CIT v. Daulatram Rawatmull

53 ITR 574Supreme Court of India1964#1168 most cited

What is CIT v. Daulatram Rawatmull authority for?

Additions to income cannot be made based merely on suspicion; concrete evidence is required to substantiate such claims by the tax authorities.

97

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2011 to 2026.

Also referred to as

Daulatram Rawatmull · CIT v. Daulatram Rawatmull · Section 68 · Section 143(3) · suspicion vs evidence · addition without evidence · unexplained cash credits · unsecured loans · burden of proof · genuineness of transaction · no addition on mere suspicion · sufficiency of evidence

Sections most often in play

Section 133(6)Section 143(3)Section 68Section 142(1)Section 250Section 131Section 143(2)Section 147

Issues it is cited on

section 119(1)section 52(2)section 66penalty under section 271ebogus share capitalconstruction peon money receiptpreponderance of probabilitypenalty under section 271dtrccorpus fundsection 269t

Judgments citing CIT v. Daulatram Rawatmull

ACIT, New Delhi vs. Filatex India Limited, Delhi

ITA 5000/DEL/2024[2015-16]Status: DisposedITAT Delhi30 Jun 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

…pellant. Additions made based on presumptions that all loans are bogus without concrete evidence relating to any specific loan transactions, leading to an incorrect conclusion. Decisions relied: Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. [no matter how strong suspicion is, it cannot take place of the evidence] Following the decision of Apex Court in the case of CIT vs. Singhad Education Society [The seized incriminating material have to pertain to the AY in question and have correlation, document-wise, with the AY] Hon'ble Delhi High Court in the case of Principal CIT versus Smt.…

ACIT, New Delhi vs. Animate Infrastructure Private Limited, Delhi

ITA 4850/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 148

…iven cash in lieu of unsecured loan taken, ITA Nos. 4850/Del/2024 & C.O.Nos.14 & 20/Del/2025 merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. 28. The Hon’ble Allahabad High Court in the case of Principal Commissioner of Income-tax v. Anshika Consultants (P.) Ltd. reported in [2024] 162 taxmann.com 792 (Allahabad) held as under:- INCOME TAX: Where assessee had received unsecured interest bearing loans from three corporate entities and had furnished necessary acknowledgement of return, b…

ACIT, Delhi vs. Grand Estate LLP, Delhi

In the result, appeal of the Revenue in ITA No

ITA 4740/DEL/2024[2018-19]Status: DisposedITAT Delhi30 Jun 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

…any evidence showing that in fact, appellant has given cash in lieu of unsecured loan taken, merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. 28. The Hon'ble Allahabad High Court in the case of Principal Commissioner of Income-tax v. Anshika Consultants (P.) Ltd. reported in [2024] 162 taxmann.com 792 (Allahabad) held as under:- INCOME TAX: Where assessee had received unsecured interest bearing loans from three corporate entities and had furnished necessary acknowledgement of return,…

ACIT, Dlehi vs. Grand Estates LLP, Delhi

ITA 4737/DEL/2024[2017-18]Status: DisposedITAT Delhi30 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

…any evidence showing that in fact, appellant has given cash in lieu of unsecured loan taken, merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. ITA Nos. 4729, 4737, 4740, 1389/Del/2024 & C.O.Nos. 29, 30, 31/Del/2025 & 92/Del/2024 28. The Hon’ble Allahabad High Court in the case of Principal Commissioner of Income-tax v. Anshika Consultants (P.) Ltd. reported in [2024] 162 taxmann.com 792 (Allahabad) held as under:- INCOME TAX: Where assessee had received unsecured interest bearing loans…

ACIT, Delhi vs. Grand Estates LLP, Delhi

ITA 4729/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

…any evidence showing that in fact, appellant has given cash in lieu of unsecured loan taken, merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. ITA Nos. 4729, 4737, 4740, 1389/Del/2024 & C.O.Nos. 29, 30, 31/Del/2025 & 92/Del/2024 28. The Hon’ble Allahabad High Court in the case of Principal Commissioner of Income-tax v. Anshika Consultants (P.) Ltd. reported in [2024] 162 taxmann.com 792 (Allahabad) held as under:- INCOME TAX: Where assessee had received unsecured interest bearing loans…

