob Jewellers and Wedding Centre, Kottarakkara

In the result, the appeals of the Revenue are allowed

ITA 476/COCH/2018[2005-06]Status: DisposedITAT Cochin05 Feb 2019AY 2005-06

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

Section 132Section 139(1)Section 153A

…relied upon by I.T.A. Nos.326/Coch/2016 & 476 &477/Coch/2018 (Sunny Jacob Jewellers & Wedding Centre) the AO in holding that there was concealment of income in the form of suppressed turnover and profits earned thereon. In the case of Rajnik & Co, vs. ACIT (251 ITR 561) (AP), it has been held that where a regular pattern of suppression is established the presumption is that there is suppression for whole of the search year. Similar view has been taken in the case of Rajendrakumar Lahoti vs. DCIT (266 ITR 621), In the earlier years the additions could not stand the test of appeal because there was no material av…

The ACIT, Cochin vs. M/S.Sunny Jacob Jewellers & Wedding Centre, Kottarakkara

In the result, the appeals of the Revenue are allowed

ITA 326/COCH/2016[2007-08]Status: DisposedITAT Cochin05 Feb 2019AY 2007-08

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

Section 132Section 139(1)Section 153A

…relied upon by I.T.A. Nos.326/Coch/2016 & 476 &477/Coch/2018 (Sunny Jacob Jewellers & Wedding Centre) the AO in holding that there was concealment of income in the form of suppressed turnover and profits earned thereon. In the case of Rajnik & Co, vs. ACIT (251 ITR 561) (AP), it has been held that where a regular pattern of suppression is established the presumption is that there is suppression for whole of the search year. Similar view has been taken in the case of Rajendrakumar Lahoti vs. DCIT (266 ITR 621), In the earlier years the additions could not stand the test of appeal because there was no material av…

The ACIT, Trichur vs. The DCIT, Trichur

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

ITA 61/COCH/2017[2011-12]Status: PendingITAT Cochin19 Sept 2018AY 2011-12

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

Section 5

…AO being working days). 2. If the seized material is correct with respect to a limited period, it is only logical to extend it to the whole year rather to just half a year. 3. The CIT(A) erred in relying on a submission of assessee based on case reported in 251 ITR 561 (AP) without ascertaining whether the facts & circumstances, nature of the seized materials of the assessee's case are identical/relevant to that of the case relied upon. 4. The CIT(A) erred in adopting figure of 72 days in penultimate para of his order when the actual figure is 67 days, being the number of days for which there is seized materia…

The DCIT, Trivandrum vs. M/S.M.S.Steels, Trivandrum

In the result, the appeals of the Revenue in I

ITA 299/COCH/2015[2006-07]Status: DisposedITAT Cochin26 Sept 2017AY 2006-07

Bench: Shri P. K. Bansal & Shri George George K.

Section 268ASection 268A(1)

…hole of the year at Rs.19,37,52,000/- and applied thereto gross profit @4% and thus made an addition of Rs.77,50,000/-. The CIT(A) estimated the sales at Rs.8,13,75,972/- following the decision of Hon'ble High Court in the case of Rajnik & Co. vs. ACIT [2001] 251 ITR 561 (AP) by estimating the sales six times of these slips found for 21 days and directed the Assessing Officer to estimate the income thereon @2.19% being an average of the gross profit for the three years i.e. the assessment year 2006-07, 2007-08 and 2008-09. Learned D. R. even though vehemently contended that the estimation of the suppression six t…

Morgan Ventures Ltd., New Delhi vs. DCIT, New Delhi

In the result the appeal stands allowed

ITA 1176/DEL/2014[2008-09]Status: DisposedITAT Delhi26 Apr 2016AY 2008-09

Bench: Shri G.D. Agrawal, Hon’Ble & Smt. Beena Pillai

Section 143(2)

…the case of CIT vs. Kulwant Rai reported in 291 ITR 36. 7. On the contrary the Ld.DR relied upon the orders of the authorities below. The Ld.DR placed his reliance on the judgment of Andhra Pradesh High Court in the case of Rajnik and Co. Vs. ACIT reported in 251 ITR 561. 8. We have produced the orders of the authorities below as well as the documents filed by the assessee in the paper book, and the judgments relied upon both the sides. 8.1. On consideration of the facts we find that the addition has been made by the Ld.AO on the basis of surmises and guess work. The reasoning given by the Ld.AO for making such a…

Green World Dept. Stores, Mumbai vs. I.T.O.23(2)(3), Mumbai

In the result, the appeal file by the assessee is treated as partly allowed or statistical purposes

ITA 2636/MUM/2012[2005-06]Status: DisposedITAT Mumbai14 Dec 2015AY 2005-06

Bench: S/Shri B.R.Baskaran & Shri Sandeep Gosainआयकर अपीऱ सं./I.T.A. No.2636/Mum/2012 (निर्धारण वर्ा / Assessment Year :2005-06 ) बिधम/ M/S Green World Dept Stores, Income Tax Officer, 23(2)(3), Shop No.8, Sagar Garden, Mumbai. Vs. Lbs Marg, Mulund (W), Mumbai-400080 स्थायी ऱेखा सं./ Pan : (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri N M PorwalFor Respondent: Shri Mahesh Shah
Section 133ASection 143(3)Section 263Section 40

…d hence normally the Gross Profit (GP) realised on sale of stock would be assessable to tax. In support of this contention, the ld. AR placed reliance on the decision rendered by the Hon’ble Andhra Pradesh High Court in the case of Rajnik & Co. vs. ACIT (AP) (251 ITR 561). He further submitted that the GP rate has been determined at 29.6% and the same should be applied on the shortage of stock. 5. The ld. AR further submitted that the survey team has found out excess stock of Rs.9.35 lakhs in the sister concern named M/s Small World and the assessee has explained the same as transfer of stock from the 4 assessee…