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

Ramasamy Palanisamy, Karur vs. ITO, Ward-1, Karur

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

ITA 2591/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…

Ramasamy Palanisamy, Karur vs. ITO, Ward-1, Karur

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

ITA 2590/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…

Palanisamy Gounder Loganathan, Karur vs. ITO, Ward-1, Karur

ITA 2589/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Apr 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

…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 st…

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

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

ITA 2587/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…

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

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

ITA 2586/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…

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

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

ITA 2584/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…

ACIT, Ncr Building, Jaipur vs. Hans Raj Agarwal, Vidhyadhar Nagar Jaipur

39. In view of the above discussion and findings, memorandum of cross objections No 1/JP/2025 filed by the assessee is allowed

ITA 1253/JPR/2024[2016-17]Status: DisposedITAT Jaipur12 Mar 2025AY 2016-17

Bench: SHRI GAGAN GOYAL (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri Aditya Vijay, Adv. &For Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 132Section 142(1)Section 143(1)(a)Section 147Section 148Section 250

…r to reopen provided there is tangible material to come to the conclusions that there is escapement of income from assessment and there was failure on the part of assessee to truly and fully disclose material facts. 2. Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC)held that even if the conclusion drawn by the Assessing Officer from the facts disclosed by the assessee during the course of original assessment is erroneous, the Assessing Officer cannot reopen the assessment to change that erroneous conclusion once reached at 3. Assistant Commissioner of Income-tax Vs. Infinity.com Financial Securities Ltd.…

Income Tax Officer, Jaipur vs. Kedia Builders and Colonizers Private Limited, Jaipur

In the result, all appeals of the revenue are stands dismissed

ITA 901/JPR/2024[2014-15]Status: DisposedITAT Jaipur11 Mar 2025AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. Sidharth RankaFor Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 143(3)Section 147

…n or failure on the part of the appellant to disclose fully and truly all material facts. He could not, thereafter, take recourse to Section 147(a) to remedy the error resulting from his own oversight." 5.28 In the case of Calcutta Discount co. v. ITO (1961) 41 ITR 191, the Hon'ble Supreme Court held that once the assessee disclosed all primary facts, his duty ends and it is for the AO to draw conclusion from the same: "Does the duty however extend beyond the full and truthful disclosure of all primary facts? In our opinion, the answer to this question must be in the negative. Once all Kedia Builders and Coloni…

Income Tax Officer, Jaipur vs. Kedia Builders and Colonizers Private Limited, Jaipur

In the result, all appeals of the revenue are stands dismissed

ITA 875/JPR/2024[2016-17]Status: DisposedITAT Jaipur11 Mar 2025AY 2016-17
For Appellant: Sh. Sidharth RankaFor Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 143(3)Section 147

…n or failure on the part of the appellant to disclose fully and truly all material facts. He could not, thereafter, take recourse to Section 147(a) to remedy the error resulting from his own oversight." 5.28 In the case of Calcutta Discount co. v. ITO (1961) 41 ITR 191, the Hon'ble Supreme Court held that once the assessee disclosed all primary facts, his duty ends and it is for the AO to draw conclusion from the same: "Does the duty however extend beyond the full and truthful disclosure of all primary facts? In our opinion, the answer to this question must be in the negative. Once all the primary facts are bef…

Income Tax Officer, Jaipur vs. Kedia Builders and Colonizers Private Limited, Jaipur

ITA 873/JPR/2024[2013-14]Status: DisposedITAT Jaipur11 Mar 2025AY 2013-14
For Appellant: Sh. Sidharth RankaFor Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 143(3)Section 147

…on or failure on the part of the appellant to disclose fully and truly all material facts. He could not, thereafter, take recourse to Section 147(a) to remedy the error resulting from his own oversight." 5.28 In the case of Calcutta Discount co. v. ITO (1961) 41 ITR 191, the Hon'ble Supreme Court held that once the assessee disclosed all primary facts, his duty ends and it is for the AO to draw conclusion from the same: “Does the duty however extend beyond the full and truthful disclosure of all primary facts? In our opinion, the answer to this question must be in the negative. Once all the primary facts are befo…

