Sumati Dayal v. CIT

214 ITR 801Supreme Court of India1995#12 most cited

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.

1,967

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2010 to 2026.

Also referred to as

Sumati Dayal v CIT · Section 68 · human probabilities · genuineness of transaction · true nature of transaction · accommodation entry · bogus capital gains · penny stock · look behind apparent form · preponderance of probability · colourable device · unexplained loans

Also reported as

80 Taxmann 89125 CTR 124

Sections most often in play

Section 68Section 143(3)Section 147Section 148Section 142(1)Section 115BBESection 69CSection 69A
Read the full judgment

Issues it is cited on

price riggingcolourable devicepreponderance of probabilitybogus ltcgpenny stocksection 10(38)entry operatoraddition under section 68addition u/s 68genuineness of the transactionaccommodation entryshare application money

Judgments citing Sumati Dayal v. CIT

Mr. Rohit Vallabhdas Shah, Mumbai vs. ITO Ward 32(3)(2), Mumbai

In the result, appeal of the assessee is dismissed

ITA 1910/MUM/2025[2010-11]Status: DisposedITAT Mumbai22 Sept 2025AY 2010-11

Bench: Shri Sandeep Gosain & Shri Girish Agrawalassessment Year: 2010-11 Rohit Vallabhdas Shah Income Tax Officer, B-303, Dwarka Apartment Ward 32(3)(2), Vs. Daulat Nagar, Borivali, Mumbai Mumbai – 400066 (Pan: Accps2392B) (Assessee) (Respondent) Present For: Assessee : Shri Gunjan Kakkad, Advocate Revenue : Shri Annavaram Kosuri, Sr. Dr Date Of Hearing : 22.07.2025 Date Of Pronouncement : 22.09.2025 O R D E R Per Girish Agrawal: This Appeal Filed By Assessee Is Against The Order Of Ld. Pcit-32, Mumbai, Vide Order Dated 25.03.2019 Passed Against The Assessment Order By Income Tax Officer, Ward-32(3)(2), Mumbai, U/S. 143(3) R.W.S. 147 Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), Dated 17.06.2016 For Assessment Year 2010-11. 2. Grounds Taken By The Assessee Are Reproduced As Under: 1. On The Facts & Circumstances Of The Case & In Law, The Learned Commissioner Of Income-Tax Has Erred In Setting Aside The Assessment Order By Exercising Powers Under Section 263 Of The Income-Tax Act, 1961 ("The Act"). 2. On The Facts & Circumstances Of The Case & In Law, The Learned Commissioner Of Income-Tax Failed To Appreciate That The View Of The Assessing Officer Could Have Been Substituted In Exercise Of Powers Under Section 263 Of The Act. 3. On The Facts & Circumstances Of The Case & In Law, The View Taken By The Assessing Officer Was A Plausible View & Thus, The Commissioner Has Erred In Invoking The Powers Under Section 263 Of The Act. 4. On The Facts & Circumstances Of The Case & In Law, The Commissioner Could Not Have Set Aside The Assessment Order.

For Appellant: Shri Gunjan Kakkad, AdvocateFor Respondent: Shri Annavaram Kosuri, Sr. DR
Section 133(6)Section 143(3)Section 147Section 148Section 263

…rent is not real. In this case enough material has been brought on record to show that the apparent is not real. Further 7 Rohit Vallabhdas Shah AY 2010-11 reliance is placed upon the decision Hon'ble Supreme Court in the case of Sumati Dayal vs. CIT (1995) 214 ITR 802 (SC). After going through the ratio of decisions as referred above, facts of the case, element of human probability and surrounding circumstances, it is noted that the appellant has failed to prove creditworthiness and genuineness of transaction in respect of bogus, purchases. The onus was upon the appellant to explain the source and nature of pu…

Goodluck Metal Corporation, Mumbai vs. Assessing Officer, Mumbai

In the result, the appeal of the assessee is dismissed

ITA 1771/MUM/2025[2009-10]Status: DisposedITAT Mumbai22 Sept 2025AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2009-10 Goodluck Metal Corporation, Assessing Officer Circle 19(1), 98, Khetwadi Main Road, Piramal Chamber, Mumbai-400 004. Vs. Mumbai-400012. Pan No. Aaafg 1441 R Appellant Respondent

For Respondent: Mr. Sanjiv Shah, Adv
Section 132Section 143(1)Section 147Section 153A

