B.M. Malani v. CIT

306 ITR 196Supreme Court of India2008#7840 most cited

What is B.M. Malani v. CIT authority for?

An assessee cannot take advantage of their own wrong to prejudice another party. This principle applies when an assessee tries to benefit from a position contrary to their own accounts or actions.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2020 to 2025.

Also referred to as

B.M. Malani v. CIT · prejudice own wrong · contrary to accounts · promissory estoppel · 2008 SC cases · income tax law · principle of law · legal precedent

Also reported as

174 Taxmann 363

Issues it is cited on

section 5(b)section 11(5)section 269tsection 269ssection 80p(1)section 119(2)section 11(2)section 119(2)(b)section 269sssection 273bsection 271dsection 269

Judgments citing B.M. Malani v. CIT

Ram Niwas Modi Charitable Society, Jaipur vs. CIT-Exemption, Jaipur

In the result, both the appeal of the assessee are disposed off

ITA 118/JPR/2025[2022-23]Status: DisposedITAT Jaipur20 Nov 2025AY 2022-23
For Appellant: Shri Mahendra Gargieya, Adv. &For Respondent: Mrs. Anita Rinesh, Ld. JCIT
Section 12ASection 80GSection 80G(5)

…e, registration 22 ITA No. 118 & 779/JPR/2025 Ram Niwas Modi Charitable Society, Kota. under section 12AA cannot be denied. [DIT (Exemption) v. Venkatesha Education Society [2012] 48(1) ITCL 27 (Kar.)] 4.In the case of B.M. Malani v. CIT [2008] 174 Taxman 363/306 ITR 196 (SC), the Court observed: “'8. The term 'genuine' as per the New Collins Concise English Dictionary is defined as under: ""Genuine' means not fake or counterfeit, real, not pretending (not bogus or merely a ruse)." For interpretation of the aforementioned provision, the principle of purposive construction should be resorted to. Levy of interest a…

Jameson Abraham, Kollam vs. Principal Commissioner of Income Tax, Trivandrum

In the result, the assessee’s appeal is dismissed

ITA 979/COCH/2022[2016-17]Status: DisposedITAT Cochin12 Apr 2024AY 2016-17

Bench: Shri Sanjay Arora & Shri Manomohan Dasjameson Abraham Principal Commissioner Emmanuel Cashes Industries Of Income Tax Chepara P.O., Kottarakara Vs. Thiruvananthuparam Kollam 691520 [Pan: Afopa7312Q] (Appellant) (Respondent)

For Appellant: Shri Surendranath Rao, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 143(3)Section 263

…be heard to say ‘you accepted my falsehood earlier, and are therefore bound by it now’ (refer:Phool Chand Bajranj Lal v. ITO [1993] 203 ITR 456 (SC)). The principle at work here is that one cannot by his own wrong prejudice the other (B.M. Malani v. CIT[2008] 306 ITR 196, 207 (SC)). Two, the assessee cannot assume a position contrary to it’s accounts, which is also the purport of Explanation 1 to s. 41(1) (also see CIT v. TV Sunderam Iyengar & Sons Ltd. [1996] 222 ITR 344 (SC)). Jameson Abraham v. Pr. CIT The Revenue, sure, can disregard the same where the same are found as false or incorrect. Income, it needs to…

Garuda Marketing Associates, Thrissur vs. The ITO Ward 2(2), Thrissur

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

ITA 211/COCH/2023[2014-15]Status: DisposedITAT Cochin13 Feb 2024AY 2014-15

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Sri. Narayanan P Potty, AdvocateFor Respondent: Smt. J M Jamuna Devi, Sr. DR
Section 143(3)Section 28Section 41(1)

…This in fact is also the purport of the amendment by way of Explanation to s. 41(1) by the Finance (No.2) Act, 1996, with effect from 01.04.1997. Even otherwise one cannot take advantage of his own wrong to the prejudice of another (B.M. Malani v. CIT [2008] 306 ITR 196, 207 (SC)). As such, notwithstanding that an assessee has not recorded, for instance, the payment (discharge) or remission of a credit appearing in it’s accounts, where the same is found as not representing an actual liability as at the relevant year-end, as being claimed by him, there is a presumption as to remission or cessation of liability, o…

