Chhugamal Rajpal v. S.P. Chaliha

DCIT, New Delhi vs. M/S. Dharampal Satyapal Ltd., Delhi

In the result, the appeal of the assessee is allowed and the appeal of the revenue is dismissed

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…ds to be exercised with due care and circumspection and after due application of mind. Mechanical manner of giving sanction like in this case have not been approved by the Hon’ble Supreme Court in a similar case in Chhugamal Rajpal vs. S.P. Chaliha & Ors. – 79 ITR 603 (SC) and Hon’ble High Court of Madhya Pradesh in Arjun Singh vs Asstt. Director of Income Tax (M.P.) reported in (2000) 246 ITR 363 (MP). Thus, we are not satisfied that AO had any material before him which satisfies the requirements of section 147. Therefore, he could not have issued notice u/s 148. Further, the report submitted by him u/s 151…

M/S. Dharampal Satyapal Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed and the appeal of the revenue is dismissed

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…ds to be exercised with due care and circumspection and after due application of mind. Mechanical manner of giving sanction like in this case have not been approved by the Hon’ble Supreme Court in a similar case in Chhugamal Rajpal vs. S.P. Chaliha & Ors. – 79 ITR 603 (SC) and Hon’ble High Court of Madhya Pradesh in Arjun Singh vs Asstt. Director of Income Tax (M.P.) reported in (2000) 246 ITR 363 (MP). Thus, we are not satisfied that AO had any material before him which satisfies the requirements of section 147. Therefore, he could not have issued notice u/s 148. Further, the report submitted by him u/s 151…

Smt. Priya vs. ACIT Cir, 2

In the result, appeal of the assessee is allowed

Bench: Shri J. Sudhakar Reddyay: 2001-02 Smt. Priya Vs. Acit, Circle 2 C/O Sh. Vinod Kumar Goel Meerut Advocate 282, Boundary Road Civil Lines, Meerut Pan: Aldpk 2963 N A N D Ay: 2001-02 Smt. Priya Vs. Acit, Circle 2 Meerut Meerut (Appellant) (Respondent)

…ly bogus transactions. Such information is sent to different officers to take action/proceedings u/s 147/148 of the Income-tax Act on the basis of such statements and confession. For illustration, may refer to case of Chhugamal Rajpal Vs S.P. Chaliha & Others 79 ITR 603, (S.C.) where action was initiated on the basis of Circular issued from the Office of Commissioner of Income Tax, Bihar and Orissa which stated that three persons named in that Circular were merely name lenders and therefore, transactions carried by them were bogus and proper investigation regarding loan from such persons was necessary. When, on t…

Smt. Priya, Meerut vs. ACIT, Meerut

In the result, appeal of the assessee is allowed

Bench: Shri J. Sudhakar Reddyay: 2001-02 Smt. Priya Vs. Acit, Circle 2 C/O Sh. Vinod Kumar Goel Meerut Advocate 282, Boundary Road Civil Lines, Meerut Pan: Aldpk 2963 N A N D Ay: 2001-02 Smt. Priya Vs. Acit, Circle 2 Meerut Meerut (Appellant) (Respondent)

…ly bogus transactions. Such information is sent to different officers to take action/proceedings u/s 147/148 of the Income-tax Act on the basis of such statements and confession. For illustration, may refer to case of Chhugamal Rajpal Vs S.P. Chaliha & Others 79 ITR 603, (S.C.) where action was initiated on the basis of Circular issued from the Office of Commissioner of Income Tax, Bihar and Orissa which stated that three persons named in that Circular were merely name lenders and therefore, transactions carried by them were bogus and proper investigation regarding loan from such persons was necessary. When, on t…

Commissioner of Income Tax vs. Visisth Chay Vyapar Ltd

…. Before proceeding to discuss the above submissions, the legal position regarding Section 147 of the Act, prior to and subsequent to the amendment with effect from 1st April 1989, needs to be briefly recapitulated. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped assessment pursuant to communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name-lenders and the transactions are bogus.” The Supreme C…

Commissioner of Income Tax vs. Vishsht Chay Vyapar Ltd

…. Before proceeding to discuss the above submissions, the legal position regarding Section 147 of the Act, prior to and subsequent to the amendment with effect from 1st April 1989, needs to be briefly recapitulated. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped assessment pursuant to communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name-lenders and the transactions are bogus.” The Supreme C…

