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

Krishna Devi, New Delhi vs. ITO, Ward- 38(3), New Delhi

ITA 6356/DEL/2019[2014-15]Status: DisposedITAT Delhi04 Jan 2022AY 2014-15

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 6356/Del/2019 : Asstt. Year : 2014-15 Krishna Devi, Vs Income Tax Officer, F-26/124, Sector-7, Rohini, Ward-38(3), New Delhi-110085 New Delhi-110002 (Appellant) (Respondent) Pan No. Abrpd0875E Assessee By : Sh. Kapil Goel, Adv. Revenue By : Sh. Umesh Takyar, Sr. Dr Date Of Hearing: 08.10.2021 Date Of Pronouncement: 04.01.2022

For Appellant: Sh. Kapil Goel, AdvFor Respondent: Sh. Umesh Takyar, Sr. DR
Section 115BSection 143(2)Section 147Section 148Section 68

…company shares is beyond preponderance of probability. It has been held by Hon'ble Apex Court in the case of Durga Prasad More and Sumati Dayal that the test of human probabilities have also to be applied by the authorities below. In the case of Sumati Dayal 214 ITR 801, it was held that during the year 1970-71 (pertaining to the assessment year 1971-72) between April 6, 1970, and March 20, 1971, the appellant claims to have won in horse race a total amount of Rs. 3,11,831/- on 13 occasions out of which ten winnings were from jackpots and three were from treble events. Similarly in the year 1971-72, the appellan…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3565/MUM/2019[2014-15]Status: DisposedITAT Mumbai23 Dec 2021AY 2014-15
Section 133Section 143(3)Section 6Section 68

…y 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". Similarly, in a later decision in the case of Sumati Dayal v. CIT [1995] 80 Taxman 89/214 ITR 801 (SC)], Hon'ble Supreme Court rejected the theory that it is for alleger to prove that the apparent and 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 obt…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3564/MUM/2019[2013-14]Status: DisposedITAT Mumbai23 Dec 2021AY 2013-14
Section 133Section 143(3)Section 6Section 68

…y 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". Similarly, in a later decision in the case of Sumati Dayal v. CIT [1995] 80 Taxman 89/214 ITR 801 (SC)], Hon'ble Supreme Court rejected the theory that it is for alleger to prove that the apparent and 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 obt…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3563/MUM/2019[2012-13]Status: DisposedITAT Mumbai23 Dec 2021AY 2012-13
Section 133Section 143(3)Section 6Section 68

…y 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". Similarly, in a later decision in the case of Sumati Dayal v. CIT [1995] 80 Taxman 89/214 ITR 801 (SC)], Hon'ble Supreme Court rejected the theory that it is for alleger to prove that the apparent and 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 obt…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3562/MUM/2019[2011-12]Status: DisposedITAT Mumbai23 Dec 2021AY 2011-12
Section 133Section 143(3)Section 6Section 68

…y 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". Similarly, in a later decision in the case of Sumati Dayal v. CIT [1995] 80 Taxman 89/214 ITR 801 (SC)], Hon'ble Supreme Court rejected the theory that it is for alleger to prove that the apparent and 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 obt…

DCIT - 14(2)(2) vs. M/S Mishal Construction P. Ltd, Mumbai

In the result, the appeal is allowed

ITA 3561/MUM/2019[2010-11]Status: DisposedITAT Mumbai23 Dec 2021AY 2010-11
Section 133Section 143(3)Section 6Section 68

…y 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". Similarly, in a later decision in the case of Sumati Dayal v. CIT [1995] 80 Taxman 89/214 ITR 801 (SC)], Hon'ble Supreme Court rejected the theory that it is for alleger to prove that the apparent and 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 obt…

ITO, Bhadrak Ward, Bhadrak vs. Himansu Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 45/CTK/2020[2015-16]Status: DisposedITAT Cuttack21 Dec 2021AY 2015-16

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Himansu Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 44/CTK/2020[2014-15]Status: DisposedITAT Cuttack21 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Deepansu Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 43/CTK/2020[2015-16]Status: DisposedITAT Cuttack21 Dec 2021AY 2015-16

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Deepansu Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 42/CTK/2020[2014-15]Status: DisposedITAT Cuttack21 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Anupama Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 41/CTK/2020[2015-16]Status: DisposedITAT Cuttack21 Dec 2021AY 2015-16

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Anupama Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 40/CTK/2020[2014-15]Status: DisposedITAT Cuttack21 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Sitansu Sekhar Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 38/CTK/2020[2014-15]Status: DisposedITAT Cuttack21 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

