Sanjay Oilcake Industries v. CIT

316 ITR 274High Court2009#154 most cited

What is Sanjay Oilcake Industries v. CIT authority for?

In cases of alleged bogus or unverifiable purchases, rather than disallowing the entire purchase value, a reasonable profit element or a proportionate percentage of the purchases should be added back to the assessee's income.

460

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2011 to 2026.

Also referred to as

Sanjay Oilcake Industries · 316 ITR 274 · bogus purchases · unverifiable purchases · proportionate disallowance · profit element · section 68 · section 69B · section 131 · section 133A · estimation of income

Sections most often in play

Section 153ASection 68Section 131Section 133ASection 115BBESection 153CSection 69BSection 143(3)
Read the full judgment

Issues it is cited on

section 69bsection 292csection 292section 44absection 201section 69csection 133asection 29escapement of incomesection 145(3)section 131commissioner (appeals)

Judgments citing Sanjay Oilcake Industries v. CIT

Income Tax Officer-20(1)(5), Mumbai vs. Habibullah M. H. Mullajiwala(Prop.M/S.Lucky Supply Agency), Mumbai

In the result, both the appeals filed by the revenue are hereby dismissed

ITA 5373/MUM/2017[2011-12]Status: DisposedITAT Mumbai16 Mar 2021AY 2011-12

Bench: Shri Amarjit Singh, Jm & Shri Manoj Kumar Aggarwal, Am आयकर अपील सं/ I.T.A. Nos.5373 & 5374/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2011-12) Income Tax Officer 20(1)(5) बिधम/ Shri Habibullah M. H. Room No.121, 1St Floor, Mullajiwala (Prop. M/S. Vs. Piramal Chambers, Parel, Lucky Supply Agency) Mumbai-400012. Shop No. 8, Yusuf Manzil, 2, Sofia Zuber Road, Opp. Nagpada Police Station, Mumbai-400008. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Afdpm7661R (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Gurbinder Singh (Dr) Assessee By: None सुनवाई की तारीख / Date Of Hearing: 21/12/2020 घोषणा की तारीख /Date Of Pronouncement: 16/03/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals) -32, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2011- 12. Ita. No.5374/Mum/2017 2. The Revenue Has Filed The Present Appeal Against The Order Dated 15.05.2017 Passed By The Commissioner Of Income Tax (Appeals) -32

For Appellant: NoneFor Respondent: Shri Gurbinder Singh (DR)
Section 143(2)Section 144Section 147

…fabrics. Therefore, as a natural corollary, not the entire amount covered under such purchases, but the profit element embedded therein would be subject to tax. A.Y.2011-12 5.5 In the case of Sanjay Oilcake Industries v. Commissioner of Income-tax reported in 316 ITR 274(Guj). the Hon’ble court had upheld the action of the CIT(A) and ITAT in determining estimated addition of 25% of the purchases in cases involving boons purchases. Held, that the finding of the Assessing Officer had been accepted by the Commissioner (Appeals) and the Tribunal that the apparent sellers who had issued sale bills were not traceable.…

ITO 8 (2)(1), Mumbai vs. Bhairav Steel Enterprises Pvt. Ltd., Mumbai

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

ITA 4126/MUM/2019[2009-10]Status: DisposedITAT Mumbai01 Mar 2021AY 2009-10

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4126/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2009-10) Ito 8(2)(1) बिधम/ Bhairav Steel Enterprises Room No.259/A,2Nd Floor, Pvt. Ltd. Vs. Aayakar Bhavan, M. K. 10, Kanti Nagar, A/30, Road, Mumbai-400020. Rajgruhi, Behind J. B. Nagar, Andheri Kurla Road, Andheri (E), Mumbai- 400059. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb9118K (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri Rajendra Joshi (Dr) Assessee By: Shri Rajiv Khandelwal सुनवाई की तारीख / Date Of Hearing: 03/12/2020 घोषणा की तारीख /Date Of Pronouncement: 01/03/2021 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 25.03.2019 Passed By The Commissioner Of Income Tax (Appeals) -16, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2009- 10. 2. The Revenue Has Raised The Following Grounds: -

