Vijay Proteins Ltd. v. Asst. CIT

58 ITD 428Income Tax Appellate Tribunal1996#165 most cited

What is Vijay Proteins Ltd. v. Asst. CIT authority for?

Where purchases are found to be non-genuine or fictitious, a reasonable disallowance of 25% of such purchases or the peak credit, whichever is higher, can be made. This is applied to address unexplained expenditure under Section 69C when actual goods are likely procured from the grey market.

430

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2026.

Also referred to as

Vijay Proteins Ltd v ACIT · 58 ITD 428 · bogus purchases · unexplained expenditure · Section 69C · 25% disallowance · peak credit · grey market transactions · fictitious purchases · Section 147

Sections most often in play

Section 147Section 69CSection 145(3)Section 143(3)Section 148Section 142(1)Section 133ASection 250

Issues it is cited on

section 145(3)section 69caccommodation entrysection 69businesssection 13documentcompanysection 148total incomesection 147section 143(3)

Judgments citing Vijay Proteins Ltd. v. Asst. CIT

ITO 24(1)(4), Mumbai vs. Deepak Khusaldas Mehta, Mumbai

In the result, the appeal filed by the Revenue in ITA N0

ITA 3019/MUM/2014[2010-11]Status: DisposedITAT Mumbai11 Aug 2016AY 2010-11

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.3019/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) Income Tax Officer – Shri Deepak Khusaldas बनाम/ 24(1)(4), Mehta, V. R. No. 502, Prop. Mehta Steel C-13, Syndicate, Pratyaksha Kar Bhavan, 201, Ganga, R.S. Marg, Bandra-Kurla Complex, Malad (East) Bandra (East), Mumbai –400 097. Mumbai – 400 051`. "थायी लेखा सं./Pan : Aabpm7200P (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: Shri K.P. KapadiaFor Respondent: Shri Vishwas Jadhav
Section 143(2)Section 143(3)

…ng decisions :- 1. CIT v. leaders Valves Private Limited reported in 258 ITR 435(P & H HC) 2. J.R.Solvent Industries Private Limited v. ACIT 68 ITD 65(TM) , ITAT Chandigarh 3. ITO v. Sunsteel, 92 TTJ 1126, ITAT Ahmadabad Bench 4. Vijay Proteins Ltd. v. ACIT, 58 ITD 428, ITAT Ahmadabad ITA 3019/Mum/2014 10 5. Ramesh verma v. ITO, ITA No. 541/Ahd/2007, ITAT Ahmadabad 6. Shri Simit P. Sheth v. ITO, ITA 3238 & 3293/Ahd/2009, ITAT Ahmadabad Bench. Thus, it was prayed that the addition may be deleted. The ld. CIT(A) considered the submissions of the assessee and observed that the assessee has claimed that out of 2…

ITO 14(2)(3), Mumbai vs. Lachhmandas U Talreja (HUF), Mumbai

In the result, the assessee’s appeals are partly allowed for statistical purposes and the Revenue’s appeals are partly allowed and partly allowed for statistical purposes

