CIT v. Insecticides (India) Ltd.

357 ITR 330High Court2013#955 most cited

What is CIT v. Insecticides (India) Ltd. authority for?

A reassessment initiated under Section 147 is invalid if the Assessing Officer acts mechanically or on borrowed satisfaction without independently applying their mind to the information received and without tangible material to form a belief that income has escaped assessment.

112

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Insecticides (India) Ltd. · Insecticides India Ltd. · Section 147 · Section 148 · Section 151 · independent application of mind · borrowed satisfaction · mechanical recording of reasons · tangible material · reassessment invalid

Also reported as

38 Taxmann.com 403

Sections most often in play

Section 148Section 147Section 143(3)Section 151Section 133(6)Section 68Section 142(1)Section 143(1)
Read the full judgment

Issues it is cited on

amp expendituretrue and full disclosuresection 148(2)section 147ofsection 92basanction under section 151material facts necessary for assessmentnon application of mindsection 151(1)bogus share capitalfresh tangible materiallive link

Judgments citing CIT v. Insecticides (India) Ltd.

M/S. K.K. Arora & Sons (HUF), New Delhi vs. ACIT, New Delhi

In the result, all the 05 Appeals of the assesses stand allowed

ITA 2960/DEL/2015[2005-06]Status: DisposedITAT Delhi03 Jan 2017AY 2005-06

Bench: Shri H.S. Sidhu

For Appellant: Shri Anil Kr. Jain, CAFor Respondent: Sh. Anil Kumar Sharma, Sr. DR
Section 132Section 133ASection 143(2)Section 143(3)Section 147Section 148Section 153ASection 68

…s mechanically recorded the reasons and issued the notice without applying his own mind. Therefore, on these facts, the decision of Hon'ble Jurisdictional High Court in the case Signature Hotels Pvt. Ltd. (supra), 338 ITR 51, Insectici (India) Ltd. (supra), 357 ITR 330 would be squarely applicable because the information on the basis of which the AO had initiated proceedings under section 147 was vague and uncertain as may be evidenced from the relevant para of these judgments. He further stated that the issue in dispute is also squarely covered by the ITAT, Delhi decision 24.9.2015 in assessee’s own case for…

M/S. Khatri Projects Pvt. Ltd., Delhi vs. ITO, Delhi

In the result, the appeal filed by the assessee is allowed

ITA 4353/DEL/2016[2007-08]Status: DisposedITAT Delhi16 Dec 2016AY 2007-08

Bench: Sh. N. K. Sainiita No. 4353/Del/2016 : Asstt. Year : 2007-08 M/S Khatri Projects Pvt. Ltd., Vs Income Tax Officer, A-2/106, Sector-16, Rohini, Ward-5(2), Delhi-110085 Delhi (Appellant) (Respondent) Pan No. Aacck7376A Assessee By : Sh. Vivek Bansal, Adv. Revenue By : Sh. Rajesh Kumar, Sr. Dr Date Of Hearing : 19.10.2016 Date Of Pronouncement : 16.12.2016 Order This Is An Appeal By The Assessee Against The Order Dated 30.05.2016 Of Ld. Cit(A)-36, New Delhi.

For Appellant: Sh. Vivek Bansal, AdvFor Respondent: Sh. Rajesh Kumar, Sr. DR
Section 139(1)Section 148Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC-II’, NEW DELHI Before Sh. N. K. Saini, Accountant Member ITA No. 4353/Del/2016 : Asstt. Year : 2007-08 M/s Khatri Projects Pvt. Ltd., Vs Income Tax Officer, A-2/106, Sector-16, Rohini, Ward-5(2), Delhi-110085 Delhi (APPELLANT) (RESPONDENT) PAN No. AACCK7376A Assessee by : Sh. Vivek Bansal, Adv. Revenue by : Sh. Rajesh Kumar, Sr. DR Date of Hearing : 19.10.2016 Date of Pronouncement : 16.12.2016 ORDER This is an appeal by the assessee against the order dated 30.05.2016 of ld. CIT(A)-36, New Delhi. 2. The following grounds have been raised in this appeal:…

