CIT v. Kelvinator of India Ltd.

320 ITR 561Supreme Court of India2010#18 most cited

What is CIT v. Kelvinator of India Ltd. authority for?

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

1,673

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2010 to 2026.

Also referred to as

CIT v. Kelvinator of India Ltd. · Kelvinator of India · Section 147 · Section 148 · reassessment proceedings · mere change of opinion · fresh tangible material · escapement of income · reason to believe · validity of reassessment

Also reported as

187 Taxmann 3122 SCC 723187 Taxmann.com 312

Sections most often in play

Section 147Section 143(3)Section 148Section 142(1)Section 151Section 143(2)Section 68Section 139
Read the full judgment

Issues it is cited on

kelvinatorfresh tangible materialmere change of opinionfirst proviso to section 147material facts necessary for assessmentfull and true disclosurechange of opinionbeyond four yearslive linktangible materialescapement of incomereason to believe

Judgments citing CIT v. Kelvinator of India Ltd.

Dy.C.I.T. 1, Bhilai(Cg) vs. M/S Ravi Shree Narayan Transport, Bhilai(Cg)

In the result, both the appeals of the revenue are dismissed

ITA 199/BIL/2014[2008-09]Status: DisposedITAT Raipur15 Jan 2018AY 2008-09

Bench: S/Shri N.S Saini & Pavan Kumar Gadale

For Appellant: Shri S.S.Rao, ARFor Respondent: Shri Sanjay Kumar, DR
Section 143(3)Section 40Section 68

…The decision is approved by Hon’ble Supreme Court in the case reported as 8 ITA No.116/Rpr/2014: Assessment Year : 2010-2011 ITA No.199/Rpr/2014: Assessment Year : 2008-2009 ITA No.1200/Rpr/2014: Assessment Year : 2019-2010 CIT vs. Kelvinator of India Ltd (320 ITR 561). in the case before us, the Assessing Officer has initiated reassessment proceedings on the same facts which were available before him at the time of making assessment u/s.143(3) of the Act and no new tangible material has come on the basis of which it could be said that he has reason to believe that income chargeable to tax has escaped asses…

The Dy. CIT- 1, Durg(Cg) vs. M/S. Ravi Shree Narayan Transport, Bhilai(Cg)

In the result, both the appeals of the revenue are dismissed

ITA 116/BIL/2014[2010-11]Status: DisposedITAT Raipur15 Jan 2018AY 2010-11

Bench: S/Shri N.S Saini & Pavan Kumar Gadale

For Appellant: Shri S.S.Rao, ARFor Respondent: Shri Sanjay Kumar, DR
Section 143(3)Section 40Section 68

…The decision is approved by Hon’ble Supreme Court in the case reported as 8 ITA No.116/Rpr/2014: Assessment Year : 2010-2011 ITA No.199/Rpr/2014: Assessment Year : 2008-2009 ITA No.1200/Rpr/2014: Assessment Year : 2019-2010 CIT vs. Kelvinator of India Ltd (320 ITR 561). in the case before us, the Assessing Officer has initiated reassessment proceedings on the same facts which were available before him at the time of making assessment u/s.143(3) of the Act and no new tangible material has come on the basis of which it could be said that he has reason to believe that income chargeable to tax has escaped asses…

DCIT, Cir-11(2), Kolkata vs. M/S Peerless Hospitex Hospital & Research Centre Ltd., Kolkata

In the result, all the four appeals of the revenue are dismissed

ITA 1266/KOL/2015[2007-2008]Status: DisposedITAT Kolkata12 Jan 2018AY 2007-2008
Section 143(1)Section 143(3)Section 147Section 148Section 32(2)

…available with the AO and the assessment had been completed originally u/s 143(1)" The third member agreed with the view taken by the learned Judicial Member relying mainly on the decision of Hon'ble Supreme Court in the case of Kelvinator of India Ltd (2010) 320 ITR 561. It was held by the Third Member that section147 applies both to section 143(1) as well as section 143(3) and, therefore, except to the extent that a reassessment notice u/s 148 in a case where the original assessment was made u/s 143(1) cannot be contested on the ground of a mere change of opinion, still it is opened to an assessee to challenge…

DCIT, Cir-11(2), Kolkata vs. M/S Peerless Hospitex Hospital & Research Centre Ltd., Kolkata