M/S.Karannur Service Co-Op Bank Ltd, Kozhikkode vs. The ITO, WD-1(2), Kozhikkode

In the result, the appeals by the assessee are allowed

ITA 249/COCH/2020[2015-16]Status: DisposedITAT Cochin16 Nov 2023AY 2015-16

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri P. Raghunathan, AdvocateFor Respondent: Sh. Sanjith K. Das, CIT-DR
Section 143(3)Section 271DSection 273BSection 274Section 275(1)(c)Section 80P(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Sanjay Arora, Accountant Member and Shri Manomohan Das, Judicial Member ITA Nos. 248 & 249/Coch/2020 (Assessment Year: 2015-16) The Karannur Service Co-op. The Income Tax Officer Bank Ltd. Ward 1(2), Kozhikode vs. Elathur P.O., Kozhikode 673303 [PAN:AABAK9507A] (Appellant) (Respondent) Appellant by: Shri P. Raghunathan, Advocate Respondent by: Sh. Sanjith K. Das, CIT-DR Date of Hearing: 18.08.2023 Date of Pronouncement: 16.11.2023 O R D E R Per Bench This is a set of two Appeals by the Assessee, a service co-operative bank under the Kerala…

The Karannur Service Co-Op Bank Ltd, Kozhikkode vs. The ITO, WD-1(2), Kozhikkode

In the result, the appeals by the assessee are allowed

ITA 248/COCH/2020[2015-16]Status: DisposedITAT Cochin16 Nov 2023AY 2015-16

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri P. Raghunathan, AdvocateFor Respondent: Sh. Sanjith K. Das, CIT-DR
Section 143(3)Section 271DSection 273BSection 274Section 275(1)(c)Section 80P(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Sanjay Arora, Accountant Member and Shri Manomohan Das, Judicial Member ITA Nos. 248 & 249/Coch/2020 (Assessment Year: 2015-16) The Karannur Service Co-op. The Income Tax Officer Bank Ltd. Ward 1(2), Kozhikode vs. Elathur P.O., Kozhikode 673303 [PAN:AABAK9507A] (Appellant) (Respondent) Appellant by: Shri P. Raghunathan, Advocate Respondent by: Sh. Sanjith K. Das, CIT-DR Date of Hearing: 18.08.2023 Date of Pronouncement: 16.11.2023 O R D E R Per Bench This is a set of two Appeals by the Assessee, a service co-operative bank under the Kerala…

The Neerikode Service Co-Op Bank Limited No 1682, Neericode vs. ITO Ward 3, Aluva

In the result, the appeals filed by the assessee are dismissed as not maintainable, and the stay applications dismissed as infructuous

ITA 954/COCH/2022[2017-18]Status: DisposedITAT Cochin31 Oct 2023AY 2017-18

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri K.K. Jose, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 142(1)Section 143(3)

…f the assesssee, so that it is akin to explaining the delay w.r.t. an admitted default by it, and for no reason, much less sufficient. One cannot possibly take advantage of it’s own inaction or wrong to the prejudice of the other side(B.M. Malani v. CIT[2008] 306 ITR 196, 207 (SC)).Why, considering the directions by the Hon’ble High Court, which were only at it’s instance, the said non- cooperation assumes the nature of contempt, as indeed, disruption of the due process of law.It is this disregard of it’s obligations that we seek to emphasize.The identity of the incumbent is irrelevant – which is something betwee…

Navbharat Cheritable Trust, Bharuch vs. Income Tax Officer, Ward-1, Bharuch

In the result, all these three appeals of the assessee are allowed for statistical purposes

ITA 27/SRT/2023[2016-17]Status: DisposedITAT Surat28 Jun 2023AY 2016-17

Bench: Shri Pawan Singh(Physical Hearing) Navbharat Charitable Trust, I.T.O., 0, Rajpardi Jhagadia, Bharuch, Ward-1, Vs. Gujarat, Pin-393115 Bharuch. Pan No. Aactn 0979 K Appellant/ Assessee Respondent/ Revenue

Section 11Section 12ASection 13(10)Section 254(1)

…evere consequences, such requirement would be mandatory. If the statute provide that a particular thing should be done, it should be done in the manner prescribed and not in any other way (see para 26)." In the case of B.M. Malani v. CIT [2008] 174 Taxman 363/306 ITR 196 (SC), the Court observed : '8. The term 'genuine' as per the New Collins Concise English Dictionary is defined as under : "'Genuine' means not fake or counterfeit, real, not pretending (not bogus or merely a ruse)." For interpretation of the aforementioned provision, the principle of purposive construction should be resorted to. Levy of interest…