Income Tax Officer, Jaipur vs. Kedia Builders and Colonizers Private Limited, Jaipur

In the result, all appeals of the revenue are stands dismissed

ITA 872/JPR/2024[2012-13]Status: DisposedITAT Jaipur11 Mar 2025AY 2012-13
For Appellant: Sh. Sidharth RankaFor Respondent: Mrs. Anita Rinesh, JCIT-DR
Section 143(3)Section 147

…on or failure on the part of the appellant to disclose fully and truly all material facts. He could not, thereafter, take recourse to Section 147(a) to remedy the error resulting from his own oversight." 5.28 In the case of Calcutta Discount co. v. ITO (1961) 41 ITR 191, the Hon'ble Supreme Court held that once the assessee disclosed all primary facts, his duty ends and it is for the AO to draw conclusion from the same: "Does the duty however extend beyond the full and truthful disclosure of all primary facts? In our opinion, the answer to this question must be in the negative. Once all the primary facts are befo…

Jermel'S Accademy, Siliguri vs. I.T.O., Ward - 1(4), Siliguri

In the result, the appeal filed by the assessee is allowed as per the directions mentioned above

ITA 1652/KOL/2024[2016-2017]Status: DisposedITAT Kolkata10 Mar 2025AY 2016-2017

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 11(1)Section 11(1)(A)Section 12ASection 12A(2)Section 139(1)Section 143(2)Section 147Section 148Section 250

…re assertion lends no credibility. Where the onus is upon the assessee to prove the fact, the assessee must place all relevant material to prove that fact whenever he is asked to furnish the same. The Hon'ble Supreme Court in the case of Calcutta Discount Co [41 ITR 191 (SC.)] has held that it is the duty of assessee to produce the books of account as well as all primary facts necessary for making the assessment at the earliest point of time. Hence, in the absence of any submission from the assessee and incomplete documents, the correct income of the assessee cannot be deduced. Thus this ground is dismissed. 15.…

Dy. CIT, Corporate Circle-1, Coimbatore vs. M/S Rkr Gold Pvt Ltd., Coimbatore

In the result, appeal filed by the Revenue is dismissed

ITA 10/CHNY/2023[2017-18]Status: DisposedITAT Chennai24 Feb 2025AY 2017-18

Bench: Shri Aby T Varkey, Hon’Ble & Shri S. R. Raghunatha, Hon’Bleआयकर अपील सं./Ita No.: 10/Chny/2023 िनधा"रण वष" / Assessment Year: 2017-18 M/S. Rkr Gold Pvt Ltd., Deputy Commissioner Of V. No. 169, T.V. Samy Road West, Income Tax, R.S. Puram, Coimbatore South, Corporate Circle-1, Aayakar Coimbatore – 641 002. Bhavan, [Pan: Aadcr-4414-M] 63, Race Course Road, Coimbatore – 641 018. (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri.R.Clement Ramesh, Cit अपीलाथ" क" ओर से/Appellant By ""यथ" क" ओर से/Respondent By : Shri.N.Arjun Raj, Advocate & Shri Girish Kumar, Advocate सुनवाई क" तारीख/Date Of Hearing : 19.02.2025 घोषणा क" तारीख/Date Of Pronouncement : 24.02.2025 आदेश /O R D E R

For Respondent: Shri.N.Arjun Raj, Advocate &
Section 142(1)Section 143(2)Section 69A

