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 367,585 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

DCIT, CC - 5(1), Mumbai vs. Parag Suresh Kothari, Mumbai

In the result the appeal of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6773/MUM/2018[2010-11]Status: DisposedITAT Mumbai27 Sept 2022AY 2010-11

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalita Nos.7088 To 7090/Mum/2018 (A.Ys. 2008-09, 2009-10 & 2012-13) M/S R. Kantilal & Co. Vs. Dcit, Cc-6(1) Tower-F(W),Office No. Income Tax Office, 7030, Bharat Diamond 19Th Floor, Air India Bourse, Block, Bandra Building, Nariman Point, Kurla Complex, Mumbai – 400 021 Bandra (E), Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aacfr5384C Appellant .. Respondent

For Appellant: Nishit GandhiFor Respondent: Dharm Veer Singh &
Section 153ASection 68

…o the transactions. It appears that the retraction statement was made purely to avoid clutches of law which had caught up with him/her and laid bare his/her nefarious activities. 7.24. The Hon'ble Apex Court judgement in the case of Sumati Dayal V. CIT (1995) 214 ITR 801, 806, 808-809 (SC), has observed that apparent must be considered real, until it is shown that there are reasons to that the apparent is not the real and that the taxing authorities are entitled to look 14 Appeals 19 M/s R. Kantilal & Co. Vs. DCIT, CC-6(1) into the surrounding circumstances to find out the reality and matter has to be considered…

DCIT, CC - 5(1), Mumbai vs. Parag Suresh Kothari, Mumbai

In the result the appeal of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6772/MUM/2018[2009-10]Status: DisposedITAT Mumbai27 Sept 2022AY 2009-10

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalita Nos.7088 To 7090/Mum/2018 (A.Ys. 2008-09, 2009-10 & 2012-13) M/S R. Kantilal & Co. Vs. Dcit, Cc-6(1) Tower-F(W),Office No. Income Tax Office, 7030, Bharat Diamond 19Th Floor, Air India Bourse, Block, Bandra Building, Nariman Point, Kurla Complex, Mumbai – 400 021 Bandra (E), Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aacfr5384C Appellant .. Respondent

For Appellant: Nishit GandhiFor Respondent: Dharm Veer Singh &
Section 153ASection 68

…o the transactions. It appears that the retraction statement was made purely to avoid clutches of law which had caught up with him/her and laid bare his/her nefarious activities. 7.24. The Hon'ble Apex Court judgement in the case of Sumati Dayal V. CIT (1995) 214 ITR 801, 806, 808-809 (SC), has observed that apparent must be considered real, until it is shown that there are reasons to that the apparent is not the real and that the taxing authorities are entitled to look 14 Appeals 19 M/s R. Kantilal & Co. Vs. DCIT, CC-6(1) into the surrounding circumstances to find out the reality and matter has to be considered…

DCIT, CC- 5 (1), Mumbai vs. Pratik Suresh Kothari, Mumbai

In the result the appeal of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6761/MUM/2018[2013-14]Status: DisposedITAT Mumbai27 Sept 2022AY 2013-14

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalita Nos.7088 To 7090/Mum/2018 (A.Ys. 2008-09, 2009-10 & 2012-13) M/S R. Kantilal & Co. Vs. Dcit, Cc-6(1) Tower-F(W),Office No. Income Tax Office, 7030, Bharat Diamond 19Th Floor, Air India Bourse, Block, Bandra Building, Nariman Point, Kurla Complex, Mumbai – 400 021 Bandra (E), Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aacfr5384C Appellant .. Respondent

For Appellant: Nishit GandhiFor Respondent: Dharm Veer Singh &
Section 153ASection 68

…o the transactions. It appears that the retraction statement was made purely to avoid clutches of law which had caught up with him/her and laid bare his/her nefarious activities. 7.24. The Hon'ble Apex Court judgement in the case of Sumati Dayal V. CIT (1995) 214 ITR 801, 806, 808-809 (SC), has observed that apparent must be considered real, until it is shown that there are reasons to that the apparent is not the real and that the taxing authorities are entitled to look 14 Appeals 19 M/s R. Kantilal & Co. Vs. DCIT, CC-6(1) into the surrounding circumstances to find out the reality and matter has to be considered…

DCIT, CC 5 (1), Mumbai vs. Pratik Suresh Kothari, Mumbai

In the result the appeal of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6759/MUM/2018[2011-12]Status: DisposedITAT Mumbai27 Sept 2022AY 2011-12