ACIT, New Delhi vs. Filatax Inida Limited, Delhi

In the result, appeal of the assessee is partly allowed

ITA 4635/DEL/2024[2013-14]Status: DisposedITAT Delhi30 Jun 2025AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

…llant. Additions made based on presumptions that all loans are bogus without concrete evidence relating to any specific loan transactions, leading to an incorrect conclusion. Decisions relied: Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. [no matter how strong suspicion is, it cannot take place of the evidence] Following the decision of Apex Court in the case of CIT vs. Singhad Education Society [The seized incriminating material have to pertain to the AY in question and have correlation, document-wise, with the AY] Hon'ble Delhi High Court in the case of Principal CIT versus Sm…

Dy. Commissioner of Income Tax, Delhi vs. Filatex India Limited, Delhi

ITA 2060/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

…lant. Additions made based on presumptions that all loans are bogus without concrete evidence relating to any specific loan transactions, leading to an incorrect conclusion. Decisions relied: Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. [no matter how strong suspicion is, it cannot take place of the evidence] Following the decision of Apex Court in the case of CIT vs. Singhad Education Society [The seized incriminating material have to pertain to the AY in question and have correlation, document-wise, with the AY] Hon'ble Delhi High Court in the case of Principal CIT versus Sm…

DCIT Central Circle 4, New Delhi vs. Grand Estate LLP, New Delhi

ITA 1389/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Jun 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

…any evidence showing that in fact, appellant has given cash in lieu of unsecured loan taken, merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. 28. The Hon'ble Allahabad High Court in the case of Principal Commissioner of Income-tax v. Anshika Consultants (P.) Ltd. reported in [2024] 162 taxmann.com 792 (Allahabad) held as under:- INCOME TAX: Where assessee had received unsecured interest bearing loans from three corporate entities and had furnished necessary acknowledgement of return, b…

Income Tax Officer-1, Morena vs. Shri Agrasen Logistics, Jotai Road, Porsa

In the result, the appeal of the Revenue is dismissed

ITA 108/AGR/2025[2022-23]Status: DisposedITAT Agra24 Jun 2025AY 2022-23

Bench: Shri Sunil Kumar Singh & Shri Manish Agarwal

Section 143(2)Section 143(3)Section 250Section 68

…any evidence showing that in fact, appellant has given cash in lieu of unsecured loan taken, merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. 30. In view of above facts and in the circumstances of the case, we are of the considered view that the decision of the Ld. CIT(A) as observed above, is not only based on the relevant documents which have been produced by the Assessee to establish identity and creditworthiness of the parties from whom the Assessee had taken the loans and genuinen…

Bses Rajdhani Power Ltd., New Delhi vs. ACIT, Cicle- 5(1), New Delhi

ITA 4850/DEL/2017[2007-08]Status: DisposedITAT Delhi16 Apr 2025AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 148

…iven cash in lieu of unsecured loan taken, ITA Nos. 4850/Del/2024 & C.O.Nos.14 & 20/Del/2025 merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. 28. The Hon’ble Allahabad High Court in the case of Principal Commissioner of Income-tax v. Anshika Consultants (P.) Ltd. reported in [2024] 162 taxmann.com 792 (Allahabad) held as under:- INCOME TAX: Where assessee had received unsecured interest bearing loans from three corporate entities and had furnished necessary acknowledgement of return, b…

