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 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 367,194 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 68 Section 143(3)Section 147 Section 148 Section 142(1)Section 115BBE Section 69C Section 69A

Read the full judgment

Issues it is cited on

price rigging colourable device preponderance of probability bogus ltcg penny stock section 10(38)entry operator addition under section 68 addition u/s 68 genuineness of the transaction accommodation entry share application money

Judgments citing Sumati Dayal v. CIT

Preeti Chirania, Mumbai vs. The Income Tax Officer Ward - 28(2)(4), Navi Mumbai

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

ITA 4245/MUM/2024[2012-13]Status: DisposedITAT Mumbai10 Dec 2024AY 2012-13

Bench: Shri Sandeep Gosain & Ms. Padmavathy Svs. Ito, Ward – 28(2)(4) Preeti Chirania 309, 3Rd Floor, Tower No. Flat No.3, 1St Floor, 6, Vashi Rly Stn., Mangesh Santa Durga Commercial Complex, Chs, Sector – 17, Nerul Vashi Navi Mumbai – 400 (E), Navi Mumbai – 400 703. 706. Pan/Gir No. Akbpc0636M (Applicant) (Respondent)

Section 148Section 234BSection 250Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & MS. PADMAVATHY S, ACCOUNTANT MEMBER Vs. ITO, Ward – 28(2)(4) Preeti Chirania 309, 3rd Floor, Tower No. Flat No.3, 1st Floor, 6, Vashi Rly Stn., Mangesh Santa Durga Commercial Complex, Chs, Sector – 17, Nerul Vashi Navi Mumbai – 400 (E), Navi Mumbai – 400 703. 706. PAN/GIR No. AKBPC0636M (Applicant) (Respondent) Assessee by Ms. Ritu Kamal Kishore Revenue by Shri Ramakrishna Bandi, CIT(DR) सुनवाई क" तारीख/Date of Hearing 06.11.2024 घोषणा क" तारीख/Date of Pronouncement 10.12.2024 आदेश / ORDER PER SANDEEP GOSAIN, JM:…

Shri Rajesh Bhavarlal Jain, Mumbai vs. Incometax Officer 21(3)(1), Mumbai

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

ITA 3605/MUM/2024[2011-12]Status: DisposedITAT Mumbai09 Dec 2024AY 2011-12

Bench: Shri Amarjit Singh & Shri Sunil Kumar Singhassessment Year: 2011-12

For Appellant: Shri Nisheeth DoshiFor Respondent: Shri R.R. Makwana, Sr. DR

Section 143(3)Section 234ASection 274Section 69C

…t evidence of purchases, in light of the overwhelming evidence the revenue authorities cannot put upon blinkers and accept these purchases as genuine. This proposition is duly supported by Hon'ble Apex Court decision in the case of Sumati Dayal vs. CIT [1995] 214 ITR 801 (SC) and CIT vs. Durga Prasad More [1971] 82 ITR 540 (SC). In the present case the assessee wants that the unassailable fact that the suppliers are non-existent and thus bogus should be ignored and only the documents being produced should be considered. This proposition is totally unsustainable in light of above apex court decisions. 17. In thes…

ITO, Ward-43(1), Delhi, New Delhi vs. Mobi Tradelink, Najafgarh, Delhi

Appeal is dismissed

ITA 3520/DEL/2024[2017-18]Status: DisposedITAT Delhi06 Dec 2024AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri M. Balaganeshassessment Year: 2017-18 Income Tax Officer, Vs. Mobi Tradelink, Ward-43(1), B-7/108, West Side, Delhi Najafgarh Park, Najafgarh, Delhi Pan :Aayfm6468L (Appellant) (Respondent) Assessee By None Department By Sh. B.S. Anand, Sr. Dr

Section 115BSection 143(3)Section 68

…hat it was the assesee’s onus only to plead and prove all the relevant facts by satisfying the genuineness/creditworthiness of its explanation tendered during scrutiny as per PCIT v. NRA Iron & Steel Pvt. Ltd (2019) 412 ITR 161 and Sumati Dayal Vs. CIT (1995) 214 ITR 801 (SC). We find no merit in the Revenue’s instant former substantive ground once it has come on record that the assessee had duly explained the source of these cash deposits to regular trading activity in electronics business etc. by filing all the relevant details, 6 | P a g e which have gone unrebutted from departmental side. The Revenue fails in…

