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)

Dipak Balubhai Patel - HUF, Ahmedabad vs. The Income Tax Officer, Ward-5(3)(1), Ahmedabad

In the result, the appeal filed by the Assessee is allowed

ITA 942/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad22 Aug 2024AY 2017-18

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 115BSection 143(3)Section 69A

…e need of frequent withdrawals of Rs.5000 and Rs. 10,000. Nobody can prove the appellant's intentions other than himself but this is a clear instance where the decisions in the cases of CIT v. Durga Prasad More (1971) 82 ITR 540 and Sumati Dayal v. CIT (1995) 214 ITR 801 can be applied where the Supreme Court has laid down Human Probability test as one of the important test in order to check genuineness of the transactions entered into the books of account of the assesses. The Apex court stated that, I.T.A No. 942/Ahd/2023 A.Y. 2017-18 Page No 4 Dipak Balubhai Patel-HUF vs. ITO taxing authorities were not requi…

Magestic Vyapaar Pvt. Ltd., Kolkata vs. ITO, Ward11(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 902/KOL/2024[2014-15]Status: DisposedITAT Kolkata22 Aug 2024AY 2014-15

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 131Section 133(6)Section 142(1)Section 143(3)Section 68

…s are entitled to look into the surrounding circumstances to find out the reality and the matter has to be considered by applying the test of human probability besides relying on the decision of Hon’ble Supreme court in the case of Sumati Dayal vs. CIT [1995] 214 ITR 801 (SC) and PCIT vs. NRA Iron & Steel Pvt. Ltd. (2019) 412 ITR 161 and finally dismissed the appeal of the assessee. 5. The Ld. A.R vehemently submitted before us in this case the notices were issued to the group companies ,who subscribed the equity shares ,having common directors as has been noted by the AO in the assessment order on the very firs…

Shailesh Subodhchandra Jhaveri, Ahmedabad vs. The Dy.CIT, Central Circle-1(1), Ahmedabad

In the result, the appeal of the assessee is dismissed for both the year under consideration

ITA 16/AHD/2024[2012-13]Status: DisposedITAT Ahmedabad21 Aug 2024AY 2012-13

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar

For Appellant: Shri Deeapk Shah, A.RFor Respondent: Shri Ashok Kumar Suthar, Sr. DR

….2,00,43,500/- chargeable to tax has escaped assessment within the meaning of section 147 of the Act by reason of the failure of the assessee to disclose fully and truly all material facts necessary for assessment.” In the case of Sumati Dayal vs. Ld. CIT(A) 214 ITR 801 (SC), the 11. Hon’ble Supreme Court has stressed upon the surrounding circumstances and application of test of human probabilities in the given set of facts in the following words:- “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 p…

Shailesh S. Jhaveri, Ahmedabad vs. The Dy.CIT, Cent. Circle-1(1), Ahmedabad

In the result, the appeal of the assessee is dismissed for both the year under consideration

ITA 15/AHD/2024[2012-13]Status: DisposedITAT Ahmedabad21 Aug 2024AY 2012-13

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar

For Appellant: Shri Deeapk Shah, A.RFor Respondent: Shri Ashok Kumar Suthar, Sr. DR

….2,00,43,500/- chargeable to tax has escaped assessment within the meaning of section 147 of the Act by reason of the failure of the assessee to disclose fully and truly all material facts necessary for assessment.” In the case of Sumati Dayal vs. Ld. CIT(A) 214 ITR 801 (SC), the 11. Hon’ble Supreme Court has stressed upon the surrounding circumstances and application of test of human probabilities in the given set of facts in the following words:- “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 p…

Shailesh Subodhchandra Jhaveri, Ahmedabad vs. The Dy.CIT, Central Circle-1(1), Ahmedabad

In the result, the appeal of the assessee is dismissed for both the year under consideration

ITA 14/AHD/2024[2011-12]Status: DisposedITAT Ahmedabad21 Aug 2024AY 2011-12

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar

For Appellant: Shri Deeapk Shah, A.RFor Respondent: Shri Ashok Kumar Suthar, Sr. DR

