Sree Shanmugar Mills Ltd. v. Commissioner of Income Tax, Punjab

12 ITR 393Reported decision1944#2382 most cited

What is Sree Shanmugar Mills Ltd. v. Commissioner of Income Tax, Punjab authority for?

An assessment cannot be made solely on suspicion or conjecture; there must be credible evidence or material to support it. Assessments based on guesses and surmises are invalid.

48

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

Sree Shanmugar Mills Ltd v Commissioner of Income Tax Punjab · assessment on suspicion · lack of material evidence · conjecture and surmises · undisclosed income assessment · section 23(3) · rule of law

Sections most often in play

Section 68Section 115BBESection 143(3)Section 147Section 148Section 131Section 133ASection 37(1)

Issues it is cited on

section 115beproximate nexussection 91preponderance of probabilityviolation of natural justicecreditworthiness of the creditoraddition under section 68section 148a(d)income-tax officercommissioner (appeals)principal commissioner of income-taxsection 131

Judgments citing Sree Shanmugar Mills Ltd. v. Commissioner of Income Tax, Punjab

DCIT 13(1)(1), Mumbai vs. Nihar Equipment Pvt. Ltd., Mumbai

In the result, appeals filed by the assessee are partly allowed and that of the revenue are dismissed

ITA 3790/MUM/2015[2007-08]Status: DisposedITAT Mumbai29 Mar 2017AY 2007-08

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ( Account Member)

Section 133ASection 143(1)Section 147Section 234B

…t, it is open to her to consider evidence and draw inferences which may not be justified by or admissible, in the Indian Evidence Act, 1872, vide Dakeshwari Cotton Mills Lid. v. CIT AIR 1955 SC 65 : (1954) 26 1TR 175. 782 (SC) Seth Gurmukh Singh v. CIT (1944) 12 ITR 393. 416,425 (Lah), Lal Mohan Krishna Lal Paul v. CIT (1944) 12 ITR 441, 449 (Cal.). Assessing Officer has to look into the facts and circumstances of the case. 5.2 I find that addition made by the Assessing Officer for, the purchases from three parties to the tune of Rs.1.18,13,136/- on the basis of statement of Director Mr. Nilesh M. Mehta, is not f…

Nihaar Equipment P.Ltd, Mumbai vs. DCIT RG 13(1)(1)

In the result, appeals filed by the assessee are partly allowed and that of the revenue are dismissed

ITA 3020/MUM/2015[2007-08]Status: DisposedITAT Mumbai29 Mar 2017AY 2007-08

Bench: Shri D.T. Garasia () & Shri Ashwani Taneja ( Account Member)

Section 133ASection 143(1)Section 147Section 234B

…t, it is open to her to consider evidence and draw inferences which may not be justified by or admissible, in the Indian Evidence Act, 1872, vide Dakeshwari Cotton Mills Lid. v. CIT AIR 1955 SC 65 : (1954) 26 1TR 175. 782 (SC) Seth Gurmukh Singh v. CIT (1944) 12 ITR 393. 416,425 (Lah), Lal Mohan Krishna Lal Paul v. CIT (1944) 12 ITR 441, 449 (Cal.). Assessing Officer has to look into the facts and circumstances of the case. 5.2 I find that addition made by the Assessing Officer for, the purchases from three parties to the tune of Rs.1.18,13,136/- on the basis of statement of Director Mr. Nilesh M. Mehta, is not f…

DCIT, Jaipur vs. Jadau Jewellers & Mfg (P) Ltd., Jaipur

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

ITA 502/JPR/2016[2010-11]Status: DisposedITAT Jaipur28 Feb 2017AY 2010-11
For Appellant: Shri Vijay Goyal and Shri Gulshan Agarwal, CAFor Respondent: Shri R.A. Verma, Addl.CIT - DR
Section 142Section 144Section 153A

…Court in the case of Tin Box Co. Vs CIT 249 ITR 216 (SC). It is also settled law that the AO must act honestly on the material before him and not vindictively, capriciously, or arbitrarily as held by Hon’ble Supreme Court in the case of Gurumukh Singh Vs CIT 12 ITR 393, 427 (FB), Dakeshwari Cotton Mills Ltd Vs CIT 26 ITR 775. The taxing authority should not act in a manner as might 33 M/s. Jadau Jewellers & Manufacturers (P) Ltd. vs. DCIT, Central Circle- 2, Jaipur indicate that scales are weighted against the assessee CIT Vs Simon Carves Ltd (1976) 105 ITR 212,218 (SC). But in our case, the ld AO has brushed…

Kiran Navin Doshi, Mumbai vs. ITO -23(2)(4), Mumbai

In the result, the assessee’s appeal for A

ITA 2601/MUM/2016[2009-10]Status: DisposedITAT Mumbai18 Jan 2017AY 2009-10

Bench: Shri Jason P. Boaz & Shri Saktijit Deysmt. Kiran Navin Doshi Income Tax Officer-23(2)(4) D-705, Kalp Nagri C-10, Pratyksha Kar Bhavan Vs. B.R. Road, Mulund (W) Bkc, Bandra East Mumbai 400080 Mumbai Pan – Abwpd5848A Appellant Respondent

For Appellant: NoneFor Respondent: Shri Milind Rajguru
Section 143Section 143(1)Section 143(3)Section 147Section 148Section 69C

