Brij Bhushan Lal Paraduman Kumar v. CIT

115 ITR 524Supreme Court of India1978#938 most cited

What is Brij Bhushan Lal Paraduman Kumar v. CIT authority for?

The Supreme Court holds that an Assessing Officer, when making a best judgment assessment or estimating income, must act fairly, honestly, and rationally, basing the estimation on available material and avoiding arbitrary or capricious decisions. Adherence to natural justice principles is crucial during assessment proceedings.

113

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2026.

Also referred to as

Brij Bhushan Lal Paraduman Kumar v. CIT · Section 144 · best judgment assessment · fair income estimation · arbitrary assessment · natural justice principles · Assessing Officer discretion · rejection of books · Section 69 · unexplained cash

Sections most often in play

Section 144Section 250Section 142(1)Section 143(3)Section 139(1)Section 148Section 147Section 153B(1)(b)

Issues it is cited on

section 69dsection 13(1)(c)best judgment assessmenttrade creditorssection 13(1)section 250(4)section 153a(1)(b)rejection of books of accountsection 69bmistake apparent from recorddumb documentssection 145

Judgments citing Brij Bhushan Lal Paraduman Kumar v. CIT

Velagapudi Rama Rao, Vijayawada vs. The, CIT(A), Vijayawada

In the result, appeal filed by the revenue is dismissed and that of assessee is allowed for statistical purposes

ITA 475/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam14 Mar 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-2(1), Vs. Velagapudi Rama Rao, Vijayawada. D.No. 59-10-2, Gayathri Nagar, Vijayawada. Pan No. Aaypv 7403 Q (Appellant) (Respondent) Velagapudi Rama Rao, Vs. Dcit, Circle-2(1), D.No. 59-10-2, Gayathri Vijayawada. Nagar, Vijayawada. Pan No. Aaypv 7403 Q (Appellant) (Respondent)

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri T. Satyanandam – Sr.DR

…supplied by government. They are labour cess and other fees. Hence, no material supply is involved. Under such circumstances, appellant‟s claim is not acceptable. In my view, the Apex Court decision in the case of Brij Bhushan Lal Padiman Kumar etc. vs. CIT (115 ITR 524) (SC) is not applicable to facts of appellant‟s case. Hence, ground of appeal no.3 is dismissed.” 15. In view of the above specific finding given by the ld. CIT(A), the expenses incurred by the assessee are not relating to any material supplied by the Government. Therefore, the claim of the assessee cannot be accepted and the same is hereby dism…

The Dy. CIT, Vijayawada vs. Sri Velagapudi Rama Rao., Vijayawada

In the result, appeal filed by the revenue is dismissed and that of assessee is allowed for statistical purposes

ITA 468/VIZ/2016[2012-2013]Status: DisposedITAT Visakhapatnam14 Mar 2018AY 2012-2013

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-2(1), Vs. Velagapudi Rama Rao, Vijayawada. D.No. 59-10-2, Gayathri Nagar, Vijayawada. Pan No. Aaypv 7403 Q (Appellant) (Respondent) Velagapudi Rama Rao, Vs. Dcit, Circle-2(1), D.No. 59-10-2, Gayathri Vijayawada. Nagar, Vijayawada. Pan No. Aaypv 7403 Q (Appellant) (Respondent)

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri T. Satyanandam – Sr.DR

…supplied by government. They are labour cess and other fees. Hence, no material supply is involved. Under such circumstances, appellant‟s claim is not acceptable. In my view, the Apex Court decision in the case of Brij Bhushan Lal Padiman Kumar etc. vs. CIT (115 ITR 524) (SC) is not applicable to facts of appellant‟s case. Hence, ground of appeal no.3 is dismissed.” 15. In view of the above specific finding given by the ld. CIT(A), the expenses incurred by the assessee are not relating to any material supplied by the Government. Therefore, the claim of the assessee cannot be accepted and the same is hereby dism…

M/S Khumore Manufacturing and Industries Ltd., Kolkata vs. The DCIT, Cir-3, Kolkata

In the result the appeal by the assessee is allowed

ITA 356/KOL/2015[2006-2007]Status: DisposedITAT Kolkata02 Feb 2018AY 2006-2007

Bench: Hon’Ble Sri N.V.Vasudevan, Jm ] I.T.A No. 356/Kol/2015 Assessment Year : 2006-07

For Appellant: Shri Arvind Agarwal, AdvocateFor Respondent: Shri Satyajit Mondal, Addl. CIT
Section 143(1)Section 143(2)Section 144Section 144(1)

…y the AO should be honest and fair. In this regard the assessee relied on the decision in the case of CIT vs Laxminarain Badridas [1937] 5 ITR 170 (PC) and the decision of the Hon’ble Supreme Court in the case of Brij Bhushan Lal Parduman Kumar vs. CIT [1978] 115 ITR 524 (SC) and certain other decisions. (3) The assessee brought to the notice of CIT(A) that the assessment made by the AO was a wild guess which is not supported by any material on record. The assessee drew our attention of the CIT(A) to percentage of profit and gross income earned by the assessee over the 3 M/s Khumor Investments Ltd. (formerly M/s…

