CIT v. Indo Arab Air Services

283 CTR 92High Court2016#3608 most cited

What is CIT v. Indo Arab Air Services authority for?

For an Assessing Officer to form a prima facie belief that income has escaped assessment, mere information about cash deposits is insufficient. The AO must possess tangible material that establishes a nexus for believing income has escaped assessment and must examine if such deposits were disclosed in the return.

33

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Indo Arab Air Services · section 147 · section 148 · reason to believe · escaped assessment · tangible material · nexus · cash deposits · disclosed in return · prima facie belief

Also reported as

130 DTR 78

Sections most often in play

Section 147Section 148Section 143(3)Section 144Section 14ASection 80PSection 142(1)Section 80P(2)(a)(i)
Read the full judgment

Issues it is cited on

true and full disclosurekelvinatormere change of opinionfull and true disclosuretangible materialmaterial facts necessary for assessmentsection 80p(2)(a)borrowed satisfactionchange of opinionreason to believegross total incomedisallowance under section 14a

Judgments citing CIT v. Indo Arab Air Services

Bhikhubhai Keshavbhai Mistry, Bharuch vs. Income Tax Officer, Ward - 1(5), Bharuch

In the result, the grounds of appeal raised by the assessee is partly allowed

ITA 410/SRT/2023[2009-10]Status: DisposedITAT Surat11 Dec 2023AY 2009-10

Bench: Shri Pawan Singh(Physical Hearing) Bhikhubhai Keshavbhai Mistry, I.T.O., 1, Kabirgam, Valiya, Ankleshwar, Ward-1(5), Vs. Bharuch, Gujarat-393135. Bharuch. Pan No. Apnpm 1810 Q Appellant/ Assessee Respondent/ Revenue

Section 143(2)Section 144Section 147Section 148Section 254(1)Section 69A

…he bank statement. Bank statement was not called for before issuance of notice under Section 148 of the Act. Entire cash deposit cannot be income of assessee as has been held by the Hon'ble Delhi High Court in the case of CIT Vs. Indo Arab Air Services (2016) 283 CTR 92 (Delhi). The assessee also relied on decision of Delhi Tribunal in Bir Bahadur Singh Sijwali in ITA No. 3814/Del/2011 68 SOT 197 (Delhi Trib). The assessee also submitted that the reasons recorded has no rational connection with the formation of belief. On merit, the assessee stated that the assessee has consistently withdrawn and redeposited cash…

Sampat Lal Lodha, Nathdwara vs. ITO, Ward-2, Rajsamand

In the result, both appeals of the assessee are allowed

ITA 2/JODH/2022[2011-12]Status: DisposedITAT Jodhpur02 Aug 2023AY 2011-12
Section 143(1)Section 147Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR VIRTUAL HEARING BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM ITA Nos. 1 & 2/Jodh/2022 (ASSESSMENT YEAR- 2010-11 & 2011-12) Sampat Lal Lodha Vs Income Tax Gandhi Road, Officer, Nathdwara Ward-02, Rajsamand (Appellant) (Respondent) PAN NO. AATPL 6272 A Assessee By Sh. Mukul Moondra, C.A. Revenue By Sh. S. M. Joshi, JCIT-DR Date of hearing 04/07/2023 Date of 02/08/2023 Pronouncement O R D E R PER: RATHOD KAMLESH JAYANTBHAI, AM These are two appeals filed by the assessee and is directed against the order of the National Face…

Sampat Lal Lodha, Nathdwara vs. ITO, Ward-2, Rajsamand

In the result, both appeals of the assessee are allowed

ITA 1/JODH/2022[2010-11]Status: DisposedITAT Jodhpur02 Aug 2023AY 2010-11
Section 143(1)Section 147Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR VIRTUAL HEARING BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM ITA Nos. 1 & 2/Jodh/2022 (ASSESSMENT YEAR- 2010-11 & 2011-12) Sampat Lal Lodha Vs Income Tax Gandhi Road, Officer, Nathdwara Ward-02, Rajsamand (Appellant) (Respondent) PAN NO. AATPL 6272 A Assessee By Sh. Mukul Moondra, C.A. Revenue By Sh. S. M. Joshi, JCIT-DR Date of hearing 04/07/2023 Date of 02/08/2023 Pronouncement O R D E R PER: RATHOD KAMLESH JAYANTBHAI, AM These are two appeals filed by the assessee and is directed against the order of the National Face…