For Appellant: Shri Rajiv KhandelwalFor Respondent: Shri Rajendra Joshi (DR)
Section 143(2)Section 148

…ee had failed to discharge the onus to prove the genuineness of the transactions, mere mentioning of section 68 did not affect (lee addition made when transactions were found bogus." 6.2.16. In Sanjay Oilcake Industries vs. Commissioner of Income- tax (2009) 316 ITR 274 (Guj), it was held as under "22. Thus, it is apparent that both the Commissioner (Appeals) and the Tribunal leave concurrently accepted the finding of the Assessing Officer that the apparent sellers who had issued sale bills were not traceable. That goods were received from the parties other than the persons who had issued bills for such goods. T…

ITO 19(2)(3), Mumbai vs. M/S Metal Impex, Mumbai

In the result, appeal of the revenue is dismissed

ITA 4690/MUM/2019[2012-13]Status: DisposedITAT Mumbai03 Feb 2021AY 2012-13

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 19(2)(3) V. M/S. Metal Impex Room No. 218, 2Nd Floor 23, Kotwala Building Matru Mandir, Tardev Road 3Rd Khetwadi Lane Mumbai – 400 007 Mumbai - 400004 Pan: Aahfm5317M (Appellant) (Respondent) Shri Rajkumar Singh Assessee By : Department By Shri Sanjay J. Sethi

For Appellant: Department by Shri Sanjay J. Sethi
Section 133(6)Section 143(1)Section 147

…goods. In that view of the matter, as natural corollary, not the entire amount covered under such purchase, but the profit element embedded therein would be subject to tax. This was the view of this court in the case of Sanjay Oilcake Industries v. CIT [2009] 316 ITR 274 (Guj). Such decision is also followed by this court in a judgment dated August 16,2011, in 7 M/s. Metal Impex Tax Appeal No.679 of 2010 in the case of CIT v. KishorAmrutlal Patel. In the result, tax appeal is dismissed." (emphasis supplied) 6.3.5 In view of the facts and circumstances of the case and the judicial pronouncements cited above, what…

ITO 19(2)(3), Mumbai vs. M/S Meghdoot Enterprises, Mumbai

In the result, appeal of the revenue is dismissed

ITA 4688/MUM/2019[2009-10]Status: DisposedITAT Mumbai03 Feb 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 19(2)(3) V. M/S. Meghdoot Enterprise Room No. 218, 2Nd Floor 7, Narayan Wadi Matru Mandir, Tardev Road 86/88, Khadilkar Road Mumbai – 400 007 Mumbai - 400004 Pan: Aagfm0668N (Appellant) (Respondent) None Assessee By : Department By Shri Sanjay J. Sethi

For Appellant: Department by Shri Sanjay J. Sethi
Section 133(6)Section 143(1)Section 147

…7 M/s. Meghdoot Enterprise matter, as natural corollary, not the entire amount covered under such purchase, but the profit element embedded therein would be subject to tax. This was the view of this court in the case of Sanjay Oilcake Industries v. CIT [2009] 316 ITR 274 (Guj). Such decision is also followed by this court in a judgment dated August 16,2011, in Tax Appeal No.679 of 2010 in the case of CIT v. KishorAmrutlal Patel. In the result, tax appeal is dismissed." (emphasis supplied) 4.5 In view of the facts and circumstances of the case and the judicial pronouncements cited above, what can be disallowed or…

ITO 19 (1)(1), Mumbai vs. Ahmsons, Mumbai

In the result, appeal of the revenue is dismissed

ITA 4683/MUM/2019[2009-10]Status: DisposedITAT Mumbai03 Feb 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Bleincome Tax Officer – 19(1)(1) V. M/S. Ahmsons Room No. 223, 2Nd Floor 11/19, Rukaiya Manzil Matru Mandir, Tardev Road Ground Floor, C.P. Tank Road Mumbai – 400 007 Mumbai - 400004 Pan: Aagfa8334F (Appellant) (Respondent) None Assessee By : Department By Shri Sanjay J. Sethi

For Appellant: Department by Shri Sanjay J. Sethi
Section 133(6)Section 143(1)Section 147

