CIT, Gujarat II v. Surendra Gulab Chand Modi

140 ITR 517High Court1983#1280 most cited

What is CIT, Gujarat II v. Surendra Gulab Chand Modi authority for?

Protective assessments should not be deleted or disposed of by lower authorities, but rather allowed to remain in effect until the related substantive assessment proceedings attain finality before the High Court or Supreme Court.

88

judgments rely on this decision, according to BharatTax’s citation analysis of 366,406 Indian tax judgments — from 2016 to 2025.

Also referred to as

Surendra Gulab Chand Modi · 140 ITR 517 · protective assessment · substantive assessment · finality of assessment · deletion of protective assessment · appeal pending superior courts · section 143(3) · section 153A

Sections most often in play

Section 133(6)Section 143(3)Section 271(1)(c)Section 68Section 131Section 132(4)Section 136(6)Section 142(1)

Issues it is cited on

section 153(a)(1)abatement of assessmentprotective assessmentsubstantive assessmentsection 153a proceedingssection 158bdsection 153(a)explanation to section 37section 80hsection 80hhcsection 80hhsection 158b

Judgments citing CIT, Gujarat II v. Surendra Gulab Chand Modi

DCIT Central Circle-32, New Delhi vs. Vikram Kumar Bajaj, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 1737/DEL/2023[2017-18]Status: DisposedITAT Delhi30 Dec 2025AY 2017-18

Bench: SHRI ANUBHAV SHARMA (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Mahesh Kumar, CIT(DR)
Section 131Section 153A

…of Rs. 65,35,57,000/- made by the AO ignoring the ratio decided and laid down by the Hon’ble Supreme Court in the case of Lalji Haridas Vs. ITO 43 ITR 387 (SC), 1961.” And Hon’ble Gujarat High Court in the case of CIT, Gujarat II Vs. Surendra Gulab Chand Modi 140 ITR 517 (Guj) 1983 wherein it is held that such ‘Protective Assessment’- which in law should be allowed to remain as such – till the matters attain finality by Superior Courts- High Court or Hon’ble Supreme Court. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in proceedings with the matter and in disposing of it instead o…

Deputy Commissioner of Income Tax, Central Circle-13, New Delhi, Jhandewalan, Delhi vs. Minda Tg Rubber Pvt Ltd, Imt

ITA 2434/DEL/2023[2015-16]Status: DisposedITAT Delhi25 Jun 2025AY 2015-16

Bench: SHRI MANISH AGARWAL (Accountant Member)

Section 143(3)Section 68

…ns of Rs.10,00,00,000/- made by the AO on protective basis by ignoring the judgement of Hon'ble Supreme Court in the case of Lalji Haridas Vs ITO 43 ITR 387 (SC), 1961 and Hon'ble Gujarat High Court in the case of CIT, Gujarat II Vs. Surendra Gulab Chand Modi 140 ITR 517(Gui) 1983 wherein, it is held that the 'Protective Assessment'- which in law should be allowed to remain as such- till the matters attain finality by Superior Courts-High Court or Hon'ble Supreme Court. VIII. a) Whether on law and facts of the case the order of the Ld. CIT(A) is erroneous and not tenable in law and on facts. 7 (b) The appellant…

Deputy Commissioner of Income Tax, Central Circle-13, New Delhi, Jhandewalan vs. Rukmani Devi Auto Pvt. Ltd., Delhi

ITA 2433/DEL/2023[2015-16]Status: DisposedITAT Delhi25 Jun 2025AY 2015-16

Bench: SHRI MANISH AGARWAL (Accountant Member)

Section 143(3)Section 68

…ns of Rs.10,00,00,000/- made by the AO on protective basis by ignoring the judgement of Hon'ble Supreme Court in the case of Lalji Haridas Vs ITO 43 ITR 387 (SC), 1961 and Hon'ble Gujarat High Court in the case of CIT, Gujarat II Vs. Surendra Gulab Chand Modi 140 ITR 517(Gui) 1983 wherein, it is held that the 'Protective Assessment'- which in law should be allowed to remain as such- till the matters attain finality by Superior Courts-High Court or Hon'ble Supreme Court. VIII. a) Whether on law and facts of the case the order of the Ld. CIT(A) is erroneous and not tenable in law and on facts. 7 (b) The appellant…