…t all. There must be something more than bare suspicion to support the assessment under section 23(3). The rule of law on this subject has, in our opinion, been fairly and rightly stated by the Lahore High Court in the case of Seth Gurmukh Singh v. CIT [1944] 12 ITR 393 . . . ." (782) 41. In the present case we find that the Commissioner of Income-tax (Appeals) as also the Tribunal has recorded a categorical, finding of fact that the applicant did not make purchases to the extent he has shown. The purchases in question have conclusively been provided to be bogus. If the purchases of the gas cylinders have not bee…

ITO, Ward-1(1), Kolkata vs. M/S. Abhay Carrier Pvt. Ltd., Kolkata

In the result, appeal filed by the revenue on this ground is dismissed

ITA 1692/KOL/2014[2005-2006]Status: DisposedITAT Kolkata21 Oct 2016AY 2005-2006

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita No.1692/Kol/2014 ("नधा"रण वष" / Assessment Year :2005-2006) Ito Ward-1(1), Kolkata Vs. M/S Abhay Carrier Private Limited, 27, Weston Street, Room No.10, Kolkata- 700012 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacca 5421 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Sital Chandra Das "नधा"रती क" ओर से /Assessee By : Shri P.K.Sanghavi सुनवाई क" तार"ख / Date Of Hearing : 06/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 21/10/2016 आदेश / O R D E R Per Dr.Arjun Lal Saini, Am: The Captioned Appeal Filed By The Revenue Pertaining To The Assessment Year 2005-2006, Is Directed Against The Order Passed By Ld. Commissioner Of Income Tax (Appeals)-Xiv Kolkata, In Appeal No.204/Cit(A)-Xiv/2011-12, Dated 28Th March, 2014, Which In Turn Arises Out Of An Order Passed By The Assessing Officer U/S.143(3) Of The Income Tax Act, 1961, (In Short The ‘Act’), Dated 17-12-2007. 2. The Facts Of The Case Qua The Assessee Are That The Assessee Filed Return Of Income On 31.10.2005 Declaring Total Loss Of Rs.14,68,330/-. The Case Was Selected For Scrutiny U/S.143(3) Of The Act & The Ao Has Completed The Assessment By Making Various Additions. During The Assessment Proceedings The Ao Observed That There Is A Difference Between The Receipts Of Payment Form Bpcl As Disclosed In The Its Details & The Amount Disclosed In The Accounts Of The Assessee. The Charges, Therefore, He Has Disallowed 10% Of The Total Expenditure. The Ao Also Noted That The Assessee Claimed An Expenditure Of Rs.2,65,480/-

For Appellant: Shri P.K.SanghaviFor Respondent: Shri Sital Chandra Das
Section 143(3)

…explained to us that, it is quite clear from these documents and the reconciliation statement that the assessee stood by his right and he has shown the income more than what is reflected in the ITS. Ld. AR has also relied in the case of Seth Gurumukh Singh, 12 ITR 393 (LAH), wherein it has been held as under :- "Where the ITO under an analogous provision proposes to make an assessment in disregard of the material produced by the assessee, natural justice demands that he should draw the assessee's attention to it and give him an opportunity to produce evidence in rebuttal. It may be noted that the A.O in the di…

Commissioner of Income Tax Delhi-XI vs. Indian National Congress/All India Congress Committee

ITA/145/2001HC Delhi23 Mar 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 139Section 13A

…on Section 144 of the Act, it was permissible for him to have made such an estimation of income. It is further stated that estimation is possible even under Section 143(3) of the Act. Reliance was placed on the decisions in Seth Gunmukh Singh v CIT [1944] 12 ITR 393 (Lahore) and Dhakeshwari Cotton Mills v CIT [1954] 26 ITR 775 (SC). It was submitted that this kind of a defect is curable under Section 292B of the Act. It was submitted that in the facts of the case since the INC failed to comply with the terms of notice under Section 142(1) of the Act, it was open to the AO to make a best ITA Nos. 145/…

Indian National Cong. (I) Aicc vs. C.I.T.- XI

ITA/180/2001HC Delhi23 Mar 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

Section 139Section 13A

…on Section 144 of the Act, it was permissible for him to have made such an estimation of income. It is further stated that estimation is possible even under Section 143(3) of the Act. Reliance was placed on the decisions in Seth Gunmukh Singh v CIT [1944] 12 ITR 393 (Lahore) and Dhakeshwari Cotton Mills v CIT [1954] 26 ITR 775 (SC). It was submitted that this kind of a defect is curable under Section 292B of the Act. It was submitted that in the facts of the case since the INC failed to comply with the terms of notice under Section 142(1) of the Act, it was open to the AO to make a best ITA Nos. 145/…

Indian National Cong. (I) Aicc vs. C.I.T.- XI

ITA - 180 / 2001HC Delhi23 Mar 2016
Section 139Section 13A

…on Section 144 of the Act, it was permissible for him to have made such an estimation of income. It is further stated that estimation is possible even under Section 143(3) of the Act. Reliance was placed on the decisions in Seth Gunmukh Singh v CIT [1944] 12 ITR 393 (Lahore) and Dhakeshwari Cotton Mills v CIT [1954] 26 ITR 775 (SC). It was submitted that this kind of a defect is curable under Section 292B of the Act. It was submitted that in the facts of the case since the INC failed to comply with the terms of notice under Section 142(1) of the Act, it was open to the AO to make a best 2016:DHC:2463-DB…