254 ITR 657 (Del); Hardillia Chemicals Ltd. v. CIT

75 ITR 373Supreme Court of India1970#554 most cited

What is 254 ITR 657 (Del); Hardillia Chemicals Ltd. v. CIT authority for?

Once an assessment is validly reopened under Section 147, the Assessing Officer gains jurisdiction to levy tax on the entire income that escaped assessment for that year, not just the income for which the reopening reason was formed. However, the assessee cannot use these proceedings to seek relief or claim new deductions unrelated to the escaped income.

172

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2007 to 2025.

Also referred to as

V. Jaganmohan Rao v. CIT · 75 ITR 373 · Section 147 · Section 148 · scope of reassessment · escaped income · entire income assessment · assessee new claims · previously rejected items · reassessment as appeal

Sections most often in play

Section 143(3)Section 147Section 153CSection 148Section 153ASection 132Section 132(4)Section 131(1A)

Issues it is cited on

recognised provident fundsection 43b(f)section 274(1)section 211section 50bapproved gratuity fundsection 40a(9)section 2(45)section 36(l)(iii)wholly and exclusively for businesssection 271(l)section 32(1)(iia)

Judgments citing 254 ITR 657 (Del); Hardillia Chemicals Ltd. v. CIT

SATISH VISHNU THOMBARE, INCOME TAX OFFICER, WARD-1, AHMEDNAGAR, AHMEDNAGAR vs. VARSHA PRAFULLA ZENDE, AHMEDNAGAR

In the result, the appeal of the Revenue is dismissed

ITA 1656/PUN/2024[2010-11]Status: DisposedITAT Pune29 Oct 2025AY 2010-11

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita No.1656/Pun/2024 धििाारण वर्ा / Assessment Year : 2010-11 Satish Vishnu Thombare, Varsha Prafulla Zende, Income Tax Officer, Prop Of Bleach Chem Enterprises, Ward-1, Ahmednagar Vs. Industrial Estate, Shrirampur, Maharashtra-413709 Pan : Aabpz2541C अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee By : Miss Shivani Shah (Virtual) Department By : Shri Akhilesh Srivastva Date Of Hearing : 06-08-2025 Date Of 29-10-2025 Pronouncement : आदेश / Order

For Appellant: Miss Shivani Shah (Virtual)For Respondent: Shri Akhilesh Srivastva
Section 132(1)Section 147Section 148Section 151Section 68

…en made but the Assessing Officer has reason to believe that there is under assessment on account of the existence of any of the grounds contemplated by Explanation 1 to section 147. The Supreme Court adverted to the Judgment in V Jaganmohan Rao v. CIT (1970) 75 ITR 373, which held that once an assessment is validly reopened, the previous under assessment is set aside and the Income-tax Officer has the jurisdiction and duty to levy tax on the entire income that had escaped assessment during the previous year. The Court held that the object of section 147 enures to the benefit of the revenue and it is not open to…

DEPUTY COMMISSIONER OF INCOME TAX, SALEM vs. GOVINDA RAJULU SRINIVASAN, SALEM

In the result, appeal of the Revenue stands dismissed

ITA 1245/CHNY/2025[2014-15]Status: DisposedITAT Chennai04 Sept 2025AY 2014-15

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Mr.Bhupendran, AdvocateFor Respondent: Mrs.C. Yamuna, CIT
Section 147Section 148Section 40Section 40A(3)

…e Supreme Court in the case of CIT v. Sun Engg. Works (P.) Ltd. [1992] 64 Taxman 442/198 ITR 297. The decision in the case of K.L. Srihari (HUF) (supra) was referred to in the decision of the Hon'ble Supreme Court in the case of V Jaganmohan Rao v. CIT [1970] 75 ITR 373. 15. In Jet Airways (1) Ltd. (supra), the Hon'ble Division Bench of the Bombay High Court took note of the decisions in the case of Sun Engg. Works (P.) Ltd. and V. Jaganmohan Rao (supra) and examined the effect of Explanation (3) in a case of somewhat similar to the case on hand. The operative portion of the judgment reads as follows:- '18. The…