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalita Nos.7088 To 7090/Mum/2018 (A.Ys. 2008-09, 2009-10 & 2012-13) M/S R. Kantilal & Co. Vs. Dcit, Cc-6(1) Tower-F(W),Office No. Income Tax Office, 7030, Bharat Diamond 19Th Floor, Air India Bourse, Block, Bandra Building, Nariman Point, Kurla Complex, Mumbai – 400 021 Bandra (E), Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aacfr5384C Appellant .. Respondent

For Appellant: Nishit GandhiFor Respondent: Dharm Veer Singh &
Section 153ASection 68

…o the transactions. It appears that the retraction statement was made purely to avoid clutches of law which had caught up with him/her and laid bare his/her nefarious activities. 7.24. The Hon'ble Apex Court judgement in the case of Sumati Dayal V. CIT (1995) 214 ITR 801, 806, 808-809 (SC), has observed that apparent must be considered real, until it is shown that there are reasons to that the apparent is not the real and that the taxing authorities are entitled to look 14 Appeals 19 M/s R. Kantilal & Co. Vs. DCIT, CC-6(1) into the surrounding circumstances to find out the reality and matter has to be considered…

DCIT, CC- 5 (1), Mumbai vs. Pratik Suresh Kothari, Mumbai

In the result the appeal of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 6757/MUM/2018[2009-10]Status: DisposedITAT Mumbai27 Sept 2022AY 2009-10

Bench: Shri Amarjit Singh & Ms. Kavitha Rajagopalita Nos.7088 To 7090/Mum/2018 (A.Ys. 2008-09, 2009-10 & 2012-13) M/S R. Kantilal & Co. Vs. Dcit, Cc-6(1) Tower-F(W),Office No. Income Tax Office, 7030, Bharat Diamond 19Th Floor, Air India Bourse, Block, Bandra Building, Nariman Point, Kurla Complex, Mumbai – 400 021 Bandra (E), Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aacfr5384C Appellant .. Respondent

For Appellant: Nishit GandhiFor Respondent: Dharm Veer Singh &
Section 153ASection 68

…o the transactions. It appears that the retraction statement was made purely to avoid clutches of law which had caught up with him/her and laid bare his/her nefarious activities. 7.24. The Hon'ble Apex Court judgement in the case of Sumati Dayal V. CIT (1995) 214 ITR 801, 806, 808-809 (SC), has observed that apparent must be considered real, until it is shown that there are reasons to that the apparent is not the real and that the taxing authorities are entitled to look 14 Appeals 19 M/s R. Kantilal & Co. Vs. DCIT, CC-6(1) into the surrounding circumstances to find out the reality and matter has to be considered…

ACIT, C.C. -4, Jaipur vs. Maverick Commodity Brokers Pvt. Ltd., Jaipur

In the result appeals of the revenue are dismissed

ITA 27/JPR/2020[2014-15]Status: DisposedITAT Jaipur26 Sept 2022AY 2014-15
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Shri P.R. Meena (Pr.CIT)
Section 115BSection 127Section 132Section 133ASection 143(2)Section 153ASection 68Section 69C

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Ramesh Kumar Mantri, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 165/JPR/2020[2011-12]Status: DisposedITAT Jaipur26 Sept 2022AY 2011-12

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Ramesh Kumar Mantri, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 164/JPR/2020[2010-11]Status: DisposedITAT Jaipur26 Sept 2022AY 2010-11

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Anshul Jain, Jaipur

In the result appeals of the revenue are dismissed

ITA 163/JPR/2020[2014-15]Status: DisposedITAT Jaipur26 Sept 2022AY 2014-15
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Shri P.R. Meena (Pr.CIT)
Section 115BSection 127Section 132Section 133ASection 143(2)Section 153ASection 68Section 69C

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Mukesh Jain, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 162/JPR/2020[2011-12]Status: DisposedITAT Jaipur26 Sept 2022AY 2011-12

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Mukesh Jain, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 161/JPR/2020[2010-11]Status: DisposedITAT Jaipur26 Sept 2022AY 2010-11

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Smt. Sangeeta Mantri, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 160/JPR/2020[2011-12]Status: DisposedITAT Jaipur26 Sept 2022AY 2011-12

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Smt. Asha Jain, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 159/JPR/2020[2011-12]Status: DisposedITAT Jaipur26 Sept 2022AY 2011-12