Dy. Commissioner of Income Tax, Central Circle, Meerut vs. Smt. Kamlesh, Delhi

Appeal is dismissed

ITA 2152/DEL/2024[2014-15]Status: DisposedITAT Delhi06 Dec 2024AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri M. Balaganeshassessment Year: 2014-15 Dcit, Vs. Smt. Kamlesh, Central Circle, 1402/1403, Vidhyanchal Meerut Tower, Kaushambi, Ghaziabad Pan :Akypk3905E (Appellant) (Respondent) Assessee By Sh. Rohit Agarwal, Ca Department By Ms. Jaya Choudhary, Cit(Dr)

Section 153ASection 56(2)(vi)Section 68

…10.2023 and 05.12.2023, not making any adverse comment thereupon during verification process. This clinching fact has gone unrebutted from the departmental side before us. 7. Learned Departmental Representative at this stage quotes Sumati Dayal Vs. CIT (1995) 214 ITR 801 (SC), CIT Vs. Durga Prasad More (1971) 82 ITR 540 (SC) and PCIT Vs. NRA Iron & Steel Co. (2019) 412 ITR 161 (SC) that it was the assessee’s bounden 13 | P a g e duty only to plead and prove all the relevant facts explaining identity, genuineness and creditworthiness, which she failed to discharge. 8. We find no merit in the Revenue’s instant for…

Gyan Prakash Gupta, New Delhi vs. ITO Ward-10(4), New Delhi

In the result, the Assessee’s appeal is dismissed

ITA 6271/DEL/2019[2015-16]Status: HeardITAT Delhi05 Dec 2024AY 2015-16

Bench: Shri Shamim Yahya & Shri Yogesh Kumar Usa.Yr. : 2015-16 Gyan Prakash Gupta, Vs. Ito, Ward 10(4), B-189, Yojna Vihar, New Delhi – 2 New Delhi – 92 (Pan: Adupg2697N) (Appellant) (Respondent)

For Appellant: NoneFor Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR

…of evidence, but, in the sphere, the decision of the final fact finding authority is made conclusive by law." The above ratio laid down by the Hon'ble Supreme Court has been reiterated and applied by the Hon'ble Apex Court in the case of Sumati Dayal vs. CIT 214 ITR 801 (S.C). It is essential on the part of the Assessing Officer to look into the real nature of transaction and what happens in the real world and contextualize the same to such transactions in the real market situation. It is pertinent to state here, the wisdom of the Hon'ble Supreme Court in CIT vs. Arvinda Raju (TN) (1979) 120 TR 46 (S.C) wherein…

A Kheni Developer Private Limited, Mumbai vs. Income Tax Officer, 12(1)(1), Mumbai

ITA 1878/MUM/2024[2013-2014]Status: DisposedITAT Mumbai02 Dec 2024AY 2013-2014

Bench: Shri Amarjit Singhshri Sandeep Singh Karhail

For Appellant: Shri V.P. KothariFor Respondent: Shri Ram Krishna Kedia, Sr.DR

Section 132Section 132(4)Section 133(6)Section 142(1)Section 143(2)Section 143(3)Section 250Section 68

…“4. I have examined the rival contentions, perused the materials on record and the case laws relied on by the appellant and the Assessing Officer. The Hon'ble Apex Court in the case of CIT vs Durga Prasad More 82 ITR 540 and in the case of Sumati Dayal vs CIT 214 ITR 801 has expounded that revenue authorities are also supposed to consider the surrounding circumstances and apply the test of human probability. In these cases the transactions though apparent were held to be not real ones. 4.1. Section 68 of the Act stipulates that when there is credit of amounts in the books maintained by an assessee during the prev…

Assistant Commissioner of Income Tax, Cuddalore vs. Cholaji Kanniyalal, Kamaraj Street, Villupuram

In the result, appeal filed by the revenue is dismissed and cross objection filed by the assessee is dismissed