Krupa Vilas Gau Seva Trust, Kutch vs. CIT(Exemption), Ahmedabad

ITA 163/RJT/2024[NA]Status: DisposedITAT Rajkot24 Mar 2025

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपीलसं./Ita No. 162/Rjt/2023 (Assessment Year: Na) (Hybrid Hearing) Krupa Vilas Gau Seva Trust, Vs. Cit(Exemption), Kutch. Ahmedabad. Anjar, Anjar Road, Bhimasar Taluka Anjar, Kutch-370240. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaetk8746K (अपीलार्थी/Assessee) (प्रत्यर्थी/Respondent) आयकर अपीलसं./Ita No. 163/Rjt/2023 (Assessment Year: Na) (Hybrid Hearing) Krupa Vilas Gau Seva Trust, Vs. Cit(Exemption), Kutch. Ahmedabad. Anjar, Anjar Road, Bhimasar Taluka Anjar, Kutch-370240. स्थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaetk8746K (अपीलार्थी/Assessee) (प्रत्यर्थी/Respondent) निर्धारितीकीओरसे/Assessee By : Shri Kalpesh Doshi, Ar राजस्वकीओरसे/Respondent By : Shri Sanjay Punglia, Cit Dr सुनवाईकीतारीख / Date Of Hearing : 09/01/2025 घोषणाकीतारीख / Date Of Pronouncement : 24/03/2025 1 | Page

For Appellant: Shri Kalpesh Doshi, ARFor Respondent: Shri Sanjay Punglia, CIT DR
Section 12ASection 12A(1)(ac)Section 80G(5)

…to further elaborate this position, because the law as laid down in these observations is well settled, and has been adopted in the construction of section 66 of the Act." 25. This view was reiterated by the Supreme Court in CIT v. Daulatram Rawatmull [1964] 53 ITR 574 where it was held that…

Krupa Vilas Gau Seva Trust, Kutch vs. CIT(Exemption), Ahmedabad

Appeals of the assessee are allowed for statistical purposes

ITA 162/RJT/2024[NA]Status: DisposedITAT Rajkot24 Mar 2025

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकरअपीलसं./Ita No. 162/Rjt/2023 (Assessment Year: Na) (Hybrid Hearing)

For Appellant: Shri Kalpesh Doshi, ARFor Respondent: Shri Sanjay Punglia, CIT DR
Section 12ASection 12A(1)(ac)Section 80G(5)

…to further elaborate this position, because the law as laid down in these observations is well settled, and has been adopted in the construction of section 66 of the Act." 25. This view was reiterated by the Supreme Court in CIT v. Daulatram Rawatmull [1964] 53 ITR 574 where it was held that "if there is some evidence to support the finding recorded by the Tribunal, even if it appears to the High Court that on re-appreciation of the evidence, it might arrive at a conclusion different from that of the Tribunal" the High Court has no power to interfere with the findings of the Tribunal. These decisions were applie…

Patel Kelavani Mandal, Tapovan Shaikshnik Sankul vs. The ITO (Exemption), Ward - 2, Rajkot, Aayakar Bhavan

In the result, the appeal of the assessee is allowed

ITA 278/RJT/2023[2010-11]Status: DisposedITAT Rajkot07 Mar 2025AY 2010-11

Bench: Dr. Arjun Lal Saini, Am. & Diesh Mohan Sinha, Jm आयकरअपीलसं./Ita No. 278/Rjt/2023 (िनधा"रणवष" / Assessment Year: (2010-11) (Hybrid Hearing) Patel Kelavani Mandal, Junagadh. Vs. The Ito (E), Ward – 2, Tapovan Shaikshnik Sankul, Aaykar Bhavan, Bilkha Road, Race Course Ring Road, Junagadh - 362001 Rajkot - 360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabtp7542H (Appellant) (Respondent)

For Appellant: Shri D.M. Rindani, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr DR
Section 11Section 12ASection 139(1)Section 142(1)Section 143(3)Section 147Section 148Section 151

…treated as a unexplained money only on the basis of his suspicion your honor for the suspicion we relied on the principal establish by the supreme that The honorable supreme court establish the principal in the case of CIT V/S.Daulat Ram Rawatmull reported in 53 ITR 574.SUPREME COURT That it is settled law, a suspicion can not take the place of the evidence as held by supreme court. Your honour when we provide the evidence and if the evidence is not satisfactory then officer has to go in to the deep inquiry but A.O not utilise his power for production of additional evidence of passing any order for that and hence…

