Calcutta Discount Co. Ltd. v. ITO

41 ITR 191Supreme Court of India1961#192 most cited

What is Calcutta Discount Co. Ltd. v. ITO authority for?

The assessee's duty is limited to disclosing all primary, material facts necessary for assessment, including entries, documents, and other evidence. It is for the Assessing Officer to draw inferences of fact and law, and the assessee is not obligated to offer such inferences.

384

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2010 to 2026.

Also referred to as

Calcutta Discount Co. Ltd. v. ITO · Section 147 · Section 148 · assessee's duty · full and true disclosure · primary facts · material facts for assessment · drawing inferences · reassessment conditions

Sections most often in play

Section 147Section 148Section 143(3)Section 142(1)Section 68Section 151Section 143(2)Section 132
Read the full judgment

Issues it is cited on

section 147(a)true and full disclosurematerial facts necessary for assessmentfresh tangible materialfirst proviso to section 147kelvinatorfull and true disclosurebeyond four yearsmere change of opinionlive linksection 35dsection 148(2)

Judgments citing Calcutta Discount Co. Ltd. v. ITO

Deputy Commissioner of Income Tax, Central Circle, Kollam vs. Moneymuttam Finance, Pathanamthitta

In the result, assessee’s cross objection stands allowed and appeal filed by the Revenue stands dismissed

ITA 315/COCH/2024[2017-18]Status: DisposedITAT Cochin09 Jun 2025AY 2017-18

Bench: Shri Inturi Rama Rao, Am & Shri Soundararajan K., Jm Assessment Years: 2017-18

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Shri Suresh Sivanandan, CIT-DR
Section 132Section 143(3)Section 148

…spicion, surmises, conjectures but must be based on cogent material that establishes a live link or casual nexus between the information available and inference so drawn by the A.O-reliance placed on the decisions of the Hon'ble S.C. in Calcutta Discount 1961 41 ITR 191(SC), ITO v. Lakmani Mewal Das, 1976 103 ITR 437 (SC), and Sheo Nath Singh v. AACIT, 972 SCR (1) 175 (SC). 11.2 Reassessment proceedings were initiated merely on the basis of 'reason to suspect' and not 'reason to believe' for the purpose of making fishing and roving enquiries in connection with the various items depicted in the regular books of a…

Deputy Commissioner of Income Tax, Central Circle, Kollam vs. Arun Raj Pillai, Pathanamthitta

In the result, the cross objection filed by the assessee company stands allowed

ITA 314/COCH/2024[2018-19]Status: DisposedITAT Cochin09 Jun 2025AY 2018-19

Bench: Shri Inturi Rama Rao, Am & Shri Soundararajan K., Jm

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Shri Suresh Sivanandan, CIT-DR
Section 132Section 143(3)

…ssue notice u/s 148-such formation of belief cannot be based on suspicion, surmises, conjectures but must be based on cogent material that establishes a live link or casual the A.O-reliance placed on the decisions of the Hon'ble S.C. in Calcutta Discount 1961 41 ITR 191(SC), ITO v. LakmaniMewal Das, 1976 103 ITR 437 (SC), and SheoNath Singh v. AACIT, 972 SCR (1) 175 (SC). 11.2 Reassessment proceedings were initiated merely on the basis of 'reason to suspect' and not 'reason to believe' for the purpose of making fishing and roving enquiries in connection with the various items depicted in the regular books of acc…

Sreevalsam Hotels and Resorts Private Ltd, Rajavalsam vs. ACIT, Central Circle, Kollam

In the result, assessee’s appeal in ITA No

ITA 115/COCH/2024[2017-2018]Status: DisposedITAT Cochin09 Jun 2025AY 2017-2018

Bench: Shri Inturi Rama Rao, Am & Shri Soundararajan K., Jm

For Appellant: Shri S.K. Tulsiyan, AdvocateFor Respondent: Shri Suresh Sivanandan, CIT-DR
Section 132Section 143(3)Section 148

…spicion, surmises, conjectures but must be based on cogent material that establishes a live link or casual nexus between the information available and inference so drawn by the A.O-reliance placed on the decisions of the Hon'ble S.C. in Calcutta Discount 1961 41 ITR 191(SC), ITO v. Lakmani Mewal Das, 1976 103 ITR 437 (SC), and Sheo Nath Singh v. AACIT, 972 SCR (1) 175 (SC). 11.2 qReassessment proceedings were initiated merely on the basis of 'reason to suspect' and not 'reason to believe' for the purpose of making fishing and roving enquiries in connection with the various items depicted in the regular books of…

DCIT, Central Circle-28, New Delhi vs. Manish Uppal, Delhi

In the result, assessee’s appeal in ITA No

ITA 3061/DEL/2022[2013-14]Status: DisposedITAT Delhi16 May 2025AY 2013-14

Bench: Ms. Madhumita Roy & Shri Naveen Chandraassessment Year: 2013-14

Section 132(1)Section 143(1)Section 147Section 148Section 153ASection 68

…that the initiation of proceeding u/s 147 was merely a change of opinion with respect to transaction already examined and verified by the AO cannot be accepted. 9.3 Hon'ble Supreme Court, in its decision in the case of Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 had underscored the obligation of every assessee to make a true and full disclosure and said that: “There can be no doubt that the duty of disclosing all the primary facts relevant to the decision of the question before the assessing authority lies on the assesses." The Hon'ble Supreme Court further held that once the duty is discharged, it is u…