….2,00,43,500/- chargeable to tax has escaped assessment within the meaning of section 147 of the Act by reason of the failure of the assessee to disclose fully and truly all material facts necessary for assessment.” In the case of Sumati Dayal vs. Ld. CIT(A) 214 ITR 801 (SC), the 11. Hon’ble Supreme Court has stressed upon the surrounding circumstances and application of test of human probabilities in the given set of facts in the following words:- “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 p…

Brahmar Cellulose Products Private Limited, Chennai vs. Deputy Commissioner of Income Tax, Chennai

In the result, the appeal filed by the assessee dismissed

ITA 189/CHNY/2024[2012-13]Status: DisposedITAT Chennai21 Aug 2024AY 2012-13

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. No.189/Chny/2024 िनधा"रण वष"/Assessment Years: 2012-13 Brahmar Cellulose Products Private Vs. The Deputy Commissioner Of Limited, Ameen Manors, S1 & S2, Income Tax, Second Floor, B Block, No. 138, Corporate Circle 1(2), Nungambakkam High Road, Chennai. Chennai 600 034. [Pan: Aadcb3888M] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : None ""थ" की ओर से/Respondent By : Ms. R. Anita, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 06.08.2024 घोषणा की तारीख /Date Of Pronouncement : 21.08.2024 आदेश /O R D E R

For Appellant: NoneFor Respondent: Ms. R. Anita, Addl. CIT

Section 143(3)Section 148

…bility of the evidence placed before a court or tribunal. Therefore, the courts and Tribunals have to judge the evidence before them by applying the test of human probabilities". 9.2.10 Similarly, in a later decision in the case of Sumati Dayal v. CIT [(1995) 214 ITR 801 (SC)), Hon'ble Supreme Court rejected the theory that it is for alleger to prove that the apparent is not real, and observed that, "This, in our opinion, is a superficial approach to the problem. The matter has to be considered in the light of human probabilities. Similarly the observation that if it is alleged that these tickets were obtained th…

Decent Industries P. Ltd., Bhopal vs. ITO-1(2), Bhopal

Appeal is partly allowed

ITA 356/IND/2023[2012-13]Status: DisposedITAT Indore20 Aug 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani(Virtual Hearing) Assessment Year: 2012-13 M/S Decent Industries Ito-1(2), Private Ltd, Bhopal 5Th Floor, Corporate Park, बनाम/ Db City Area Hills, Vs. Opp. M.P. Nagar Zone I, Bhopal (Assessee/Appellant) (Revenue/Respondent) Pan: Aaeca6271G Assessee By Ms. Shilpa Gupta & Shri N.K. Gupta Revenue By Shri V.K. Singh, Cit-Dr Date Of Hearing 04.06.2024 Date Of Pronouncement 20.08.2024

Section 133ASection 143(2)Section 147Section 148Section 14ASection 68

…Further, the AO observed that the assessee had issued shares of Rs. 10/- each at a premium of Rs. 990/- without justifying such high premium. (v) Thereafter, in Para 7, the AO has taken into account the decisions of Hon’ble Apex Court in Durga Prasad More 214 ITR 801, Sumati Dayal 80 Taxmann 89, McDowell Vs. CTO and Hon’ble Delhi High Court in NR Portfolio 2014 42 Taxmann.com 339 and finally, vide Para 8, made addition. Page 19 of 44 M/s Decent Industries Pvt. Ltd ITA No. 356/Ind/2023 – AY 2012-13 14. The Ld. DR relied heavily upon PCIT Vs. BST Infra (2024) 161 Taxmann.com 668 (Calcutta), PCIT Vs. Swat…

Manohar Lal Chugh, Jaipur vs. ITO, Ward 6(1), Jaipur

In the result, the appeal of the assessee is allowed with no order as to costs

ITA 505/JPR/2023[2011-12]Status: DisposedITAT Jaipur20 Aug 2024AY 2011-12

Bench: SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri Sanjay Godha, CAFor Respondent: Mrs. Monisha Choudhary, Addl. CIT-DR

