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)

Sunil Kumar Agarwal, Jaipur vs. ACIT, Cen. Cir-2, Jaipur

In the result the appeal of the assessee in ITA no

ITA 513/JPR/2025[2016-17]Status: DisposedITAT Jaipur14 Oct 2025AY 2016-17

For Appellant: Shri S. L. Poddar, AdvFor Respondent: Mrs. Anita Rinesh, JCIT, Sr-DR

Section 132Section 139Section 153ASection 234B

…the assessee without any evidence or linkage to seized documents cannot be accepted. h) CIT v. Dhingra Metal Works (2011) 196 Taxman 488 (Del.) - In absence of books and bills, GP estimation by AO based on best judgment is valid. i) Sumati Dayal v. CIT (1995) 214 ITR 801 (SC) - Fiction cannot be accepted as fact in tax jurisprudence; surrounding circumstances and human probabilities must guide judgment. j) Thus, if the assessee truly had a GP rate of 5%, the onus was on him to substantiate it, not merely to state it. No one stopped the assessee from providing a working model or formula. The fact that no such expl…

Deputy Commissioner of Income Tax, Central Circle-1, Ludhiana vs. M/S Home Construction Co., Ludhiana

In the result, the appeal of the Revenue is dismissed

ITA 351/CHANDI/2025[2020-21]Status: DisposedITAT Chandigarh14 Oct 2025AY 2020-21

For Appellant: Shri Sudhir Sehgal, AdocateFor Respondent: Smt. Tarundeep Kaur, CIT, DR

Section 147Section 65B

…rse of hearing the Ld. DR for the Revenue supported the assessment order. He contended that the seized digital data clearly indicated receipt of on-money, and the theory of human probabilities, as laid down by the Hon'ble Supreme Court in Sumati Dayal v. CIT (214 ITR 801, SC), must be applied. 6. The Ld. AR for the assessee reiterated that no incriminating material was found during the search from the assessee's premises, nor was any material relatable to the year under appeal. The reliance on uncorroborated third-party digital evidence without certificate under Section 65B of the Evidence Act is inadmissible. Re…

Photon Ultrawave Private Limited, Delhi vs. DCIT, Circle-19(2), Delhi

Appeal is allowed in above terms

ITA 2638/DEL/2025[2017-18]Status: DisposedITAT Delhi13 Oct 2025AY 2017-18

Section 142(1)Section 143(3)Section 14ASection 68

…tructure Pvt. Ltd. as share capital. The Revenue vehemently contends that given the fact that the assessee has failed to prove genuineness and creditworthiness thereof in both lower proceedings, we ought to uphold the same going by 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). We find no reason to accept the Revenue’s foregoing vehement contentions. This is for the precise reason that the assessee has invited our attention to its detailed paper-book running into 209 pages contained all of its supportive evi…

Globus Housing, Bhopal vs. Assessment Unit, NFAC, Delhi

The appeal of the assessee is allowed and the “impugned

ITA 872/IND/2024[2014-15]Status: DisposedITAT Indore10 Oct 2025AY 2014-15

Bench: Shri Bhagirath Mal Biyani & Shri Paresh M Joshi

Section 142(1)Section 147Section 148Section 250Section 253Section 68

…ision of the Supreme Court in the case of CIT Vs. Durga Parsad More is applicable that the Income Tax Authorities are entitled to look into surrounding circumstances to find out the reality. The decision of the Supreme Court in the case of Sumati Dyal Vs. CIT 214 ITR 801 is also relevant where it has been held that matter has to be considered in the light of human probability. Merely because the payments were made by cheques and received by cheque does not render the transaction genuine. Given the circumstances, it is quite apparent that the paper documents filed by the appellant are sham and the paper evidence h…

Nitaben Girishbhai Patel, Ahmedabad vs. The ITO, Ward-3(3)(2), Ahmedabad

In the result, while upholding the validity of reopening, we set aside the ex parte order of the CIT(A) on merits and restore the matter to his file for fresh adjudication in accordance with law

ITA 1560/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad09 Oct 2025AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Makarand V.Mahadeokarasstt.Year : 2017-18 Nitaben Girishbhai Patel The Ito, Ward-3(3)(2) 33/B, Swi Park, Private Plot Vejalpur Madhuvrund Society Ahmedabad. Ghatlodiya, Ahmedabad. Pan : Aappp 5738 F (Applicant) (Responent) : Shri Parimalsinh B. Parmar, Ar Assessee By : Shri B.P. Srivastava, Sr.Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 06/10/2025 घोषणा क" तारीख /Date Of Pronouncement: 09/10/2025 आदेश आदेश/O R D E R आदेश आदेश