ITA 7644/MUM/2013[2004-05]Status: DisposedITAT Mumbai11 Jul 2016AY 2004-05

Bench: Shri Sanjay Arora, Am & Shri Pawan Singh, Jm आयकर अपील सं./I.T.A. Nos.7644 & 7645/Mum/2013 ("नधा"रण वष" / Assessment Years: 2004-05 & 2005-06) Ito-14(2)-3, Lachhmandas U Talreja (Huf) बनाम/ Earnest House, R. No. 306, 3Rd Floor, 282, Kalbadevi Road, Vs. Nariman Point, Mumbai-400 021 Mumbai-400 002 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaahl 0990 E (राज"व/ Revenue) ("नधा"रती/Assessee) : आयकर अपील सं./I.T.A. Nos.6581 & 6582/Mum/2013 ("नधा"रण वष" / Assessment Years: 2004-05 & 2005-06) Lachhmandas U Talreja (Huf) Ito-14(2)-3, बनाम/ Earnest House, R. No. 306, 3Rd Floor, 282, Kalbadevi Road, Vs. Mumbai-400 002 Nariman Point, Mumbai-400 021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaahl 0990 E ("नधा"रती/Assessee) (राज"व/ Revenue) : राज"व क" ओर से / Revenue By : Shri Jeevan Lal Lavidya "नधा"रती क" ओर से/Assessee By : Shri Deepak Tralshwala सुनवाई क" तार"ख / : 18.4.2016 Date Of Hearing घोषणा क" तार"ख / : 11.7.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: This Is A Set Of Cross Appeals, I.E., By The Assessee & The Revenue, For Two Consecutive Years, Being Assessment Years (A.Ys.) 2004-05 & 2005-06, Preferred U/S. 253 Of The Income Tax Act, 1961 (‘The Act’ Hereinafter). The Issues Arising Being (A.Ys. 2004-05 & 2005-06) Lachhmandas U Talreja (Huf) Common, The Same Were Listed For Hearing & Were Accordingly Heard Together – The Facts & Circumstances As Well As The Respective Cases Of The Parties Being Also The Same & Are Being Disposed Of Vide A Common, Consolidated Order.

For Appellant: Shri Deepak TralshwalaFor Respondent: Shri Jeevan Lal Lavidya
Section 131Section 133ASection 147Section 253

…extent of peak of the purchases made from such parties on account of bogus purchases made in cash from the open market out of unaccounted cash, in view of the decision held by the Hon'ble ITAT's C-Bench, Ahmedabad, in the case of Vijay Proteins Ltd. Vs. ACIT (58 ITD 428). 3. For the above mentioned reason and any other reasons that may be urged at the time of hearing, it is requested that the order of the CIT(A) be quashed and that of the Assessing Officer be restored.’ This aspect has also not been dealt with or otherwise considered in the decisions citied and relied upon before us, each of which was read out…

ACIT, New Delhi vs. Sh. Inderpal Singh Wadhawan, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 952/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…the suppliers are absent. Therefore reliance by the Ld. assessing officer on both these decisions is misplaced. 30. Before us the Ld. DR during the course of hearing further relied on the decision of coordinate bench in case of Vijay proteins Ltd versus ACIT [58 ITD 428]. We have carefully considered the facts of that decision. In that particular case the assessee was said to have purchased material from 33 parties which were not found genuine. During the course of assessment proceedings, the assessee could not produce the suppliers, the brokers and transporters in spite of specific opportunities provided to the…

ACIT, New Delhi vs. M/S Vardan Fashion, New Delhi

In the result ground No. 3 of the appeal of the assessee is dismissed

ITA 950/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishivardan Fashions, Jcit, E-1/7, 2Nd Floor, East Patel Range-33, Vs. Nagar, New Delhi New Delhi Pan:Aacfv0423H (Appellant) (Respondent) Acit, Vardan Fashions, Circle-33(1) E-1/7, 2Nd Floor, East Patel Vs. New Delhi Nagar, New Delhi Pan:Aacfv0423H (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 40

…evidences and these are not considered by the ld CIT (A). He further submitted written submission dated 10.05.2016 objecting the additional evidences. On the issue of alleged bogus purchases he relied on the decision of coordinate bench of Vijay Proteins Ltd. 58 ITD 428. During the course of hearing he also submitted that order passed by the Income Tax Settlement Commission u/s 245D(4) dated 29.07.2013 for AY 2009- 10 to 2011 -12 in case of assessee as well as one Shri Inderpal Singh Wadhawan. He relied heavily on the order wherein the assessee has himself offered 1% of total purchases in statement of facts as ad…

Mr. Inder Pal Singh Wadhawan, New Delhi vs. ACIT, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 1589/DEL/2013[2008-09]Status: DisposedITAT Delhi08 Jul 2016AY 2008-09