…goods. In that view of the matter, as natural corollary, not the entire amount covered under such purchase, but the profit element embedded therein would be subject to tax. This was the view of this court in the case of Sanjay Oilcake Industries v. CIT [2009] 316 ITR 274 (Guj). Such decision is also followed by this court in a judgment dated August 16,2011, in Tax Appeal No.679 of 2010 in the case of CIT v. KishorAmrutlal Patel. In the result, tax appeal is dismissed." (emphasis supplied) 4.5 In view of the facts and circumstances of the case and the judicial pronouncements cited above, what can be disallowed or…

Nayan Shukla, Mumbai vs. ITO 22(1)(4), Mumbai

In the result, both the appeals of assessee are dismissed

ITA 1629/MUM/2017[2010-11]Status: DisposedITAT Mumbai22 Jan 2021AY 2010-11

Bench: Shri Mahavir Singh, Vice- & Shri Manoj Kumar Aggarwal

For Respondent: None
Section 133(6)Section 143(3)Section 147Section 69C

…oods. In that view of the matter, as natural corollary, not the entire amount covered under such purchase, but the profit" element embedded therein would be subject to tax. This was the view of this court in the case of Sanjay Oilcake Industries v. CIT [2009J 316 ITR 274 (Guj). Such decision is also followed by this court in a judgment dated August 16, 20 11, in Tax Appeal No.679 of 2010 in the case of CIT v. Kishor Amrutlal Petel. In the result, tax appeal is dismissed.’ 11,7 In view of the facts and circumstances and the judicial pronouncements cited above, what can be disallowed or taxed in the instant case,…

DCIT Central Circle-1(2), Mumbai vs. M/S.Shoreline Hotels Private Limited, Mumbai

In the result, appeals filed by the revenue as well as the Cross

ITA 2094/MUM/2018[2008-09]Status: DisposedITAT Mumbai30 Dec 2020AY 2008-09

Bench: Shri Rajesh Kumar (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2008-09 The Dy. Commissioner Of Income M/S Shoreline Hotels Pvt. Ltd., Tax, Central Circle- 1(2), Prop. M/S Marine Plaza, Dur-Ul- R. No. 906, 9Th Floor, Old Cgo Habib, 29, Marine Drive, Bldg., Annex Bldg., M.K. Road, Vs. Churchgate, Mumbai - 400020 Mumbai - 400020 Pan: Aabcs1380B

…ished goods. in that view of the matter, as natural corollary, not the entire amount covered under such purchase, but the profit element embedded therein would be subject to tax. This was the view of this Court in the case of Sanjay Oilcake Industries v. CIT, 316 ITR 274 (Guj.). Such decision is also followed by this Court in a judgment dated 16.8.2011 in Tax Appeal No.679 of 2010 in the case of CIT v. Kishor Amrutlal Patel. " 11.14 Further, in the case of CIT v Simit P. Sheth, 355 FIR 290 (GO), the Hon'ble Gujarat High Court has held that in the case of bogus purchases, it is vital to ascertain whether purchases…

DCIT Central Circle-3(1), Mumbai vs. M/S Sur Gems, Mumbai

In the result, the appeals of the assessee are partly allowed and the appeals of the Revenue are dismissed

ITA 2078/MUM/2019[2010-11]Status: DisposedITAT Mumbai28 Dec 2020AY 2010-11

Bench: Shri Rajesh Kumar & Shri Ram Lal Negi

For Appellant: Shri N.R. Agrawal, A.RFor Respondent: Shri Sandeep Raj, CIT D.R
Section 132Section 143(3)Section 148Section 151Section 271

…tax and only the profit element embedded therein was to be taxed, no interference is called for in the order of the Tribunal. While coming to the above conclusion, the Hon'ble Gujarat High Court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj). 6.9 From the aforesaid discussion, the legal position which emerges is that if there are corresponding sales against the alleged bogus purchases, it is only the profit embedded in the transactions which can be brought to tax and not the entire purchases from the alleged bogus suppliers. In the instant case since the assessee has demonstrat…

Sur Gems, Mumbai vs. DCIT, Mumbai

In the result, the appeals of the assessee are partly allowed and the appeals of the Revenue are dismissed