Commissioner of Income Tax vs. Vishishth Chay Vyapar Ltd

…. Before proceeding to discuss the above submissions, the legal position regarding Section 147 of the Act, prior to and subsequent to the amendment with effect from 1st April 1989, needs to be briefly recapitulated. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped assessment pursuant to communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name-lenders and the transactions are bogus.” The Supreme C…

Commissioner of Income Tax vs. Vishishth Chay Vyapar Ltd

…. Before proceeding to discuss the above submissions, the legal position regarding Section 147 of the Act, prior to and subsequent to the amendment with effect from 1st April 1989, needs to be briefly recapitulated. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped assessment pursuant to communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name-lenders and the transactions are bogus.” The Supreme C…

ITO, New Delhi vs. M/S Rajat Export Import P. Ltd., New Delhi

In the result the appeal filed by the Department is dismissed

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastava

…outset proposes to recapitulate the jurisdictional requirement for reopening of the assessment under Section 147/148 of the 5 ITO vs. Rajat Export Import P. Ltd. Act by referring to two decisions of the Supreme Court. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO had received certain communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name- lenders and the transactions are bogus.” The AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped assessment.…

ITO, New Delhi vs. M/S Roopin Capital P. Ltd., New Delhi

In the result the CO filed by the assessee is allowed

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastava

…e Act as under:- “9. The Court at the outset proposes to recapitulate the jurisdictional requirement for reopening of the assessment under Section 147/148 of the Act by referring to two decisions of the Supreme Court. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO had received certain communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name- lenders and the transactions are bogus.” The AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped 5 & CO No.…

ITO, New Delhi vs. M/S Roopali Marketing Ltd., New Delhi

In the result the CO filed by the assessee is allowed

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastava

…e Act as under:- “9. The Court at the outset proposes to recapitulate the jurisdictional requirement for reopening of the assessment under Section 147/148 of the Act by referring to two decisions of the Supreme Court. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO had received certain communications from the Commissioner of 5 & CO No. 142/Del/2013 Income Tax showing that the alleged creditors of the Assessee were “name- lenders and the transactions are bogus.” The AO came to the conclusion that there were reasons to believe that income of the Assesse…

Goel Wax (P) Ltd., New Delhi vs. ITO, New Delhi

In the result the appeal of the assessee is allowed

Bench: Shri J. Sudhakar Reddyay: 2003-04 Goel Wax P Ltd. Vs. Ito, Ward 12(2) C/O Raj Kumar & Associates, Cas New Delhi L 7 A, South Ex Part 2 New Delhi 110 049 Pan: Aaacgo 121 F (Appellant) (Respondent)

…in case of United Electrical Co.P.Ltd. vs. CIT (2002) reported in 258 ITA No. 2624/Del/2015 A.Y. 2003-04 Goel Wax P.Ltd., New Delhi ITR 317 (Del) and the judgement of Hon’ble Supreme Court in the case of Chhugamal Rajpal vs. S.P.Chalina & Others reported in 79 ITR 603 (S.C.) have been applied, I hold that the reopening is bad in law, for the reason that the ACIT has granted approval with a simple mere “yes”. Such a remark cannot be considered as approval with application of mind. The reopening of assessment is bad in law. 4. In the result the appeal of the assessee is allowed. Order pronounced in the Open Cou…

Anjali Gupta, New Delhi vs. ITO, Faridabad

In the result the appeal of the assessee is allowed

Bench: Shri J. Sudhakar Reddyay: 2005-06 Anjali Gupta Vs. Ito, Ward 1(3) C/O Raj Kumar & Associates, Cas Faridabad L 7 A South Ex Part 2 New Delhi 110 049 Pan: Abzpg 7500 P (Appellant) (Respondent)

…cap Ltd. (supra), wherein the Hon’ble Jurisdictional High Court in case of United Electrical Co.P.Ltd. vs. CIT (2002) reported in 258 ITR 317 (Del) and the judgement of Hon’ble Supreme Court in the case of Chhugamal Rajpal vs. S.P.Chalina & Others reported in 79 ITR 603 (S.C.) have been applied, I hold that the reopening is bad in law, for the reason that the ACIT has granted approval with a simple mere “yes”. Such a remark cannot be considered as approval with application of mind. The reopening of assessment is bad in law. 6. In the result the appeal of the assessee is allowed. Order pronounced in the Open Cou…