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Smt. Sunita Agarwal, Jaipur

In the result appeals of the revenue are dismissed

ITA 158/JPR/2020[2015-16]Status: DisposedITAT Jaipur26 Sept 2022AY 2015-16
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Shri P.R. Meena (Pr.CIT)
Section 115BSection 127Section 132Section 133ASection 143(2)Section 153ASection 68Section 69C

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Smt. Sunita Agarwal, Jaipur

In the result appeals of the revenue are dismissed

ITA 157/JPR/2020[2014-15]Status: DisposedITAT Jaipur26 Sept 2022AY 2014-15
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Shri P.R. Meena (Pr.CIT)
Section 115BSection 127Section 132Section 133ASection 143(2)Section 153ASection 68Section 69C

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Smt. Sunita Agarwal, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 156/JPR/2020[2011-12]Status: DisposedITAT Jaipur26 Sept 2022AY 2011-12

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Mukut Behari Agarwal, Jaipur

In the result appeals of the revenue are dismissed

ITA 155/JPR/2020[2015-16]Status: DisposedITAT Jaipur26 Sept 2022AY 2015-16
For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Shri P.R. Meena (Pr.CIT)
Section 115BSection 127Section 132Section 133ASection 143(2)Section 153ASection 68Section 69C

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Mukut Behari Agarwal, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 153/JPR/2020[2011-12]Status: DisposedITAT Jaipur26 Sept 2022AY 2011-12

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

ACIT, CC-4, Jaipur vs. Shri Mukut Behari Agarwal, Jaipur

In the result appeals of the revenue are dismissed and the cross

ITA 152/JPR/2020[2010-11]Status: DisposedITAT Jaipur26 Sept 2022AY 2010-11

…proceedings under the Act are civil in nature, even the circumstantial evidences based on preponderance of probability will constitute incriminating material enough to make an assessment of income and fasten the tax liability as held by in Sumati Dayal Vs CIT 214 ITR 801(SC). It will therefore include any circumstantial material also, which directly or indirectly ,proves that the earlier evidence submitted was only a make belief and such new material has a bearing on the assessment of total income of any assessee, even if such income was earlier admitted as correct in absence of any such adverse facts available a…

Assistant Commissioner of Income Tax Central Circle1-(1), Hyderabad vs. Gokul Krishi Udyog Private Limited, Hyderabad

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

ITA 99/HYD/2021[2017-18]Status: DisposedITAT Hyderabad26 Sept 2022AY 2017-18

Bench: Shri Rama Kanta Panda & Shri Laliet Kumarvs. Asst. Commissioner Of M/S. Gokul Krishi Income Tax, Udyog Pvt. Ltd., Central Circle 1(1), Hyderabad. Hyderabad. Pan Aaccg3283E (Appellant) (Respondent) Appellant By : Shri K. A. Sai Prasad, C.A. Respondent By : Shri Kumar Aditya(D.R.) Date Of Hearing : 17.08.2022 Date Of Pronouncement : 26.09.2022 O R D E R Per Shri Rama Kanta Panda, A.M. : This Appeal Filed By The Revenue Is Directed Against The Order Dt.11.11.2020 Of The Learned Commissioner Of Income Tax (Appeals)-11, Hyderabad Relating To Assessment Year 2017-18. 2. The Facts Of The Case, In Brief, Are That The Assessee Is A Company Engaged In The Business Of Dealer In Pulses, Food Grains & Manufacturer Of Besan. It Filed Its Return Of Income On 2.11.2017 Declaring Total Income Of 2 Rs.17,09,470/-. The Case Was Selected For Scrutiny Under Cass & Statutory Notices Were Issued U/S. 143(2) & 142(1) Of The Income Tax Act, 1961 (In Short ‘The Act’) To The Assessee To Furnish Certain Information.

For Appellant: Shri K. A. Sai Prasad, C.AFor Respondent: Shri Kumar Aditya(D.R.)
Section 143(2)Section 68

…he corresponding period of preceding year, therefore, the learned CIT (Appeals) without appreciating the facts properly could not have deleted the addition. Referring to the decision of the Hon'ble Supreme Court in the case of Sumati Dayal Vs. CIT reported in 214 ITR 801 (SC) and CIT Vs. Durga Prasad More reported in 82 ITR 801 (SC), he submitted that the learned CIT (Appeals) in the instant case is not justified in deleting the addition. He accordingly submitted that the order of the learned CIT (Appeals) be reversed and that of the Assessing Officer be restored. 8 8. The learned counsel for the assessee, on th…