Assistant Commissioner of Income Tax, Corporate Circle 1(1), Chennai vs. M/S Cholamandalam Investment & Finance Company Ltd, Chennai

In the result, the appeal of the Revenue is partly allowed

ITA 2836/CHNY/2024[2014-15]Status: DisposedITAT Chennai28 Apr 2025AY 2014-15

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Ble

For Appellant: Mr. Ajith Kumar Jain CA & Mr. Kunal Shah, CAFor Respondent: Mr. R. Clement Ramesh Kumar, CIT &
Section 143(3)Section 250Section 43(5)

…f Asian Paints Ltd v. DCIT & Anr [2009] 308 ITR 195 (Bom.) The Hon’ble Bombay High Court in the case of ICICI Home - Finance Co Ltd. v. ACIT [2012] 25 taxmann.com 241 (Bom.) The Hon’ble Supreme Court in the case of Calcutta Discount - Co. Ltd., v. ITO, [1961] 41 ITR 191 (SC) - The Hon’ble Supreme Court in the case of State of Uttar Pradesh v. Aryaverth Chawl Udyog [(2015) 53 taxmann.com 66] No ‘reason to believe’ that income has escaped assessment – Mere • change of opinion not a valid basis for reassessment Wherein it was held that mere a change on opinion cannot be held as a valid reason for reopening of asses…

Assistant Commissioner of Income Tax, Corporate Circle 1(1), Chennai vs. Cholamandalam Investment and Finance Company Limited, Chennai

In the result, the appeal of the Revenue is partly allowed

ITA 2820/CHNY/2024[2015-16]Status: DisposedITAT Chennai28 Apr 2025AY 2015-16

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Ble

For Appellant: Mr. Ajith Kumar Jain CA & Mr. Kunal Shah, CAFor Respondent: Mr. R. Clement Ramesh Kumar, CIT &
Section 143(3)Section 250Section 43(5)

…f Asian Paints Ltd v. DCIT & Anr [2009] 308 ITR 195 (Bom.) The Hon’ble Bombay High Court in the case of ICICI Home - Finance Co Ltd. v. ACIT [2012] 25 taxmann.com 241 (Bom.) The Hon’ble Supreme Court in the case of Calcutta Discount - Co. Ltd., v. ITO, [1961] 41 ITR 191 (SC) - The Hon’ble Supreme Court in the case of State of Uttar Pradesh v. Aryaverth Chawl Udyog [(2015) 53 taxmann.com 66] No ‘reason to believe’ that income has escaped assessment – Mere • change of opinion not a valid basis for reassessment Wherein it was held that mere a change on opinion cannot be held as a valid reason for reopening of asses…

Bses Yamuna Power Ltd, Delhi vs. ACIT, Circle-5(1), New Del;Hi

The appeal of the assessee is allowed on legal issues

ITA 4853/DEL/2017[2008-09]Status: DisposedITAT Delhi16 Apr 2025AY 2008-09

Bench: Shri Anubhav Sharma & Shri Manish Agarwalbses Rajdhani Power Ltd., Dy. Cit, Bses Bhawan, Cicle-5(1), Nehru Place, Vs. New Delhi. New Delhi-110019 Pan-Aagcs3187H (Appellant) (Respondent) Bses Rajdhani Power Ltd., Asst. Cit, Bses Bhawan, Cicle-5(1), Nehru Place, Vs. New Delhi. New Delhi-110019 Pan-Aagcs3187H (Appellant) (Respondent) Bses Yamuna Power Dy. Cit, Limited, Cicle-5(1), Shakti Kiran Building, Vs. New Delhi. Karkardoooma, Delhi-110092 Pan-Aagcs3187H (Appellant) (Respondent) Bses Rajdhani Power Ltd. & Ors Vs. Acit Bses Yamuna Power Asst. Cit, Limited, Cicle-5(1), Shakti Kiran Building, Vs. New Delhi. Karkardoooma, Delhi-110092 Pan-Aagcs3187H (Appellant) (Respondent) Assessee By Shri Rohit Jain, Adv., Sh. Deepesh Jain, Adv. & Sh. Shivam Gupta, Ca Department By Mr. Javed Akhtar, Cit-Dr Date Of Hearing 20/02/2025 Date Of Pronouncement 16/04/2025 O R D E R