Pr. Commissioner of Income Tax, Delhi-7 vs. Third Generation Traders Pvt. Ltd

ITA/142/2025HC Delhi23 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 142(1)Section 153C

…ther the Hon’ble ITAT was correct in ignoring the decision of the Hon’ble Apex Court in the case of Lalji Haridas vs. ITO (1961) 43 ITR 387 (SC), and judgment of Hon’ble Gujrat High Court in the case of CIT, Gujarat II vs. Surendra Gulab Chand Modi (1983) 140 ITR 517 (Guj), wherein it is held that protective assessment results in only a paper demand which is not enforceable as long as the assessment remains protective, hence no prejudice is caused to the assessee against such a Protective Assessment till such matters attain finality by the Hon’ble High Court or Hon’ble Supreme Court?” Signed By:NEELAM…

Pr. Commissioner of Income Tax, Delhi-7 vs. Third Generation Traders Pvt. Ltd

ITA/140/2025HC Delhi23 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 142(1)Section 153C

…ther the Hon’ble ITAT was correct in ignoring the decision of the Hon’ble Apex Court in the case of Lalji Haridas vs. ITO (1961) 43 ITR 387 (SC), and judgment of Hon’ble Gujrat High Court in the case of CIT, Gujarat II vs. Surendra Gulab Chand Modi (1983) 140 ITR 517 (Guj), wherein it is held that protective assessment results in only a paper demand which is not enforceable as long as the assessment remains protective, hence no prejudice is caused to the assessee against such a Protective Assessment till such matters attain finality by the Hon’ble High Court or Hon’ble Supreme Court?” Signed By:NEELAM…

Pr. Commissioner of Income Tax, Delhi-7 vs. Third Generation Traders Pvt. Ltd

ITA/141/2025HC Delhi23 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 142(1)Section 153C

…ther the Hon’ble ITAT was correct in ignoring the decision of the Hon’ble Apex Court in the case of Lalji Haridas vs. ITO (1961) 43 ITR 387 (SC), and judgment of Hon’ble Gujrat High Court in the case of CIT, Gujarat II vs. Surendra Gulab Chand Modi (1983) 140 ITR 517 (Guj), wherein it is held that protective assessment results in only a paper demand which is not enforceable as long as the assessment remains protective, hence no prejudice is caused to the assessee against such a Protective Assessment till such matters attain finality by the Hon’ble High Court or Hon’ble Supreme Court?” Signed By:NEELAM…

Pr. Commissioner of Income Tax, Delhi-7 vs. Third Generation Traders Pvt. Ltd

ITA/139/2025HC Delhi23 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 142(1)Section 153C

…ther the Hon’ble ITAT was correct in ignoring the decision of the Hon’ble Apex Court in the case of Lalji Haridas vs. ITO (1961) 43 ITR 387 (SC), and judgment of Hon’ble Gujrat High Court in the case of CIT, Gujarat II vs. Surendra Gulab Chand Modi (1983) 140 ITR 517 (Guj), wherein it is held that protective assessment results in only a paper demand which is not enforceable as long as the assessment remains protective, hence no prejudice is caused to the assessee against such a Protective Assessment till such matters attain finality by the Hon’ble High Court or Hon’ble Supreme Court?” Signed By:NEELAM…

Pr. Commissioner of Income Tax, Delhi-7 vs. Third Generation Traders Pvt. Ltd

ITA/137/2025HC Delhi23 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 142(1)Section 153C

…ther the Hon’ble ITAT was correct in ignoring the decision of the Hon’ble Apex Court in the case of Lalji Haridas vs. ITO (1961) 43 ITR 387 (SC), and judgment of Hon’ble Gujrat High Court in the case of CIT, Gujarat II vs. Surendra Gulab Chand Modi (1983) 140 ITR 517 (Guj), wherein it is held that protective assessment results in only a paper demand which is not enforceable as long as the assessment remains protective, hence no prejudice is caused to the assessee against such a Protective Assessment till such matters attain finality by the Hon’ble High Court or Hon’ble Supreme Court?” Signed By:NEELAM…

