Western India Bakers (P) Ltd. v. Dy. CIT

87 ITD 607Income Tax Appellate Tribunal2003#8008 most cited

What is Western India Bakers (P) Ltd. v. Dy. CIT authority for?

Section 40A(3) disallowance cannot be applied when assessment is based on undisclosed investment, as this section applies only when genuine expenditure is incurred but the mandate of Section 40A(3) is violated.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2025.

Also referred to as

Western India Bakers (P) Ltd. v. Dy. CIT · 87 ITD 607 · section 40A(3) · disallowance · undisclosed investment · expenditure · genuine expenditure

Sections most often in play

Section 132Section 143(1)Section 143(2)Section 143(3)Section 153ASection 37(1)Section 40A(3)Section 68

Issues it is cited on

section 256(1)section 256on money receiptsection 40a(3)on-moneysection 40asection 153a(1)loose papersshare application moneydocuments seizedtangible materialsection 132a

Judgments citing Western India Bakers (P) Ltd. v. Dy. CIT

Shital Vipulkumar Dholakia, Ahmedabad vs. The Income Tax Officer, Ward-1(1)(3), Ahmedabad

ITA 259/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2021-22

Bench: Ms.Suchitra R. Kamble & Shri Makarand V.Mahadeokar

For Appellant: Shri Tushar Hemani, Sr. Advocate andFor Respondent: Shri Sher Singh, CIT-DR
Section 133(6)Section 142(1)Section 143(3)Section 144BSection 250Section 40A(3)

…settled judicial precedents. 2.13 In support, the AR placed reliance on the decisions in: i. ii. Sharma Associates v. ACIT (1995) 55 ITD 171 (Pune) (TM); Rajmal Lakhichand v. ACIT (2001) 79 ITD 84 (Pune); iii. iv. Western India Bakers Pvt. Ltd. v. DCIT (2003) 87 ITD 607 (Mumbai); Free India Assurance Services Ltd. v. DCIT (2011) 132 ITD 60 (Mumbai). Where it was decided that the provisions of section 40A(3) can be applied only in cases where an assessee in fact incurs an expenditure but violates the mandate of section 40A(3). However, the genuineness of the expenditure had never been in doubt. The AR accordingly…

DCIT-CC-4(2), Mumbai vs. Rubberwala Realty, Mumbai

In the result, all the appeals of the assessee for AYs 2015-16 to

ITA 3531/MUM/2023[2018-19]Status: DisposedITAT Mumbai07 Jun 2024AY 2018-19

Bench: We Advert To The Grounds Taken In The Cross Appeals, It Would First Be Relevant To Cull Out The Basic Facts Of The Case & Effect Of Law In Brief In Respect Of Certain Ays. Search U/S 132 Of The Income Tax Act, 1961 (Hereinafter Referred To As "The Act") Was Conducted Against The Rubberwala Group, On 17-03-2021 Thereby Triggering Section 153A Of The Act. Prior To The Date Of Search, The Income-Tax Assessments For Ays 2015-16 To 2019-20 Were Either Completed U/S 143(1)/143(3) Of The Act And/Or The Time Limit For Issue Of Notice U/S 143(2) Of The Act Had Expired. Accordingly, The Income-Tax 3

For Respondent: Shri Sanyogita Nagpal, CIT
Section 132Section 133(6)Section 143(1)Section 143(2)Section 153ASection 68Section 69C

…and the books of account. The result of the aforesaid discussion is that the undisclosed income is to be quantified at Rs. 14.74 lakhs.” 5.18 We find that similar view has been expressed by this Tribunal in the case of Western India Bakers (P.) Ltd. Vs DCIT (87 ITD 607) wherein also it was held that the limits under Section 40A(3) of the Act cannot be applied while estimating undisclosed income. The relevant findings of this Tribunal as taken note of by us are as follows :- "28. Coming now to the last issue that whether disallowance under section 40A(3) was possible in the facts of the present case, we have note…