…. No: 10/Chny/2023 assessee company has reported cash sales of around 16.77 crores which is very unusual and abnormal. 6.2 The ld.DR also relied on the decision of CIT Vs.Durga Prasad More – [1971] 82 ITR 540(SC) and Calcutta Discount Co.Ltd Vs. ITO (1961) – 41 ITR 191 (SC) in support of human probability and cash sales made by the assessee and prayed for dismissing order of the Ld.CIT(A). 7. Per contra, the ld.AR for the assessee supported the action of the ld.CIT(A) and stated that the ld.CIT(A) is justified in deleting the addition made by the AO, since the assessee has maintained proper books of accounts li…

Jermel'S Accademy, Siliguri vs. ITO, Ward - 1(4), Siliguri

ITA 994/KOL/2024[2017-2018]Status: DisposedITAT Kolkata21 Jan 2025AY 2017-2018

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 11(1)Section 250

…was filed therefore, the ground of appeal was dismissed and the exemption claimed by the assessee was denied. The assessee had failed to file books of accounts, therefore, relying upon the decision of Hon’ble Supreme Court in the case of Calcutta Discount Co [41 ITR 191 (SC.)] the other ground of appeal was also dismissed and the appeal was dismissed. 5. During the course of the appeal proceeding, the assessee relied upon the case of CIT vs. M/s. Infinity Infotech Parks Ltd. dated 10.09.2024 in support of the claim that when the income relating to the subject matter of reopening was not added, the re-assessment p…

Jermel'S Accademy, Siliguri vs. ITO, Ward - 1(4), Siliguri

ITA 993/KOL/2024[2015-2016]Status: DisposedITAT Kolkata21 Jan 2025AY 2015-2016

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 11(1)Section 250

…was filed therefore, the ground of appeal was dismissed and the exemption claimed by the assessee was denied. The assessee had failed to file books of accounts, therefore, relying upon the decision of Hon’ble Supreme Court in the case of Calcutta Discount Co [41 ITR 191 (SC.)] the other ground of appeal was also dismissed and the appeal was dismissed. 5. During the course of the appeal proceeding, the assessee relied upon the case of CIT vs. M/s. Infinity Infotech Parks Ltd. dated 10.09.2024 in support of the claim that when the income relating to the subject matter of reopening was not added, the re-assessment p…

Jermel'S Accademy, Siliguri vs. I.T.O., Ward - 1(4), Siliguri

ITA 992/KOL/2024[2014-2015]Status: DisposedITAT Kolkata21 Jan 2025AY 2014-2015

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 11(1)Section 250

…was filed therefore, the ground of appeal was dismissed and the exemption claimed by the assessee was denied. The assessee had failed to file books of accounts, therefore, relying upon the decision of Hon’ble Supreme Court in the case of Calcutta Discount Co [41 ITR 191 (SC.)] the other ground of appeal was also dismissed and the appeal was dismissed. 5. During the course of the appeal proceeding, the assessee relied upon the case of CIT vs. M/s. Infinity Infotech Parks Ltd. dated 10.09.2024 in support of the claim that when the income relating to the subject matter of reopening was not added, the re-assessment p…

Deputy Commissioner of Income-Tax, Coimbatore vs. Ms Viswa and Devji Diamonds Pvt Ltd, Coimbatore

In the result, appeal filed by the Revenue stands dismissed

ITA 327/CHNY/2024[2017-18]Status: DisposedITAT Chennai10 Jan 2025AY 2017-18

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R. Raghunathaआयकर अपील सं./Ita No.327/Chny/2024 िनधा"रण वष"/Assessment Year: 2017-2018. The Deputy Commissioner Viswa & Devji Diamonds Pvt Ltd, Of Income Tax, Vs. New No.16,Old No.239, Corporate Circle 1, T.V.Swamy Road (East) Coimbatore R.S. Puram, Coimbatore 641 002. Pan: Aaccv 4942M

For Appellant: Shri Nilay Baran Som, IRS, CITFor Respondent: Shri N. Arjun Raj, Advocate
Section 143(3)