Farha S. Kadri, Bilimora vs. ITO, Ward-2, Navsari

In the result, the original ground No

ITA 331/SRT/2019[2010-11]Status: DisposedITAT Surat16 Jan 2023AY 2010-11

Bench: Shri Pawan Singh(Physical Hearing) Farha S Kadri, I.T.O. 762, Bazar Street, Bunder Road, Ward-2, Vs. Bilimora (Gujarat)-396321 Navsari. Pan No. Annpk 8150 B Appellant/ Assessee Respondent/ Revenue

Section 143(2)Section 147Section 148Section 254(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH (SMC), SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER (Physical hearing) Farha S Kadri, I.T.O. 762, Bazar Street, Bunder Road, Ward-2, Vs. Bilimora (Gujarat)-396321 Navsari. PAN No. ANNPK 8150 B Appellant/ assessee Respondent/ revenue Appellant represented by Shri Rushi Parekh, AR Respondent represented by Shri Vinod Kumar, Sr. DR Date of hearing 07/12/2022 Date of pronouncement 16/01/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned Commissioner of Income T…

ITO 15 (2)(2), Mumbai vs. M/S Limbo Engineering P Ltd., Mumbai

In the result the all the three appeals of the revenue are dismissed

ITA 7277/MUM/2019[2013-14]Status: DisposedITAT Mumbai29 Oct 2020AY 2013-14

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year : 2011-12

For Appellant: Shri Neel Khandelwal &For Respondent: Dr Rajeev Harit&Shri J. Micheal, D.R
Section 143(1)Section 143(3)Section 147Section 148Section 148(2)

…s are motivated to “suppress the profits”. Thus, the AO has miserably failed in linking the information available with him to escapement of income. Thus, the reopening is not valid and the assessee relies on the following decisions: - Indo Arab Air Services – 283 CTR 92 (Del) - Atul Jain – 299 ITR 383 (Del) 8.7. The ld AR submitted before the bench that reasons recorded should be read as they are and cannot be amended or cannot be enlarged or no inference or addition is allowed by relying on the following decision in the case of Hindustan Lever Ltd – 268 ITR 339 (Bom) 9. After hearing both the parties and perus…

DCIT Central Circle-7(4), Mumbai vs. M/S Wellknown Polysters Ltd., Mumbai

In the result the all the three appeals of the revenue are dismissed

ITA 1388/MUM/2019[2014-15]Status: DisposedITAT Mumbai29 Oct 2020AY 2014-15

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year : 2011-12

For Appellant: Shri Neel Khandelwal &For Respondent: Dr Rajeev Harit&Shri J. Micheal, D.R
Section 143(1)Section 143(3)Section 147Section 148Section 148(2)

…s are motivated to “suppress the profits”. Thus, the AO has miserably failed in linking the information available with him to escapement of income. Thus, the reopening is not valid and the assessee relies on the following decisions: - Indo Arab Air Services – 283 CTR 92 (Del) - Atul Jain – 299 ITR 383 (Del) 8.7. The ld AR submitted before the bench that reasons recorded should be read as they are and cannot be amended or cannot be enlarged or no inference or addition is allowed by relying on the following decision in the case of Hindustan Lever Ltd – 268 ITR 339 (Bom) 9. After hearing both the parties and perus…