DCIT-CC-4(2), Mumbai vs. Rubberwala Housing and Infrastructure Limited, Mumbai

In the result, all the appeals of the assessee stands allowed and

ITA 3508/MUM/2023[2015-16]Status: DisposedITAT Mumbai07 Jun 2024AY 2015-16

Bench: Shri Br Baskaran, Am & Shri Aby T Varkey, Jm आयकर अपील सं/ I.T. A. No. 3448/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3447/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3446/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3445/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3444/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2019-20) & आयकर अपील सं/ I.T. A. No. 3459/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2020-21) & आयकर अपील सं/ I.T. A. No. 3432/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2021-22) Rubberwala Housing & Infrastructure Ltd. Ground Floor, Rubberwala House, Dr. A Nair Road, Agripada, Mumbai-400011. बनाम / Vs. Dcit, Central Circle-4(2) 19Th Floor, Air India Building, Nariman Point, Mumbai-400021. आयकर अपील सं/ I.T. A. No. 3508/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3505/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3504/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3549/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3503/Mum/2023

For Appellant: Shri Mani Jain FCAFor Respondent: Smt Sanyogita Nagpal
Section 132Section 143(1)Section 143(2)Section 153ASection 68Section 69C

…count. The result of the aforesaid discussion is that the undisclosed income is to be quantified at Rs. 14.74 lakhs." (emphasis supplied) 5.18 We find that similar view has been expressed by this Tribunal in the case of Western India Bakers (P.) Ltd. Vs DCIT (87 ITD 607) wherein also it was held that the limits under Section 40A(3) of the Act cannot be applied while estimating undisclosed income. The relevant findings of this Tribunal as taken note of by us are as follows :- "28. Coming now to the last issue that whether disallowance under section 40A(3) was possible in the facts of the present case, we have note…

Rubberwala Housing and Infrastructure Limited, Mumbai vs. DCIT CC-4(2), Mumbai

In the result, all the appeals of the assessee stands allowed and

ITA 3448/MUM/2023[2015-16]Status: DisposedITAT Mumbai07 Jun 2024AY 2015-16

Bench: Shri Br Baskaran, Am & Shri Aby T Varkey, Jm आयकर अपील सं/ I.T. A. No. 3448/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3447/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3446/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3445/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3444/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2019-20) & आयकर अपील सं/ I.T. A. No. 3459/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2020-21) & आयकर अपील सं/ I.T. A. No. 3432/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2021-22) Rubberwala Housing & Infrastructure Ltd. Ground Floor, Rubberwala House, Dr. A Nair Road, Agripada, Mumbai-400011. बनाम / Vs. Dcit, Central Circle-4(2) 19Th Floor, Air India Building, Nariman Point, Mumbai-400021. आयकर अपील सं/ I.T. A. No. 3508/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3505/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3504/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3549/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3503/Mum/2023 2

For Appellant: Shri Mani Jain FCAFor Respondent: Smt Sanyogita Nagpa
Section 132Section 143(1)Section 143(2)Section 153ASection 68Section 69ASection 69C

…t Rs. 14.74 lakhs." (emphasis supplied) 61 ITA Nos.3448 & Others/Mum/2023 Α.Υ. 2015-16 to 2021-22 Rubberwala Housing & Infrastructure Ltd 5.18 We find that similar view has been expressed by this Tribunal in the case of Western India Bakers (P.) Ltd. Vs DCIT (87 ITD 607) wherein also it was held that the limits under Section 40A(3) of the Act cannot be applied while estimating undisclosed income. The relevant findings of this Tribunal as taken note of by us are as follows :- "28. Coming now to the last issue that whether disallowance under section 40A(3) was possible in the facts of the present case, we have note…

Puneet Sahdev, Jammu vs. The Income Tax Officer, Jammu

ITA 579/ASR/2016[2009-10]Status: DisposedITAT Amritsar30 Jun 2020AY 2009-10

Bench: Shri L. P. Sahu & Shri Ravish Sood

For Appellant: Shri P.N Arora, A.R)For Respondent: Shri M.P Singh, CIT D.R
Section 143(3)Section 271(1)(c)Section 68

…Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu – A.Y 2008-09 & A.Y 2009-10- ITA No. 305/Asr/2015 & ITA No. 05/Asr/2013 Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu –A.Y 2009-10- ITA No.579/Asr/2016 1 ITO, Ward 2(2), Jammu Vs. Puneet Sehdev – A.Y 2009-10 – ITA No. 547/Asr/2016. IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR Before Shri L. P. Sahu, Accountant Member and Shri Ravish Sood, Judicial Member ITA No. 305/Asr./2015 (Assessment Year: 2008-09) Shri Puneet Sehdev Income Tax Officer Prop. M/s Punet Bangle House, Ward 2(2), Jammu Vs. Jain Bazar, Jammu. PAN– AQKPS6682C (Appellant) (Respondent…

Income Tax Officer, Jammu vs. Sh. Puneet Sehdev, Prop., Jammu

ITA 547/ASR/2016[2009-10]Status: DisposedITAT Amritsar30 Jun 2020AY 2009-10

Bench: Shri L. P. Sahu & Shri Ravish Sood

For Appellant: Shri P.N Arora, A.R)For Respondent: Shri M.P Singh, CIT D.R
Section 143(3)Section 271(1)(c)Section 68

…Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu – A.Y 2008-09 & A.Y 2009-10- ITA No. 305/Asr/2015 & ITA No. 05/Asr/2013 Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu –A.Y 2009-10- ITA No.579/Asr/2016 1 ITO, Ward 2(2), Jammu Vs. Puneet Sehdev – A.Y 2009-10 – ITA No. 547/Asr/2016. IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR Before Shri L. P. Sahu, Accountant Member and Shri Ravish Sood, Judicial Member ITA No. 305/Asr./2015 (Assessment Year: 2008-09) Shri Puneet Sehdev Income Tax Officer Prop. M/s Punet Bangle House, Ward 2(2), Jammu Vs. Jain Bazar, Jammu. PAN– AQKPS6682C (Appellant) (Respondent…

Sh. Puneet Sehdev Prop, Jammu vs. The Income-Tax Officer, Jammu

ITA 305/ASR/2015[2008-09]Status: DisposedITAT Amritsar30 Jun 2020AY 2008-09

Bench: Shri L. P. Sahu & Shri Ravish Sood

For Appellant: Shri P.N Arora, A.R)For Respondent: Shri M.P Singh, CIT D.R
Section 143(3)Section 271(1)(c)Section 68

…Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu – A.Y 2008-09 & A.Y 2009-10- ITA No. 305/Asr/2015 & ITA No. 05/Asr/2013 Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu –A.Y 2009-10- ITA No.579/Asr/2016 1 ITO, Ward 2(2), Jammu Vs. Puneet Sehdev – A.Y 2009-10 – ITA No. 547/Asr/2016. IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR Before Shri L. P. Sahu, Accountant Member and Shri Ravish Sood, Judicial Member ITA No. 305/Asr./2015 (Assessment Year: 2008-09) Shri Puneet Sehdev Income Tax Officer Prop. M/s Punet Bangle House, Ward 2(2), Jammu Vs. Jain Bazar, Jammu. PAN– AQKPS6682C (Appellant) (Respondent…

Sh. Puneet Sehdev Prop;, Jammu vs. The Income-Tax Officer, Jammu

ITA 5/ASR/2013[2009-10]Status: DisposedITAT Amritsar30 Jun 2020AY 2009-10

Bench: Shri L. P. Sahu & Shri Ravish Sood

For Appellant: Shri P.N Arora, A.R)For Respondent: Shri M.P Singh, CIT D.R
Section 143(3)Section 271(1)(c)Section 68

…Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu – A.Y 2008-09 & A.Y 2009-10- ITA No. 305/Asr/2015 & ITA No. 05/Asr/2013 Shri Puneet Sehdev Vs. ITO, Ward 2(2), Jammu –A.Y 2009-10- ITA No.579/Asr/2016 1 ITO, Ward 2(2), Jammu Vs. Puneet Sehdev – A.Y 2009-10 – ITA No. 547/Asr/2016. IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR Before Shri L. P. Sahu, Accountant Member and Shri Ravish Sood, Judicial Member ITA No. 305/Asr./2015 (Assessment Year: 2008-09) Shri Puneet Sehdev Income Tax Officer Prop. M/s Punet Bangle House, Ward 2(2), Jammu Vs. Jain Bazar, Jammu. PAN– AQKPS6682C (Appellant) (Respondent…

