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 367,518 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

Principal Commissioner of Income Tax-5, Kol vs. Sunita Goyal

In the result, these appeals are allowed and the substantial

ITAT/78/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax Siliguri vs. Nitin Kumar Agarwal

In the result, these appeals are allowed and the substantial

ITAT/36/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax-5, Kolkata vs. Aayush Jhunjhunwala HUF

In the result, these appeals are allowed and the substantial

ITAT/89/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax Kol 5 vs. Ranjika Gupta

In the result, these appeals are allowed and the substantial

ITAT/80/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax Siliguri vs. Neetu Agarwal

In the result, these appeals are allowed and the substantial

ITAT/3/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax vs. Nand Kishore Agarwala

In the result, these appeals are allowed and the substantial

ITAT/22/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax-9, Kolkata vs. M/S. Gopal Prasad Tikmani HUF

In the result, these appeals are allowed and the substantial

ITAT/153/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax -5, Kol vs. Ramakant Beriwala

In the result, these appeals are allowed and the substantial

ITAT/60/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax 9 Kolkata vs. M/S Girish Tikmani HUF

In the result, these appeals are allowed and the substantial

ITAT/157/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Pr CIT 9 Kolkata vs. Girish Tikmani

In the result, these appeals are allowed and the substantial

ITAT/156/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax-9, Kolkata vs. Gopal Prasad Tikmani

In the result, these appeals are allowed and the substantial

ITAT/151/2021HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Principal Commissioner of Income Tax -5, Kolkata vs. Swati Bajaj

In the result, these appeals are allowed and the substantial

ITAT/6/2022HC Calcutta14 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

DCIT(It)-3(3)(2), Mumbai vs. Venu Raman Kumar, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 3559/MUM/2019[2007-08]Status: DisposedITAT Mumbai09 Jun 2022AY 2007-08

Bench: Shri M Balaganesh & Shri Pavan Kumar Gadaledcit (It) – 3(3)(2) Vs. Shri Venu Raman 16Th Floor, Room No. Kumar, 1634, Air India Bldg, Flat No. 2, Hermes Nariman Point, House-Iii, Mumbai – 400020. Worli Sea Face, Mumbai – 400025. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Abapk9122E Appellant .. Respondent Appellant By : Shri.Achal Sharma. Cit. Dr Respondent By : Shri.Vijay Mehta.Ar Date Of Hearing 01.06.2022 Date Of Pronouncement 13.06.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Order Of The Commissioner Of Income Tax (Appeals) – 57, Mumbai Passed U/S 271(1)(C) & 250 Of The Income Tax Act, 1961. The Revenue Has Raised The Following Grounds Of Appeal.

For Appellant: Shri.Achal Sharma. CIT. DRFor Respondent: Shri.Vijay Mehta.AR
Section 114Section 271Section 271(1)(c)Section 5(2)

…an evidence and, therefore, in our view, the CIT(A) made no mistake in deleting the addition. At this stage, we may also refer to the reliance placed by the AO as well as the CIT-DR on the judgment of Hon'ble Supreme Court in the case of Sumati Dayal vs. CIT [214 ITR 801] to defend the addition made on the test of human probability. No doubt, the test of human probabilities is an acceptable test to decide the genuineness or otherwise of a particular transaction. So, however, what is required is to weigh and consider all evidences and material which are available on record. Considering the facts of the instant cas…

O3 Capital Global Advisory Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-5(1)(2), Bangalore

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

ITA 931/BANG/2018[2013-14]Status: DisposedITAT Bangalore08 Jun 2022AY 2013-14

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year: 2013-14

For Appellant: Shri G.S. Prashanth, A.RFor Respondent: Smt. Priyadarshini Basaganni, D.R

…bjecting to its inclusion in the year 1942-43, was a circumstances which the taxing authorities were entitled to take into consideration, in the absence of any satisfactory explanation”. 11. Further, Hon’ble Supreme Court in the case of Sumati Dayal Vs. CIT (214 ITR 801) wherein, dismissing the appeal, held that “the Settlement Commission after considering the surrounding circumstances and applying the test of human probabilities had rightly concluded that the appellant’s claim about the amount being her winnings from races was not genuine”. 11.1 Thus, it is essential on the part of AO to look into the real nat…

Harshita Chhawchharia vs. Commissioner of Income Tax, Kolkata-20

In the result, these appeals are allowed and the substantial

ITA/3/2021HC Calcutta07 Jun 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

…g Officer. Before the CIT(A) it was contended that the Assessing Officer never pointed out any discrepancy in any of the documents submitted and nothing adverse was mentioned about the 2 (1995) 214 ITR 801 (SC) ITAT NO. 06 OF 2022 AND ETC. BATCH Page 22 of 150 assessee. Further, it was contended that the assessee has discharged the burden of proving the genuinity of the transaction and the burden of proving the contrary stand shifted to the department which has completely failed to discharge such burden and the assessment having been base…

Dy CIT CC 6(4), Mumbai vs. Shri. Dilip J Thakkar, Mumbai

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

ITA 963/MUM/2020[2004-05]Status: DisposedITAT Mumbai07 Jun 2022AY 2004-05

Bench: Shri M Balaganesh & Shri Pavan Kumar Gadalethe Dcit, Vs. Shri Dilip J Thakkar Central Circle – 6(4) 12/22B, Acropolis, Room No. 1925, 19Th Malabar Hills, Floor, Air India Bldg, Mumbai – 400006. Nariman Point, Mumbai – 400021. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacpt9000H Appellant .. Respondent The Dcit, Vs. Smt Indira D. Thakkar Central Circle – 6(4) 12/22B, Acropolis, Room No. 1925, 19Th Malabar Hills, Floor, Air India Bldg, Mumbai – 400006. Nariman Point, Mumbai – 400021. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabpt3389E Appellant .. Respondent