Pr. Commissioner of Income Tax, Delhi-7 vs. Third Generation Traders Pvt. Ltd

ITA/138/2025HC Delhi23 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 142(1)Section 153C

…ther the Hon’ble ITAT was correct in ignoring the decision of the Hon’ble Apex Court in the case of Lalji Haridas vs. ITO (1961) 43 ITR 387 (SC), and judgment of Hon’ble Gujrat High Court in the case of CIT, Gujarat II vs. Surendra Gulab Chand Modi (1983) 140 ITR 517 (Guj), wherein it is held that protective assessment results in only a paper demand which is not enforceable as long as the assessment remains protective, hence no prejudice is caused to the assessee against such a Protective Assessment till such matters attain finality by the Hon’ble High Court or Hon’ble Supreme Court?” Signed By:NEELAM…

DCIT Central Circle-30, New Delhi vs. Gauri Madan, New Delhi

In the result, the appeals of the revenue are allowed for statistical purposes

ITA 1829/DEL/2020[2017-18]Status: DisposedITAT Delhi18 Jul 2023AY 2017-18

Bench: Shri C.M. Garg & Shri Pradip Kumar Kedia

For Appellant: Sh. Nagesh Behl, AdvFor Respondent: Sh. T. James Singson, CIT DR
Section 143(3)Section 153C

…r.” Gauri Madan 3. The ld DR drawing our attention towards written submission filed by his predecessor on 30.11.2022 and submitted that keeping in view the decision of the Hon’ble Gujarat High Court in the case of CIT Vs. Surendra Gulab Chand Modi reported as 140 ITR 517 the ld CIT(A) was not justified in deleting the addition made by the AO on protective basis in two assessment years under consideration without awaiting for the final outcome of the proceedings arising from substantive assessment of Shri Naman Madan which was finalized on 31.01.2022 by passing order u/s 153C read with section 143(3) of the Act by…

DCIT Central Circle-30, New Delhi vs. Gauri Madan, New Delhi

In the result, the appeals of the revenue are allowed for statistical purposes

ITA 1828/DEL/2020[2016-17]Status: DisposedITAT Delhi18 Jul 2023AY 2016-17

Bench: Shri C.M. Garg & Shri Pradip Kumar Kedia

For Appellant: Sh. Nagesh Behl, AdvFor Respondent: Sh. T. James Singson, CIT DR
Section 143(3)Section 153C

…r.” Gauri Madan 3. The ld DR drawing our attention towards written submission filed by his predecessor on 30.11.2022 and submitted that keeping in view the decision of the Hon’ble Gujarat High Court in the case of CIT Vs. Surendra Gulab Chand Modi reported as 140 ITR 517 the ld CIT(A) was not justified in deleting the addition made by the AO on protective basis in two assessment years under consideration without awaiting for the final outcome of the proceedings arising from substantive assessment of Shri Naman Madan which was finalized on 31.01.2022 by passing order u/s 153C read with section 143(3) of the Act by…

Deputy Commissioner of Income Tax, Central Circle- 1(3), Bangalore vs. Shri. T. Nadakrishna, Bangalore

In the result, assessee’s appeal in ITA No

ITA 575/BANG/2020[2007-08]Status: DisposedITAT Bangalore27 May 2022AY 2007-08

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 132Section 153ASection 37(1)Section 40A(3)

…together in view of the judgement of Hon’ble Gujarat High Court in the case of ITA Nos.1658 to 1661/Bang/2018, ITA No.127/Bang/2020 & ITA 575/Bang/2020 M/s. SPR Spirits Pvt. Ltd., Bangalore & T. Nadakrishna, Bangalore Page 55 of 55 Surendra Gulabchand Modi (140 ITR 517) and Rajesh Shantilal Adani (20 GSTR 526) and issue in dispute accordingly is remitted to the CIT(A) for fresh consideration. The CIT(A) has to decide this issue within six months from the d ate of receipt of this order as this is old matter relating to the AY 2007-08. 53. In the result, assessee’s appeal in ITA No.127/Bang/2020 and revenue’s app…

