What is Sumati Dayal v. CIT authority for?

The Revenue is entitled to look behind the apparent form of a transaction to discover its true nature, applying the test of human probabilities and surrounding circumstances. If transactions defy logic or are unnatural, they can be treated as bogus, even if supported by some documentation, especially in cases of cash credits or unexplained investments.

How many judgments cite Sumati Dayal v. CIT?

1,967 judgments on BharatTax cite Sumati Dayal v. CIT (214 ITR 801), spanning 2010 to 2026.

Which sections of the Income Tax Act does Sumati Dayal v. CIT come up under?

It is most often cited in judgments turning on Section 68, Section 143(3), Section 147, Section 148, Section 142(1), Section 115BBE.

Sumati Dayal v. CIT (214 ITR 801)

Vandana Bansal L/H of Late Dr. Ashwani Kumar Bansal, Allahabad vs. ACIT, Central Circle, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 36/ALLD/2019[2009-10]Status: DisposedITAT Allahabad30 Sept 2025AY 2009-10

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

…with the Assessing Officer; and the JCIT did not even refer to the assessment records before granting approval u/s 153D of the IT Act. The doctrine of human probabilities in orders of Hon'ble Supreme Court in Durga Prasad More 82 ITR 540 (SC) and Sumati Dayal 214 ITR 801 (SC) operates against Revenue, in the facts and circumstances of the present case. (L.2) It is not in dispute that aforesaid common approval letter dated 31/07/2017 was issued by JCIT to give approval u/s 153D of the IT Act for 63 different assessments pertaining to 11 different assessees of Jeevan Jyoti Group, for different assessment years. (…

Vandana Bansal L/H of Late Dr. Ashwani Kumar Bansal, Allahabad vs. ACIT, Central Circle, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 35/ALLD/2019[2008-09]Status: DisposedITAT Allahabad30 Sept 2025AY 2008-09

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

…with the Assessing Officer; and the JCIT did not even refer to the assessment records before granting approval u/s 153D of the IT Act. The doctrine of human probabilities in orders of Hon'ble Supreme Court in Durga Prasad More 82 ITR 540 (SC) and Sumati Dayal 214 ITR 801 (SC) operates against Revenue, in the facts and circumstances of the present case. (L.2) It is not in dispute that aforesaid common approval letter dated 31/07/2017 was issued by JCIT to give approval u/s 153D of the IT Act for 63 different assessments pertaining to 11 different assessees of Jeevan Jyoti Group, for different assessment years. (…

Vandana Bansal L/H of Late Dr. Ashwani Kumar Bansal, Allahabad vs. ACIT, Central Circle, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 34/ALLD/2019[2007-08]Status: DisposedITAT Allahabad30 Sept 2025AY 2007-08

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

…with the Assessing Officer; and the JCIT did not even refer to the assessment records before granting approval u/s 153D of the IT Act. The doctrine of human probabilities in orders of Hon'ble Supreme Court in Durga Prasad More 82 ITR 540 (SC) and Sumati Dayal 214 ITR 801 (SC) operates against Revenue, in the facts and circumstances of the present case. (L.2) It is not in dispute that aforesaid common approval letter dated 31/07/2017 was issued by JCIT to give approval u/s 153D of the IT Act for 63 different assessments pertaining to 11 different assessees of Jeevan Jyoti Group, for different assessment years. (…

Minto Developers Pvt. Ltd., Allahabad vs. Assistant Commissioner of Income Tax, Central Circle, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 337/ALLD/2018[2009-10]Status: DisposedITAT Allahabad30 Sept 2025AY 2009-10

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

…with the Assessing Officer; and the JCIT did not even refer to the assessment records before granting approval u/s 153D of the IT Act. The doctrine of human probabilities in orders of Hon'ble Supreme Court in Durga Prasad More 82 ITR 540 (SC) and Sumati Dayal 214 ITR 801 (SC) operates against Revenue, in the facts and circumstances of the present case. (L.2) It is not in dispute that aforesaid common approval letter dated 31/07/2017 was issued by JCIT to give approval u/s 153D of the IT Act for 63 different assessments pertaining to 11 different assessees of Jeevan Jyoti Group, for different assessment years. (…

Precious Bjuildtech Private Limited, Bareilly vs. PCIT, Bareilly

In the result, the appeal of the assessee is partly allowed

ITA 66/LKW/2022[2017-2018]Status: DisposedITAT Lucknow30 Sept 2025AY 2017-2018

Bench: Shri Kul Bharat & Shri Nikhil Choudharyआयकर अपील सं/ Ita No.66/Lkw/2022 ननिाारण वर्ा/ Assessment Year: 2017-18 Precious Buildtech Pvt Ltd V. Pcit Harmony Apartment, Adiacent Income Tax Department, To Bedi International School, Bareilly-243001. Dental College Road, Pilibhit Bypass Road, Bareilly-243001. Pan:Aagcp1255R अपीलार्थी/(Appellant) प्रत्यर्थी/(Respondent) अपीलार्थी कक और से/Appellant By: Shri Rakesh Garg, Adv प्रत्यर्थी कक और से /Respondent By: Shri Mazhar Akram, Cit(Dr) सुनवाई कक तारीख / Date Of Hearing: 24 07 2025 घोर्णा कक तारीख/ Date Of 30 09 2025 Pronouncement: आदेश / O R D E R

For Appellant: Shri Rakesh Garg, AdvFor Respondent: Shri Mazhar Akram, CIT(DR)