…circumstance, it would be very relevant and apt to rely on the judgment of Hon’ble would be very relevant and apt to rely on the judgment of Hon’ble would be very relevant and apt to rely on the judgment of Hon’ble Supreme Court in Sumati Dayal v. CIT [(1995) 214 ITR 801 (SC)], Supreme Court in Sumati Dayal v. CIT [(1995) 214 ITR 801 (SC)], Supreme Court in Sumati Dayal v. CIT [(1995) 214 ITR 801 (SC)], support the use of surrounding circumsta support the use of surrounding circumstances and material nces and material evidence in arriving at a conclusion. It would also be relevant to evidence in arriving at a con…

Usha Devi, Ghaziabad vs. ITO Ward 44(6), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 1233/DEL/2024[2017-18]Status: DisposedITAT Delhi19 Sept 2025AY 2017-18

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh[Assessment Year: 2017-18] Usha Devi, Ito, 30B/78, West Punjabi Bagh, Ward-44(6), Delhi-110026, Delhi. Vs Delhi. Pan- Aafpa1096H Assessee Revenue

Section 142(1)Section 143(2)Section 143(3)Section 69A

…e of Rs. 1,16,030/- 6 ITA No.- 1233/Del/2024 Usha Devi from house property income and income from other source cannot be held as a normal feature. The Ld. CIT(A) relied upon the decision of the Hon’ble Supreme Court in the case of Sumati Dayal vs. CIT [1995] 214 ITR 801(SC), and stated that while deciding any issue surrounding circumstances/ evidence and test of human probabilities should also be looked into and where the factual matrix is not commensurate with the human probabilities, additions cannot be deleted. The Ld. CIT(A) held that “In absence of any positive material to dislodge the findings of the AO, I…

Devenra Kumar Gupta, Rewa vs. ACIT, Circle Satna, Satna

In the result, the appeal of the assessee is allowed

ITA 38/JAB/2024[2017-18]Status: DisposedITAT Jabalpur18 Sept 2025AY 2017-18

Bench: Shri Kul Bharatassessment Year: 2017-18 Devendra Kumar Gupta V. Acit Circle Satna 17/304, Venkat Road, Ghoghar, Income Tax Office, Aaykar Rewa-486001. Bhawan, Civil Lines, Satna-485001. Pan: Ahapg6843Q (Appellant) (Respondent) Appellant By: Shri Sapan Usrethe, Advocate. Respondent By: Shri N.M. Prasad, Sr.Dr-1 Date Of Hearing: 16 09 2025 Date Of Pronouncement: 18 09 2025 O R D E R

For Appellant: Shri Sapan Usrethe, AdvocateFor Respondent: Shri N.M. Prasad, Sr.DR-1
Section 142(1)Section 143(1)Section 143(2)Section 68

…notes were left with no option but to deposit their unaccounted income in their bank accounts or stand losing the entire money. 5.4 It is relevant to mention here that the Hon‟ble Supreme Court in the case of Commissioner of Income-Tax vs. Durga Prasad More (214 ITR 801) held that human probability and circumstantial evidence has to be kept in mind to decide the genuineness of the transactions. The Hon'ble court observed that “Science has not yet invented any instrument to test the reliability of the evidence placed before a Court or Tribunal, Therefore the Courts and Tribunals have to judge the evidence before…

Indu Bansal, Karnal vs. DCIT, Central Circle, Karnal

In the result, the addition of Rs

ITA 2863/DEL/2024[2017-18]Status: DisposedITAT Delhi17 Sept 2025AY 2017-18

Bench: Shri Saktijit Dey & Shri Brajesh Kumar Singh[Assessment Year: 2017-18] Smt. Indu Bansal, Dcit, House No. L-506, Model Central Circle, Town, Karnal, Haryana- Vs Karnal. 132001. Pan- Ahopb3289R Assessee Revenue Assessee By Shri Ved Jain, Adv. & Shri Aman Garg, Ca Revenue By Shri Shravan Kumar Cit(Dr)