ITA 1822/MUM/2019[2009-10]Status: DisposedITAT Mumbai28 Dec 2020AY 2009-10

Bench: Shri Rajesh Kumar & Shri Ram Lal Negi

For Appellant: Shri N.R. Agrawal, A.RFor Respondent: Shri Sandeep Raj, CIT D.R
Section 132Section 143(3)Section 148Section 151Section 271

…tax and only the profit element embedded therein was to be taxed, no interference is called for in the order of the Tribunal. While coming to the above conclusion, the Hon'ble Gujarat High Court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj). 6.9 From the aforesaid discussion, the legal position which emerges is that if there are corresponding sales against the alleged bogus purchases, it is only the profit embedded in the transactions which can be brought to tax and not the entire purchases from the alleged bogus suppliers. In the instant case since the assessee has demonstrat…

ITO 27 (2)(4), Mumbai vs. Niket Rajesh Shah, Mumbai

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

ITA 6288/MUM/2018[2009-10]Status: DisposedITAT Mumbai18 Dec 2020AY 2009-10
For Appellant: NoneFor Respondent: Shri V. Tripathi (DR)
Section 142(1)Section 143(2)Section 148Section 69C

…goods. In that view of the matter, as natural corollary, not the entire amount covered under such purchase, but the profit element embedded therein would be subject to tux. This was the view of this court in the case of Sanjay Oilcake Industries v. CIT (2009) 316 ITR 274 (Guj) Such decision is also followed by this court in a judgment dated August 16,2011, in Tax Appeal No.679 of 2010 in the case of CIT Vs. Kishor Amrutlal Patel. In the result, tax appeal is dismissed." (emphasis supplied) 5.4-4 In view of the facts and circumstances of the case and the judicial pronouncements cited above, what can be disallowed…

ACIT Cir. 1, Kalyan vs. Kaka Rayon, Bhiwandi

In the result, the appeals are allowed for statistical purposes

ITA 5365/MUM/2016[2011-12]Status: DisposedITAT Mumbai02 Dec 2020AY 2011-12

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2011-12

For Appellant: Mr. B.P. Purohit, ARFor Respondent: Mr. Sunil Deshpande, DR
Section 143(3)

…ITR 10. Accordingly, the suppressed GP is work out at Rs.34,93,111/- (19,19,29,209 x 1.82%). The appellant being manufacturer, and in the light of the decisions Hon'ble Gujarat High Court in the case of Vijay Proteins 58 ITD 428 and Sanjay Oil Cake Industries 316 ITR 274, if the analogy of disallowance @ 25% of the bogus purchases i.e. Rs.25,51,790/- (1,02,07,160 x 25/100) is considered, which is also worked out almost at par to the suppressed GP of Rs.34,93,111/-. This squarely establishes the fact that the appellant had suppressed its profits by inflating its purchases. 5.16 By booking alleged bogus purchases,…

Manju Sharma, New Delhi vs. ITO Ward - 45(5), New Delhi

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

ITA 8275/DEL/2019[2014-15]Status: DisposedITAT Delhi23 Nov 2020AY 2014-15

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2014-15 Manju Sharma, Vs Ito, Wz-43B, Meenakshi Garden, Ward-45(5), New Delhi. New Delhi. Pan: Aatps2170A (Appellant) (Respondent) Assessee By : Shri Krishnan Sampath, Advocate Revenue By : Ms Rinku Singh, Sr. Dr Date Of Hearing : 03.11.2020 Date Of Pronouncement : 23.11.2020 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 05.09.2019 Passed By The Ld. Cit(A)-15, New Delhi, Relating To Assessment Year 2014-15. 2. Facts Of The Case, In Brief, Are That The Assessee Is An Individual & Is Proprietor Of M/S Eastern Galaxy Which Is Engaged In The Business Of Export Of Handicrafts & Decorative Items. She Filed Her Return Of Income On 29.11.2014 Declaring Taxable Income Of Rs.47,10,000/-. The Case Of The Assessee Was Selected For Limited Scrutiny Under Cass With The Reason That There Is “Large Increase In Sundry Creditors With Respect To Turnover As Compared To Preceding Year.”

