Umacharan Shaw & Bros. v. CIT

37 ITR 271Supreme Court of India1959#112 most cited

What is Umacharan Shaw & Bros. v. CIT authority for?

An income tax assessment or addition cannot be sustained solely on the basis of suspicion, surmises, or conjectures, as strong suspicion does not amount to proof. The revenue authorities must rely on concrete evidence and material to frame an assessment.

567

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2013 to 2026.

Also referred to as

Umacharan Shaw & Bros. v. CIT · suspicion not proof · no addition on surmises · conjectures and suspicion · burden of proof income tax · Section 68 cash credits · Section 132(4) statement · assessment without evidence · Section 37(1) business expenditure · genuineness of transaction

Issues it is cited on

Judgments citing Umacharan Shaw & Bros. v. CIT

Ratan Lal Agarwala, Kolkata vs. ITO, Ward - 36(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 586/KOL/2018[2014-15]Status: DisposedITAT Kolkata12 Sept 2018AY 2014-15

Bench: Sri J. Sudhakar Reddy) Assessment Year: 2014-15 Ratan Lal Agarwal……..…….....................…………….………………………………………..……….……..Appellant 1, R.N. Mukherjee Road Lal Bazar Kolkata – 700 001 [Pan : Acrpa 9773 H] Income Tax Officer, Ward-36(1), Kolkata.……………………………….…..………..……………...Respondent Appearances By: Shri Miraj D. Shah, A/R, Appeared On Behalf Of The Assessee. Shri Sital Chandra Das, Addl. Cit, D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : August 28Th, 2018 Date Of Pronouncing The Order : September 12Th , 2018 Order Per J. Sudhakar Reddy, Am :- This Is An Appeal Filed By The Assessee Directed Against The Order Of The Commissioner Of Income Tax (Appeals) - 10 Kolkata, (Hereinafter The ‘Ld. Cit(A)’), Dt. 15/02/2018, Passed U/S 250 Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Relating To Assessment Year 2014-15. 2. The Sole Issue That Arises For My Consideration Is, As To Whether, The Addition In Question Made U/S 68 Of The Act, In Respect Of Sale Profits Of Shares Of Essar India Ltd., Is Valid In Law. The Assessee Had Disclosed Long Term Capital Gain On The Purchase & Sale Of Shares Of Essar India Ltd. The Assessing Officer As Well As The Ld. Cit(A) Were Of The View That This Is A Pre-Arranged Bogus Long Terms Capital Gain. They Rejected The Contentions Of The Assessee & The Entire Receipt Was Treated U/S 68 Of The Act. 5% Fo The Same Was Also Added U/S 69 Of The Act, As Commission Paid. The Assessee In Support Of His Contentions Has Filed The Following Documents, During The Course Of Assessment Proceedings :- A) Copies Of Bank Statements B) Ledger Copies C) Demat Statements D) Contract Notes

Section 250Section 68Section 69

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH, KOLKATA (Before Sri J. Sudhakar Reddy, Accountant Member) Assessment Year: 2014-15 Ratan Lal Agarwal……..…….....................…………….………………………………………..……….……..Appellant 1, R.N. Mukherjee Road Lal Bazar Kolkata – 700 001 [PAN : ACRPA 9773 H] Income Tax Officer, Ward-36(1), Kolkata.……………………………….…..………..……………...Respondent Appearances by: Shri Miraj D. Shah, A/R, appeared on behalf of the assessee. Shri Sital Chandra Das, Addl. CIT, D/R. appearing on behalf of the Revenue. Date of concluding the hearing : August 28th, 2018 Date of pronouncing the order : Sep…