Section 132(4)Section 142(1)Section 143(3)Section 153CSection 69

…iminating document, i.e. the gift deed, was unambiguous and clear and was proving that the source of money for making gift was out of assessee’s own funds and placed reliance on the decision of Honorable Supreme Court in the case of Sumati Dayal vs CITA 1995, 214 ITR 802 (SC). Accordingly, the Ld. CIT(A) held that the amount 6 ITA No.- 2863/Del/2024 Smt. Indu Bansal of gift by the assessee to Shri Rajiv Bansal to the extent of Rs. 5,03,430/- was found to be explained and restricted the addition to Rs. 17,36,570/-, out of total addition of Rs. 22,40,000/- made by the AO in the Assessment Order. 4. Aggrieved with…

Deputy Commissioner of Income Tax, Central Circle 6(4), Mumbai vs. Prarambh Securities Private Limited, Gujarat

In the result, appeals of the Revenue are dismissed

ITA 3890/MUM/2025[2021-22]Status: DisposedITAT Mumbai11 Sept 2025AY 2021-22
Section 143(1)Section 143(3)Section 148Section 194Section 194CSection 194JSection 40

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.3890/Mum/2025 to 3892/Mum/2025 (Assessment Year :2021-22 to 2023-24) Deputy Commissioner Vs. Prarambh Securities of Income Tax, Central Private Limited Circle 6(4), Mumbai B 1901, Paarijat Eelat B/H. Iscon Temple Ambali-Bopal Road Ahmedabad Gujarat- 380059 Gujarat PAN/GIR No.AAOCS6411N (Appellant) .. (Respondent) Assessee by Shri Vijay Mehta, CA Revenue by Shri R.A. Dhyani, CIT DR Date of Hearing 10/09/2025 Date of Pronouncement 11/09/2025 आदेश / O R DER PER AMIT S…

Anusha Finvest Pvt Ltd, Jaipur vs. Assistant Commissioner of Income Tax Circle 1, Jaipur

In the result, the appeal of the assessee is allowed

ITA 985/JPR/2024[2010-2011]Status: DisposedITAT Jaipur10 Sept 2025AY 2010-2011

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. Saurav Harsh, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 142(1)Section 143(1)Section 143(2)Section 147Section 148

…orities are required to put on the blinkers while looking at the documents produced before them. They are also entitled to look into the surrounding circumstances to find out the reality. (CIT v Durga Prasad More (1971) 82 ITR 540 (SC) and Sumati Dayal v. CIT 214 ITR 801 (SC)) 4.13 It was held by the Hon'ble Mumbai ITAT in the case of [ITO v. Ninja Securities (P) Ltd. Date of Judgement: 15.05.2017 (ITAT Mumbai) that no 9 Anusha Finvest Pvt. Ltd. vs. ACIT protection was available if client code modifications are tainted with collusive action & manipulations In the case of Time Media & Entertainment LLP v. ITO Da…

Deputy Commissioner of Income Tax Central Circle 4 Surat, Surat vs. Kishorkumar Dhirajlal Kathrotiya, Surat

Accordingly, Ground No.12 is partly allowed

ITA 531/SRT/2023[2018-19]Status: DisposedITAT Surat08 Sept 2025AY 2018-19
Section 133ASection 143(3)Section 69C

…rther the Ld CIT(A) has erred in not considering Yusufali Abdul Ali case the theory of preponderance of human probability as pronounced by the Hon Apex Court in the cases of CIT v Durga Prasad More (1971) 82 ITR 540 and reiterated in Sumati Dayal v CIT (1995) 214 ITR 801 80 Taxman 89 (SC) 19) On the facts and in the circumstances of the case and in law, the Ld. CIT (A)- 4. Surat ought to have upheld the order of the Assessing Officer 20) It is, therefore, prayed that the order of the Ld. CIT (A) may be set aside and that the AO may be restored to the above extent 21) The appellant craves to add, amend, alter, sub…

Kishorkumar Dhirajlal Kathrotiya, Surat vs. DCIT, Central Circle-4, Surat

In the result the appeal filed by the Revenue in ITA No

ITA 476/SRT/2023[2018-19]Status: DisposedITAT Surat08 Sept 2025AY 2018-19
Section 133ASection 143(3)Section 69C

…rther the Ld CIT(A) has erred in not considering Yusufali Abdul Ali case the theory of preponderance of human probability as pronounced by the Hon Apex Court in the cases of CIT v Durga Prasad More (1971) 82 ITR 540 and reiterated in Sumati Dayal v CIT (1995) 214 ITR 801 80 Taxman 89 (SC) I.T.A. No. 476 & 531//SRT/2023 and Ors. Kishorkumar Dhirajlal Kathrotiya Vs. DCIT Α.Υ. 2018-19 and ors. 18 19) On the facts and in the circumstances of the case and in law, the Ld. CIT (A)- 4. Surat ought to have upheld the order of the Assessing Officer 20) It is, therefore, prayed that the order of the Ld. CIT (A) may be set…