M/S. Spr Spirits Private Limited (Formerly Known As Spr Group Holdings Private Limited), Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(3), Bangalore

In the result, assessee’s appeal in ITA No

ITA 127/BANG/2020[2007-08]Status: DisposedITAT Bangalore27 May 2022AY 2007-08

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 132Section 153ASection 37(1)Section 40A(3)

…together in view of the judgement of Hon’ble Gujarat High Court in the case of ITA Nos.1658 to 1661/Bang/2018, ITA No.127/Bang/2020 & ITA 575/Bang/2020 M/s. SPR Spirits Pvt. Ltd., Bangalore & T. Nadakrishna, Bangalore Page 55 of 55 Surendra Gulabchand Modi (140 ITR 517) and Rajesh Shantilal Adani (20 GSTR 526) and issue in dispute accordingly is remitted to the CIT(A) for fresh consideration. The CIT(A) has to decide this issue within six months from the d ate of receipt of this order as this is old matter relating to the AY 2007-08. 53. In the result, assessee’s appeal in ITA No.127/Bang/2020 and revenue’s app…

M/S Spr Spirits Pvt. Ltd., Bengaluru vs. Deputy Commissioner of Income Tax Central Circle -1 (3), Bengaluru

In the result, assessee’s appeal in ITA No

ITA 1661/BANG/2018[2011-12]Status: DisposedITAT Bangalore27 May 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 132Section 153ASection 37(1)Section 40A(3)

…together in view of the judgement of Hon’ble Gujarat High Court in the case of ITA Nos.1658 to 1661/Bang/2018, ITA No.127/Bang/2020 & ITA 575/Bang/2020 M/s. SPR Spirits Pvt. Ltd., Bangalore & T. Nadakrishna, Bangalore Page 55 of 55 Surendra Gulabchand Modi (140 ITR 517) and Rajesh Shantilal Adani (20 GSTR 526) and issue in dispute accordingly is remitted to the CIT(A) for fresh consideration. The CIT(A) has to decide this issue within six months from the d ate of receipt of this order as this is old matter relating to the AY 2007-08. 53. In the result, assessee’s appeal in ITA No.127/Bang/2020 and revenue’s app…

M/S Spr Spirits Pvt. Ltd., Bengaluru vs. Deputy Commissioner of Income Tax Central Circle -1 (3), Bengaluru

In the result, assessee’s appeal in ITA No

ITA 1660/BANG/2018[2010-11]Status: DisposedITAT Bangalore27 May 2022AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 132Section 153ASection 37(1)Section 40A(3)

…together in view of the judgement of Hon’ble Gujarat High Court in the case of ITA Nos.1658 to 1661/Bang/2018, ITA No.127/Bang/2020 & ITA 575/Bang/2020 M/s. SPR Spirits Pvt. Ltd., Bangalore & T. Nadakrishna, Bangalore Page 55 of 55 Surendra Gulabchand Modi (140 ITR 517) and Rajesh Shantilal Adani (20 GSTR 526) and issue in dispute accordingly is remitted to the CIT(A) for fresh consideration. The CIT(A) has to decide this issue within six months from the d ate of receipt of this order as this is old matter relating to the AY 2007-08. 53. In the result, assessee’s appeal in ITA No.127/Bang/2020 and revenue’s app…

M/S Spr Spirits Pvt.Ltd., Bengaluru vs. Deputy Commissioner of Income Tax Central Circle -1 (3), Bengaluru

In the result, assessee’s appeal in ITA No

ITA 1659/BANG/2018[2009-10]Status: DisposedITAT Bangalore27 May 2022AY 2009-10

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 132Section 153ASection 37(1)Section 40A(3)

…together in view of the judgement of Hon’ble Gujarat High Court in the case of ITA Nos.1658 to 1661/Bang/2018, ITA No.127/Bang/2020 & ITA 575/Bang/2020 M/s. SPR Spirits Pvt. Ltd., Bangalore & T. Nadakrishna, Bangalore Page 55 of 55 Surendra Gulabchand Modi (140 ITR 517) and Rajesh Shantilal Adani (20 GSTR 526) and issue in dispute accordingly is remitted to the CIT(A) for fresh consideration. The CIT(A) has to decide this issue within six months from the d ate of receipt of this order as this is old matter relating to the AY 2007-08. 53. In the result, assessee’s appeal in ITA No.127/Bang/2020 and revenue’s app…