Mohd Rizwan Mohd Kallan Khan, Mumbai vs. Income Tax Officer 26(3)(4), Mumbai

In the result, appeal filed by assessee is partly allowed

ITA 1141/MUM/2018[2009-10]Status: DisposedITAT Mumbai31 May 2018AY 2009-10

Bench: Shri G.S. Pannu & Shri Pawan Singhmd. Rizwan Mohd Kallan Ito 26(3)(4) Room No. 711, 7Th Floor, Khan, Plot No. 603, Flat No.13, Bldg No. 7 D, Bombay Taxi C-11, Pratyakshakar Bhavan, Men’S Co-Operative Society, Vs. Bandra (East), Mumbai-51. Lbs Marg, Kurla (West), Mumbai-400070 Pan: Agjpk2270K Appellant Respondent Appellant By : Shri Vimal Punmiya (Ar) Respondent By : Shri Rajesh Kumar Yadav (Ar) Date Of Hearing :25.04.2018 Date Of Pronouncement : 31.05.2018 Order Per Pawan Singh; 1. The Instant Appeal By Assessee Under Section 253 Of The Income-Tax Act (The Act) Is Directed Against The Order Of Ld. Commissioner Of Income-Tax

For Appellant: Shri Vimal Punmiya (AR)For Respondent: Shri Rajesh Kumar Yadav (AR)
Section 143Section 143(1)Section 143(3)Section 145(3)Section 147Section 148Section 234ASection 253Section 274Section 3

…ev G. Kalathil, evidence (Mum) (Trib) (ITA No. 6727/M/2012 dt.20/8/2014 K.P. Varghese v. ITO, (1981) 131 ITR 579 (SC); CIT v. Roman & Co., (1968) : 67 ITR 11 (SC); CIT v. Calcutta Discount Co. Ltd.', (1973) 91 ITR 8 (SC); Umacharan Shaw & Bros v. CIT', (1959) 37 ITR 271 (SC) 2 Observation of Third party cannot ITO v/s Permanand [2008 25 SOT be basis of addition. Satisfaction 11] of AO is must: ITO v. Vinod Kumar, Prop., Vinod Brothers, Sriganganagar, [ITA No. 623/Jodh. of 2005 ITO v/s Arora Alloys Ltd. [2012] [12 ITR (trib) 263] 3 Term Suspicious as M-VAT was Balaji Textile Industries P Ltd. V/s not paid, by co…

Essa I Merchant, Mumbai vs. JCIT RG 17(1), Mumbai

In the result the appeal of the assessee is allowed

ITA 1592/MUM/2017[2012-13]Status: DisposedITAT Mumbai21 Feb 2018AY 2012-13

Bench: Shri R.C. Sharma & Shri Pawan Singhessa Ismail Merchant Jcit 13(3), (Prop. Of M/S Advance Aayakar Bhavan, Computers), 123, Ground Floor, Mumbai-400020 Vs. Zakari Masjid Street, Masjid, Mumbai-400009. Pan: Afspm6894H (Appellant) (Respondent) Acit 17(1), Essa Ismail Merchant Aayakar Bhavan, (Prop. Of M/S Advance Mumbai-400020 Computers), 123, Ground Floor, Vs. Zakari Masjid Street, Masjid, Mumbai-400009. Pan: Afspm6894H (Appellant) (Respondent) Essa Ismail Merchant Jcit 17(1), (Prop. Of M/S Advance Aayakar Bhavan, Computers), Unit No.9, Yusuf Mumbai-400020 Building, Ground Floor, Junction Vs. Of M.G. Road & Veer Nariman Road, Flora Fountain, Fort, Mumbai-400001. Pan: Afspm6894H (Appellant) (Respondent) Ita No. 3618 & 4521/M/2016 & 1592 & 3426/M/17 Essa Ismail Merchant

For Respondent: Shri Ram Tiwari (DR)
Section 133(6)Section 143(3)Section 253Section 254(1)

…e where disallowance has been made on surmises, conjectures and suspicion and, it is settled law that, no addition can be made on the basis of surmises, suspicion and conjectures. Reliance for this proposition is placed on Umacharan Shaw & Bros. v. CIT [1959] 37 ITR 271 (SC). It has been further held in the following cases that suspicion howsoever strong cannot take the place of proof : (a) Omar Salay Mohammad Sait v. CIT [1959] 37 ITR 151 (SC). (b) Dhirajlal Girdharilal v. CIT [1951] 26 ITR 736 (SC). (c) Dhakeshwari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC). (d) Lalchand Bhagat Ambica Ram v. CIT [1959] 37…