DCIT, Circle - 23, Hooghly vs. M/S. Mitra Real Estate Pvt. Ltd., Kolkata

In the result, assessee’s CO is allowed

ITA 207/KOL/2016[2011-2012]Status: DisposedITAT Kolkata08 Nov 2017AY 2011-2012
Section 143(2)Section 144Section 44A

…’s claim produced the copy of payment certificate issued by the contractee which is placed on record. Ld. AR in support of assessee’s claim has also relied on the judgment of Hon'ble Supreme Court in the case of Brij Bhusan Lal Pardjmanker vs. CIT reported in 115 ITR 524 (SC), wherein it was held as under:- “in substance and in reality, such stores/material always remained the property of the department and the contractor had merely the custody of it and he fixed or incorporated the same into the works. It seemed clear that in such circumstances and having regard to the terms and conditions on which such supply o…

ITO, Faridabad vs. M/S Superior Road Lines, Faridabad

In the result, all the appeals filed by the Assessee and Revenue

ITA 3022/DEL/2011[2004-05]Status: DisposedITAT Delhi28 Sept 2017AY 2004-05

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: NoneFor Respondent: Sh. Kaushlendra Tiwari, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 144Section 145(3)Section 271(1)(b)

…s settled law that the powers given to the AO under the Act are coupled with a duty to exercise them when the statutory provisions warrant their exercise. It has also been held by Hon'ble Supreme Court in the case of Brij Bhushan Lal Praduman Kumar Vs. CIT (115 ITR 524) that the best judgment assessment should be made in accordance with fair play and natural justice. The assessing officer must not act vindictively or capriciously or with a view to punish the assessee for non compliance. In the case of CIT Vs. Ranicherra Tea Company Ltd. (207 ITR 979), the Hon'ble Calcutta High Court has held that in disposing…

ITO, Faridabad vs. M/S Superior Road Lines, Faridabad

In the result, all the appeals filed by the Assessee and Revenue

ITA 3021/DEL/2011[2003-04]Status: DisposedITAT Delhi28 Sept 2017AY 2003-04

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: NoneFor Respondent: Sh. Kaushlendra Tiwari, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 144Section 145(3)Section 271(1)(b)

…s settled law that the powers given to the AO under the Act are coupled with a duty to exercise them when the statutory provisions warrant their exercise. It has also been held by Hon'ble Supreme Court in the case of Brij Bhushan Lal Praduman Kumar Vs. CIT (115 ITR 524) that the best judgment assessment should be made in accordance with fair play and natural justice. The assessing officer must not act vindictively or capriciously or with a view to punish the assessee for non compliance. In the case of CIT Vs. Ranicherra Tea Company Ltd. (207 ITR 979), the Hon'ble Calcutta High Court has held that in disposing…

M/S Superior Roadlines, Faridabad vs. ITO, Faridabad

In the result, all the appeals filed by the Assessee and Revenue

ITA 2828/DEL/2011[2004-05]Status: DisposedITAT Delhi28 Sept 2017AY 2004-05

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: NoneFor Respondent: Sh. Kaushlendra Tiwari, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 144Section 145(3)Section 271(1)(b)

…s settled law that the powers given to the AO under the Act are coupled with a duty to exercise them when the statutory provisions warrant their exercise. It has also been held by Hon'ble Supreme Court in the case of Brij Bhushan Lal Praduman Kumar Vs. CIT (115 ITR 524) that the best judgment assessment should be made in accordance with fair play and natural justice. The assessing officer must not act vindictively or capriciously or with a view to punish the assessee for non compliance. In the case of CIT Vs. Ranicherra Tea Company Ltd. (207 ITR 979), the Hon'ble Calcutta High Court has held that in disposing…

M/S Superior Roadlines, Faridabad vs. ITO, Faridabad

In the result, all the appeals filed by the Assessee and Revenue

ITA 2827/DEL/2011[2003-04]Status: DisposedITAT Delhi28 Sept 2017AY 2003-04

Bench: Shri H.S. Sidhu & Shri Prashant Maharishi

For Appellant: NoneFor Respondent: Sh. Kaushlendra Tiwari, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 144Section 145(3)Section 271(1)(b)

…s settled law that the powers given to the AO under the Act are coupled with a duty to exercise them when the statutory provisions warrant their exercise. It has also been held by Hon'ble Supreme Court in the case of Brij Bhushan Lal Praduman Kumar Vs. CIT (115 ITR 524) that the best judgment assessment should be made in accordance with fair play and natural justice. The assessing officer must not act vindictively or capriciously or with a view to punish the assessee for non compliance. In the case of CIT Vs. Ranicherra Tea Company Ltd. (207 ITR 979), the Hon'ble Calcutta High Court has held that in disposing…

Janta Construction Co., Jaipur vs. ITO, Jaipur

In the result, the appeal of the assessee is allowed

ITA 861/JPR/2014[2011-12]Status: DisposedITAT Jaipur28 Apr 2017AY 2011-12

Bench: The Itat By Taking Following Grounds Of Appeal:

For Appellant: Shri Manish Agarwal (CA)For Respondent: Shri R.A. Verma (Addl.CIT)
Section 145(3)