Surya Merchants Ltd., New Delhi vs. DCIT, Ghaziabad

In the result, the above appeals filed by the assessee are partly allowed

ITA 180/DEL/2017[2008-09]Status: DisposedITAT Delhi30 Nov 2018AY 2008-09

Bench: Sh. R.K. Panda & Ms. Suchitra Kamble

Section 132Section 143Section 153Section 153ASection 263Section 40Section 40A(3)

…are not applicable if the payments are unaccounted and not recorded in the regular books of accounts. The Ld. Counsel for the assessee also relied upon the following decisions :- 1. Western India Bakers (P) Ltd. Vs. Dy. CIT (2004) 84 TTJ (Mumbai) 223 (2003) 87 ITD 607 (Mumbai) 2. Asstt. CIT Vs. Dr. Mohan Lal Swarnkar 92005) 95 TTJ (Jp) 969 3. Janta Tiles Vs. Asstt. CIT (2000) 66 TTJ (Pune) 695 10 4. Smt. Bommana Swarna Rekha Vs. Asstt. CIT (2005) 94 TTJ (Visakh) 885. 5. Kirti Foods limited 60 DTR 96 17. He accordingly submitted that the provision of section 40A(3) are not applicable to the facts of the presen…

Surya Merchants Ltd., New Delhi vs. DCIT, Ghaziabad

In the result, the above appeals filed by the assessee are partly allowed

ITA 179/DEL/2017[2007-08]Status: DisposedITAT Delhi30 Nov 2018AY 2007-08

Bench: Sh. R.K. Panda & Ms. Suchitra Kamble

Section 132Section 143Section 153Section 153ASection 263Section 40Section 40A(3)

…are not applicable if the payments are unaccounted and not recorded in the regular books of accounts. The Ld. Counsel for the assessee also relied upon the following decisions :- 1. Western India Bakers (P) Ltd. Vs. Dy. CIT (2004) 84 TTJ (Mumbai) 223 (2003) 87 ITD 607 (Mumbai) 2. Asstt. CIT Vs. Dr. Mohan Lal Swarnkar 92005) 95 TTJ (Jp) 969 3. Janta Tiles Vs. Asstt. CIT (2000) 66 TTJ (Pune) 695 10 4. Smt. Bommana Swarna Rekha Vs. Asstt. CIT (2005) 94 TTJ (Visakh) 885. 5. Kirti Foods limited 60 DTR 96 17. He accordingly submitted that the provision of section 40A(3) are not applicable to the facts of the presen…

Surya Merchants Ltd., New Delhi vs. DCIT, Ghaziabad

In the result, the above appeals filed by the assessee are partly allowed

ITA 178/DEL/2017[2006-07]Status: DisposedITAT Delhi30 Nov 2018AY 2006-07

Bench: Sh. R.K. Panda & Ms. Suchitra Kamble

Section 132Section 143Section 153Section 153ASection 263Section 40Section 40A(3)

…are not applicable if the payments are unaccounted and not recorded in the regular books of accounts. The Ld. Counsel for the assessee also relied upon the following decisions :- 1. Western India Bakers (P) Ltd. Vs. Dy. CIT (2004) 84 TTJ (Mumbai) 223 (2003) 87 ITD 607 (Mumbai) 2. Asstt. CIT Vs. Dr. Mohan Lal Swarnkar 92005) 95 TTJ (Jp) 969 3. Janta Tiles Vs. Asstt. CIT (2000) 66 TTJ (Pune) 695 10 4. Smt. Bommana Swarna Rekha Vs. Asstt. CIT (2005) 94 TTJ (Visakh) 885. 5. Kirti Foods limited 60 DTR 96 17. He accordingly submitted that the provision of section 40A(3) are not applicable to the facts of the presen…

ITO 31(2)(3), Mumbai vs. Manjula S. Shah, Mumbai

The appeal of the Revenue is dismissed

ITA 7220/MUM/2014[2009-10]Status: DisposedITAT Mumbai02 Feb 2017AY 2009-10

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2009-10 Income Tax Officer-31(2)(3), Mrs. Manjula S. Shah, Room No.704, C-11, Prop. Of M/S Eastment बनाम/ Pratayaksha Kar Bhavan, Chemicals, 3/202, Rishabh Vs. Bandra Kurla Complex, Mansion, S.V.Road, Nr. St. Bandra(East), John School, Mumbai-400051 Goregaon (W), Mumbai-400062 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No. Aapps3790Q