ITA 1674/CHNY/2024[2017-18]Status: DisposedITAT Chennai28 Nov 2024AY 2017-18

Bench: Shri S.S. Viswanethra Ravi, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकरअपीलसं./Ita No.: 1674/Chny/2024 & Co No.: 51/Chny/2024 िनधा"रणवष" / Assessment Year: 2017-18 Assistant Commissioner Of Cholaji Kanniyalal, Income Tax, V. No. 191, Kamaraj Street, Circle -1, Villupuram, Cuddalore – 607 002. Tamil Nadu – 605 602. [Pan: Aaepk-4555-E] (अपीलाथ"/Appellant) (Respondent/Cross Objector) Assessee By : Ms. Gouthami Manivasagam, Jcit Department By : Ms. Nidhi D. Jain, Ca सुनवाई की तारीख/Date Of Hearing : 02.09.2024 घोषणा की तारीख/Date Of Pronouncement : 28.11.2024

For Appellant: Ms. Gouthami Manivasagam, JCITFor Respondent: Ms. Nidhi D. Jain, CA

Section 139(1)Section 44ASection 68

…-3-: ITA. No: 1674/Chny/2024 & CO No: 51/Chny/2024 into the books of account of the assessee. The "Human Probability Test" were laid down in the case of CIT Vs Durga Prasad More (1972) 82 ITR 540 (SC) and followed by in the case of Surati Dayal Vs CCIT(l995) 214 ITR 801 (SC). For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer be restored.” 3. The brief facts of the case are that the assessee is an individual running a jewellery business in the name of Kanya Ramesh 916 Nagai Maligai. The assessee had…

Mohan Lal Ashok Kumar Saraf, Jaipur vs. DCIT Cen Cir 1, Jaipur

In the result, the appeal of the assessee is allowed as indicated hereinabove

ITA 879/JPR/2024[2017-2018]Status: DisposedITAT Jaipur28 Nov 2024AY 2017-2018

For Appellant: Shri Ankit Totuka, AdvocateFor Respondent: Ms. Alka Gautam, CIT-DR

Section 143(3)Section 68

…being swayed by the not so convincing, but apparently in order, statements and letters and examining them, in a pedantic manner, with the blinkers on. The same has been the approach adopted by Hon'ble Supreme Court, in the case of Sumati Dayal Vs CIT ((1995) 214 ITR 801 (SC)) wherein Their Lordships have, inter alia, disapproved acceptance of a claim of winning the appellant claims to have won in horse races a total amount of Rs. 3,11,831 on 13 occasions out of which 10 winnings were from Jackpots and 3 were from Treble events by Chairman of the Income Tax Settlement Commission, and observed that "This, in our o…

Rathod Jewellers, Pune vs. ACIT, Central Circle -2(3), Pune

In the result, appeal of the assessee is dismissed

ITA 1385/PUN/2024[2017-18]Status: DisposedITAT Pune25 Nov 2024AY 2017-18

Bench: Shri Rama Kanta Panda & Ms. Astha Chandra

For Appellant: Shri Suhas BoraFor Respondent: Shri Arvind Desai, Addl CIT DR

Section 131Section 143(2)Section 143(3)Section 147Section 148Section 68

…n and what happens as the real word and contextualize the same to such transactions in the real market situation in the light of the judgments of the Hon'ble Apex Court. We may here refer to the decision(s) of the Hon'ble Supreme Court in Sumati Dayal vs. CIT 214 ITR 801 (SC) which laid down the "test of human probabilities" for drawing inference where chances of discovering direct and clinching evidence are remote Also, on the issue of circumstantial evidence and in the matters related to the discharge of proof and the relevance of surrounding circumstances of the case, the Hon'ble Supreme Court in the case of C…

DCIT Central Circle 4(3), Mumbai vs. Vardha Enterprises Private Limited, Mumbai

In the result, appeal of the revenue vide ITA Nos

ITA 3142/MUM/2023[2017-18]Status: DisposedITAT Mumbai22 Nov 2024AY 2017-18

Bench: Shri Narender Kumar Choudhry & Shri Amarjit Singh

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ankush Kapoor, CIT/DR

Section 132Section 153CSection 37Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “F”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA Nos.3142, 3140 & 3141/Mum/2023 Assessment Year: 2017-18, 2020-21 & 2021-22 DCIT, Central Circle 4(3), Vardha Enterprises Private Mumbai Limited vs. 103, Shantivan 2A, Raheja Township Malad (E) Mumbai- 400097. PAN: AACCV 6065 D (Appellant) (Respondent) ITA Nos.2435, 2436, 2439 & 2437/Mum/2023 Assessment Year: 2017-18, 2020-21 & 2021-22 Vardha Enterprises Private DCIT/ACIT, Central Limited Circle 4(3), Mumbai 103, Shantivan 2A, Raheja vs. Township…