M/S. BIOBUILD DEVELOPERS ,MUMBAI vs. INCOME TAX OFFICER WARD 24(1)(3), MUMBAI

ITA 4011/MUM/2025[2013-14]Status: DisposedITAT Mumbai25 Aug 2025AY 2013-14

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Sameer DalalFor Respondent: Shri Pravin Salunkhe
Section 143(3)Section 147Section 148Section 250

…sessing Officer has power to levy taxes on the entire income which has escaped assessment. The learned counsel relied upon the cases of Supreme Court in CIT v. Sun Engg. Works (P.) Ltd. [1992] 198 ITR 297/64 Taxman 442 and V. Jaganmohan Rao v. CIT/CEPT [1970] 75 ITR 373. On the other hand learned counsel for the assessee submitted that the words, 'and also in section 147 signify that unless the Assessing Officer assesses the income with respect to which he has formed reason to believe within the meaning of section 147, it would not be open for him to assess or reassess any other income chargeable to tax which has…

GRUH FINANCE LTD.,,AHMEDABAD vs. THE DCIT, CIRCLE-2(1)(1),, AHMEDABAD

Appeal is dismissed

ITA 1228/AHD/2019[2011-12]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2011-12

Bench: Shri Sanjay Garg & Smt. Annapurna Gupta

For Appellant: Ms. Arti Shah, ARFor Respondent: (sl.nos.1&4) Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 147

…out u/s.147 of the Act was not maintainable. He, in this respect, relied upon the following case-laws:  CIT Vs. Sun Engineering Works P.Limited (SC) 198 ITR 297  Chettinad Corporation P.Ltd. Vs. CIT (SC) 200 ITR 320  V. Jaganmohan Rao & Ors. Vs. CIT (SC) 75 ITR 373 3.1. The Ld.AO also observed that the aforesaid claim of deduction on account of ESOP cost expense was even not related to the escaped income. He, therefore, disallowed the aforesaid claim made by the assessee. The Ld.CIT(A) confirmed the disallowance of aforesaid deduction claimed by the assessee during the re-assessment proceedings u/s.147 of t…

GRUH FINANCE LTD.,,AHMEDABAD vs. THE DCIT, CIRCLE-2(1)(1),, AHMEDABAD

Appeal is dismissed

ITA 138/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2014-15

Bench: Shri Sanjay Garg & Smt. Annapurna Gupta

For Appellant: Ms. Arti Shah, ARFor Respondent: (sl.nos.1&4) Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 147

…out u/s.147 of the Act was not maintainable. He, in this respect, relied upon the following case-laws:  CIT Vs. Sun Engineering Works P.Limited (SC) 198 ITR 297  Chettinad Corporation P.Ltd. Vs. CIT (SC) 200 ITR 320  V. Jaganmohan Rao & Ors. Vs. CIT (SC) 75 ITR 373 3.1. The Ld.AO also observed that the aforesaid claim of deduction on account of ESOP cost expense was even not related to the escaped income. He, therefore, disallowed the aforesaid claim made by the assessee. The Ld.CIT(A) confirmed the disallowance of aforesaid deduction claimed by the assessee during the re-assessment proceedings u/s.147 of t…

GRUH FINANCE LTD.,,AHMEDABAD vs. THE DY. CIT, CIRCLE-2(1)(1),, AHMEDABAD

Appeal is dismissed

ITA 855/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2012-13

Bench: Shri Sanjay Garg & Smt. Annapurna Gupta

For Appellant: Ms. Arti Shah, ARFor Respondent: (sl.nos.1&4) Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 147