Om Prakash Tantia, Faridabad vs. DCIT, Central Circle-25, New Delhi

ITA 4737/DEL/2018[2015-16]Status: DisposedITAT Delhi07 Mar 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

…any evidence showing that in fact, appellant has given cash in lieu of unsecured loan taken, merely on the basis of suspicion, no addition can be made for which reliance is placed on decision of Hon'ble Supreme court in the case of Daulatram Rawatmull, (1964) 53 ITR 574. ITA Nos. 4729, 4737, 4740, 1389/Del/2024 & C.O.Nos. 29, 30, 31/Del/2025 & 92/Del/2024 28. The Hon’ble Allahabad High Court in the case of Principal Commissioner of Income-tax v. Anshika Consultants (P.) Ltd. reported in [2024] 162 taxmann.com 792 (Allahabad) held as under:- INCOME TAX: Where assessee had received unsecured interest bearing loans…

Deputy Commissioner of Income Tax Central Circle -1(2), Nagpur vs. Vidarbha Infotech Private Limited, Nagpur

In the result, appeal by the Revenue is dismissed

ITA 76/NAG/2024[2016-17]Status: DisposedITAT Nagpur10 Feb 2025AY 2016-17

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kapil HiraniFor Respondent: Shri Sandipkumar Salunke
Section 133(6)Section 133ASection 139(1)Section 143(3)Section 147Section 148Section 250Section 263Section 44ASection 69C

…akeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC), Lalchand Bhagat Ambica Ram v. CIT [1959] 37 ITR 288 (SC), CIT v. East Coast Commercial Co. Ltd. [1967] 63 ITR 449 (SC) and Anil Tibrewala v. ITO [2004] 1 SOT 90 (Mum); CIT v. Daulatram Rawatmull [1964] 53 ITR 574 (SC); Umacharan Shaw & Bros. v. CIT [1959] 37 ITR 271 (SC); Pr. CIT v. Ajay Surendrabhai Patel [2016] 69 taxmann.com 309 (Guj.).” 6. The learned CIT(A), considering the above submissions of the assessee, deleted the addition of ` 7.50 crore made by the Assessing Officer under 9 Vidarbha Infotech Pvt. Ltd. ITA no.76/Nag./2024 section 69C of the Ac…

DCIT CC 1(1), Nagpur vs. Brindesh Goverdhandas Agrawal, Nagpur

In the result, appeal by the Revenue stands dismissed

ITA 258/NAG/2023[2017-18]Status: DisposedITAT Nagpur10 Feb 2025AY 2017-18

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Mukesh AgrawalFor Respondent: Shri Sandipkumar Salunke
Section 132Section 139(1)Section 143(1)Section 143(3)Section 153CSection 69

…evidence to show that the assessee has, in fact, made any cash payment as per the document to Mr. Suresh and Shailesh Vakharia. Suspicion cannot take place of proof. (AIR 1994 SC 110) Surjeetsingh vs. State of Punjab.In the case of Daulatram Rawatmull [1964] 53 ITR 574 (SC) it is held that suspicion could not take the place of evidence. It is trite law that suspicion however strong cannot be a substitute for evidence. 1.1 In the case of Principal Commissioner of Income-tax, Central Ahmedabad v. Ajay Surendrabhai Patel, [2016] 69 taxmann.com 309 (Gujarat), it is held that where revenue failed to bring any materia…

Deputy Commissioner of Income Tax, Central Circle-1(4), Hyderabad vs. Pioneer Builders, Hyderabad

In the result, the appeals of Revenue in ITA Nos

ITA 64/HYD/2024[2019-20]Status: DisposedITAT Hyderabad29 Aug 2024AY 2019-20

Bench: Shri Laliet Kumar, Hon’Ble & Shri Madhusudan Sawdiasl.