M/S Spr Spirits Pvt. Ltd., Bengaluru vs. Deputy Commissioner of Income Tax Central Circle - 1 (3), Bengaluru

In the result, assessee’s appeal in ITA No

ITA 1658/BANG/2018[2008-09]Status: DisposedITAT Bangalore27 May 2022AY 2008-09

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Bharath L., A.RFor Respondent: Shri Sumer Singh Meena, D.R
Section 132Section 153ASection 37(1)Section 40A(3)

…together in view of the judgement of Hon’ble Gujarat High Court in the case of ITA Nos.1658 to 1661/Bang/2018, ITA No.127/Bang/2020 & ITA 575/Bang/2020 M/s. SPR Spirits Pvt. Ltd., Bangalore & T. Nadakrishna, Bangalore Page 55 of 55 Surendra Gulabchand Modi (140 ITR 517) and Rajesh Shantilal Adani (20 GSTR 526) and issue in dispute accordingly is remitted to the CIT(A) for fresh consideration. The CIT(A) has to decide this issue within six months from the d ate of receipt of this order as this is old matter relating to the AY 2007-08. 53. In the result, assessee’s appeal in ITA No.127/Bang/2020 and revenue’s app…

Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore vs. M/S Conc Shade Constructions Pvt Ltd, Chikkamangalur

In the result, all the appeals by the assessee are partly allowed for statistical purposes

ITA 301/BANG/2018[2012-13]Status: DisposedITAT Bangalore20 Apr 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V. Chandrashekar, AdvocateFor Respondent: Shri Sankar Ganesh K., Jt.CIT(DR)(ITAT), Bengaluru
Section 132Section 153CSection 2Section 292C

…proceeding and not for finalization of assessment. 3. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting the protective additions on account of undisclosed investment of Rs.1,10,93,254/- whereas Gujarat High Court in 140 ITR 517 settled that protective assessment should not be decided till substantive assessment reaches finality. 4. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting the unexplained case deposit of Rs.40,12,909/ - whereas it remains unsubstantiated and without satisfactory explanation. Also, the case law Singhad…

Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore vs. M/S Conc Shade Construction Pvt Ltd, Chikkamangalur

In the result, all the appeals by the assessee are partly allowed for statistical purposes

ITA 300/BANG/2018[2011-12]Status: DisposedITAT Bangalore20 Apr 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V. Chandrashekar, AdvocateFor Respondent: Shri Sankar Ganesh K., Jt.CIT(DR)(ITAT), Bengaluru
Section 132Section 153CSection 2Section 292C

…proceeding and not for finalization of assessment. 3. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting the protective additions on account of undisclosed investment of Rs.1,10,93,254/- whereas Gujarat High Court in 140 ITR 517 settled that protective assessment should not be decided till substantive assessment reaches finality. 4. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting the unexplained case deposit of Rs.40,12,909/ - whereas it remains unsubstantiated and without satisfactory explanation. Also, the case law Singhad…

Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore vs. M/S Conc Shade Construction Pvt Ltd, Chikkamangalur

In the result, all the appeals by the assessee are partly allowed for statistical purposes

ITA 299/BANG/2018[2010-11]Status: DisposedITAT Bangalore20 Apr 2022AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V. Chandrashekar, AdvocateFor Respondent: Shri Sankar Ganesh K., Jt.CIT(DR)(ITAT), Bengaluru
Section 132Section 153CSection 2Section 292C

…proceeding and not for finalization of assessment. 3. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting the protective additions on account of undisclosed investment of Rs.1,10,93,254/- whereas Gujarat High Court in 140 ITR 517 settled that protective assessment should not be decided till substantive assessment reaches finality. 4. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting the unexplained case deposit of Rs.40,12,909/ - whereas it remains unsubstantiated and without satisfactory explanation. Also, the case law Singhad…