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…the suppliers are absent. Therefore reliance by the Ld. assessing officer on both these decisions is misplaced. 30. Before us the Ld. DR during the course of hearing further relied on the decision of coordinate bench in case of Vijay proteins Ltd versus ACIT [58 ITD 428]. We have carefully considered the facts of that decision. In that particular case the assessee was said to have purchased material from 33 parties which were not found genuine. During the course of assessment proceedings, the assessee could not produce the suppliers, the brokers and transporters in spite of specific opportunities provided to the…

Mr. Inder Pal Singh Wadhawan, New Delhi vs. JCIT, New Delhi

In the result ground No. 2 of the appeal of the assessee is allowed

ITA 1155/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishiinder Pal Singh Wadhawan, Jcit, E/1/7, Ii Nd Floor, East Patel Vs. Circle-33, Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, E/1/7, Ii Nd Floor, Vs. 15Th Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, New Delhi Pan: Aarps6904L (Appellant) (Respondent) Inder Pal Singh Wadhawan, Acit, E/1/7, Ii Nd Floor, East Patel Circle-33, Vs. Nagar, New Delhi New Delhi Pan: Aarps6904L (Appellant) (Respondent) Acit, Inder Pal Singh Wadhawan, Circle-33(1), Room No.1505, 15Th E/1/7, Ii Nd Floor, Vs. Floor, Dr. Shyama Prasad East Patel Nagar, New Delhi Mukherjee Civil Centre, Pan: Aarps6904L New Delhi (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 143(3)Section 68

…the suppliers are absent. Therefore reliance by the Ld. assessing officer on both these decisions is misplaced. 30. Before us the Ld. DR during the course of hearing further relied on the decision of coordinate bench in case of Vijay proteins Ltd versus ACIT [58 ITD 428]. We have carefully considered the facts of that decision. In that particular case the assessee was said to have purchased material from 33 parties which were not found genuine. During the course of assessment proceedings, the assessee could not produce the suppliers, the brokers and transporters in spite of specific opportunities provided to the…

M/S Vardaan Fashion, New Delhi vs. JCIT, New Delhi

In the result ground No. 3 of the appeal of the assessee is dismissed

ITA 1143/DEL/2013[2007-08]Status: DisposedITAT Delhi08 Jul 2016AY 2007-08

Bench: I.C.Sudhir & Shri Prashant Maharishivardan Fashions, Jcit, E-1/7, 2Nd Floor, East Patel Range-33, Vs. Nagar, New Delhi New Delhi Pan:Aacfv0423H (Appellant) (Respondent) Acit, Vardan Fashions, Circle-33(1) E-1/7, 2Nd Floor, East Patel Vs. New Delhi Nagar, New Delhi Pan:Aacfv0423H (Appellant) (Respondent)

For Appellant: Sh. Ajay Wadhwa, AdvFor Respondent: Sh. Vijay Verma, CIT DR
Section 142Section 40

…evidences and these are not considered by the ld CIT (A). He further submitted written submission dated 10.05.2016 objecting the additional evidences. On the issue of alleged bogus purchases he relied on the decision of coordinate bench of Vijay Proteins Ltd. 58 ITD 428. During the course of hearing he also submitted that order passed by the Income Tax Settlement Commission u/s 245D(4) dated 29.07.2013 for AY 2009- 10 to 2011 -12 in case of assessee as well as one Shri Inderpal Singh Wadhawan. He relied heavily on the order wherein the assessee has himself offered 1% of total purchases in statement of facts as ad…

ITO 14(3)(3), Mumbai vs. Ashwinkumar Chhanganlal Satiya, Mumbai

The appeals of the Revenue are dismissed and the cross objections of the assessee are allowed

ITA 7168/MUM/2013[2003-04]Status: DisposedITAT Mumbai26 Feb 2016AY 2003-04
Section 133ASection 143(1)Section 143(3)Section 147Section 148Section 69

…tent of peak of the purchases made from such parties on account of bogus purchases made in cash from the open market out of unaccounted cash, in view of the decision held in Ahmedabad Hon’ble ITAT’s C- Bench decided in the case of Vijay Proteins Ltd. vs. ACIT 58 ITD 428.” 7. We have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that a similar issue involving identical facts has already been considered and decided in favour of the assessee by the Mumbai “I” Bench of this Tribunal in the case of Jeetendra Harshadkumar Textiles (ITA No. 771 & C.O. N…