For Appellant: Shri A.V. Raghuram, Advocate for assessee at Sl.Nos.1 to 3For Respondent: Date of Hearing
Section 127Section 132Section 133ASection 142(1)Section 143(2)Section 143(3)

…the place of proof and hence the addition is not sustainable. In this regard Hon'ble CIT(A) kind attention is invited to the judgment of the Apex Court in the case of M/ s Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 77, CIT v. Daulatram Rawatmull [1964] 53 ITR 574, Umacharan Shaw & Bros. V. CIT [1959] 37 ITR 271 (SC). 2. Hon'ble CIT (A)'s kind attention is invited to apportionment of alleged on-money and found noted in the loose slip impounded in the premises of DSR. It is submitted that when the receipt of on money is doubt and appellant denied the same in the course of assessment proceeding the question o…

Deputy Commissioner of Income Tax, Central Circle-1(4), Hyderabad vs. Pioneer Builders, Hyderabad

In the result, the appeals of Revenue in ITA Nos

ITA 57/HYD/2024[2020-21]Status: DisposedITAT Hyderabad29 Aug 2024AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri Madhusudan Sawdiasl.

For Appellant: Shri A.V. Raghuram, Advocate for assessee at Sl.Nos.1 to 3For Respondent: Date of Hearing
Section 127Section 132Section 133ASection 142(1)Section 143(2)Section 143(3)

…the place of proof and hence the addition is not sustainable. In this regard Hon'ble CIT(A) kind attention is invited to the judgment of the Apex Court in the case of M/ s Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 77, CIT v. Daulatram Rawatmull [1964] 53 ITR 574, Umacharan Shaw & Bros. V. CIT [1959] 37 ITR 271 (SC). 2. Hon'ble CIT (A)'s kind attention is invited to apportionment of alleged on-money and found noted in the loose slip impounded in the premises of DSR. It is submitted that when the receipt of on money is doubt and appellant denied the same in the course of assessment proceeding the question o…

Deputy Commissioner of Income Tax, Central Circle-1(4), Hyderabad vs. Pioneer Builders, Hyderabad

In the result, the appeals of Revenue in ITA Nos

ITA 56/HYD/2024[2019-20]Status: DisposedITAT Hyderabad29 Aug 2024AY 2019-20

Bench: Shri Laliet Kumar, Hon’Ble & Shri Madhusudan Sawdiasl.

For Appellant: Shri A.V. Raghuram, Advocate for assessee at Sl.Nos.1 to 3For Respondent: Date of Hearing
Section 127Section 132Section 133ASection 142(1)Section 143(2)Section 143(3)

…the place of proof and hence the addition is not sustainable. In this regard Hon'ble CIT(A) kind attention is invited to the judgment of the Apex Court in the case of M/ s Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 77, CIT v. Daulatram Rawatmull [1964] 53 ITR 574, Umacharan Shaw & Bros. V. CIT [1959] 37 ITR 271 (SC). 2. Hon'ble CIT (A)'s kind attention is invited to apportionment of alleged on-money and found noted in the loose slip impounded in the premises of DSR. It is submitted that when the receipt of on money is doubt and appellant denied the same in the course of assessment proceeding the question o…

Deputy Commissioner of Income Tax, Central Circle-1(4), Hyderabad vs. Dsr Infrastructure Private Limited, Hyderabad

In the result, the appeals of Revenue in ITA Nos

ITA 54/HYD/2024[2020-21]Status: DisposedITAT Hyderabad29 Aug 2024AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri Madhusudan Sawdiasl.

For Appellant: Shri A.V. Raghuram, Advocate for assessee at Sl.Nos.1 to 3For Respondent: Date of Hearing
Section 127Section 132Section 133ASection 142(1)Section 143(2)Section 143(3)

…the place of proof and hence the addition is not sustainable. In this regard Hon'ble CIT(A) kind attention is invited to the judgment of the Apex Court in the case of M/ s Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 77, CIT v. Daulatram Rawatmull [1964] 53 ITR 574, Umacharan Shaw & Bros. V. CIT [1959] 37 ITR 271 (SC). 2. Hon'ble CIT (A)'s kind attention is invited to apportionment of alleged on-money and found noted in the loose slip impounded in the premises of DSR. It is submitted that when the receipt of on money is doubt and appellant denied the same in the course of assessment proceeding the question o…