Section 10(38)Section 147Section 68Section 69C

…t and it is a manipulated transaction in collusion with the brokers to paint creditworthiness to the transaction and claim exemption u/s 10(38). This is in accordance with the ratio laid by the Hon'ble Apex Court in Sumati Dayal Vs Commissioner Of Income-Tax, 214 ITR 801 (SC), that the apparent must be considered the real until it is shown that there are reasons to believe that the apparent is not the real and that the taxing authorities are entitled to look into the surrounding circumstances to find out the reality and the matter has to be considered by applying the test of human probabilities. 7.14 In view of t…

Income Tax Officer Ward 23(2)(6), Mumbai vs. Manisha Narpatkumar Chopra, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 2443/MUM/2023[2015-16]Status: DisposedITAT Mumbai20 Aug 2024AY 2015-16

Bench: Justice (Retd.) Shri C.V. Bhadang & Shri B.R. Baskaran: A.Y : 2015-16

For Appellant: Ms. Ridisha JainFor Respondent: Smt. Mahita Nair, Sr.DR

Section 10(38)Section 131Section 143(1)Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORE JUSTICE (RETD.) SHRI C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : A.Y : 2015-16 Income Tax Officer, Vs. Manisha Narpatkumar Chopra, Ward-23(2)(6), Flat No. 1701, OG II, Earnest House, Nariman Point, Oberoi Garden,Thakur Village Mumbai. off WE Highway, (Appellant) Kandivali (E), Mumbai. PAN : ACTPC4078P (Respondent) Assessee by : Ms. Ridisha Jain Revenue by : Smt. Mahita Nair, Sr.DR Date of Hearing : 09/07/2024 Date of Pronouncement : 20/08/2024 O R D E R PER B.R. BASKARAN, A.M : The Revenue has filed this appeal cha…

Income Tax Officer, Ward-1, Ahmednagar vs. Narendra Sampatlal Bafna, Ahmednagar

In the result, the appeal filed by the Revenue and the CO filed by the assessee are dismissed

ITA 688/PUN/2024[2017-18]Status: DisposedITAT Pune19 Aug 2024AY 2017-18

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2017-18

For Appellant: Shri Prasad BhandariFor Respondent: Shri Keyur Patel, CIT

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

…IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER Assessment Year : 2017-18 ITO, Ward-1, Ahmednagar Narendra Sampatlal Bafna Bafna Tyre and Auto, Vs. Ujwal Complex, Station Road, Ahmednagar – 414001 PAN: AAVPB7561N (Appellant) (Respondent) CO No.25/PUN/2024 Assessment Year : 2017-18 Narendra Sampatlal Bafna ITO, Ward-1, Ahmednagar Bafna Tyre and Auto, Vs. Ujwal Complex, Station Road, Ahmednagar – 414001 PAN: AADCV5473G (Cross Objector) (Respondent) Assessee by : Shri Prasad Bhandari Department by : Shri Keyur Patel, CIT…

Pawan Gupta, Kota vs. ITO Ward 1(3) Kota, Kota

ITA 252/JPR/2024[2012-13]Status: DisposedITAT Jaipur07 Aug 2024AY 2012-13

For Appellant: Shri Rajendra Sisodia AdvFor Respondent: Shri Rajesh Kumar Meena, Addl. CIT-DR

Section 10(38)Section 143(3)Section 148Section 68Section 69C

…ction of Hon'ble Rajasthan High Court are bound by the decision of Hon'ble Rajasthan High Court. 1.26The Ld.CIT(A) has heavily relied on the tests of human probability in confirming the addition, referring to the decisions in the case of Sumati Dayal vs. CIT (214 ITR 801) Reliance placed by him on the decision of the Apex Court in the case of Sumati Dayal (supra) is wholly misplaced. In that case, the assessee therein had claimed income from horse races and the finding of fact recorded was that the assessee therein had not participated in races, but purchased winning tickets after the race, with the unaccounted m…

Madan Mohan Gupta, Kota vs. ITO Ward 1(3), Kota

ITA 246/JPR/2024[2012-13]Status: DisposedITAT Jaipur07 Aug 2024AY 2012-13

For Appellant: Shri Rajendra Sisodia AdvFor Respondent: Shri Rajesh Kumar Meena, Addl. CIT-DR

