Vijay Trading Co. v. ITO

M/S. SHAKAMBHARI ISPAT & POWER LTD.,,KOLKATA vs. DCIT, CENTRAL CIRCLE 3(3), , KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3(1),, KOLKATA vs. SHAKAMBHARI ISPAT & POWER LIMITED, KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

DEPUTY COMMISSIONER OF INCOME TAX, KOLKATA vs. SHAKAMBHARI ISPAT & POWER LIMITED, KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

DEPUTY COMMISSIONER OF INCOME TAX, KOLKATA vs. SHAKAMBHARI ISPAT & POWER LIMITED, KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

D.C.I.T., CC - 3(1),, KOLKATA vs. SHAKAMBHARI ISPAT & POWER LIMITED, KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

DEPUTY COMMISSIONER OF INCOME TAX, KOLKATA vs. SHAKAMBHARI ISPAT & POWER LIMITED, KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3.1, KOLKATA vs. SHAKAMBHARI ISPAT & POWER LIMITED, KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

M/S. SHAKAMBHARI ISPAT & POWER LTD., ,KOLKATA vs. DCIT, CENTRAL CIRCLE 3(3), , KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

M/S. SHAKAMBHARI ISPAT & POWER LTD., ,KOLKATA vs. DCIT, CENTRAL CIRCLE 3(3), KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

M/S. SHAKAMBHARI ISPAT & POWER LTD.,KOLKATA vs. DCIT, CC - 3(3),, KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

M/S. SHAKAMBHARI ISPAT & POWER LTD.,,KOLKATA vs. DCIT, CENTRAL CIRCLE 3(3), , KOLKATA

…erved that the entire quantity of excess stock discovered in the course of survey operation could not beregarded as unexplained income of the appellant and relying on the decision of the Hon'ble Gujrat High Court in the case of Vijay Trading Co. vs ITO (2016) 388 ITR 377 (Gujarat), it was held that only where any undisclosed purchases or undisclosed stock is discovered then it is only the profit element embedded in the transaction which can be added to the total income of the appellant. Having regard to the past history of G.P. Margin, the Hon'ble Tribunal accordingly held 10% could utmost be assessed by way of u…

MOHAMMED TAJ,KOLKATA vs. D.C.I.T., CC - 3(1), KOLKATA, KOLKATA

The appeal of the assessee is allowed for statistical purposes

Bench: Shri Sonjoy Sarma & Shri Sanjay Awasthii.T.A. No.1184/Kol/2024 Assessment Year: 2021-22 Mohammed Taj……….………………………..……….………….…..……Appellant 11, Balmukund Macker Road, Kolkata – 700007. [Pan: Aaccpt0441J] Vs. Dcit, Central Circle-3(1), Kolkata.…....…………..…........……...…..…..Respondent Appearances By: Shri Manish Tiwari, Ar, Appeared On Behalf Of The Appellant. Shri A. Kundu, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : November 12, 2024 Date Of Pronouncing The Order : November 20, 2024 Order Per Sonjoy Sarma: The Present Appeal Has Been Filed By The Assessee Against The Order Dated 28.03.2024 Of The Commissioner Of Income Tax (Appeals)-21, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Is An Individual & Filed Its Return Of Income On 26.03.2022 Declaring Total Income Of Rs.38,93,560/- U/S Section 139 Of The Act. Subsequently, A Search & Seizure Operation U/S 132 Of The Act Was Conducted On 13.01.2021 In The Case Of Hospitality Group Of Cases To Which The Assessee Belongs. The Search Operation Extended To The Premises Of The Assessee At 11, Bal Mukund Mackar Road, Khaja House, Barabazar, Kolkata-700007. Following The Search Operation, The Case Of The Assessee Was Centralized With Central Circle-3(1), Kolkata & Subsequently, The Case Was Transferred To The Pr. Cit-13, Kolkata. Consequently, A Notice U/S 143(2) Of The Act Was Issued Which Was Followed By Issuing A Notice U/S 142(1)

…as unexplained, only the profit element embedded in such transaction should be subjected to tax as held by various judicial precedents. The ld. AR in this context has referred to a judgment of the Gujarat High Court in the case of Vijay Trading v. ITO [2016] 388 ITR 377/76 taxmann.com 366. The principle enunciated in such judgment is that when undisclosed purchases of such nature are discovered, it is only the profit embedded in the transaction which can be added to the total income. The Gujarat High Court relied on some of its previous judgments to hold that "not the entire purchase price but only the profit el…