…out u/s.147 of the Act was not maintainable. He, in this respect, relied upon the following case-laws:  CIT Vs. Sun Engineering Works P.Limited (SC) 198 ITR 297  Chettinad Corporation P.Ltd. Vs. CIT (SC) 200 ITR 320  V. Jaganmohan Rao & Ors. Vs. CIT (SC) 75 ITR 373 3.1. The Ld.AO also observed that the aforesaid claim of deduction on account of ESOP cost expense was even not related to the escaped income. He, therefore, disallowed the aforesaid claim made by the assessee. The Ld.CIT(A) confirmed the disallowance of aforesaid deduction claimed by the assessee during the re-assessment proceedings u/s.147 of t…

THE ACIT, CIRCLE-2(1)(1),, AHMEDABAD vs. GRUH FINANCE LTD.,, AHMEDABAD

Appeal is dismissed

ITA 1126/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2012-13

Bench: Shri Sanjay Garg & Smt. Annapurna Gupta

For Appellant: Ms. Arti Shah, ARFor Respondent: (sl.nos.1&4) Shri Alpesh Parmar, CIT-DR
Section 143(3)Section 147

…out u/s.147 of the Act was not maintainable. He, in this respect, relied upon the following case-laws:  CIT Vs. Sun Engineering Works P.Limited (SC) 198 ITR 297  Chettinad Corporation P.Ltd. Vs. CIT (SC) 200 ITR 320  V. Jaganmohan Rao & Ors. Vs. CIT (SC) 75 ITR 373 3.1. The Ld.AO also observed that the aforesaid claim of deduction on account of ESOP cost expense was even not related to the escaped income. He, therefore, disallowed the aforesaid claim made by the assessee. The Ld.CIT(A) confirmed the disallowance of aforesaid deduction claimed by the assessee during the re-assessment proceedings u/s.147 of t…

DAMJI J GALA,KHANDILKAR ROAD vs. ITO 19(1)(4), TARDEO ROAD

In the result the appeal filed by the assessee stands partly

ITA 3407/MUM/2024[2010-11]Status: DisposedITAT Mumbai16 Dec 2024AY 2010-11

Bench: Smt Beena Pillai & Shri Prabhash Shankar

Section 147Section 148Section 2Section 2(47)

…n made but the Assessing Officer has reason to believe that there is under assessment on account of the existence of any of the grounds contemplated by Explanation 1 to section 147. The Supreme Court adverted to the Judgment in V. Jaganmohan Rao v. CIT [1970] 75 ITR 373, which held that once an assessment is validly reopened, the previous under assessment is set aside and the Income-tax Officer has the jurisdiction and duty to levy tax on the entire income that had escaped assessment during the previous year. The Court held that the object of section 147 enures to the benefit of the revenue and it is not open to…

PR. COMMISSIONER OF INCOME TAX -7 vs. SUNLIGHT TOUR AND TRAVELS PVT. LTD.

ITA/222/2022HC Delhi12 Nov 2024

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE DR. JUSTICE SWARANA KANTA SHARMA

Section 139Section 143(3)Section 147Section 148Section 260A

…geable to tax, which the Assessing Officer may find to have escaped assessment, and which may come to his notice subsequently, in the course of proceedings under section 147.” 14. The Bombay High Court also discussed the case of V. Jaganmohan Rao (1970) 75 ITR 373 (SC) and Sun Engineering (1992) 198 ITR 297 (SC) of the apex court. In the case of Sun Engineering (1992) 198 ITR 297 (SC), the issue before the Supreme Court was whether in the course of reassessment on an escaped item of income an assessee could seek a review in respect of an item which stood concluded in the original order of assessment.…

DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(2), HYDERABAD vs. SEW INFRASTRUCTURE LIMITED, HYDERABAD

ITA 1717/HYD/2017[2009-10]Status: HeardITAT Hyderabad07 Oct 2024AY 2009-10

Bench: Justice (Retd.) C.V. Bhadang, Shri Mahavir Singh & Shri G. Manjunatha

For Appellant: Shri K.K. ChaitanyaFor Respondent: Smt. Mamata Choudhary
Section 132Section 139(1)Section 143(3)Section 147Section 153ASection 80I