Deputy Commissioner of Income Tax, Central Circle, 4, Surat vs. Kishorkumar Dhirajlal Kathrotiya, Surat

ITA 435/SRT/2023[2016-17]Status: DisposedITAT Surat08 Sept 2025AY 2016-17
Section 133ASection 143(3)Section 69C

…rther the Ld CIT(A) has erred in not considering Yusufali Abdul Ali case the theory of preponderance of human probability as pronounced by the Hon Apex Court in the cases of CIT v Durga Prasad More (1971) 82 ITR 540 and reiterated in Sumati Dayal v CIT (1995) 214 ITR 801 80 Taxman 89 (SC) 19) On the facts and in the circumstances of the case and in law, the Ld. CIT (A)- 4. Surat ought to have upheld the order of the Assessing Officer 20) It is, therefore, prayed that the order of the Ld. CIT (A) may be set aside and that the AO may be restored to the above extent 21) The appellant craves to add, amend, alter, sub…

Jhutha Ram Meena, Jaipur vs. Income Tax Officer, Jaipur

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

ITA 523/JPR/2025[2016-17]Status: DisposedITAT Jaipur08 Sept 2025AY 2016-17

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri S.K. Gogra, CAFor Respondent: Shri Gorav Avasthi, JCIT-DR
Section 142(1)Section 144Section 147Section 148Section 156Section 69

…was on assessee to show that amount which was sought to be treated as unexplained investment of assessee was that of partners and since assessee failed to discharge said onus, addition under section 69 was proper 6.8 In the case of Sumati Dayal v. CIT ((1995) 214 ITR 801 (SC)] the Apex Court held that evidence or surrounding circumstances must substantiate claims made by the assessee by holding as under- The transaction about purchase of winning ticket took place in secret and direct evidence about such purchase would be rarely available. An inference about such a purchase had to be drawnon the basis of the circu…

Dy. Commissiioner of Income-Tax, Central Circle-1, Visakhapatnam vs. Kavya Avenues LLP, Visakhapatnam

In the result, appeal of the revenue is dismissed

ITA 351/VIZ/2025[2021-22]Status: DisposedITAT Visakhapatnam04 Sept 2025AY 2021-22

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

Section 132Section 132(4)Section 142(1)Section 143(2)Section 143(3)

…e CIT(A) has erred in not considering these statements recorded at the time of Survey u/s 133A. 14. The Ld. CIT(A) is not justified in allowing relief to the assessee without applying the decision of Hon'ble Apex Court in the case of Sumati Dayal v CIT (1995) 214 ITR 801 (SC), wherein it was held that Surrounding circumstances and test of applying human probabilities "Though an apparent must be considered real until it was shown that there were reasons to believe that the apparent was not real in the case where a party relied on self-serving recitals in document, it was for that party to establish the truth of th…

Deputy Commissioner of Income-Tax Central Circle-1, Visakhapatnam vs. Venkanna Choudary Yarlagadda, Visakhapatnam

In the result, appeal of the revenue is dismissed

ITA 349/VIZ/2025[2021-22]Status: DisposedITAT Visakhapatnam04 Sept 2025AY 2021-22

Bench: Shri Duvvuru Rl Reddy, Hon'Ble&**

Section 132Section 133Section 143(3)

…T(A) has erred in not considering these statements recorded at the time of Survey u/s 133A.* - *12. The Ld. CIT(A) is not justified in allowing relief to the assessee without applying the decision of Hon'ble Apex Court in the case of Sumati Dayal v CIT (1995) 214 ITR 801 (SC), wherein it was held that Surrounding circumstances and test of applying human probabilities "Though an apparent must be considered real until it was shown that there were reasons to believe that the apparent was not real in the case where a* *party relied on self-serving recitals in document, it was for that party to establish the truth of…