DCIT Central Circle 4(3), Mumbai vs. Vardha Enterprises Private Limited, Mumbai

In the result, appeal of the revenue vide ITA Nos

ITA 3141/MUM/2023[2021-22]Status: DisposedITAT Mumbai22 Nov 2024AY 2021-22

Bench: Shri Narender Kumar Choudhry & Shri Amarjit Singh

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ankush Kapoor, CIT/DR

Section 132Section 153CSection 37Section 69C

DCIT Central Circle 4(3), Mumbai vs. Vardha Enterprises Private Limited, Mumbai

In the result, appeal of the revenue vide ITA Nos

ITA 3140/MUM/2023[2020-21]Status: DisposedITAT Mumbai22 Nov 2024AY 2020-21

Bench: Shri Narender Kumar Choudhry & Shri Amarjit Singh

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ankush Kapoor, CIT/DR

Section 132Section 153CSection 37Section 69C

Vardha Enterprises Private Limited, Mumbai vs. ACIT, Central Circle- 4(3), Mumbai

In the result, appeal of the revenue vide ITA Nos

ITA 2439/MUM/2023[2017-18]Status: DisposedITAT Mumbai22 Nov 2024AY 2017-18

Section 132Section 153CSection 37Section 68Section 69C

…2 ITA Nos.3142, 3140 & 3141/Mum/2023 & ITA Nos. 2435, 2436, 2439 & 2437/Mum/2023 Vardha Enterprises Private Limited ITA 3142/Mum/2023 (Revenue Appeal) 2. Fact in brief is that a search and survey action u/s 132) of the Act was carried out on 13.07.2020 on the Triton Group including the assessee. The promoters and key persons of the Triton Group were Shri Shivshankar Sharma and Shri Ratankant Sharma (son) A notice u/s 153C of the Act was issued and served upon the assessee. In response, the assessee filed the return of income on 08.11.2021 declaring total income at Rs. Nil. The assessee was engaged in the business…

Vardha Enterprises Private Limited, Mumbai vs. DCIT, Central Circle- 4(3), Mumbai

In the result, appeal of the revenue vide ITA Nos

ITA 2437/MUM/2023[2021-22]Status: DisposedITAT Mumbai22 Nov 2024AY 2021-22

Bench: Shri Narender Kumar Choudhry & Shri Amarjit Singh

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ankush Kapoor, CIT/DR

Section 132Section 153CSection 37Section 69C

Vardha Enterprises Private Limited, Mumbai vs. ACIT, Central Circle- 4(3), Mumbai

In the result, appeal of the revenue vide ITA Nos

ITA 2436/MUM/2023[2016-17]Status: DisposedITAT Mumbai22 Nov 2024AY 2016-17

Bench: Shri Narender Kumar Choudhry & Shri Amarjit Singh

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ankush Kapoor, CIT/DR

Section 132Section 153CSection 37Section 69C

Vardha Enterprises Private Limited, Mumbai vs. ACIT Central Circle-4(3), Mumbai

In the result, appeal of the revenue vide ITA Nos

ITA 2435/MUM/2023[2020-21]Status: DisposedITAT Mumbai22 Nov 2024AY 2020-21

Bench: Shri Narender Kumar Choudhry & Shri Amarjit Singh

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ankush Kapoor, CIT/DR

Section 132Section 153CSection 37Section 69C

M/S Swift Vintrade Pvt. Ltd., Kolkata vs. CIT, Kolkata-1I, Kolkata

In the result, the appeal of the assessee is dismissed

ITA 1032/KOL/2014[2009-2010]Status: DisposedITAT Kolkata21 Nov 2024AY 2009-2010

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishraassessment Year: 2009-10

For Appellant: N o n eFor Respondent: Shri A. Kundu, CIT, DR

Section 143Section 148Section 263

…and all of them file request for re-opening the assessment within a short span of time. All these circumstances clearly indicate that what is apparent is probably not real and it needs further examination. The Apex court in the case of Sumati Dayal –vs- CIT [214 ITR 801] held that the true nature of a transaction has to be ascertained in the light of surrounding circumstances. Thus, it is now well settled that tax authorities are entitled to look into surrounding circumstances to find out the reality of a transaction by applying the test of human probability. This order under section 263 in this case and in many…