…Rao Vs. CIT/EPT (1970) 75 ITR 373 (SC)  ITO Vs. Mewalal Dwarka Prasad [1989] 176 ITR 529 (SC) 14. The learned Counsel for the assessee further referring to the decision of the Hon’ble Supreme Court in the case of V Jaganmohan Rao Vs. CIT reported in (1970) 75 ITR 373 (SC), and ITO Vs. Mewalal Dwaraka Prasad reported in (1989) 176 ITR 529 (SC), submitted that considering the difference in the views taken in ITO Vs. Mewalal Dwaraka Prasad (supra) and Sun Engineering Works (P) Ltd (supra), the matter came up for consideration before a larger Bench of the Hon’ble Supreme :17: ITA Nos. 1717 to 1720/Hyd/2017 & Cour…

THAYAPPA BALAKRISHNA,BANGALORE vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU-1, BENGALURU

In the result, the appeal filed by the assessee stands allowed

ITA 1027/BANG/2024[2014-15]Status: DisposedITAT Bangalore22 Aug 2024AY 2014-15

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2014-15 Shri Thayappa Balakrishna, No. 987, 11Th Main, The Principal 1St Block, Commissioner Of 3Rd Stage, Income-Tax, Basaveshwaranagar, Bengaluru – 1. Vs. Bangalore – 560 079. Pan: Abdpb4893N Appellant Respondent : Shri Ravi Shankar .S.V, Assessee By Advocate Revenue By : Shri D.K. Mishra, Cit-Dr

For Respondent: Shri Ravi Shankar .S.V
Section 143(3)Section 147Section 148Section 263

…n made but the Assessing Officer has reason to believe that there is under assessment on account of the existence of any of the grounds contemplated by Explanation 1 to section 147. The Supreme Court adverted to the Judgment in V. Jaganmohan Rao v. CIT [1970] 75 ITR 373 , which held that once an assessment is validly reopened, the previous under assessment is set aside and the Income-tax Officer has the jurisdiction and duty to levy tax on the entire income that had escaped assessment during the previous year. The Court held that the object of section 147 enures to the benefit of the revenue and it is not open to…

JOHN DISTILLERIES PVT LTD.,,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals of the assessee in ITA No

ITA 987/BANG/2023[2016-17]Status: DisposedITAT Bangalore24 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…Hon'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd. 198 ITR 297. 24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High Court also considered decision of Hon'ble Supreme Court in the case of V. Jagan Mohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the proceedings Under Section 147 are validly initiated, the jurisdiction of the assessing officer is confined to only income, which has escaped assessment and the entire assessment cannot be made denovo after making enquiries. The learned DR relied on the provisions of Section 147. ITA No.838 to 843/Bang…

JOHN DISTILLERIES PVT LTD.,,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

ITA 986/BANG/2023[2015-16]Status: DisposedITAT Bangalore24 Jul 2024AY 2015-16
For Appellant: Sri T.M. Shivakumar

…'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd.\n198 ITR 297.\n24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High\nCourt also considered decision of Hon'ble Supreme Court in the case of V. Jagan\nMohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the\nproceedings Under Section 147 are validly initiated, the jurisdiction of the\nassessing officer is confined to only income, which has escaped assessment and the\nentire assessment cannot be made denovo after making enquiries. The learned DR\nrelied on the provisions of Section 147.\nPage 84 of 147\n2…

JOHN DISTILLERIES PVT LTD.,,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, BANGALORE

ITA 983/BANG/2023[2012-13]Status: DisposedITAT Bangalore24 Jul 2024AY 2012-13

…'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd.\n198 ITR 297.\n24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High\nCourt also considered decision of Hon'ble Supreme Court in the case of V. Jagan\nMohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the\nproceedings Under Section 147 are validly initiated, the jurisdiction of the\nassessing officer is confined to only income, which has escaped assessment and the\nentire assessment cannot be made denovo after making enquiries. The learned DR\nrelied on the provisions of Section 147.\nPage 85 of 147\n2…