DCIT, Circle - 5(1), Kolkata vs. Puffco Distributors Pvt Ltd, Kolkata

In the result, appeal of the revenue is dismissed

ITA 1340/KOL/2025[2010-11]Status: DisposedITAT Kolkata04 Sept 2025AY 2010-11

Bench: the Id. CIT(A), wherein the appeal of the assessee has been allowed and the Id.CIT(A) had directed to delete the addition of Rs.97 lakhs.4. Being aggrieved and dissatisfied with the order of the Id. CIT(A), the revenue is in appeal before the Tribunal by taking following grounds :- 1. Whether on facts and circumstances of the case and in law, the Ld CIT(A) erred in fact in holding that the A.O. has not brought anything on record which shows hat the appellant routed its own unaccounted money

For Appellant: Shri Arvind Agrawal, AdvocateFor Respondent: Shri S.B.Chakraborthy, Sr. DR
Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER आयकर अपील सं/ITA No.1340/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2010-2011) DCIT, Circle-5(1), Kolkata Vs M/s Puffco Distributors Pvt Ltd 5, Mangoe Lane, Suit No.306, 3rd Floor, Kolkata-700001 PAN No. :AABC 9974 E (अपीलधर्थी /Appellant) (प्रत्यर्थी / Respondent) .. निर्धाररती की ओर से /Assessee by : Shri Arvind Agrawal, Advocate रधजस्व की ओर से /Revenue by : Shri S.B.Chakraborthy, Sr. DR सुनवाई की तारीख / Date of Hearing : 25/08/2025 घोषणा की तारीख/Date of Pronounc…

Pavan Kumar Bhagat, Saharsa vs. ITO, Ward-3(4), Saharsa, Sahara

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

ITA 281/PAT/2024[2017-18]Status: DisposedITAT Patna02 Sept 2025AY 2017-18

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 115BSection 143(2)Section 144Section 147Section 148Section 250Section 37Section 69A

…IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH AT KOLKATA [Virtual Court] Before SHRI SONJOY SARMA, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 281/PAT/2024 Assessment Year: 2017-18 Pavan Kumar Bhagat ITO, Ward-3(4), Saharsa Vs. (Appellant) (Respondent) PAN: AMUPB8304J Appearances: Assessee represented by : Abhi Sarkar, Adv. Department represented by : Ashwani Kr. Singal, JCIT. Date of concluding the hearing : 23-July-2025 Date of pronouncing the order : 02-September-2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Commissione…

Ismail Abdulaziz Lakhani, Bhavnagar vs. ITO, Ward-1(1), Bhavnagar

In the result, appeal filed by the assessee is allowed

ITA 803/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad02 Sept 2025AY 2014-15

Bench: the same were transferred through registered broker, on the floor of the recognized stock exchange, after suffering Security Transaction Tax and ultimately settled through proper banking channel) as unaccounted income under Section 68 of the Act amounting to Rs.1,51,12,000/-.

For Appellant: Shri Sarju Mehta, A.RFor Respondent: Shri Sudhakar Verma, Sr. DR
Section 10(38)Section 132Section 133ASection 143(3)Section 147Section 148Section 250Section 68Section 69C

…nd the capital gain claimed by the assessee is to be held as non-genuine. Reliance in this ITA No. 803/Ahd/2025 [Ismail Abdulaziz Lakhani vs. ITO] A.Y. 2014-15 - 10 – regard is placed on the judgement of the Hon'ble Supreme Court in the case of Sumati Dayal (214 ITR 801) (SC) wherein the Supreme Court is held as under: "This, in our opinion, is a superficial approach to the problem, the matter has to be considered in the light of human probabilities. The observations by the Chairman of the Settlement Commission that "fraudulent sale of winning tickets is not an usual practice but is very much of an unusual pract…

Income Tax Officer, Ward-5(1), Kolkata vs. Expression Novelties Private Limited, Kolkata

In the result, the appeal filed by the Revenue is dismissed while the Cross Objections filed by the assessee are also dismissed as withdrawn

ITA 1351/KOL/2025[2017-18]Status: DisposedITAT Kolkata28 Aug 2025AY 2017-18

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 143(2)Section 143(3)Section 250Section 69A

…manner in which the allegation against the assessee has to be considered. 6. Whether on the facts and circumstances of the case, and in law, the Ld. CIT(A) has failed to appreciate the judicial principles laid down in the matter of Sumati Dayal v. CIT [1995] 214 ITR 801 (SC) and also in the matter of CIT Vs. Durga Prasad More 1973 CTR (SC) 500: [1971] 82 ITR 540 (SC). 7. It may be pleaded that although the tax effect in this case is below the prescribed monetary limit as per Circular No. 09/2024 dated 17.09.2024, yet appeal may be filed before the Hon'ble ITAT in view of the fact that the case falls under the ex…