Siliconn Infracon Pvt. Ltd., Kolkata vs. DCIT, Cen. Cir. 4(4), Kolkata

ITA 53/KOL/2024[2013-14]Status: DisposedITAT Kolkata18 Nov 2024AY 2013-14

Bench: The Ld. Ao. The Single Grievance That Arises From The

Section 143(3)Section 250

…hat under the facts and in the circumstances of the case, Ld. CIT(A) erred in upholding the view taken by the Ld. AO ignoring the decisions passed the Hon'ble Apex Court in the case of CIT Vs Durga Prasad More 82 ITR 540 and in the case of Sumati Dayal vs CIT 214 ITR 801 where revenue authorities are also supposed to consider the surrounding circumstances and apply the test of human probability 4. That the appellant craves leave to add, alter, amend or withdraw any ground or grounds of appeal before or at the time hearing.” 2. Before us, the Ld. AR argued that once it was established, and accepted by the authorit…

Assistant Commissioner of Income Tax Central Circle1-(1), Hyderabad vs. Anand'S Gold Private Limited, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 100/HYD/2021[2017-18]Status: DisposedITAT Hyderabad13 Nov 2024AY 2017-18

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.100/Hyd/2021 (निर्धारण वर्ा/Assessment Year: 2017-18) Acit Vs. Anand’S Gold Private Central Circle-1(1) Limited Hyderabad Hyderabad [Pan : Aabcu0225F] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri Shashank Dundu, Ar रधजस् व द्वधरध/Revenue By:: Shri Shiva Sewak, Cit, Dr सुिवधई की तधरीख/Date Of Hearing: 29/10/2024 घोर्णध की तधरीख/Pronouncement: 13/11/2024 आदेश / Order Per. Manjunatha G., A.M: This Appeal Filed By The Revenue Is Directed Against The Order Dated 11/11/2020 Of The Learned Commissioner Of Income Tax (Appeals) [Learned Cit(A)] Relating To A.Y.2017-18. 2. Brief Facts Of The Case Are That The Assessee Company Is Engaged In The Business Of Trading In Bullion & Gold Jewellery & Other Precious Metals. The Assessee Has Filed Return Of Income For The A.Y.2017-18 On 31/10/2017, Declaring Total Income Of Rs.1,54,546/-. The Case Was Selected For Scrutiny & During The Course Of Assessment Proceedings, The Assessing

For Appellant: Shri Shashank Dundu, ARFor Respondent: : Shri Shiva Sewak, CIT, DR

Section 68

…alance during demonetization period when compared to earlier period is against human probability and therefore, by following the decisions of Hon'ble Supreme Court in the case of CIT Vs. Durga Prasad More (1971) 82 ITR 540 (SC) and Sumati Dayal Vs. CIT (1995) 214 ITR 801(SC) held that the assessee could not explain the source for cash deposit into bank account during the demonetization period amounting to Rs.16.24 crores and thus, by taking note of the fact that the assessee has declared Rs.50,00,000/- under the PMGKY, the balance amount of Rs.15.74 crores cash deposited into bank account has been treated as unex…

ITO-41(4)(1), Mumbai, Bandra (East) vs. Chirania Trading LLP, Goregaon (East)

ITA 993/MUM/2024[2014-15]Status: DisposedITAT Mumbai30 Oct 2024AY 2014-15

Bench: SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Jay BhansaliFor Respondent: Shri H. M. Bhatt/Shri Raj Singh

Section 10(38)Section 143(3)Section 68

…, the Assessing Officer rejected the claim for exemption made by the Assessee under Section 10(38) of the Act in the return of income relying upon the findings of the Investigation wing and the theory of probability [as propounded in the case of Sumati Dayal (214 ITR 801) (SC) and the C.O. No. 39/Mum/2024 Assessment Year: 2012-13, 2014-15 & 2015-16 case of Durga Prasad More (82 ITR 540) (SC)]. The Assessing Officer, thus, made addition of INR 14,71,89,021/- under Section 68 of the Act holding the entire the proceeds raising from sale of shares of KDJH as unexplained cash credit. The Assessing Officer also made a…