ITO 15 (2)(2), Mumbai vs. M/S Limbo Engineering P Ltd., Mumbai

In the result the all the three appeals of the revenue are dismissed

ITA 7276/MUM/2019[2012-13]Status: DisposedITAT Mumbai29 Oct 2020AY 2012-13

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year : 2011-12

For Appellant: Shri Neel Khandelwal &For Respondent: Dr Rajeev Harit&Shri J. Micheal, D.R
Section 143(1)Section 143(3)Section 147Section 148Section 148(2)

…s are motivated to “suppress the profits”. Thus, the AO has miserably failed in linking the information available with him to escapement of income. Thus, the reopening is not valid and the assessee relies on the following decisions: - Indo Arab Air Services – 283 CTR 92 (Del) - Atul Jain – 299 ITR 383 (Del) 8.7. The ld AR submitted before the bench that reasons recorded should be read as they are and cannot be amended or cannot be enlarged or no inference or addition is allowed by relying on the following decision in the case of Hindustan Lever Ltd – 268 ITR 339 (Bom) 9. After hearing both the parties and perus…

Raj Singh, Mathura vs. ITO-3(3), Mathura

In the result appeal is allowed

ITA 408/AGR/2018[2008-09]Status: DisposedITAT Agra22 Mar 2019AY 2008-09

Bench: Shri Sudhanshu Srivastava & Dr. Mitha Lal Meenashri. Raj Singh, Vs.. Income Tax Officer- 3(3), Village- Kharaut Chhata, Mathura Mathura. Pan: Akvpr1777Q (Appellant) (Respondent)

Section 144Section 148Section 151

…IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER, AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER Shri. Raj Singh, Vs.. Income tax Officer- 3(3), Village- Kharaut Chhata, Mathura Mathura. PAN: AKVPR1777Q (Appellant) (Respondent) Appellant by Shri Anurag Sinha, AR Respondent by Shri Waseem Arshad, Sr. DR. Date of Hearing 20.02.2019 Date of Pronouncement 22.03.2019 ORDER Per Dr. M. L. Meena, A. M.: Present appeal, filed by the assessee, against the order dated 28.02.2018, passed by the learned CIT(A)-I, Agra in the matter of assessment framed vide order date…

Smt. Vidhya Agarwal, Agra vs. I.T.O., Ward-4(4), Agra

The appeal is allowed

ITA 335/AGR/2014[2000-01]Status: DisposedITAT Agra22 Mar 2019AY 2000-01

Bench: Shri Sudhanshu Srivastava & Dr. Mitha Lal Meena

Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH: AGRA BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER I.T.A No. 216 /Agra/2012: (A.Y.1999-00) I.T.A. No.217/Agra/2012: (A.Y. 2000-01) Smt. Shanta Balani W/o Shri Ramesh Vs. ITO, Ward-2(4), Chand Balani, B-66, Alok Nagar, Jaipur Agra House, Agra. PAN:ABTPB4266B (Appellant) (Respondent) I.T.A. No.218/Agra/2012: (A.Y. 1999-00) I.T.A. No.219/Agra/2012: (A.Y. 2000-01) Ravindra Balani, B-66, Alok Nagar, Jaipur Vs. ITO, Ward-2(4), House, Agra. PAN:AAPPB5000Q Agra (Appellant) (Respondent) I.T.A. No. 220/Agra/2012: (A.Y. 20…

Dudheshwarnath Steels P.Ltd, Nvi Mumbai vs. DCIT, Circle-24(1), New Delhi

In the result appeal of the assessee are allowed

ITA 5397/DEL/2018[2009-10]Status: DisposedITAT Delhi10 Dec 2018AY 2009-10

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Shri Pavan Ved, AdvFor Respondent: Ms. Ashima Neb, Sr DR
Section 143(1)Section 144Section 147Section 148Section 271(1)Section 271(1)(c)Section 41(1)