M/S Kanha Enterprises Pvt Ltd., Delhi vs. ITO, New Delhi

ITA 86/DEL/2016[2006-07]Status: DisposedITAT Delhi30 Nov 2016AY 2006-07

Bench: Sh. N. K. Sainiita No. 86/Del/2016 : Asstt. Year : 2006-07 M/S Kanha Enterprises Pvt. Ltd., Vs Income Tax Officer, 1170, Kucha Mahajani, Chandani Ward-5(1), Chowk, Delhi-110006 New Delhi (Appellant) (Respondent) Pan No. Aaacr6935N Assessee By : Sh. Sandeep Sapra, Adv. Revenue By : Sh. Neeraj Kumar, Sr. Dr Date Of Hearing : 07.09.2016 Date Of Pronouncement : 30.11.2016 Order This Is An Appeal By The Assessee Against The Order Dated 18.11.2015 Of Ld. Cit(A)-Xvii, New Delhi.

For Appellant: Sh. Sandeep Sapra, AdvFor Respondent: Sh. Neeraj Kumar, Sr. DR
Section 142(1)Section 143(3)Section 147Section 148Section 68Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC-3’, NEW DELHI Before Sh. N. K. Saini, Accountant Member ITA No. 86/Del/2016 : Asstt. Year : 2006-07 M/s Kanha Enterprises Pvt. Ltd., Vs Income Tax Officer, 1170, Kucha Mahajani, Chandani Ward-5(1), Chowk, Delhi-110006 New Delhi (APPELLANT) (RESPONDENT) PAN No. AAACR6935N Assessee by : Sh. Sandeep Sapra, Adv. Revenue by : Sh. Neeraj Kumar, Sr. DR Date of Hearing : 07.09.2016 Date of Pronouncement : 30.11.2016 ORDER This is an appeal by the assessee against the order dated 18.11.2015 of ld. CIT(A)-XVII, New Delhi. 2. Following grounds have been raised in thi…

M/S Layak Fabrics Pvt. Ltd., (Presently Known As Indev Developers Pvt. Ltd), Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 491/DEL/2016[2008-09]Status: DisposedITAT Delhi15 Jul 2016AY 2008-09

Bench: Sh. N. K. Saini

For Appellant: Sh. Gautam Jain, CAFor Respondent: Sh. V. R. Sonbhadra, Sr. DR
Section 147Section 68

…to be sufficient and relevant material on the basis of which a reasonable person would have 8 Layak Fabrics Pvt. Ltd. formed and belief that income had escaped assessment. The reliance was placed on the following case laws: " CIT Vs Insecticides (India) Ltd. 357 ITR 330 (Del) " Signature Hotels Pvt. Ltd. Vs ITO 338 ITR 51 (Del) " Hindustan Lever Ltd. Vs R.B. Wadkar 268 ITR 332 (Bom) " ITO Vs Maya Gupta in ITA No.3435/Del/2013 order dated 13.12.2013 " ITO Vs M/s Comero Leasing & Financial Pvt. Ltd. in ITA No.4281/Del/2010 order dated 14.08.2014 " ITO Vs M/s Shri Devesh Kumar in ITA No.2068/Del/2010 order dated 31…

Sonarika Hotels Pvt. Ltd., Delhi vs. ITO, New Delhi

In the result, the Assessee’s Appeal stands allowed

ITA 5757/DEL/2013[2008-09]Status: DisposedITAT Delhi08 Jul 2016AY 2008-09

Bench: Shri H.S. Sidhu & Shri Prashant Maharishiassessment Year: 2008-09 Sonarika Hotels Pvt. Ltd., Vs. Ito, Ward-9(1) C/O Sh. Kapil Goel, Advocate, New Delhi A-1/25, Sector-15, Rohini, Delhi – 110 085 (Pan: Aakcs1233L) (Appellant) (Respondent)

For Appellant: Sh. Kapil Goel, AdvocateFor Respondent: Smt. Anima Barnwal, Sr. DR
Section 147Section 148Section 69A