…er to by pass the provisions of Rule 114C(2) r.w. Sl.No.18 of Rule 114B of the Income Tax Rules, ITA No.327 /Chny/2024 1962. The ld.DR also relied on the decision of CIT Vs.Durga Prasad More – [1971] 82 ITR 540(SC) and Calcutta Discount Co.LtdVs.ITO (1961) – 41 ITR 191 (SC) in support of human probability and cash sales and prayed for dismissing order of the Ld.CIT(A). 7. Per contra, the ld.AR for the assessee asserted the action of the ld.CIT(A) and stated that the ld.CIT(A) is justified in deleting the addition made by the AO in assuming the capacity of the assessee to conduct such volume in 3 to 4 hours of ti…

Assistant Commissioner of Income Tax Circle- 3(4) Mumbai, Mumbai vs. The Shipping Corporation of India Limited, Mumbai

In the result, appeal of the assesse is allowed and that of the

ITA 1970/MUM/2024[2016-2017]Status: DisposedITAT Mumbai09 Jan 2025AY 2016-2017

Bench: Sunil Kumar Singh, Hon'Ble

For Appellant: Shri Nitesh Joshi & Neha Vikam, A/RsFor Respondent: Shri Dr. Kishor Dhule, CIT D/R
Section 115JSection 139(1)Section 143(3)Section 148

…ubmitted that while it is duty of every assessee to disclose fully and truly all material facts necessary for his assessment, his duty does not extend beyond such disclosure. The Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. -vs.- ITO [1961] 41 ITR 191 has categorically held that that once all primary facts are disclosed before the Assessing Authority, he requires no further assistance by way of disclosure. It is for him to decide what inferences of facts can be reasonably drawn and what legal inferences have ultimately to be drawn. While framing the assessment, the factual details were accepted…

The Shipping Corporation of India, Mumbai vs. DCIT-3(4), Mumbai

In the result, appeal of the assesse is allowed and that of the

ITA 1752/MUM/2024[2016-17]Status: DisposedITAT Mumbai09 Jan 2025AY 2016-17

Bench: Sunil Kumar Singh, Hon'Ble

For Appellant: Shri Nitesh Joshi & Neha Vikam, A/RsFor Respondent: Shri Dr. Kishor Dhule, CIT D/R
Section 115JSection 139(1)Section 143(3)Section 148

…ubmitted that while it is duty of every assessee to disclose fully and truly all material facts necessary for his assessment, his duty does not extend beyond such disclosure. The Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. -vs.- ITO [1961] 41 ITR 191 has categorically held that that once all primary facts are disclosed before the Assessing Authority, he requires no further assistance by way of disclosure. It is for him to decide what inferences of facts can be reasonably drawn and what legal inferences have ultimately to be drawn. While framing the assessment, the factual details were accepted…

S.P. Singla Construction Private Limited, Delhi vs. Deputy Commissioner of Income Tax, Chandigarh

In the result, the appeal is allowed

ITA 514/CHANDI/2023[2012-2013]Status: DisposedITAT Chandigarh02 Jan 2025AY 2012-2013

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Smt. Kusum Bansal, CIT-DR
Section 127Section 132Section 143(3)Section 147Section 148Section 148(2)Section 153Section 153A

…ection 147/148 would be illegal. 23. As regards alternative remedy, we are of the opinion since the notice under Section 148 is without jurisdiction the petitioner should not be relegated to his alternative remedy vide Calcutta Discount Co. Ltd. v. ITO (1961) 41 ITR 191 (SC); Smt. Jamila Ansari v. Income-tax Department [1997] 137 CTR (All) 587 : (1997) 225 ITR 490 (All); Govind Chhapabhai Patel v. Deputy CIT (1999) 156 CTR (Guj) 353 : [1999] 240 ITR 628 (Guj) and Jindal Photo Films Ltd. v. Deputy CIT (supra) and other decisions.” 14. Similarly, Hon'ble Bombay High Court in the case of Rajshree Realtors Pvt. Ltd.…