ITO 14(3)(3), Mumbai vs. Ashwinkumar Chhanganlal Satiya, Mumbai

The appeals of the Revenue are dismissed and the cross objections of the assessee are allowed

ITA 7167/MUM/2013[2002-03]Status: DisposedITAT Mumbai26 Feb 2016AY 2002-03
Section 133ASection 143(1)Section 143(3)Section 147Section 148Section 69

…tent of peak of the purchases made from such parties on account of bogus purchases made in cash from the open market out of unaccounted cash, in view of the decision held in Ahmedabad Hon’ble ITAT’s C- Bench decided in the case of Vijay Proteins Ltd. vs. ACIT 58 ITD 428.” 7. We have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that a similar issue involving identical facts has already been considered and decided in favour of the assessee by the Mumbai “I” Bench of this Tribunal in the case of Jeetendra Harshadkumar Textiles (ITA No. 771 & C.O. N…

ITO WD 21(1)(3), Mumbai vs. Mahendrakumar D Paleja, Mumbai

In the result, the Revenue’s appeal is partly allowed for statistical purposes

ITA 2628/MUM/2013[2006-07]Status: DisposedITAT Mumbai19 Feb 2016AY 2006-07

Bench: Shri Joginder Singh, Jm & Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. No. 2628/Mum/2013 ("नधा"रण वष" / Assessment Year: 2006-07) Ito, Ward 21 (1)(3), Mahendrakumar D. Paleja Room No. 605, 6Th Floor, Prop: Mahesh Exports, बनाम/ C-10, Pratyakshakar Bhavan, 63/4, Brij Kamal, Bandra Kurla Complex, Swastik Chs, N. S. Road No. 4, Vs. Bandra (E), Mumbai Juhu Scheme, Vile Parle (W), Mumbai-400 056 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Acvpp 5926 B (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : None ""यथ" क" ओर से/Respondent By : Shri Prakash L. Pathode सुनवाई क" तार"ख / : 15.02.2016 Date Of Hearing Date Of Order : 19.02.2016 आदेश / O R D E R Per Sanjay Arora, A. M.: This Is An Appeal By The Revenue Directed Against The Order By The Commissioner Of Income Tax (Appeals)-32, Mumbai (‘Cit(A)’ For Short) Dated 03.1.2013, Partly Allowing The Assessee’S, An Individual, Appeal Contesting Its Assessment U/S.144 Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) For The Assessment Year (A.Y.) 2006-07 Vide Order Dated 18.12.2008. 2. None Appeared For & On Behalf Of The Assessee-Respondent When The Appeal Was Called Out For Hearing, Nor Any Adjournment Application Stands Received. Even On 2 Ito Vs. Mahendrakumar D. Paleja An Earlier Occasion (08.7.2015), There Had Been No Appearance On The Assessee’S Behalf, Even As The Assessee Has Appointed A Counsel To Represent Him (Letter Of Authority On Record). The Appeal Is Outstanding Since Long. It Was Under These Circumstances Considered Fit & Proper To Proceed With The Hearing & Decide The Appeal After Hearing The Party Before Us & Considering The Material On Record.

For Appellant: NoneFor Respondent: Shri Prakash L. Pathode
Section 144

…terial adduced in the remand proceedings. No case for higher disallowance has been made before us. We, under the circumstances, have no hesitation to decline interference. The reliance by the Revenue on the decision in Vijay Proteins Ltd. vs. Asst. CIT [1996] 58 ITD 428 (Ahd.); the matter being factual, would be of no assistance to the assessee. We decide accordingly. 5. The second issue, raised per Ground # 5, agitates the deletion of an addition qua cash deposits (at Rs.10,51,500) in the assessee’s savings bank account during the year. The same was explained in the appellate proceedings to be out of the sale p…