For Appellant: Shri Krishnan Sampath, AdvocateFor Respondent: Ms Rinku Singh, Sr. DR
Section 131Section 142(1)Section 144ASection 68

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year: 2014-15 Manju Sharma, Vs ITO, WZ-43B, Meenakshi Garden, Ward-45(5), New Delhi. New Delhi. PAN: AATPS2170A (Appellant) (Respondent) Assessee by : Shri Krishnan Sampath, Advocate Revenue by : Ms Rinku Singh, Sr. DR Date of Hearing : 03.11.2020 Date of Pronouncement : 23.11.2020 ORDER PER R.K. PANDA, AM: This appeal filed by the assessee is directed against the order dated 05.09.2019 passed by the ld. CIT(A)-15, New Delhi, relating to assessment year 20…

Evas Machineries Pvt. Ltd., Mumbai vs. ACIT 12(2)-1, Mumbai

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

ITA 3148/MUM/2019[2009-10]Status: DisposedITAT Mumbai11 Nov 2020AY 2009-10
For Appellant: NoneFor Respondent: Shri Vijay Kumar P. Menon (DR)
Section 133(6)Section 143(1)Section 147

…e justifiable to the extent of profit element. Some judgements are hereby mentioned below. (i) CIT Vs. Bholanath Poly Fab Ltd. (2013) 355 ITR 290 (Guj). (HC) (ii) CIT Vs. Simit P. Sheth (2013) 356 ITR 451 (Guj) (iii) CIT Vs. Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) (iv) ITO Vs. Permanand (2007) 107 TTJ 395 (Jd) (v) Shri Madhukant B. Gandhi Vs. ITO ITA No. 1950/M/2009 Bench „B‟ dt. 23.02.2010 (AY 2005-06) (Mum)(Trib) (vi) Sanjeev Woolen Mills Vs. CIT (2005) 279 ITR 434) (SC) 5. Taking into account, all the facts and circumstances, we are of the view that to meet the interest of justice we restrict the…

ITO-6(1)(1), Mumbai vs. M/S. Aeroflex Fittings Pvt. Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

ITA 1686/MUM/2019[2010-11]Status: DisposedITAT Mumbai29 Sept 2020AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: NoneFor Respondent: Ms. Arju Garodia
Section 143(1)Section 147

…O disbelieved the purchases added peak credit. AO in the order cited the following cases in his order to state that in such situation the courts have held that addition of certain percentage of the said purchases is justified. Sanjay Oilcake Industries vs CIT 316 ITR 274 (Guj) CIT vs Bholanath Polyfab Pvt Ltd 355ITR290 CIT vs Simit P Sheth Tax Appeal 553 of 2012 Gujarat High Court 4.3 In spite of relying all the above cases and mentioning that in the cases the courts have held certain percentage of the said purchases as profit to be assessed, the AO worked out peak credit of purchases assuming the payments for th…

ITO-6(1)(1), Mumbai vs. M/S. Aeroflex Fittings Pvt. Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

ITA 1687/MUM/2019[2011-12]Status: DisposedITAT Mumbai29 Sept 2020AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble

For Appellant: NoneFor Respondent: Ms. Arju Garodia
Section 143(1)Section 147

…O disbelieved the purchases added peak credit. AO in the order cited the following cases in his order to state that in such situation the courts have held that addition of certain percentage of the said purchases is justified. Sanjay Oilcake Industries vs CIT 316 ITR 274 (Guj) CIT vs Bholanath Polyfab Pvt Ltd 355ITR290 CIT vs Simit P Sheth Tax Appeal 553 of 2012 Gujarat High Court 4.3 In spite of relying all the above cases and mentioning that in the cases the courts have held certain percentage of the said purchases as profit to be assessed, the AO worked out peak credit of purchases assuming the payments for th…

Ilesh Amrutlal Gadhia, Mumbai vs. DCIT CC-4(2), Mumbai

Appeals stand partly allowed to the extent indicated in the order

ITA 550/MUM/2019[2010-11]Status: DisposedITAT Mumbai13 Jul 2020AY 2010-11

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Mayur Kishnadwala-Ld. ARFor Respondent: Shri Hemant Kumar-Ld. CIT-DR
Section 234BSection 271