In the result, all the four appeals of the revenue are dismissed

ITA 1265/KOL/2015[2006-2007]Status: DisposedITAT Kolkata12 Jan 2018AY 2006-2007
Section 143(1)Section 143(3)Section 147Section 148Section 32(2)

…available with the AO and the assessment had been completed originally u/s 143(1)" The third member agreed with the view taken by the learned Judicial Member relying mainly on the decision of Hon'ble Supreme Court in the case of Kelvinator of India Ltd (2010) 320 ITR 561. It was held by the Third Member that section147 applies both to section 143(1) as well as section 143(3) and, therefore, except to the extent that a reassessment notice u/s 148 in a case where the original assessment was made u/s 143(1) cannot be contested on the ground of a mere change of opinion, still it is opened to an assessee to challenge…

DCIT, Cir-11(2), Kolkata vs. M/S Peerless Hospitex Hospital & Research Centre Ltd., Kolkata

In the result, all the four appeals of the revenue are dismissed

ITA 1264/KOL/2015[2005-2006]Status: DisposedITAT Kolkata12 Jan 2018AY 2005-2006
Section 143(1)Section 143(3)Section 147Section 148Section 32(2)

…available with the AO and the assessment had been completed originally u/s 143(1)" The third member agreed with the view taken by the learned Judicial Member relying mainly on the decision of Hon'ble Supreme Court in the case of Kelvinator of India Ltd (2010) 320 ITR 561. It was held by the Third Member that section147 applies both to section 143(1) as well as section 143(3) and, therefore, except to the extent that a reassessment notice u/s 148 in a case where the original assessment was made u/s 143(1) cannot be contested on the ground of a mere change of opinion, still it is opened to an assessee to challenge…

DCIT, Cir-11(2), Kolkata vs. M/S Peerless Hospitex Hospital & Research Centre Ltd., Kolkata

In the result, all the four appeals of the revenue are dismissed

ITA 1263/KOL/2015[2004-2005]Status: DisposedITAT Kolkata12 Jan 2018AY 2004-2005
Section 143(1)Section 143(3)Section 147Section 148Section 32(2)

…available with the AO and the assessment had been completed originally u/s 143(1)" The third member agreed with the view taken by the learned Judicial Member relying mainly on the decision of Hon'ble Supreme Court in the case of Kelvinator of India Ltd (2010) 320 ITR 561. It was held by the Third Member that section147 applies both to section 143(1) as well as section 143(3) and, therefore, except to the extent that a reassessment notice u/s 148 in a case where the original assessment was made u/s 143(1) cannot be contested on the ground of a mere change of opinion, still it is opened to an assessee to challenge…

D.C.I.T Cir - 8, Kolkata vs. M/S Abci Infrastructure Pvt Ltd, Kolkata

In the result, the appeal of revenue is dismissed

ITA 990/KOL/2013[2006-07]Status: DisposedITAT Kolkata10 Jan 2018AY 2006-07

Bench: "ी ऐ. ट". वक", "यायीक सद"य एवं/And "ी एम .बालागणेश, लेखा सद"य) [Before Shri A. T. Varkey, Jm & Shri M.Balaganesh, Am]

Section 143(3)Section 147Section 148Section 801ASection 80I

…ssessment, has ventured in the reassessment to take a different view, which action is akin to review of his own order which power AO does not enjoy. The Hon’ble Supreme 6 ABCI Infrastructure Pvt. Ltd., AY 2006-07 Court in CIT Vs. Kelvinator India Ltd. (2010) 310 ITR 561 (SC) has reiterated the well settled law that AO has no review powers as under: “On going through the changes, quoted above, made to section 147 of the Act, we find that, prior to the Direct Tax Laws (Amendment) Act, 1987, reopening could be done under the above two conditions and fulfillment of the said conditions alone conferred jurisdiction o…

Arvind Balkrishna Goregonkar, Mumbai vs. ITO 21(2)(1), Mumbai

In the result, this appeal by the assessee stands dismissed

ITA 6717/MUM/2016[2008-09]Status: DisposedITAT Mumbai03 Jan 2018AY 2008-09

Bench: Shri Shamim Yahyaआयकर अपील सं./I.T.A. No. 6717/Mum/2016 ("नधा"रण वष" / Assessment Year: 2008-09) Arvind Balkrishna Goregaonkar I.T.O.-21(2)(1), B-1305, Bhavya Heights, Mumbai बनाम/ Katrak Road, Near Ram Mandir, Vs. Wadala (W), Mumbai-400 031 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaipg 6212 A (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri Ajay R. Singh ""यथ" क" ओर से/Respondent By : Ms. N. Hemalatha