Pearls News Network Pvt. Ltd., New Delhi vs. DCIT, Circle- 19(2), New Delhi

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

ITA 3715/DEL/2018[2012-13]Status: DisposedITAT Delhi21 Dec 2021AY 2012-13

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2012-13 Pearls News Network Pvt. Ltd., Vs Dcit, 705, 7Th Floor, Manjusha Building, Circle-19(2), Nehru Place, New Delhi. New Delhi. Pan: Aaecp3680L (Appellant) (Respondent) Assessee By : None Revenue By : Shri Anil Gandhi, Sr. Dr Date Of Hearing : 07.12.2021 Date Of Pronouncement : 21.12.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 14Th July, 2017 Of The Cit(A)-31, New Delhi, Relating To Assessment Year 2012-13. 2. None Appeared On Behalf Of The Assessee At The Time Of Hearing. No Application Seeking Adjournment Of The Appeal Has Been Filed. A Perusal Of The Order Sheet Entries Shows That Although The Case Was Fixed For Hearing On Various Dates, No One Was Appearing. Further, The Notices Sent By Rpad Were Returned By The Postal Authorities With The Remark ‘Left.’ The Assessee Has Also Not Taken Any Step To Intimate The Change Of Address, If Any. Further, The Notice Was Directed To Be Served By The Revenue & The Departmental Notice Server Who Was Deputed To Serve The Dasti Summons Has Reported That The Premise Of The Assessee Was Closed & No One Was Residing There For Which The Notice Was Fixed At The Gate Of The Assessee Company. The Report Of The Notice Server Is Also Placed On Record. Under These Circumstances, We Deem It Proper To Decide The Appeal On The Basis Of The Material Available & After Hearing The Ld. Dr.

For Appellant: NoneFor Respondent: Shri Anil Gandhi, Sr. DR
Section 144Section 30Section 37(1)Section 68

…discharge the onus that it belonged to some third party. 15. We, thus, answer the question in negative, i.e., in favour of the revenue and against the assessee." 6 8.5 Reliance is also placed on the decision of Hon'ble Apex Court in the case of Sumati Dayal (214 ITR 801). 8.6 In view of the aforesaid discussion and the case laws as mentioned above, I hold that since the appellant has not been able to explain the source of the cash credit of Rs.4,00,00,000/- and has failed to discharge the onus of proving the identity and credit worthiness of the creditors and establishing the genuineness of the transactions as c…

ITO, Bhadrak Ward, Bhadrak vs. Smt. Kuntala Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 50/CTK/2020[2014-15]Status: DisposedITAT Cuttack17 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Parbati Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 49/CTK/2020[2014-15]Status: DisposedITAT Cuttack17 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Kishore Kumar Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 48/CTK/2020[2014-15]Status: DisposedITAT Cuttack17 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Mamata Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 47/CTK/2020[2014-15]Status: DisposedITAT Cuttack17 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

ITO, Bhadrak Ward, Bhadrak vs. Amruta Preetam Mohapatra, Bhadrak

In the result, Appeals of the revenue in in ITANos

ITA 46/CTK/2020[2014-15]Status: DisposedITAT Cuttack17 Dec 2021AY 2014-15

Bench: Shri C.M. Garg, Jm & Shri Manish Borad, Am

For Appellant: Shri S.C Mohanty, Sr. DR
Section 10(38)

…he case, it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer may be restored, keeping in view the ratio of Supreme Court's decisions in the cases of CIT vs. D.P. More (1971) 82 ITR 540 (SC) & Sumati Dayal vs CIT (1995) 214 ITR 801 (SC), wherein it has been held that tax authorities can go behind a transaction to look at its substance by looking at the surrounding circumstances. Failure to consider the Revised return filed & self-assessment tax paid by the assessee on bogus Long Term Capital Gains in the light of Supreme Court's decision in the case of CIT vs MIs Shelly Pro…

Vasantlal Nyalchand Kikvat Through L/H Pankaj V Kikavat, Mumbai vs. Dy CIT CC 3 (4), Mumbai

The appeal stands partly allowed in terms of our above order

ITA 7921/MUM/2019[2012-13]Status: DisposedITAT Mumbai17 Dec 2021AY 2012-13

Bench: Hon’Ble Shri Amarjit Singh, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आिकरअपील िं./ I.T.A. Nos.7921/Mum/2019 (धििाारण वर्ा / Assessment Year: 2012-13) & आिकरअपील िं./ I.T.A. Nos.7922/Mum/2019 (धििाारण वर्ा / Assessment Year: 2013-14) Shri Vasantlal Nyalchand Kikavat Dcit-Cc 3(4), 1915, 19Th Floor (Through L/H Shri Pankaj V.Kikavat) बिाम/ 1201, D-Wing, Kukreja Towers, Air India Building Vs. Garodiya Nagar, Ghatkopar (E), Nariman Point Mumbai-400 077 Mumbai-400 021 स्थािीलेखा िं./जीआइआर िं./Pan/Gir No. Aabpk-6317-K (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee By : Shri Neelkanth Khandelwal– Ld. Ar Revenue By : Ms. Usha Gaikwad– Ld. Sr. Dr ुनवाई की तारीख/ : 22/11/2021 Date Of Hearing घोषणा की तारीख / : 17/12/2021 Date Of Pronouncement

For Appellant: Shri Neelkanth Khandelwal– Ld. ARFor Respondent: Ms. Usha Gaikwad– Ld. Sr. DR
Section 143(3)Section 68

…ntities of various entry providers. The assessee knowingly participated in the bogus LTCG scam. 3.6 The assessee’ documentation was to be rejected in terms of the decision of Hon’ble Supreme Court in the case of Durgaprasad More (82 ITR 540) and Sumati Dayal (214 ITR 801) wherein it was held that the evidences were to be adjudged by applying the test of human probabilities and if something unusual was being claimed, the same was to be rejected. The other contentions of the assessee were also rejected. Finally, it was held that the assessee was not able to justify the investment decision and could not explain the…