Section 143(3)Section 263

…he assessee claimed to have made cash deposits during demonetization period as inflated cash balance in cash book appears to fail the tests of both genuineness and human probabilities. The AO should have placed is reliance-on. The case of Sumati Dayal Vs CIT (214 ITR 801) wherein the Apex court. propounded the principle of human probabilities and applying it in that case held that whether apparent is real is to-be decided on the basis of incriminating circumstances. He should have placed reliance on the decision of the Apex court in the case of Durga Prasad More Vs CIT wherein the principle of human probabilities…

ACIT Central Circle 2(3), Ahmedabad vs. Vrajlal Babulal Bambharoliya, Ahmedabad

Appeals of the Revenue are dismissed

ITA 1132/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad30 Sept 2025AY 2018-19

Section 132Section 153CSection 250

…the credibility of the assessee's claim." 4) "In the facts and on the circumstances of the case and in law the Ld. CIT(A)had failed to consider the legal precedents, including the Judgement pronounced by the Hon'ble Supreme Court in Sumati Dayal v. CIT (1995) 214 ITR 801, wherein the Court held that the test of surrounding circumstances and human probabilities should be applied in the absence of direct evidence." 5) "The Revenue craves leave to add/alter/armed and/or substitute any or all of the grounds of appeal." 6. The brief facts relating to the case are that during the year under consideration, the appellan…

ACIT Central Circle 2(3) Ahmedabad, Ahmedabad vs. Arvindkumar Babulal Bambharoliya, Ahmedabad

Appeals of the Revenue are dismissed

ITA 1131/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad30 Sept 2025AY 2018-19

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

Section 132Section 153CSection 250

…the credibility of the assessee's claim." 4) "In the facts and on the circumstances of the case and in law the Ld. CIT(A)had failed to consider the legal precedents, including the Judgement pronounced by the Hon'ble Supreme Court in Sumati Dayal v. CIT (1995) 214 ITR 801, wherein the Court held that the test of surrounding circumstances and human probabilities should be applied in the absence of direct evidence." 5) "The Revenue craves leave to add/alter/armed and/or substitute any or all of the grounds of appeal." 6. The brief facts relating to the case are that during the year under consideration, the appellan…

ACIT Central Circle 2(3) Ahmedabad, Ahmedabad vs. Ashokkumar Babulal Bambharoliya, Ahmedabad

Appeals of the Revenue are dismissed

ITA 1130/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad30 Sept 2025AY 2018-19

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

Section 132Section 153CSection 250

…the credibility of the assessee's claim." 4) "In the facts and on the circumstances of the case and in law the Ld. CIT(A)had failed to consider the legal precedents, including the Judgement pronounced by the Hon'ble Supreme Court in Sumati Dayal v. CIT (1995) 214 ITR 801, wherein the Court held that the test of surrounding circumstances and human probabilities should be applied in the absence of direct evidence." 5) "The Revenue craves leave to add/alter/armed and/or substitute any or all of the grounds of appeal." 6. The brief facts relating to the case are that during the year under consideration, the appellan…

Purva, Hyderabad vs. ITO, Ward-8(1), Hyderabad

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

ITA 1220/HYD/2025[2017-18]Status: DisposedITAT Hyderabad30 Sept 2025AY 2017-18

Bench: Us:

Section 143(1)Section 143(2)Section 144Section 69A

…1 Purva, Hyderabad vs. ITO आयकर अपीलीय अिधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘SM’ Bench, Hyderabad "ी रवीश सूद, माननीय "ाियक सद" एवं "ी मधुसूदन साविडया, माननीय लेखा सद" SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A. No.1220/Hyd/2025 (िनधा"रणवष"/ Assessment Year: 2017-18) Purva, VS. Income Tax Officer, Hyderabad. Ward-8(1), PAN: AYDPP3100D Hyderabad. (अपीलाथ"/ Appellant) (""थ"/ Respondent) करदाताका"ितिनिध"/ : Smt. S. Sandhya, Advocate Assessee Represented by राज"का"ितिनिध"/ : Smt V. Koteshwaramma, Sr. Department Repre…

Setron Textile Mills Pvt Ltd, Mumbai vs. Income Tax Officer, Ward 4(3)(1), Mumbai

In the result the appeal filed by the assessee stands allowed

ITA 4847/MUM/2025[2014-15]Status: DisposedITAT Mumbai30 Sept 2025AY 2014-15

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 143Section 147Section 148

…hat the burden to prove the genuineness of a transaction, especially in cases where alleged manipulation or accommodation entries are suspected, lies on the assessee. In the case of CIT v. P. Mohankala [(2007) 291 ITR 278 (SC)] and Sumati Dayal v. CIT [(1995) 214 ITR 801 (SC)], the Apex Court has emphasized that in determining the genuineness of transactions, the test of human probability and surrounding circumstances must be applied. 5.2.3. Here, there is overwhelming evidence that the transactions lacked economic substance and were designed to create fictitious profits. There is no explanation from the appellan…

Mayank Naginbhai Patel, Vadodara vs. The Income Tax Officer, Ward-1(1)(3), Vadodara

In the result, the appeal of the assessee is allowed

ITA 768/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad26 Sept 2025AY 2017-18

Bench: Shri Siddhartha Nautiyal (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 143(3)Section 69A

…as wealth-tax records, valuation reports, or credible confirmation of gifts. The CIT(Appeals) placed reliance on various judicial precedents including the decisions of the Hon’ble Supreme Court in CIT v. Durga Prasad More (82 ITR 540) and Sumati Dayal v. CIT (214 ITR 801), and the CIT(A) applied the test of human probabilities and held that the explanation of the I.T.A No. 768/Ahd/2023 A.Y. 2017-18 Page No 4 Mayank Naginbhai Patel vs. ITO assessee was neither logical nor acceptable. Accordingly, the addition of Rs. 15,19,000/- made by the Assessing Officer under section 69A was confirmed and the appeal of the as…