Mr. Agnelo Socorro Joaquim Viegas, Panaji vs. Income Tax Officer, Ward - 1(5), Panaji

ITA 69/PAN/2025[2011-12]Status: DisposedITAT Panaji26 Aug 2025AY 2011-12

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 069/Pan/2025 & Sa 06/Pan/2025 Assessment Year : 2011-12 Agnelo Socorro Joaquim Viegas H. No. 373, Galliwaddo, Taleigao, Caranzalem, Goa-403002. Pan : Akapv9049C . . . . . . . Appellant V/S Income Tax Officer, Ward-1(5), Panaji, Goa. . . . . . . . Respondent Appearances Assessee By : Mr Vinesh Pikale [‘Ld. Ar’] Revenue By : Mr Sanket Deshmukh[‘Ld. Dr’] Date Of Conclusive Hearing : 21/08/2025 Date Of Pronouncement : 26/08/2025 Order Per G. D. Padmahshali; The Captioned Appeal Of The Assessee Impugns Din & Order No. Itba/Apl/S/250/2024-25/1073026397(1) Dt. 07/02/2025 Passed By Addl./Jt. Commissioner Of Income Tax, Appeals(2), Ahmedabad [‘Ld. Cit(A)’] U/S 250 Of The Income-Tax Act, 1961 [‘The Act’] Which In Turn Sprung Out Of Order Of Assessment Dt. 27/12/2018 Passed U/S 143(3) R.W.S. 147 Of The Act By The Income

For Appellant: Mr Vinesh Pikale [‘Ld. AR’]For Respondent: Mr Sanket Deshmukh[‘Ld. DR’]
Section 143(3)Section 147Section 148Section 246ASection 250Section 253(1)Section 44ASection 5ASection 69A

…Y: 2011-12 5. We also note that, in the first appellate proceedings, the appellant assessee was indifferent as a result the Ld. CIT(A) reaffirmed the addition by placing reliance on decision of Hon’ble Supreme Court in the case of ‘Sumati Dayal Vs CIT’ [1995, 214 ITR 801 (SC)]. 6. The appellant continued to reiterate his oral & bald submissions in the present proceedings as well but without necessary & convincing material so as to showcase to our slightest satisfaction that, cash deposits represents sales proceeds arisen from business (if any). In our view the burden of proof casted upon the appellant to prove n…

Praveen Sitaram Agarwal, Mumbai vs. Income Tax Officer, WD-24(3)(3), Mumbai

In the result, the appeal filed by the Revenue is dismissed

ITA 3454/MUM/2025[2014-15]Status: DisposedITAT Mumbai26 Aug 2025AY 2014-15

Bench: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHRI (Accountant Member)

Section 10(38)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 68Section 69C

…movement analysis, shell company involvement, and the appellant's own questionable investment pattern, which pointed towards a pre-arranged transaction rather than a genuine investment. The AO also relied on the Supreme Court's ruling in CIT v. Sumati Dayal (214 ITR 801 SC), which held that when human probabilities suggest that a transaction is not genuine, the burden shifts to the assessee to prove its authenticity. The appellant failed to explain why a company with no business operations and minimal financials would witness a 3,200% increase in stock price and why the appellant, as a rational investor, would p…

Income Tax Officer, Kolkata vs. Shivrashi Vanijya Private Limited, Kolkata

In the result, the appeal is hereby treated as allowed

ITA 1098/KOL/2025[2013-14]Status: DisposedITAT Kolkata25 Aug 2025AY 2013-14

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 143(3)Section 148Section 148(2)Section 253Section 68

…manner in which the allegation against the assessee has to be considered. 6. Whether on the facts and circumstances of the case, and in law, the Ld. CIT(A) has failed to appreciate the judicial principles laid down in the matter of Sumati Dayal v. CIT [1995] 214 ITR 801 (SC) and also in the matter of CIT Vs. Durga Prasad More 1973 CTR (SC) 500: [1971] 82 ITR 540 (SC). 7. The appellant prays that the tax effect in the instant case is 2,75,36,136/-, which is above the monetary limit prescribed by the CBDT Circular No. 9/2024 dated 17.09.2024 for filing appeals u/s 253 of the Act before the ITAT. Moreover, it is hu…