“profit element”

DCIT, Central Circle 1, Rajkot vs. Krishna Developers, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

profit out of such receipt must bear an element of estimation. In view of the legal position that not the entire receipts, but the profit element embedded in such receipts, can be brought to tax. Hence, adding entire amount of sale consideration received in cash will not serve ... justice. Sale proceeds comprise of cost expenses (as tabulated above) and profits out of entire sale proceeds, only profit element is liable to tax. When the appellant is found to have not incorporated entire sale proceeds in the regular books of account and the assessing officer is not satisfied about

Krishna Developers, Rajkot vs. Deputy Commissioner of Income Tax, Central 1, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

profit out of such receipt must bear an element of estimation. In view of the legal position that not the entire receipts, but the profit element embedded in such receipts, can be brought to tax. Hence, adding entire amount of sale consideration received in cash will not serve ... justice. Sale proceeds comprise of cost expenses (as tabulated above) and profits out of entire sale proceeds, only profit element is liable to tax. When the appellant is found to have not incorporated entire sale proceeds in the regular books of account and the assessing officer is not satisfied about

Krishna Developers, Rajkot vs. The Deputy Commissioner of Income Tax, Central-1, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

profit out of such receipt must bear an element of estimation. In view of the legal position that not the entire receipts, but the profit element embedded in such receipts, can be brought to tax. Hence, adding entire amount of sale consideration received in cash will not serve ... justice. Sale proceeds comprise of cost expenses (as tabulated above) and profits out of entire sale proceeds, only profit element is liable to tax. When the appellant is found to have not incorporated entire sale proceeds in the regular books of account and the assessing officer is not satisfied about

Siddheshwar Gems, Surat vs. ITO, Ward-3(3)(1), Surat

In the result, the appeal of the assessee stands allowed

Bench: Shri Sanjay Garg & Shri Narendra Prasad Sinhaआयकर अपील सं /Ita No.860/Srt/2025 िनधा"रण वष" /Assessment Year : 2018-19 Siddheshwar Gems The Ito बनाम Plot No.263 Ward-3(3)(1) / First Floor Surat – 395 001 V/S. Gayatrinagar Housing Society Nr. Rachna Soc. L.H. Road Kapodra, Surat – 395 006 "थायी लेखा सं./Pan: Actfs 1753 M (अपीलाथ(/ Appellant) (!) यथ(/ Respondent) Assessee By : Shri P.M. Jagasheth, Ca Revenue By : Shri Ajay Uke, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 10/12/2025 घोषणा की तारीख /Date Of Pronouncement: 09/03/2026 आदेश/O R D E R Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As ‘Cit(A)’] Dated 20/06/2025 Passed U/S.250 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) For The Assessment Years (Ays) 2018-19. 2. The Assessee, In This Appeal, Has Raised The Following Grounds Of Appeal: Siddheshwar Gems Vs. Ito Asst. Year : 2018-19

assessee. The AO had made the addition on account of bogus purchases, whereas, the assessee, in fact, had not made any such purchases. The profit element earned on the sales has already been offered for taxation. Therefore, the impugned additions made by the AO are not legally sustainable

Basant Lal Gupta, Sidhi vs. Income Tax Officer Ward 1, Rewa

In the result, ITA. No. 129/JAB/2024 & ITA

Bench: Shri Anadee Nath Misshra

bank was assessee’s business turnover; on which element of profit was a small portion of the total amount. He contended that only the profit element in the turnover I.T.A. No.129, 130 to 132/JAB/2024 Assessment Year:2010-11 3 should be taxed as income; and not the entire turnover. Further

Basant Lal Gupta, Sidhi vs. Income Tax Officer Ward 1, Rewa

In the result, ITA. No. 129/JAB/2024 & ITA

Bench: Shri Anadee Nath Misshra

bank was assessee’s business turnover; on which element of profit was a small portion of the total amount. He contended that only the profit element in the turnover I.T.A. No.129, 130 to 132/JAB/2024 Assessment Year:2010-11 3 should be taxed as income; and not the entire turnover. Further

Basant Lal Gupta, Sidhi vs. Income Tax Officer Ward 1, Rewa

In the result, ITA. No. 129/JAB/2024 & ITA

Bench: Shri Anadee Nath Misshra

bank was assessee’s business turnover; on which element of profit was a small portion of the total amount. He contended that only the profit element in the turnover I.T.A. No.129, 130 to 132/JAB/2024 Assessment Year:2010-11 3 should be taxed as income; and not the entire turnover. Further

Basant Lal Gupta, Sidhi vs. Income Tax Officer Ward-1, Rewa

In the result, ITA. No. 129/JAB/2024 & ITA

Bench: Shri Anadee Nath Misshra

bank was assessee’s business turnover; on which element of profit was a small portion of the total amount. He contended that only the profit element in the turnover I.T.A. No.129, 130 to 132/JAB/2024 Assessment Year:2010-11 3 should be taxed as income; and not the entire turnover. Further