M/S. Shri Vardai Ovrseas (P) Ltd., New Delhi vs. ITO, New Delhi

In the result the appeals of the assessee are allowed

Bench: Shri J. Sudhakar Reddy & Shri Sudhanshu Srivastava

…an independent mind in forming a belief which may result in the required reason to believe as per the provisions of Section 147 and 148 of the Act. Reference may be made to the judgment rendered by the Hon’ble Apex Court in Chuggamal Rajpal vs. S.P. Chaliha 79 ITR 603 (SC) wherein the Hon’ble Apex Court was dealing with a case where the AO had received certain communications from the CIT showing that the alleged creditors of the assessee were name lenders and that the transactions were bogus. The AO came to the conclusion that there were reasons to believe that income of the assessee had escaped assessment. Th…

M/S. Shri Vardai Ovrseas (P) Ltd., New Delhi vs. ITO, New Delhi

In the result the appeals of the assessee are allowed

Bench: Shri J. Sudhakar Reddy & Shri Sudhanshu Srivastava

…an independent mind in forming a belief which may result in the required reason to believe as per the provisions of Section 147 and 148 of the Act. Reference may be made to the judgment rendered by the Hon’ble Apex Court in Chuggamal Rajpal vs. S.P. Chaliha 79 ITR 603 (SC) wherein the Hon’ble Apex Court was dealing with a case where the AO had received certain communications from the CIT showing that the alleged creditors of the assessee were name lenders and that the transactions were bogus. The AO came to the conclusion that there were reasons to believe that income of the assessee had escaped assessment. Th…

Pr. Commissioner of Income Tax-4 vs. G & G Pharma India Ltd

The appeal is dismissed

…Pvt. Ltd.) 9. The Court at the outset proposes to recapitulate the jurisdictional requirement for reopening of the assessment under Section 147/148 of the Act by referring to two decisions of the Supreme Court. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO had received certain communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name-lenders and the transactions are bogus.” The AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped assessm…

Pr. Commissioner of Income Tax-4 vs. G & G Pharma India Ltd

The appeal is dismissed

…Pvt. Ltd.) 9. The Court at the outset proposes to recapitulate the jurisdictional requirement for reopening of the assessment under Section 147/148 of the Act by referring to two decisions of the Supreme Court. In Chhugamal Rajpal v. SP Chaliha (1971) 79 ITR 603, the Supreme Court was dealing with a case where the AO had received certain communications from the Commissioner of Income Tax showing that the alleged creditors of the Assessee were “name-lenders and the transactions are bogus.” The AO came to the conclusion that there were reasons to believe that income of the Assessee had escaped assessm…

Smt. Meera Kapoor vs. Commissioner Of Income Tax

…dings. Also, if the reasons cannot be substantiated, the reassessment under provisions of sections 148 to 153 of the Act cannot be considered to be good in law. The appellant relied on the rulings of the Supreme Court in Chhugamal Rajpal v. S.P. Chaliha : 79 ITR 603, wherein the Court held that to issue a notice for reassessment, it is mandatory for the Department to verify that the requirements of sections 148 and 151(2) have been complied with. Reliance was placed on the judgment in CIT v. Atul Jain/Smt. Vinita Jain 293 ITR 383, where the following observations, similar to the ratio in Chhugamal (Supra…

M/S Central India Electric Supply Co.Ltd vs. ITO-Company Circle X & Ors

The appeal is allowed leaving the parties to bear their own

Bench: Us In The Present Appeal, Are: “(1) Whether On The Facts & In The Circumstances Of The Case, The Tribunal Was Justified In Holding That Re-Assessment Proceedings Under Section 147(A) Read With Section 148 Of The Income-Tax Act, 1961 Had Been Rightly Initiated Against The Assessee?

…* IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on : 13.01 2011 % Date of decision : 28.01.2011 + ITA No. 17 / 1999 THE CENTRAL INDIA ELECTRIC SUPPLY CO. LTD. … … … … … … … … … APPELLANT Through : Mr. P.N. Monga & Mr. Manu Monga Advocates. - V E R S U S - INCOME TAX OFFICER, COMPANY CIRCLE – X, NEW DELHI & ANR. … … … … … … … ... RESPONDENTS Through : Mr. Sanjeev Sabharwal, Advocate. CORAM : HON'BLE MR. JUSTICE SANJAY KISHAN KAUL HON‟BLE MR.…