For Appellant: Shri Ajay R. SinghFor Respondent: Ms. N. Hemalatha
Section 143(1)Section 148Section 68

…s 236 ITR 34 (SC), Phool Chand Bjaranglal 203 ITR 456 (SC), K R Sadayappan 63 ITR 219 (SC). In case of Multi Screen Media (P) Ltd. 324 ITR 54 (Bom) the jurisdictional high court after considering the decision in case of CIT vs. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC) has observed as under : "Where the AO purports to exercise power under s.147 within a period of four years from the end of the relevant assessment year, the condition precedent to the exercise of the power is the existence of a reason to believe that any income chargeable to tax has escaped assessment. The expression 'reason to believe’ mus…

M/S Shubh Engineering Ltd., New Delhi vs. DCIT, New Delhi

In the result ground No. 1 to 3 of the appeal of the assessee are allowed

ITA 3551/DEL/2011[2001-02]Status: DisposedITAT Delhi14 Dec 2017AY 2001-02

Bench: Shri H.S.Sidhu & Shri Prashant Maharishisubh Engineering Ltd, Vs. Dcit, D-60, Okhla Industrial Area, Circle-8(1), Phase-I, New Delhi New Delhi Pan:Aaacs1321F (Appellant) (Respondent)

For Appellant: Shri Piyush Chawla, AdvFor Respondent: Shri Kauslendra Tiwari, Sr. DR
Section 143Section 143(3)Section 144Section 147Section 148

…what tangible material it has received other than the appreciation of the same facts available before him in the original assessment for reopening of the assessment proceedings. As held by the Hon‟ble Supreme Court in case of CIT Vs. Kelvinator of India Ltd, 320 ITR 561, wherein it has been held that the assessment has to be based on fulfillment of certain preconditioning and if the concept of change of opinion is removed as contention of the Department then in the garb of reopening of the assessment „review‟ would take place. Exactly same thing has happened in this particular case. Assessing Officer has already…

Commissioner of Income Tax-(Exemptions) vs. Asian Centre for Organisation Research & Development

ITA/1144/2017HC Delhi13 Dec 2017

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

Section 12ASection 260ASection 33A

…ITA 1144/2017 Page 1 $~50 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1144/2017 COMMISSIONER OF INCOME TAX-(EXEMPTIONS) ..... Petitioner Through: Mr. Zoheb Hossain, Sr. Standing Counsel for Revenue. versus ASIAN CENTRE FOR ORGANISATION RESEARCH & DEVELOPMENT ..... Respondent Through: None. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE SANJEEV SACHDEVA O R D E R % 13.12.2017 1. The Revenue is aggrieved by the impugned order of the Income Tax Appellate Tribunal (I.T.A.T) and Appeals to this Court under Section 260A of the Income Tax Act, 1961(hereafter referred to as ‘the Act’). 2. The assessm…

Virendra Kumar Gupta, Delhi vs. ACIT, New Delhi

In the result ground No. 4 to 7 are partly allowed

ITA 2721/DEL/2016[2006-07]Status: DisposedITAT Delhi13 Dec 2017AY 2006-07

Bench: Shri H.S.Sidhu & Shri Prashant Maharishivirendra Kumar Gupta, Acit, Vs. Prop Sanjay Metal Udyog, Circle-39(1), 3858, Gali Barna, Sadar Bazar, Delhi New Delhi Pan: Aaapg4216E (Appellant) (Respondent)

For Appellant: Shri Aashish Chadha, CAFor Respondent: Shri SS Rana, CIT DR
Section 148

…to reopen concluded assessment can validly be exercised. The consideration which ought to weigh with the Revenue and are considered valid are the existence of tangible material or information - in the light of the judgment in CIT v. Kelvinator of India [2010] 320 ITR 561 (SC). 9. Having regard to the contents of the notice for AY 2003-04, the court is unable to agree with the findings of the ITAT. It constitutes reference to tangible material "outside" the record, i.e. information based upon the investigation of the Commissioner of Central Excise with respect to the purchases made by the assesses. However, as far…

Wallace Sports and Research Foundation, Chennai vs. ACIT Non Corporate Circle 3, Chennai