Section 143(3)Section 147Section 148Section 154Section 250

…nal assessment orders. It is not a case where the assessee has failed to disclose fully and truly all material / primary facts necessary for assessment. 12. For this he placed reliance on the following judgements: - Calcutta Discount Co. Ltd. Vs. ITO: [1961] 41 ITR 191 (SC) - CIT Vs. Foramer France: [2003] 264 ITR 566 (SC) - CIT Vs. Motor & General Finance Ltd.: [2009] 184 Taxman 465 (Del) - BLB Limited Vs. ACIT: [2012] 206 Taxman 37 (Del) - D.T. & T.D.C. Ltd. Vs. ACIT: [2010] 232 CTR 260 (Del) - CIT Vs. Maruti Suzuki India Ltd.: [2013] 215 Taxman 494 (Del) - JSRS Udyog Ltd. Vs. ITO: [2009] 313 ITR 321 (Del) - V…

Bses Yamuna Power Ltd., New Delhi vs. DCIT, Circle- 5(1), New Delhi

The appeal of the assessee is allowed on legal issues

ITA 4852/DEL/2017[2007-08]Status: DisposedITAT Delhi16 Apr 2025AY 2007-08

Bench: Shri Anubhav Sharma & Shri Manish Agarwalbses Rajdhani Power Ltd., Dy. Cit, Bses Bhawan, Cicle-5(1), Nehru Place, Vs. New Delhi. New Delhi-110019 Pan-Aagcs3187H (Appellant) (Respondent) Bses Rajdhani Power Ltd., Asst. Cit, Bses Bhawan, Cicle-5(1), Nehru Place, Vs. New Delhi. New Delhi-110019 Pan-Aagcs3187H (Appellant) (Respondent) Bses Yamuna Power Dy. Cit, Limited, Cicle-5(1), Shakti Kiran Building, Vs. New Delhi. Karkardoooma, Delhi-110092 Pan-Aagcs3187H (Appellant) (Respondent) Bses Rajdhani Power Ltd. & Ors Vs. Acit Bses Yamuna Power Asst. Cit, Limited, Cicle-5(1), Shakti Kiran Building, Vs. New Delhi. Karkardoooma, Delhi-110092 Pan-Aagcs3187H (Appellant) (Respondent) Assessee By Shri Rohit Jain, Adv., Sh. Deepesh Jain, Adv. & Sh. Shivam Gupta, Ca Department By Mr. Javed Akhtar, Cit-Dr Date Of Hearing 20/02/2025 Date Of Pronouncement 16/04/2025 O R D E R

Section 143(3)Section 147Section 148Section 154Section 250

…nal assessment orders. It is not a case where the assessee has failed to disclose fully and truly all material / primary facts necessary for assessment. 12. For this he placed reliance on the following judgements: - Calcutta Discount Co. Ltd. Vs. ITO: [1961] 41 ITR 191 (SC) - CIT Vs. Foramer France: [2003] 264 ITR 566 (SC) - CIT Vs. Motor & General Finance Ltd.: [2009] 184 Taxman 465 (Del) - BLB Limited Vs. ACIT: [2012] 206 Taxman 37 (Del) - D.T. & T.D.C. Ltd. Vs. ACIT: [2010] 232 CTR 260 (Del) - CIT Vs. Maruti Suzuki India Ltd.: [2013] 215 Taxman 494 (Del) - JSRS Udyog Ltd. Vs. ITO: [2009] 313 ITR 321 (Del) - V…

M. Natesan, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2765/CHNY/2024[2012-13]Status: DisposedITAT Chennai09 Apr 2025AY 2012-13

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

R.Easwaramoorthy, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2697/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

S. Easwaramoorthy, Karur vs. ITO, Ward-1, Karur

ITA 2696/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

Section 133A

…of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: [Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where proviso is applicable] that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under-assessment and (ii) his having reason to believe that such under- assessment has resulted from nondisclosure of material facts, must co-exist before the Income-tax Officer has jurisdiction to sta…

S. Easwaramoorthy, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2695/CHNY/2024[2012-13]Status: DisposedITAT Chennai09 Apr 2025AY 2012-13

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

K. Paramasivam, Karur vs. ITO, Ward-1, Karur

ITA 2694/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

Section 133A

…of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: [Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where proviso is applicable] that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under-assessment and (ii) his having reason to believe that such under- assessment has resulted from nondisclosure of material facts, must co-exist before the Income-tax Officer has jurisdiction to sta…

K. Paramasivam, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2693/CHNY/2024[2012-13]Status: DisposedITAT Chennai09 Apr 2025AY 2012-13

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

K. Baskar, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2692/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

K. Baskar, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2691/CHNY/2024[2012-13]Status: DisposedITAT Chennai09 Apr 2025AY 2012-13

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

K. Sadasivam, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2690/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

P. Nallusamy, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2687/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

K. Kathirvel, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2686/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…

P. Karunanithi, Karur vs. ITO, Ward-1, Karur

In the result, all the appeals t, all the appeals stand allowed

ITA 2685/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

…r:[Emphasis given by us]" :[Emphasis given by us]" 20. We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of We note that the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. v. CIT [1961] 41 ITR 191 has held [in cases, where [in cases, where Discount Co. Ltd. v. CIT [1961] 41 ITR 191 proviso is applicable] that, both the conditions, (i) the Income that, both the conditions, (i) the Income that, both the conditions, (i) the Income-tax Officer having reason to believe that there has been under having reason to believe that there has been unde…