For Appellant: Shri Dilip Takkar.ARFor Respondent: Shri S.G.Mehta.DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 149Section 149(1)

…A No. 963 & 970/Mum/2020 Shri Dilip Thakkar & Smit Indiar D Thakkar, Mumbai. and the assessee herself was the trustee thereof not only that but the reliance is also placed in judgment of Hon"ble Supreme Court Sumati Dayal Vs. Commissioner of Income tax (1995) 214 ITR 801(SC), in the case of CIT v Durga Prasad more [1971) 82 ITR 540 (SC), in which it is categorically held that preponderance of probability is against the assessee in such cases where necessary evidence is received but not rebutted by the assessee in spite of adequate opportunities granted. It is therefore clear that the assessee along with her famil…

The ITO, Ward-7(2)(2), Ahmedabad vs. Eam Fruits LLP, Ahmedabad

In the result appeal of the Revenue is hereby dismissed

ITA 1835/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad31 May 2022AY 2016-17

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyalआयकर अपील सं./Ita No.1835/Ahd/2019 िनधा"रण वष"/Asstt. Year:2016-2017 I.T.O, Eam Fruits Llp, Ward-7(2)(2), Vs. 23, New Fruit Market, Ahmedabad. Naroda Road, Naroda, Ahmedabad-380025. Pan: Aadfe6711B

For Appellant: Shri Biren Shah, A.RFor Respondent: Shri Sudhendu Das, Sr. D.R
Section 142(1)Section 143(2)Section 144Section 68

…out through banking channel is not sufficient. As such the same should also be proved by circumstantial surrounding evidences as held by the Hon’ble supreme court in case of Durga Prasad More reported in 82 ITR 540 and in case of Smt. Sumati Dayal reported in 214 ITR 801. 21.3 The last stage comes to verify the creditworthiness of the parties. The term creditworthiness as per Black Law Dictionary refers as: "creditworthy, adj. (1924) (Of a borrower) financially sound enough that a lender will extend credit in the belief default is unlikely; fiscally healthy- creditworthiness.” 21.4 Similarly in The New Lexicon W…

Jayshree Ashok Choure, Aurangabad vs. Deputy Commissioner of Income-Tax, Circle - 1, Aurangabad

Appeal is dismissed

ITA 91/PUN/2019[2015-16]Status: DisposedITAT Pune30 May 2022AY 2015-16

Bench: Shri S.S.Godara

Section 10(38)Section 143(3)

…dered as real, but, if there are reasons to believe that the apparent is not real, as is the case under consideration as well, then the apparent should be ignored to unearth the harsh reality. 6. Similar view has been canvassed in Sumati Dayal vs. CIT (1995) 214 ITR 801 (SC). The question for consideration in that case was whether the assessee purchased winning tickets after the event. It was observed that in all cases in which a receipt is sought to be taxed as income, the burden lies on the Department to prove that it is within the taxing provision and if a receipt is in the nature of income, the burden of pro…

Mrs. Stella Suresh Srivastava, Mysuru vs. Assistant Commissioner of Income Tax, Circle-1(1) & Tps, Mysore

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

ITA 647/BANG/2021[2016-17]Status: DisposedITAT Bangalore30 May 2022AY 2016-17

Bench: Shri N.V. Vasudevan, Vice Preseident & Shri Padmavathy Sassessment Year : 2016-17

For Appellant: Shri V. Srinivasan, AdvocateFor Respondent: Shri Sankar Ganesh K., Jt.CIT(DR)(ITAT), Bengaluru
Section 234Section 69

…ppellant therefore comprehensively fails on the "Theory of the Test of Human Probabilities and Surrounding Circumstances" as laid down by the Supreme Court in the case of CIT V. Durga Prasad More (1971) 82 ITR 540 and in the case of Sumati Dayal v. CIT (1995) 214 ITR 801.” 4. Aggrieved by the order of the CIT(Appeals), the assessee is in appeal before the Tribunal. 5. Before us, the ld. AR submitted that the details of cash deposits and withdrawals have been submitted before the lower authorities, who did not consider the same while treating it as unexplained deposits u/s. 69 of the Act. He further submitted tha…

Zeeshan Azizmohmed Shaikh, Mumbai vs. Income Tax Officer - Ward 4(5), Mumbai

In the result, appeal by the assessee is dismissed

ITA 1108/MUM/2018[2014-15]Status: DisposedITAT Mumbai24 May 2022AY 2014-15

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: NoneFor Respondent: Shri Hoshang B. Irani
Section 10(38)Section 133(6)Section 2(22)(e)Section 250Section 68

…a colourable device used to evade tax. The Assessing Officer further held that the assessee’s claim of earning huge tax-exempt gains fails the test of both genuineness and human probabilities as laid down by the Hon’ble Supreme Court in Sumati Dayal v/s CIT: 214 ITR 801 and CIT v. Durga Prasad More [1971] 82 ITR 540. Thus, the Assessing Officer Zeeshan Azizmohmed Shaikh ITA No.1108/Mum./2018 disallowed the exemption claimed by the assessee under section 10(38) in respect of long term capital gains and added the same as unexplained cash credit under section 68 of the Act. Similarly, the commission of Rs. 24,713…