Section 10(38)Section 143(3)Section 148Section 68Section 69C

…tion of Hon'ble Rajasthan High Court are bound by the decision of Hon'ble Rajasthan High Court. 1.26 The Ld.CIT(A) has heavily relied on the tests of human probability in confirming the addition, referring to the decisions in the case of Sumati Dayal vs. CIT (214 ITR 801) Reliance placed by him on the decision of the Apex Court in the case of Sumati Dayal (supra) is wholly misplaced. In that case, the assessee therein had claimed income from horse races and the finding of fact recorded was that the assessee therein had not participated in races, but purchased winning tickets after the race, with the unaccounted m…

Rajrajeshwari Gupta, Kota vs. ITO, Ward 1(1), Kota

In the result, the appeal of the assessee is allowed with no orders as to costs

ITA 245/JPR/2024[2012-13]Status: DisposedITAT Jaipur07 Aug 2024AY 2012-13

Bench: Hon’ble SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri Rajendra Sisodia AdvFor Respondent: Shri Rajesh Kumar Meena, Addl. CIT-DR

Section 10(38)Section 143(3)Section 148Section 68Section 69C

…ction of Hon'ble Rajasthan High Court are bound by the decision of Hon'ble Rajasthan High Court. 1.26The Ld.CIT(A) has heavily relied on the tests of human probability in confirming the addition, referring to the decisions in the case of Sumati Dayal vs. CIT (214 ITR 801) Reliance placed by him on the decision of the Apex Court in the case of Sumati Dayal (supra) is wholly misplaced. In that case, the assessee therein had claimed income from horse races and the finding of fact 22 RAJ RAJESHWARI GUPTA VS ITO, WARD 1(3), KOTA recorded was that the assessee therein had not participated in races, but purchased winni…

Shah Sandeep Anantkumar HUF, Mumbai vs. ITO-32(3)(4), Mumbai

In the result, the appeal by the assessee is allowed

ITA 4628/MUM/2023[2012-13]Status: DisposedITAT Mumbai06 Aug 2024AY 2012-13

Bench: Shri Sandeep Singh Karhail & Smt. Renu Jauhri

For Appellant: Shri Rajesh KothariFor Respondent: Shri R.R.Makwana, Sr.DR

Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 250Section 68Section 69A

…oposition of law that the income tax liability is ascertained on the basis of materials available on record, the surrounding circumstances, the relevant human conduct and the overall balance of probability. Reliance is placed on: a. Sumati Dayal Vs CIT (1995) 80 Taxmann 89 (SC) "It is no doubt true that in all cases in which a receipt is sought to be taxed as income, the burden lies upon the Department to prove that it is within the taxing provision and if a receipt is in the nature of income, the burden of proving that it is not taxable because it falls within an exemption provided by the act lies upon the asses…

Late Manoharasingh Through Legal Heir Shri Suraj Mandloi, Indore vs. ITO 1(1), Indore

Appeal is partly allowed

ITA 110/IND/2024[2017-18]Status: DisposedITAT Indore30 Jul 2024AY 2017-18

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year : 2017-18 Late Manoharasingh Income-Tax Officer, (Through Legal Heir Shri 1(1), Suraj Mandloi), Indore. बनाम/ 34, Village Begam Kheri, Vs. P.O.Burana Kheri, Indore. (Assessee/Appellant) (Revenue/Respondent) Pan : Blspm9380B Assessee By Shri Ashish Goyal & Shri N.D. Patwa, Ars Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 23.07.2024 Date Of Pronouncement 30.07.2024

Section 115BSection 143(2)Section 143(3)Section 69A

…tization. 3.2 Here it is to be mentioned that one cannot ignore the human behavior and probability while dealing with economic and taxation matters. Reference may kindly be made to the decision of the Hon'ble Supreme Court in the case of Sumati Dayal vs. CIT, 214 ITR 801 (SC). It would also be pertinent here to refer to the judgement of Hon'ble Supreme Court in the case of CIT vs. Durga Prasad More, 82 ITR 540, wherein it has been held as under:- “It is true that an apparent must be considered real until it is shown that there are reasons to believe that the apparent is not the real. In a case of the present kind…