Sir Kikabhai Premchand v. CIT

24 ITR 506Supreme Court of India1953#632 most cited

What is Sir Kikabhai Premchand v. CIT authority for?

One cannot make a taxable profit or loss from transactions with oneself, as profit only arises from dealings with external third parties, even when transferring assets between different accounts or divisions of the same entity.

156

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2008 to 2025.

Also referred to as

Sir Kikabhai Premchand v. CIT · profit from self · self-dealing transactions · internal transfers · anticipated business profits · permanent establishment · head office · shares business stock · investment account · taxable event · income recognition

Sections most often in play

Section 148Section 143(1)Section 143(3)Section 147Section 148A(b)Section 148A(d)Section 69ASection 132(4)
Read the full judgment

Issues it is cited on

unexplained jewellerysubstantive assessmentprotective assessmentinterest u/s 234aon-moneysection 234aunexplained investmentsalarysection 69aundisclosed incomesection 132section 153a

Judgments citing Sir Kikabhai Premchand v. CIT

Mr. Krishna Kumar Pant, New Delhi vs. DCIT, New Delhi

ITA 5574/DEL/2011[2005-06]Status: DisposedITAT Delhi21 Dec 2020AY 2005-06

Bench: Shri G.S. Pannu & Shri Amit Shukla(Through Video Conferencing) Assessment Year 2005-06

For Appellant: Shri Tarandeep Singh, CAFor Respondent: Shri Vipul Kashyap, Sr.D.R
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 17(2)(iii)Section 2(24)(iv)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “Friday” NEW DELHI BEFORE SHRI G.S. PANNU, VICE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER (Through Video Conferencing) Assessment Year 2005-06 Mr. J.S. Gujral, v. DCIT, K-165, Sourth City 1, Circle-8(1), Gurgaon Haryana New Delhi. TAN/PAN: AAAPG4124F (Appellant) (Respondent) Assessment Year 2005-06 Ranjeet Singh, v. DCIT, V-32/5, DLF Phase-III, Circle-8(1), Gurgaon New Delhi. TAN/PAN: AAAPL0885C (Appellant) (Respondent) Assessment Year 2005-06 Sanjiv Narayan, v. DCIT, F-225A, Circle-8(1), Sainik Farm, New Delhi. New Delhi. TAN/PAN: AAAPN0933B (Appellant) (…

Mr. Sanjiv Narayan, New Delhi vs. DCIT, New Delhi

ITA 5546/DEL/2011[2005-06]Status: DisposedITAT Delhi21 Dec 2020AY 2005-06

Bench: Shri G.S. Pannu & Shri Amit Shukla(Through Video Conferencing) Assessment Year 2005-06

For Appellant: Shri Tarandeep Singh, CAFor Respondent: Shri Vipul Kashyap, Sr.D.R
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 17(2)(iii)Section 2(24)(iv)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “Friday” NEW DELHI BEFORE SHRI G.S. PANNU, VICE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER (Through Video Conferencing) Assessment Year 2005-06 Mr. J.S. Gujral, v. DCIT, K-165, Sourth City 1, Circle-8(1), Gurgaon Haryana New Delhi. TAN/PAN: AAAPG4124F (Appellant) (Respondent) Assessment Year 2005-06 Ranjeet Singh, v. DCIT, V-32/5, DLF Phase-III, Circle-8(1), Gurgaon New Delhi. TAN/PAN: AAAPL0885C (Appellant) (Respondent) Assessment Year 2005-06 Sanjiv Narayan, v. DCIT, F-225A, Circle-8(1), Sainik Farm, New Delhi. New Delhi. TAN/PAN: AAAPN0933B (Appellant) (…

Mr. Ranjeet Singh, Gurgaon vs. DCIT, New Delhi

ITA 5513/DEL/2011[2005-06]Status: DisposedITAT Delhi21 Dec 2020AY 2005-06

Bench: Shri G.S. Pannu & Shri Amit Shukla(Through Video Conferencing) Assessment Year 2005-06

For Appellant: Shri Tarandeep Singh, CAFor Respondent: Shri Vipul Kashyap, Sr.D.R
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 17(2)(iii)Section 2(24)(iv)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “Friday” NEW DELHI BEFORE SHRI G.S. PANNU, VICE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER (Through Video Conferencing) Assessment Year 2005-06 Mr. J.S. Gujral, v. DCIT, K-165, Sourth City 1, Circle-8(1), Gurgaon Haryana New Delhi. TAN/PAN: AAAPG4124F (Appellant) (Respondent) Assessment Year 2005-06 Ranjeet Singh, v. DCIT, V-32/5, DLF Phase-III, Circle-8(1), Gurgaon New Delhi. TAN/PAN: AAAPL0885C (Appellant) (Respondent) Assessment Year 2005-06 Sanjiv Narayan, v. DCIT, F-225A, Circle-8(1), Sainik Farm, New Delhi. New Delhi. TAN/PAN: AAAPN0933B (Appellant) (…