…Sarthak Securities Co. Pvt. Ltd. Vs. ITo.,(2010) 329ITR 110.,(DHC). iv) Signature Hotels Pvt. Ltd. Vs. ITO & Anr., (2011) 338ItR 51., (DHC). v) Recent decision of Hon 'ble Jurisdictional High Court of Delhi in the case ofCITvs Insecticides (India) Ltd. 2013 357 ITR 330 (Del). Decision of ITAT Delhi Bench in the case of ITO vs On Exim Pvt. Ltd. (2013) 157 TTJ 633 (ITAT Delhi). vii) Recent Delhi bench ITAT order in case of ACIT Vs Shri Devesh Kumar (ITA 20681De112010) dated 31.10.2014 (enclosed) viii) Recent Delhi bench ITAT order in case of ITO Vs M.B.Jewellers (P) Ltd ITA 24991Del12011 dated 14.11.2014 i…

Shraddha Jain, Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is allowed on legal ground

ITA 3280/DEL/2015[2004-05]Status: DisposedITAT Delhi24 Feb 2016AY 2004-05

Bench: Sri G.D. Agarwal, Hon’Blesri C.M.Gargita No. 3280/Del. 2015 : Asstt. Year : 2004-05

For Appellant: Sh. V.K.Tulsiyan, C.AFor Respondent: Sh. P.Dam Kanunjna, Sr. DR
Section 147Section 148Section 270Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC-2’, NEW DELHI BEFORE SRI G.D. AGARWAL, HON’BLE VICE PRESIDENT SRI C.M.GARG, JUDICIAL MEMBER ITA No. 3280/Del. 2015 : Asstt. Year : 2004-05 Shraddha Jain Vs ITO 2234, Ward – 29(2) Dharampura New Delhi Delhi (APPELLANT) (RESPONDENT) PAN No. ADIPJ7871R Assessee by : Sh. V.K.Tulsiyan, C.A. Revenue by : Sh. P.Dam Kanunjna, Sr. DR Date of Hearing : 08.12.2015 Date of Pronouncement : 24.02.2016 ORDER PER C.M.Garg, J.M. This appeal has been preferred by the assessee directed against the order of the CIT(A)-XVI, New Delhi dated 17.03.2015 passed in first appe…

DCIT, Circle - 6, Kolkata vs. M/S. Great Wall Marketing (P) Ltd., Kolkata

In the result the appeal of the revenue is dismissed

ITA 660/KOL/2011[2002-03]Status: DisposedITAT Kolkata03 Feb 2016AY 2002-03

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am] Assessment Year : 2002-03

For Appellant: NoneFor Respondent: Shri S.M.Surana, Advocate
Section 133(6)Section 143(1)(a)Section 148

…elevant material on the basis of which reasonable person can form belief regarding escapement of income. Reliance was placed by the learned counsel for the assessee on the decision of the Hon’ble Delhi High Court in the case of CIT vs Insceticides (India) Ltd 357 ITR 330 and CIT vs SFIL Stock Broking Ltd. 325 ITR 285 (Delhi). In both the aforesaid decisions the reasons recorded by the AO for initiating proceedings u/s 148 of the Act the Hon’ble Delhi High Court upheld the order of the Tribunal quashing the proceedings. Reliance was also placed on the decision of ITAT, Kolkata ‘C’ Bench in the case of M/s. Control…

M/S. Paramount Intercontinental Pvt. Ltd., Delhi vs. ITO, New Delhi

In the result, Ground No.1 of the assessee is dismissed

ITA 6135/DEL/2013[2001-02]Status: DisposedITAT Delhi04 Nov 2015AY 2001-02

Bench: Shri J. Sudhakar Reddyassessment Year : 2001-02

For Appellant: Shri Gurmeet Singh, CAFor Respondent: Shri Raman Kant Garg, Sr. DR
Section 131Section 143(3)Section 143(3)(ii)Section 147Section 148Section 68

…Del/2012 vide order dated 28th November, 2014, where a reference has been made to the decisions of the jurisdictional High Court in the case of Signatures Hotels Pvt. Ltd. vs. ITO and Another (2011) 338 ITR 51 (Del), CIT vs. Insecticides (India) Ltd. (2013) 357 ITR 330 and Ltd. (supra) will not apply to the facts of the instant case. The ld. counsel 7 also relied on the decision of the jurisdictional High Court in the case of CIT vs. Suren International Pvt. Ltd., 357 ITR 24. In that case, the court gave a finding that the AO in the reasons recorded has not alleged that the assessee had failed to truly disclos…