…ing. 6. The reasons are also silent regarding verifying information with reference to Return of Income filed by the assessee. Without seeing the return, the LAO cannot form an opinion of income escaping assessment. Page 74 of PB CIT Vs. Indo Arab Air Services 283 CTR 92 Delhi. 5. Reopening without arriving Simply writing that there was at proper satisfaction for hawala transaction is vague issue of notice, based on material (Chuggamal rajpal Vs. irrelevant information and SP Chaliha SC) and reopening is without there being any not justified. Decisions relied tangible information. (i) Pioneer Town Planners (P) Lt…

Dudheshwarnath Steels P.Ltd, Nvi Mumbai vs. DCIT, Circle-24(1), New Delhi

In the result appeal of the assessee are allowed

ITA 5395/DEL/2018[2009-10]Status: DisposedITAT Delhi10 Dec 2018AY 2009-10

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: Shri Pavan Ved, AdvFor Respondent: Ms. Ashima Neb, Sr DR
Section 143(1)Section 144Section 147Section 148Section 271(1)Section 271(1)(c)Section 41(1)

…ing. 6. The reasons are also silent regarding verifying information with reference to Return of Income filed by the assessee. Without seeing the return, the LAO cannot form an opinion of income escaping assessment. Page 74 of PB CIT Vs. Indo Arab Air Services 283 CTR 92 Delhi. 5. Reopening without arriving Simply writing that there was at proper satisfaction for hawala transaction is vague issue of notice, based on material (Chuggamal rajpal Vs. irrelevant information and SP Chaliha SC) and reopening is without there being any not justified. Decisions relied tangible information. (i) Pioneer Town Planners (P) Lt…

Sh. Pritam Kumar Sharma, New Delhi vs. ITO, New Delhi

In the result, the Appeal filed by the Assessee stands allowed

ITA 6748/DEL/2014[2009-10]Status: DisposedITAT Delhi02 Feb 2017AY 2009-10

Bench: Shri H.S. Sidhu

For Appellant: Sh. Ved Jain, Adv., Sh. AshishFor Respondent: Sh. F.R. Meena, Sr. DR
Section 143(2)Section 143(3)Section 147Section 148

…nch decision in the case of Bir Bahadur Singh Sijwali vs. ITO (2015) 68 SOT 197 (Delhi – Trib.) - ITAT, Agra Bench in the case of SarafGramodyogSansthan vs. ITO (2007) 108 ITD 115 (Agra) - High Court of Delhi in the case of Indo Arab Air Services (2016) 283 CTR 92 (Delhi). 7. On the contrary, Ld. DR opposed the aforesaid contention of the Ld. Counsel of the assessee and relied upon the orders of the authorities below and requested that the same may be upheld. 8. I have heard both the parties and perused the relevant records available with me, especially the orders passed by the revenue authorities and t…

M.K. Cycle Industries Pvt. Ltd., New Delhi vs. ITO, New Delhi

ITA 6161/DEL/2014[2003-04]Status: DisposedITAT Delhi10 Jun 2016AY 2003-04

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2003-04 M/S. M.K. Cycle Industries Pvt. Ltd. Vs. Ito, Ward – 6(1), New Delhi G-76, Sant Nagar Extn., Tilak Nagar, New Delhi (Pan: Aaecs3075L) (Appellant) (Respondent)

Section 142(1)Section 143(1)Section 143(3)Section 147Section 148Section 250Section 271Section 31Section 68

…of the contention, the learned Authorized Representative relied on the judgment of the Hon’ble High Court of Delhi in the case of M/s. Sarthak Securities Company Pvt. Ltd. Vs. Income Tax Officer, reported in 329 ITR 110; CIT Vs. Indo Arab Air Services, [2016] 283 CTR 92 (Delhi) and the order of Tribunal in the case of Varun Tibrewal Vs. ITO, in ITA No. 2301 & 2302/Del/2012 (dated 31st October, 2013). 6.2 On the other hand, learned Sr. Departmental Representative, referring to the reasons recorded, submitted that the Investigation Wing of the Department had conducted inquiry at large scale in the cases of the entr…