Section 133(6)Section 69C

…of Rs. 6,16,346 being 20 per cent of the above purchases of Rs. 3080,730. In support the reliance was also placed on the following decisions:-- (1)Rajmal Lakhichand v. Asstt. CIT [2001] 79 ITD 84 (Pune) .. (2)Western India Bakers (P.) Ltd. v. Dy. CIT [2003] 87 ITD 607 (Mum.) (3)Sharma Associates V. Asstt. CIT [1996] 217 ITR (AT) 1/[1995] 55 ITD 171 (Pune) (TM). 18 Mrs. Manjula S. Shah He, therefore, submits that the addition made by the Assessing Officer and sustained by the Id. CIT(A) be deleted. 17. On the other hand, the Id. D.R. while relying on the order of the Assessing Officer submits that the assesse…

ACIT 25(1), Mumbai vs. Chirag Construction, Mumbai

The appeal of the Revenue is dismissed

ITA 3604/MUM/2013[2009-10]Status: DisposedITAT Mumbai13 Jan 2017AY 2009-10

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year: 2009-10 Acit-25(1), M/S Chirag Construction Room No.202, 02Nd Floor, Company, बनाम/ Pratayakshkar Bhavan, 105, Gopal Puri, S.V.Road, Vs. Bandra Kurla Complex, Borivali (W), Bandra (East), Mumbai-400066 Mumbai-400051 (राज"व /Revenue) (""यथ" /Respondent) Pan. No.Aacfc7646N

…of Rs. 6,16,346 being 20 per cent of the above purchases of Rs. 3080,730. In support the reliance was also placed on the following decisions:-- (1)Rajmal Lakhichand v. Asstt. CIT [2001] 79 ITD 84 (Pune) .. (2)Western India Bakers (P.) Ltd. v. Dy. CIT [2003] 87 ITD 607 (Mum.) (3)Sharma Associates V. Asstt. CIT [1996] 217 ITR (AT) 1/[1995] 55 ITD 171 (Pune) (TM). He, therefore, submits that the addition made by the Assessing Officer and sustained by the Id. CIT(A) be deleted. 17. On the other hand, the Id. D.R. while relying on the order of the Assessing Officer submits that the assessee has placed no material…

SHI vs. Hakti Transport Sangh, Thane

In the result, the appeal filed by the assessee-firm in ITA N0

ITA 7515/MUM/2011[2005-06]Status: DisposedITAT Mumbai13 Jun 2016AY 2005-06

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7515/Mum/2011 ("नधा"रण वष" / Assessment Year : 2005-06) Shivshakti Transport Sangh, Income Tax Officer, बनाम/ K.B. Amlani C.A., Ward– 1, V. 14 Malkans, Panvel. Lazras Rd., Charai, Thane (W) – 400 602. "थायी लेखा सं./Pan : Abbfs 5473-P .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri Vishwas Jadhav(D.R.)
Section 143(2)Section 143(3)Section 40A(3)Section 44

…oo Supply Co. (1980) 121 ITR 680 (Ori) 5. CIT v. Triveniprasad Pannalal (1997) 228 ITR 680 (M.P) 6. CIT v. Ashish Coal Coke Traders (1987) 163 ITR 174 (MP) 7. Navjivan Synthetics v. ACIT (2002) 168 taxation 5 (Ahd-Trib) 8. Western Indian Bakers v. DCIT (2003) 87 ITD 607 (Mum-Trib) 9. Shree Mahaveer Corporation v. ITO (2002) 258 ITR (AT) 55 (Bang Trib) 10. CIT v. P. Pravin & Co. (2005) 6(1) ITCL 21 (Guj HC), (2005) 274 ITR 534 (Guj). 11. CIT v. Raja Pal Automobiles (2010) 320 ITR 185. The learned CIT(A) considered the submissions of the assessee-firm and the case laws relied upon by the assessee-firm. The learned…

Western India Bakers (P) Ltd. v. Dy. CIT (87 ITD 607) — Cited in 14 Judgments | BharatTax