…(iv) Prashant Oil mill Vs. ITO [72 Taxmann.com 136 (Guj)] (v) 99 TTJ 164 Ajay Goyal Vs. ITO (Jd.) (vi) 5 ITR 170 (PC) CIT V/s Laxminarain Badridas (vii) 60 ITR 239 (SC) State of Kerala V/s Velukutty ITA 861/JP/2014_ 6 Janta Construction Co. Vs ITO (viii) 115 ITR 524 (SC) Brij Bhushan Lal Parduman Kumar, etc. V/s CIT, Haryana, Himachal Pradesh and New Delhi-III Further he also pleaded that there was no need to disturb the declared results as the NP rate declared in the year under consideration was better than earlier years, which is 9.76% in comparsion to 9.02% accepted by the Hon’ble ITAT in the immediate…

ACIT, Jaipur vs. Bhivaram Pannalal, Jaipur

In the result, appeal of the revenue and cross objection of the assessee are dismissed

ITA 966/JPR/2013[2010-11]Status: DisposedITAT Jaipur28 Feb 2017AY 2010-11
For Appellant: Shri Sitaram Sharma (C.A)For Respondent: Shri R.A. Verma (Addl. CIT) fu/kZkfjrh dh vksj ls@
Section 143(3)

…d in turnover of the contractor for estimating profit. The relevant part of the decisions relied upon by the appellant are quoted below- 6 M/s. Bhivaram Pannalal 1- The Supreme Court while deciding the appeal in Brij Bhushan Lal Parduman Kumar V. CIT (1978) 115 ITR 524 held as under: ”… in substance and in reality, such stores/material always remains the property of the department and the contractor has merely the custody of it and he fixes or incorporates the same into the works. It seems to us clear that in such circumstances and having regard to the terms and conditions on which such supply of stores/materi…

ACIT-21(1), Mumbai vs. Karan Builders & Associated, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 1432/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 Dec 2016AY 2008-09

Bench: Shri R.C.Sharma, Am & Shri Ravish Sood, Jm Acit- 21(1), Mumbai Vs. M/S. Karan Builders & Associates, 31, Jaihind Cottage, Shahji Raje Marg, Vile Parle – E, Mumbai - 57 Pan/Gir No. Aaffk5037N Appellant) .. Respondent)

Section 133(6)Section 145(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAVISH SOOD, JM ACIT- 21(1), Mumbai Vs. M/s. Karan Builders and Associates, 31, Jaihind Cottage, Shahji Raje Marg, Vile Parle – E, Mumbai - 57 PAN/GIR No. AAFFK5037N Appellant) .. Respondent) Revenue by Dr. Santosh Mankoskar Assessee by Shri Vipul Joshi Date of Hearing 08/11/2016 Date of Pronouncement 16/12/2016 आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the Revenue against the order of CIT(A) for the assessment year 2008-09 wherein Revenue is aggrieved by the order of CIT(A) reducing net profit of…

ITO, Ward-1(3), Kolkata vs. M/S Gkw Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

ITA 432/KOL/2012[1998-99]Status: DisposedITAT Kolkata24 Aug 2016AY 1998-99

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmedassessment Year :1998-99 Ito Ward-1(3), Room V/S. M/S Gkw Ltd., Central No. 1A, 4Th Floor, Plaza, 2/6 Sarat Bose Aayakar Bhawan, P-7, Road, Office Space No. Chowringhee Suquare, 406, 4Thfloor, Kolkata-20 Kolkata-700 069 [Pan No. Aabcg 0671 K] .. अपीलाथ" /Appellant ""यथ"/Respondent

Section 143(2)Section 143(3)Section 145A

…es must be based on some relevant material and unreliabilit9y of material placed before them does not mean that they can proceed to levy whatever tax they may levy. Similar view has also been taken in the case of Brij Bhushan Lal Parduman Kumar vs. CIT (1978) 115 ITR 524 (SAC) where the Hon’ble Apex Court held that estimation of income must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. We also find that assessee has filed statutory audit report under the ITA No.432/Kol/2012 A.Y. 1998-99 ITO Wd-1(3), Kol. Vs. M/s GKW Ltd. Page 6 Companies Act, 195…

ITO, Circle-33(4), Kolkata vs. Shyamal Dey, Kolkata

In the result, Revenue’s appeal is dismissed

ITA 410/KOL/2012[2008-2009]Status: DisposedITAT Kolkata20 Jan 2016AY 2008-2009

Bench: Shri N.V.Vasusdevan & Shri Waseem Ahmedassessment Year :2008-09

Section 143(3)Section 144

…n the form of paper book which is placed on record. The AO failed to point out the specific disallowances from the books of accounts of the assessee. We also find from the order of Hon’ble Supreme court in the case BrijBhushan Lal Parduman Kumar v. CIT (1978) 115 ITR 524 (SC) and head note reproduced below:- “Assessment – Best judgment assessment – Income estimate – Basis thereof – Necessity of reasonable nexus – Authority making a best judgment assessment must make an fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate ITA No.410/Kol/2012 A.Y. 2008-09 ITO Ward…