Deputy Commissioner of Income Tax, Central Circle, Panaji vs. M/S Mohit Ispat Ltd., Kundaim

Appeal of the Revenue is PARTLY ALLOWED in aforestated terms

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliassessment Years: 2016-17 Dy. Commissioner Of Income Tax, Central Circle, Panaji, Goa. . . . . . . . Appellant V/S M/S Mohit Ispat Limited 339/340, Kundaim Industrial Estate, Goa-403115 Pan: Aaccm8154E . . . . . . . Respondent Represented Assessee By: Mr Shriniwas Naik & Narchiva Lotlikar [‘Ld. Ar’] Revenue By: Mr Naveen Kumar [‘Ld. Dr’] Date Of Conclusive Hearing : 04/02/2026 Date Of Pronouncement : 27/02/2026 Order Per G. D. Padmahshali; This Appeal Of The Revenue Instituted U/S 253(2) Of The Income-Tax Act, 1961 [‘The Act’] Challenges Order Dt. 04/10/2019 Passed U/S 250 Of The Act By The Commissioner Of Income Tax Appeals-2, Panaji Goa [‘Ld. Cit(A)’] Which In Turn Sprung From Order Of Assessment Dt. 30/12/2017 Passed U/S 143(3) Of The Act By Acit, Central Circle, Panaji Goa [‘Ld. Ao’] Anent To Assessment Year 2016-17.[‘Ay’]

independent findings but on twofold premise/basis that; (i) the Ld. Coordinate bench’s decision in assessee’s own case where addition was restricted to profit element only and (ii) Ld. AO did not adhere to basic rule that for every sale there must of corresponding purchases. ITAT-Panaji Page

DCIT, Central Cirlcle 1, Rajkot vs. Buildcon Creations LLP, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

hands of the assessee. The assessee also submitted that entire sale proceeds cannot be regarded as net profit of the assessee and only profit element is to be taxed. That is, profit element on “on-money” should be taxed in the hands of the assessee. These profit estimation on different ... Bhavani Developers Pvt. Ltd. in Tax Appeal no. 267 of 2022, in this judgement, the Hon'ble Gujarat High Court has held that only profit element embedded in the gross “on-money” receipts at the rate of 6% can be taxed. The assessee also relied on various judgements of jurisdictional

DCIT, Central Circle 1, Rajkot vs. Buildcon Creations LLP, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

hands of the assessee. The assessee also submitted that entire sale proceeds cannot be regarded as net profit of the assessee and only profit element is to be taxed. That is, profit element on “on-money” should be taxed in the hands of the assessee. These profit estimation on different ... Bhavani Developers Pvt. Ltd. in Tax Appeal no. 267 of 2022, in this judgement, the Hon'ble Gujarat High Court has held that only profit element embedded in the gross “on-money” receipts at the rate of 6% can be taxed. The assessee also relied on various judgements of jurisdictional

DCIT, Central Circle-1, Rajkot vs. Buildcon Creations LLP, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

hands of the assessee. The assessee also submitted that entire sale proceeds cannot be regarded as net profit of the assessee and only profit element is to be taxed. That is, profit element on “on-money” should be taxed in the hands of the assessee. These profit estimation on different ... Bhavani Developers Pvt. Ltd. in Tax Appeal no. 267 of 2022, in this judgement, the Hon'ble Gujarat High Court has held that only profit element embedded in the gross “on-money” receipts at the rate of 6% can be taxed. The assessee also relied on various judgements of jurisdictional

DCIT, Central Circle 1, Rajkot vs. Buildcon Creations LLP, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

hands of the assessee. The assessee also submitted that entire sale proceeds cannot be regarded as net profit of the assessee and only profit element is to be taxed. That is, profit element on “on-money” should be taxed in the hands of the assessee. These profit estimation on different ... Bhavani Developers Pvt. Ltd. in Tax Appeal no. 267 of 2022, in this judgement, the Hon'ble Gujarat High Court has held that only profit element embedded in the gross “on-money” receipts at the rate of 6% can be taxed. The assessee also relied on various judgements of jurisdictional

Shiv Enterprise, Rajkot vs. The Deuty Commissioner of Income Tax, Central - 1, Rajkot

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

hands of the assessee. The assessee also submitted that entire sale proceeds cannot be regarded as net profit of the assessee and only profit element is to be taxed. That is, profit element on “on-money” should be taxed in the hands of the assessee. These profit estimation on different ... Bhavani Developers Pvt. Ltd. in Tax Appeal no. 267 of 2022, in this judgement, the Hon'ble Gujarat High Court has held that only profit element embedded in the gross “on-money” receipts at the rate of 6% can be taxed. The assessee also relied on various judgements of jurisdictional