JOHN DEVELOPERS ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals of the assessee in ITA No

ITA 847/BANG/2023[2016-17]Status: DisposedITAT Bangalore24 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…Hon'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd. 198 ITR 297. 24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High Court also considered decision of Hon'ble Supreme Court in the case of V. Jagan Mohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the proceedings Under Section 147 are validly initiated, the jurisdiction of the assessing officer is confined to only income, which has escaped assessment and the entire assessment cannot be made denovo after making enquiries. The learned DR relied on the provisions of Section 147. ITA No.838 to 843/Bang…

JOHN DEVELOPERS ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

ITA 846/BANG/2023[2015-16]Status: DisposedITAT Bangalore24 Jul 2024AY 2015-16

…Hon'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd. 198 ITR 297. 24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High Court also considered decision of Hon'ble Supreme Court in the case of V. Jagan Mohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the proceedings Under Section 147 are validly initiated, the jurisdiction of the assessing officer is confined to only income, which has escaped assessment and the entire assessment cannot be made denovo after making enquiries. The learned DR relied on the provisions of Section 147.ITA No.838 to 843/Bang/…

JOHN DEVELOPERS,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals of the assessee in ITA No

ITA 845/BANG/2023[2014-15]Status: DisposedITAT Bangalore24 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…Hon'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd. 198 ITR 297. 24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High Court also considered decision of Hon'ble Supreme Court in the case of V. Jagan Mohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the proceedings Under Section 147 are validly initiated, the jurisdiction of the assessing officer is confined to only income, which has escaped assessment and the entire assessment cannot be made denovo after making enquiries. The learned DR relied on the provisions of Section 147. ITA No.838 to 843/Bang…

M/S. PAUL RESORTS & HOTELS PVT LTD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals of the assessee in ITA No

ITA 841/BANG/2023[2014-15]Status: DisposedITAT Bangalore24 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…Hon'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd. 198 ITR 297. 24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High Court also considered decision of Hon'ble Supreme Court in the case of V. Jagan Mohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the proceedings Under Section 147 are validly initiated, the jurisdiction of the assessing officer is confined to only income, which has escaped assessment and the entire assessment cannot be made denovo after making enquiries. The learned DR relied on the provisions of Section 147. ITA No.838 to 843/Bang…

M/S. PAUL RESORTS & HOTELS PVT LTD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1(1) , BANGALORE

In the result, appeals of the assessee in ITA No

ITA 840/BANG/2023[2013-14]Status: DisposedITAT Bangalore24 Jul 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…Hon'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd. 198 ITR 297. 24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High Court also considered decision of Hon'ble Supreme Court in the case of V. Jagan Mohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the proceedings Under Section 147 are validly initiated, the jurisdiction of the assessing officer is confined to only income, which has escaped assessment and the entire assessment cannot be made denovo after making enquiries. The learned DR relied on the provisions of Section 147. ITA No.838 to 843/Bang…

M/S. PAUL RESORTS & HOTELS PVT LTD ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals of the assessee in ITA No

ITA 839/BANG/2023[2012-13]Status: DisposedITAT Bangalore24 Jul 2024AY 2012-13

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…Hon'ble Supreme Court in the case of CIT v. Sun Engineering Works P. ltd. 198 ITR 297. 24. The learned Counsel pointed out that the Hon'ble Punjab & Haryana High Court also considered decision of Hon'ble Supreme Court in the case of V. Jagan Mohan Rao v. CIT 75 ITR 373 (SC). The learned Counsel argued that once the proceedings Under Section 147 are validly initiated, the jurisdiction of the assessing officer is confined to only income, which has escaped assessment and the entire assessment cannot be made denovo after making enquiries. The learned DR relied on the provisions of Section 147. ITA No.838 to 843/Bang…

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