Navbharat Charitable Trust, Bharuch vs. Income Tax Officer, Ward - 1, Bharuch

In the result, this appeal of the assessee is allowed for statistical purposes

ITA 385/SRT/2022[2019-20]Status: DisposedITAT Surat28 Feb 2023AY 2019-20

Bench: Shri Pawan Singhita No. 383, 384 & 385/Srt/2022 (Assessment Years: 2017-18, 2018-19 & 2019-20) (Hearing In Virtual Court) Navbharat Charitable Trust, I.T.O., 0, Rajpardi, Jhagadia, Ward-1, Vs. Bharuch. Bharuch. Pan No. Aactn 0979 K Appellant/ Assessee Respondent/ Revenue

Section 11Section 12ASection 13(10)Section 254(1)Section 80G

…INCOME TAX APPELLATE TRIBUNAL, (SMC) BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 383, 384 & 385/Srt/2022 (Assessment Years: 2017-18, 2018-19 & 2019-20) (Hearing in Virtual Court) Navbharat Charitable Trust, I.T.O., 0, Rajpardi, Jhagadia, Ward-1, Vs. Bharuch. Bharuch. PAN No. AACTN 0979 K Appellant/ assessee Respondent/ revenue Assessee represented by None Respondent represented by Shri Ashok B. Koli, CIT-DR Date of hearing 28/02/2023 Date of pronouncement 28/02/2023 Order under section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. These three appeals by the single assessee ar…

Navbharat Charitable Trust, Bharuch vs. Income Tax Officer, Ward - 1, Bharuch

In the result, this appeal of the assessee is allowed for statistical purposes

ITA 384/SRT/2022[2018-19]Status: DisposedITAT Surat28 Feb 2023AY 2018-19

Bench: Shri Pawan Singhita No. 383, 384 & 385/Srt/2022 (Assessment Years: 2017-18, 2018-19 & 2019-20) (Hearing In Virtual Court) Navbharat Charitable Trust, I.T.O., 0, Rajpardi, Jhagadia, Ward-1, Vs. Bharuch. Bharuch. Pan No. Aactn 0979 K Appellant/ Assessee Respondent/ Revenue

Section 11Section 12ASection 13(10)Section 254(1)Section 80G

…INCOME TAX APPELLATE TRIBUNAL, (SMC) BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 383, 384 & 385/Srt/2022 (Assessment Years: 2017-18, 2018-19 & 2019-20) (Hearing in Virtual Court) Navbharat Charitable Trust, I.T.O., 0, Rajpardi, Jhagadia, Ward-1, Vs. Bharuch. Bharuch. PAN No. AACTN 0979 K Appellant/ assessee Respondent/ revenue Assessee represented by None Respondent represented by Shri Ashok B. Koli, CIT-DR Date of hearing 28/02/2023 Date of pronouncement 28/02/2023 Order under section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. These three appeals by the single assessee ar…

Navbharat Charitable Trust, Bharuch vs. Income Tax Officer, Ward - 1, Bharuch

In the result, this appeal of the assessee is allowed for statistical purposes

ITA 383/SRT/2022[2017-18]Status: DisposedITAT Surat28 Feb 2023AY 2017-18

Bench: Shri Pawan Singhita No. 383, 384 & 385/Srt/2022 (Assessment Years: 2017-18, 2018-19 & 2019-20) (Hearing In Virtual Court) Navbharat Charitable Trust, I.T.O., 0, Rajpardi, Jhagadia, Ward-1, Vs. Bharuch. Bharuch. Pan No. Aactn 0979 K Appellant/ Assessee Respondent/ Revenue

Section 11Section 12ASection 13(10)Section 254(1)Section 80G

…INCOME TAX APPELLATE TRIBUNAL, (SMC) BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 383, 384 & 385/Srt/2022 (Assessment Years: 2017-18, 2018-19 & 2019-20) (Hearing in Virtual Court) Navbharat Charitable Trust, I.T.O., 0, Rajpardi, Jhagadia, Ward-1, Vs. Bharuch. Bharuch. PAN No. AACTN 0979 K Appellant/ assessee Respondent/ revenue Assessee represented by None Respondent represented by Shri Ashok B. Koli, CIT-DR Date of hearing 28/02/2023 Date of pronouncement 28/02/2023 Order under section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. These three appeals by the single assessee ar…

The Kalpetta Service Co-Operative Bank Ltd, Kalpetta vs. The ITO, Ward 1, Kalpetta