Mr. J.S. Gujral, Gurgaon vs. DCIT, New Delhi

ITA 5512/DEL/2011[2005-06]Status: DisposedITAT Delhi21 Dec 2020AY 2005-06

Bench: Shri G.S. Pannu & Shri Amit Shukla(Through Video Conferencing) Assessment Year 2005-06

For Appellant: Shri Tarandeep Singh, CAFor Respondent: Shri Vipul Kashyap, Sr.D.R
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 17(2)(iii)Section 2(24)(iv)Section 234B

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “Friday” NEW DELHI BEFORE SHRI G.S. PANNU, VICE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER (Through Video Conferencing) Assessment Year 2005-06 Mr. J.S. Gujral, v. DCIT, K-165, Sourth City 1, Circle-8(1), Gurgaon Haryana New Delhi. TAN/PAN: AAAPG4124F (Appellant) (Respondent) Assessment Year 2005-06 Ranjeet Singh, v. DCIT, V-32/5, DLF Phase-III, Circle-8(1), Gurgaon New Delhi. TAN/PAN: AAAPL0885C (Appellant) (Respondent) Assessment Year 2005-06 Sanjiv Narayan, v. DCIT, F-225A, Circle-8(1), Sainik Farm, New Delhi. New Delhi. TAN/PAN: AAAPN0933B (Appellant) (…

Manjula Finance Ltd., New Delhi vs. ITO, Ward-16(2), New Delhi

In the result appeal of the assessee is partly allowed

ITA 3727/DEL/2018[2014-15]Status: DisposedITAT Delhi18 Dec 2020AY 2014-15

Bench: Shri H. S. Sidhu & Shri Prashant Maharishi(Through Video Conferencing) Manjula Finance Ltd, Vs. Ito, 28, Najafgarh Road, Ward-16(2), New Delhi New Delhi Pan: Aaacm6990N (Appellant) (Respondent)

For Appellant: Shri V. K. Bindal, CAFor Respondent: Shri Ajay Kumar, Sr. DR
Section 143Section 234B

…(INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER (Through Video Conferencing) Manjula Finance Ltd, Vs. ITO, 28, Najafgarh Road, Ward-16(2), New Delhi New Delhi PAN: AAACM6990N (Appellant) (Respondent) Assessee by : Shri V. K. Bindal, CA Ms. Sweety Kothari, CA Revenue by: Shri Ajay Kumar, Sr. DR Date of Hearing 19/11/2020 Date of pronouncement 18th/12/2020 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by Manjula Finance Ltd (the assessee/appellant) against the order of the Commissioner Of Income…

M/S Kemfin Services Pvt Ltd vs. The Assistant Commissioner of Income Tax

In the result, the appeal is allowed

ITA/70/2011HC Karnataka11 Jun 2020

Bench: ALOK ARADHE,HEMANT CHANDANGOUDAR

Section 143(2)Section 260Section 260ASection 88E

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF JUNE 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE HEMANT CHANDANGOUDAR I.T.A. NO.149 OF 2011 C/W I.T.A.NO.70 OF 2011 ITA NO.149/2011 BETWEEN: M/S KEMFIN SERVICES PVT. LTD. KEMWELL HOUSE, 11, TUMKUR ROAD BANGALORE – 560 022. ... APPELLANT (BY SRI.CHYTHANYA K.K., ADV.,) AND: THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE – 11 (5) BANGALORE ... RESPONDENT (By Sri.K.V.ARAVIND, ADV.) - - - THIS ITA IS FILED UNDER SECTION 260-A OF THE I.T.ACT, 1961 ARISING OUT…

Rajarambapu Patil Ssk, Sangli vs. Assistant Commissioner of Income-Tax, Circle - 2, Sangli

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1766/PUN/2017[2013-14]Status: DisposedITAT Pune11 Mar 2020AY 2013-14

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm आयकर अपीऱ सं. / Ita No. 1766/Pun/2017 नििाारण वषा / Assessment Year : 2013-14 Rajarambapu Patil Ssk Ltd. Sakharale, Islampur, Dist. Sangli, Pin-415 414 Pan : Aaaar0790D .......अऩीऱाथी / Appellant बिाम / V/S.

For Appellant: Ms. Shubhadra KoppaFor Respondent: Shri Deepak Garg
Section 143(3)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

DCIT, Cent Cir-2(4), Hyderabad vs. Clean City Estates Private Limited, Hyderabad

In the result, appeal of the revenue is dismissed

ITA 1624/HYD/2016[2011-12]Status: DisposedITAT Hyderabad20 Feb 2020AY 2011-12

Bench: Smt. P. Madhavi Devi & Shri A. Alankamonyassessment Year: 2011-12 Dy. Commissioner Of Vs. Clean City Estates Pvt. Ltd., Income-Tax, Hyderabad. Central Circle – 2(4), Hyderabad. Pan – Aaccc4799H Appellant Respondent Revenue By: Shri Y.V.S.T. Sai Assessee By: Shri A.V. Raghuram Date Of Hearing: 11/12/2019 Date Of Pronouncement: 21/02/2020 O R D E R Per Smt. P. Madhavi Devi, J.M.:

For Appellant: Shri A.V. RaghuramFor Respondent: Shri Y.V.S.T. Sai
Section 143(3)Section 153CSection 2(47)

…ction which is completed when the rights so acquired by the assessee are exercised; none can make profits by dealing with himself, as is the settled legal position in the light of the settled legal position in the case of Sir Kikabhai Premchand Vs CIT [(1953) 24 ITR 506 (SC)]. It is for this reason that we are unable to uphold the action of the authorities below on the facts of this case. No matter how reasonable is it to assume that the assessee will make these profits, these profits cannot be brought to tax at this stage. That is what the legal position, for the detailed reasons set out above, is. 20. In our c…

ACIT, New Delhi vs. M/S Modland Wears Pvt. Ltd., New Delhi

In the result, the Ground Nos

ITA 3587/DEL/2011[2008-09]Status: DisposedITAT Delhi28 Jan 2020AY 2008-09

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2008-09

Section 143(3)Section 14A

…14 TC22(kb) (iii) Californian Copper Syndicate Vs. Harris [1904] 5 TC 159(C. Exchq.) (iv) Raja Mohan Raja Bahadur Vs. CIT [1967] 66 ITR 378; (v) British South Africa Co. Vs. Varty (Inspector of Taxes) [1966] AC 381; (vi) Sir Kikabhai Premchand Vs. CIT, (1953) 24 ITR 506 (SC) (vii) CIT Vs. Dhanuka & Sons, (1980), 124 ITR 24(Cal.) (viii) ACIT Vs. Bright Star Investment (P) Ltd. (ITAT-Mum.) (ix) CIT Vs. Bai Shirinbai K. Kooka 5.6 In view of the ratio of the judgments, the Ld. CIT(A) deleted the addition of ₹ 14,19,57,154 observing as under: “5.9 Thus, it may be seen that the view taken by the Hon’ble courts in the…

Shri Bhogawati Sah. Sakhar Karkhana Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 995/PUN/2017[2013-14]Status: DisposedITAT Pune20 Nov 2019AY 2013-14

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Shri Bhogawati Sah. Sakhar Karkhana Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 994/PUN/2017[2012-13]Status: DisposedITAT Pune20 Nov 2019AY 2012-13

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Shri Bhogawati Sah. Sakhar Karkhana Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 993/PUN/2017[2011-12]Status: DisposedITAT Pune20 Nov 2019AY 2011-12

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Shri Bhogawati Sah. Sakhar Karkhana Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 992/PUN/2017[2010-11]Status: DisposedITAT Pune20 Nov 2019AY 2010-11

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Vishwasrao Naik Sahakari Sakhar Karkhana Ltd, Sangli vs. Assistant Commissioner of Income Tax, Sangli

In the result, the appeals of assessees are allowed for statistical purposes

ITA 872/PUN/2017[2011-12]Status: DisposedITAT Pune20 Nov 2019AY 2011-12

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Shri Chh. Shahu Sahakari Sakhar Karkhana Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 858/PUN/2017[2013-14]Status: DisposedITAT Pune20 Nov 2019AY 2013-14

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Shri Chh. Shahu Sahakari Sakhar Karkhana Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 857/PUN/2017[2012-13]Status: DisposedITAT Pune20 Nov 2019AY 2012-13

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Shri Chh. Shahu Sahakari Sakhar Karkhana Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 856/PUN/2017[2011-12]Status: DisposedITAT Pune20 Nov 2019AY 2011-12

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Shri Chh. Shahu Sahakari Sakhar Karkhana Ltd, Kolhapur vs. Deputy Commissioner of Income Tax, Kolhapur

In the result, the appeals of assessees are allowed for statistical purposes

ITA 855/PUN/2017[2010-11]Status: DisposedITAT Pune20 Nov 2019AY 2010-11

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Jawahar Shetkari Ssk Ltd., Kolhapur vs. Assistant Commissioner of Income-Tax, Ichalkaranji

In the result, the appeals of assessees are allowed for statistical purposes

ITA 826/PUN/2017[2013-14]Status: DisposedITAT Pune20 Nov 2019AY 2013-14

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…

Jawahar Shetkari Ssk Ltd., Kolhapur vs. Assistant Commissioner of Income-Tax, Ichalkaranji

In the result, the appeals of assessees are allowed for statistical purposes

ITA 825/PUN/2017[2012-13]Status: DisposedITAT Pune20 Nov 2019AY 2012-13

Bench: Shri Anil Chaturvedi & Shri S.S. Viswanethra Ravisl.

Section 37(1)

…me thing with the theory of appropriation of profit, we underscore the settled legal position that no one can make profit from self. In this regard, it will be befitting to note the judgment of the Hon‟ble Summit Court in Sir Kikabhai Premchand vs. CIT (1953) 24 ITR 506 (SC), in which the assessee employed the method of valuing the closing stock at the cost price. The deeds of trust were valued for the purpose of stamp at the market value of the shares and silver bars prevailing at the dates of their execution. The assessee, however, showed the transfer of these shares and silver bars to the trustees in the books…