For Appellant: Shri B.P. Srivastava, Sr.DR

Section 144BSection 147Section 148Section 271ASection 69A

…re nothing, but accommodation entries taken to introduce unaccounted income in the guise of capital gains. 2.4 The Ld. AO relied on various judicial pronouncements including the decisions of the Hon’ble Supreme Court in the case of CIT vs. Durga Prasad More (214 ITR 801), Sumati Dayal vs. CIT (1995 AIR 2109) and McDowell & Co. Ltd. vs. CTO (1986 AIR 649), as also other decisions of ITAT and High Courts dealing with penny stock transactions, to conclude that the apparent transactions could not be accepted as real in view of the test of human probabilities. Accordingly, the AO treated the claim of short-term capit…

Deputy Commissioner of Income Tax, Central Circle - 3(2), Kolkata vs. Eskag Sanjeevani Pvt. Ltd., Kolkata

In the result, both the appeals of the Revenue are dismissed

ITA 1638/KOL/2024[2019-20]Status: DisposedITAT Kolkata08 Oct 2025AY 2019-20

Bench: Shri Rajesh Kumar, Am & Shri Sonjoy Sarma, Jm

For Appellant: Shri Rajeeva Kumar, ARFor Respondent: Shri P.N. Barnwal, DR

Section 133(6)Section 139(1)Section 153ASection 68

…eferred appeal before the Appellate Tribunal, the Tribunal confirmed the findings recorded by the Appellate Authority. The Tribunal referred to the decision of CIT v. Durga Prasad More [1971] 82 ITR 540 (SC) and also in Sumati Dayal v. CIT [1995] 80 Taxman 89/214 ITR 801 (SC), to further record on the basis of the facts that the assessee had furnished the details such as copy of ledger account, bank statements, income tax returns, balance sheet etc. It was also recorded thatnotice under section 133(6) of the Act was issued to the said parties which were duly responded by them. The identity of the parties could no…

Sh. Yash Paul Khanna Prop., Jalandhar vs. Income Tax Officer, Jalandhar

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

ITA 211/ASR/2007[2001-02]Status: DisposedITAT Amritsar07 Oct 2025AY 2001-02

Bench: Sh. Manoj Kumar Aggarwal & Sh. Udayan Dasgupta

For Appellant: Sh. Y. K. Sud, C.A

Section 143(3)Section 234Section 250(6)Section 263

…l Chand Kalra vs. CIT 22 CTR (P&H) 135, judgment of Delhi High Court in the case of Sajjan Dass & Sons vs. CIT (2003) 264 ITR 435 (Delhi), the judgment of the Apex Court in the case of CIT vs. Durga Prasad More, 82 ITR 540 (SC) and Sumati Dayal vs. CIT (1999) 214 ITR 801. 14.7 From the facts of the case it is also clear that the Assessing Officer has clearly proved the nexus between the cash deposited in the bank account of S. Gurdev Singh and the alleged gift made to the appellant. The dates of the deposits and the dates of the Issuance of draft are immaterial. Whether it should be treated as unaccounted money i…

Madhu Dubey, Allahabad vs. Dc/Ac-1(1), Allahabad, Mg Marg Allahabad

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

ITA 58/ALLD/2025[2014-15]Status: DisposedITAT Allahabad30 Sept 2025AY 2014-15

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguriaassessment Year: 2014-15 Madhu Dubey V. Dc/Ac-1(1) 657A/1, Jamuna Nagar, Chak Mg Marg, Allahabad- Raghunath, Naini-211008. 211001. Pan:Asipd8489J (Appellant) (Respondent) Appellant By: Shri Naman Agrawal, C.A. Respondent By: Shri A. K. Singh, Sr. Dr Date Of Hearing: 09 09 2025 Date Of Pronouncement: 30 09 2025 O R D E R

For Appellant: Shri Naman Agrawal, C.AFor Respondent: Shri A. K. Singh, Sr. DR

…ablished thé identity of the creditor is not enough. (c) Burden of proof Explanation of the Assessee: Hon’ble Supreme Court examining the Issues of explanation by the yssessee a6 a part of his onus under u/s 68 of the Act in case of Sumati Dayat us CIT (1995) 214 ITR 801 has held as under: 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 upon the…

Jeevan Jyoti Infrastructure Company Private Limited, Allahabad vs. DCIT, Central Circle, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 56/ALLD/2025[2012-13]Status: DisposedITAT Allahabad30 Sept 2025AY 2012-13