…tax and only the profit element embedded therein was to be taxed, no interference is called for in the order of the Tribunal. While coming to the above conclusion, the Hon'ble Gujarat High Court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj). 5.9 From the aforesaid discussion, it is clear that in view of the business model followed by the assessee wherein there is one to one co-relation between the purchases and the sales and also considering the legal position on the issues as discussed, it is only the profit embedded in the transaction which can be brought to tax and not the…

Shri. Ilesh Amrutlal Gadhia, Mumbai vs. DCIT-4(2), Mumbai

Appeals stand partly allowed to the extent indicated in the order

ITA 549/MUM/2019[2009-10]Status: DisposedITAT Mumbai13 Jul 2020AY 2009-10

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Mayur Kishnadwala-Ld. ARFor Respondent: Shri Hemant Kumar-Ld. CIT-DR
Section 234BSection 271

…tax and only the profit element embedded therein was to be taxed, no interference is called for in the order of the Tribunal. While coming to the above conclusion, the Hon'ble Gujarat High Court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj). 5.9 From the aforesaid discussion, it is clear that in view of the business model followed by the assessee wherein there is one to one co-relation between the purchases and the sales and also considering the legal position on the issues as discussed, it is only the profit embedded in the transaction which can be brought to tax and not the…

DCIT- C.Circle, 4(2), Mumbai vs. Ilesh Amrutlal Gadhia, Mumbai

Appeals stand partly allowed to the extent indicated in the order

ITA 541/MUM/2019[2010-11]Status: DisposedITAT Mumbai13 Jul 2020AY 2010-11

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Mayur Kishnadwala-Ld. ARFor Respondent: Shri Hemant Kumar-Ld. CIT-DR
Section 234BSection 271

…tax and only the profit element embedded therein was to be taxed, no interference is called for in the order of the Tribunal. While coming to the above conclusion, the Hon'ble Gujarat High Court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj). 5.9 From the aforesaid discussion, it is clear that in view of the business model followed by the assessee wherein there is one to one co-relation between the purchases and the sales and also considering the legal position on the issues as discussed, it is only the profit embedded in the transaction which can be brought to tax and not the…

DCIT- C.Circle, 4(2), Mumbai vs. Ilesh Amrutlal Gadhia, Mumbai

Appeals stand partly allowed to the extent indicated in the order

ITA 540/MUM/2019[2009-10]Status: DisposedITAT Mumbai13 Jul 2020AY 2009-10

Bench: Hon’Ble Shri Vikas Awasthy, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Mayur Kishnadwala-Ld. ARFor Respondent: Shri Hemant Kumar-Ld. CIT-DR
Section 234BSection 271

…tax and only the profit element embedded therein was to be taxed, no interference is called for in the order of the Tribunal. While coming to the above conclusion, the Hon'ble Gujarat High Court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj). 5.9 From the aforesaid discussion, it is clear that in view of the business model followed by the assessee wherein there is one to one co-relation between the purchases and the sales and also considering the legal position on the issues as discussed, it is only the profit embedded in the transaction which can be brought to tax and not the…

M/S.D. Manish and Co., Mumbai vs. ACIT-19(1), Mumbai

In the result, appeal filed by the assessee and appeal filed by the revenue for Asst

ITA 5958/MUM/2018[2010-11]Status: DisposedITAT Mumbai18 Jun 2020AY 2010-11

Bench: Shri Mahavir Singh & Shri G. Manjunathad.Manish & Co. Vs. Acit-19(1) Ec-3100, Bharat Diamond Matru Mandir Bourse, Bkc Complex Tardeo Road Bandra(E) Mumbai-400 007 Mumbai-400 051

Section 132Section 143(3)Section 147Section 148

…the entire amount covered under such purchase would not be subjected to tax and only profit element embedded therein was to be taxed. While coming to the above conclusion, the Hon’ble High court also relied on the decision in the case of Sanjay Oil Cake Ind. 316 ITR 274 (Guj.) 6.11 Similarly, in yet another decision of Hon’ble Gujarat High court in the case of CIT vs. Simit Sheth (2013) 38 taxmann.com 385 Guj.), Hon’ble Court was seized with a similar issue where the AO. Had found that some of the alleged suppliers of steel to the assessee had not supplied any goods but had only provided sale bills and hence, pu…