Jyotsna Sukumar, Delhi vs. ITO, New Delhi

In the result, both the appeals of the assessee are allowed

ITA 4065/DEL/2015[2009-10]Status: DisposedITAT Delhi30 Oct 2015AY 2009-10

Bench: Shri J. Sudhakar Reddy

For Appellant: Shri Tarun Rohatgi, CAFor Respondent: Mrs. Rakhi Vimal, JCIT
Section 143(3)Section 148Section 68

…ing in the present case.” 6. Similar is the position of the Hon’ble Delhi High Court in the case of Signatures Hotels Pvt. Ltd. vs. ITO and Another (2011) 338 ITR 51 (Del), Madhu Khosla vs. CIT 368 ITR 165 (Del) and CIT vs. Insecticides (India) Pvt. Ltd., 357 ITR 330 (Del). 7. Respectfully following the propositions laid down in all these cases, I hold that the reopening in both these assessment years are bad in law as there is no application of mind by the AO. 8. In the result, both the appeals of the assessee are allowed. The order pronounced in the open court on 30.10.2015. [J.SUDHAKAR REDDY] ACCOUNTAN…

Jyotsna Sukumar, Delhi vs. ITO, New Delhi

In the result, both the appeals of the assessee are allowed

ITA 4064/DEL/2015[2006-07]Status: DisposedITAT Delhi30 Oct 2015AY 2006-07

Bench: Shri J. Sudhakar Reddy

For Appellant: Shri Tarun Rohatgi, CAFor Respondent: Mrs. Rakhi Vimal, JCIT
Section 143(3)Section 148Section 68

…ing in the present case.” 6. Similar is the position of the Hon’ble Delhi High Court in the case of Signatures Hotels Pvt. Ltd. vs. ITO and Another (2011) 338 ITR 51 (Del), Madhu Khosla vs. CIT 368 ITR 165 (Del) and CIT vs. Insecticides (India) Pvt. Ltd., 357 ITR 330 (Del). 7. Respectfully following the propositions laid down in all these cases, I hold that the reopening in both these assessment years are bad in law as there is no application of mind by the AO. 8. In the result, both the appeals of the assessee are allowed. The order pronounced in the open court on 30.10.2015. [J.SUDHAKAR REDDY] ACCOUNTAN…

M/S. K.K. Arora & Sons (HUF), New Delhi vs. ACIT, New Delhi

In the result, both the Assessees’ Appeal No

ITA 4445/DEL/2014[2004-05]Status: DisposedITAT Delhi24 Sept 2015AY 2004-05

Bench: Shri H.S. Sidhu

For Appellant: Shri Anil Kr. Jain, CAFor Respondent: Sh. Sudhiranjan Senpati, Sr. DR
Section 132Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 153A

…as mechanically recorded the reasons and issued the notice without applying his own mind. Therefore, on these facts, the decisions of Hon'ble Jurisdictional High Court in the case Signature Hotels Pvt. Ltd. (supra), 338 ITR 51, Insectici (India) Ltd. (supra), 357 ITR 330 and ClT vs. Atul Jain and Vin Jain, 299 ITR 383 would be squarely applicable because the information on the basis of which the AO had initiated proceedings under section 147 was vague and uncertain as may be evidenced from the relevant para of these judgments. Hence, he requested that the reassessment proceedings may be quashed. 7. On the other h…

M/S. R.K. Arora & Sons (HUF), New Delhi vs. ACIT, New Delhi

In the result, both the Assessees’ Appeal No

ITA 4444/DEL/2014[2004-05]Status: DisposedITAT Delhi24 Sept 2015AY 2004-05

Bench: Shri H.S. Sidhu

For Appellant: Shri Anil Kr. Jain, CAFor Respondent: Sh. Sudhiranjan Senpati, Sr. DR
Section 132Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 153A

…as mechanically recorded the reasons and issued the notice without applying his own mind. Therefore, on these facts, the decisions of Hon'ble Jurisdictional High Court in the case Signature Hotels Pvt. Ltd. (supra), 338 ITR 51, Insectici (India) Ltd. (supra), 357 ITR 330 and ClT vs. Atul Jain and Vin Jain, 299 ITR 383 would be squarely applicable because the information on the basis of which the AO had initiated proceedings under section 147 was vague and uncertain as may be evidenced from the relevant para of these judgments. Hence, he requested that the reassessment proceedings may be quashed. 7. On the other h…