ITA 852/COCH/2022[2015-2016]Status: DisposedITAT Cochin27 Feb 2023AY 2015-2016

Bench: Shri Sanjay Arora, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Sri.Anil D.Nair, AdvocateFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 269SSection 271DSection 273B

…g deposits from it’s members, or lending thereto or otherwise to non-members, in cash, is acting within the frame-work of law, i.e., legally. This is relevant as it is impermissible in law for one to take advantage of it’s own wrong (B.M. Malani v. CIT [2008] 306 ITR 196 (SC)). Even as observed by the Tribunal in Santimadom Herbal City Trust v. Asst. CIT (in ITA Nos. 920, 8 | P a g e ITA Nos.851-852/Coch/2022 (AY 2015-16) The Kalpetta SCB Ltd. v. ITO 921/Coch/2022, dated 14/11/2023), one violation of law cannot be a justification for violating another law. The Apex Court in CIT v. Prakash Chand Lunia v. CIT [202…

The Kalpetta Service Co-Operative Bank Ltd, Kalpetta vs. The ITO, Ward 1, Kalpetta

ITA 851/COCH/2022[2015-2016]Status: DisposedITAT Cochin27 Feb 2023AY 2015-2016

Bench: Shri Sanjay Arora, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Sri.Anil D.Nair, AdvocateFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 269SSection 271DSection 273B

…g deposits from it’s members, or lending thereto or otherwise to non-members, in cash, is acting within the frame-work of law, i.e., legally. This is relevant as it is impermissible in law for one to take advantage of it’s own wrong (B.M. Malani v. CIT [2008] 306 ITR 196 (SC)). Even as observed by the Tribunal in Santimadom Herbal City Trust v. Asst. CIT (in ITA Nos. 920, 8 | P a g e ITA Nos.851-852/Coch/2022 (AY 2015-16) The Kalpetta SCB Ltd. v. ITO 921/Coch/2022, dated 14/11/2023), one violation of law cannot be a justification for violating another law. The Apex Court in CIT v. Prakash Chand Lunia v. CIT [202…

The Commissioner of Income Tax vs. M/S Brigade Enterprises Ltd

In the result, we do not find any merit in this

ITA/54/2013HC Karnataka22 Sept 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 143(1)Section 143(2)Section 260Section 260ASection 80I

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF SEPTEMBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.54 OF 2013 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX C.R. BUILDING, QUEENS ROAD BANGALORE. 2. THE DY. COMMISSIONER OF INCOME-TAX CIRCLE-11(2), C.R. BUILDING QUEENS ROAD, BANGALORE. ... APPELLANTS (BY SRI. K.V. ARAVIND, ADV.,) AND: M/S. BRIGADE ENTERPRISES LTD., PENT HOUSE, BRIGADE TOWERS NO.135, BRIGADE TOWERS BANGALORE-560025. ... RESPONDENT (BY…

Madhya Pradesh Poorve Keshtra Vidyut Vitran Co.Ltd., Jabalpur vs. Assistant Commissioner of Income Tax Circle 2(1), Jabalpur

In the result, the assessee’s appeal is dismissed

ITA 71/JAB/2016[2008-09]Status: DisposedITAT Jabalpur20 Jan 2020AY 2008-09

Bench: Shri Bhavnesh Saini & Shri Sanjay Aroraassessment Year: 2008-09 Madhya Pradesh Poorv Kshetra Vs. Assistant Commissioner Of Vidyut Vitran Co. Ltd., Income Tax, Jabalpur Circle 2(1), [Pan: Aadcm 6175E] Jabalpur (Appellant) (Respondent) Appellant By Shri Sukesh Kumar, Ca Respondent By Shri I.B. Khandel, Senior Dr Date Of Hearing 11/12/2019 Date Of Pronouncement 20/01/2020

Section 115WSection 17(2)

…tax liability under both. The raising of such a plea is even otherwise not maintainable inasmuch as it is impermissible for one to, in seeking an exclusion or exemption, take advantage of one’s own default or wrong (see, inter alia, B.M. Malani v. CIT [2008] 306 ITR 196, 207 (SC)). In fact, any such contention, i.e., of the tax being payable on the said perquisite chargeable u/s. 17(2), even if made now (for the current year), retracting its’ earlier stand of being not liable to deduct tax at source, would, as aforesaid, render it liable u/s. 201(1)/201(1A); there being no estopple against law. The moot question…