In the result, the appeal of the assessee is partly allowed

ITA 2057/CHNY/2017[2011-12]Status: DisposedITAT Chennai08 Dec 2017AY 2011-12

Bench: Shri Chandra Poojari

For Respondent: Mr.B.Sagadevan, JCIT, D.R
Section 143(3)

…efore 1948, are not there in section 147 of the 1961 Act would not lead to the conclusion that action can now be taken for reopening an assessment even if the information is wholly vague, indefinite, far-fetched or remote." 9. In CIT v. Kelvinator India Ltd.(320 ITR 561) the Supreme Court observed as under (page 564) : "However, one needs to give a schematic interpretation to the words 'reason to believe' failing which, we are afraid, section 147 would give arbitrary powers to the Assessing Officer to reopen assessments on the basis of 'mere change of opinion', which cannot be per se reason to reopen. We must…

Santech Solutons Pvt Limited, Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee is treated as 9

ITA 1036/CHNY/2016[2008-09]Status: DisposedITAT Chennai07 Dec 2017AY 2008-09

Bench: Shri Abraham P.George & Shri George Mathanआयकर अपील सं./I.T.A. No.1036/Mds/2016 "नधा"रण वष" /Assessment Year : 2008-2009

For Appellant: Shri. D. Anand, AdvocateFor Respondent: Dr. S. Pandian, IRS, JCIT
Section 143(3)Section 148Section 28

…to him was merely on a change of opinion. In support of his contention, that there could be no reopening merely based on a change of opinion, ld. Authorised Representative relied on the judgment of Apex Court in the case of CIT vs. M/s. Kelvinator India Ltd 320 ITR 561 and that of Hon’ble Delhi High Court in the case of CIT vs. Kelvinator of India Ltd. 256 ITR 0001. Per contra, ld. Departmental Representative strongly 7. supporting the order of the ld. Commissioner of Income Tax (Appeals) submitted that the issue considered by the ld. Assessing Officer during the original assessment proceedings was on claim…

DCIT, Chennai vs. Chennai Petroleum Corporation Limited, Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 853/CHNY/2013[2006-07]Status: DisposedITAT Chennai07 Dec 2017AY 2006-07

Bench: Shri Abraham P.George & Shri George Mathan

For Appellant: Mr.R.Vijayaraghavan, AdvFor Respondent: Mr.Prabhu Mukunth Arun-
Section 143(3)Section 195Section 40

…and not on account of concealment of any particulars by the appellant; hence the order is to be quashed as being without jurisdiction. 2.2 The Appellant relies on the decision of the Supreme Court in the case of CIT V. Kelvinator of India Limited, reported in 320 ITR 561 (SC). 3. The Commissioner of Income Tax (Appeals), LTU erred in confirming the disallowance of Rs.95,07,58,118/- u/s.40(a)(i) as the Appellant had not deducted TDS from the payments made to Hardy Exploration and Production India Inc u/s.195. 3.1 The Commissioner of Income tax (Appeals), LTU ought to have appreciated that payment made to HEPI was…

Chennai Petroleum Corporation Ltd., Chennai vs. JCIT, Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 687/CHNY/2013[2006-07]Status: DisposedITAT Chennai07 Dec 2017AY 2006-07

Bench: Shri Abraham P.George & Shri George Mathan

For Appellant: Mr.R.Vijayaraghavan, AdvFor Respondent: Mr.Prabhu Mukunth Arun-
Section 143(3)Section 195Section 40

…and not on account of concealment of any particulars by the appellant; hence the order is to be quashed as being without jurisdiction. 2.2 The Appellant relies on the decision of the Supreme Court in the case of CIT V. Kelvinator of India Limited, reported in 320 ITR 561 (SC). 3. The Commissioner of Income Tax (Appeals), LTU erred in confirming the disallowance of Rs.95,07,58,118/- u/s.40(a)(i) as the Appellant had not deducted TDS from the payments made to Hardy Exploration and Production India Inc u/s.195. 3.1 The Commissioner of Income tax (Appeals), LTU ought to have appreciated that payment made to HEPI was…

M/S Paramount Properties & Estate Developments Ltd., Kolkata vs. ITO, WD-3(1), Kolkata

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

ITA 93/KOL/2016[2005-06]Status: DisposedITAT Kolkata06 Dec 2017AY 2005-06

Bench: Shri A. T. Varkey & Shri Waseem Ahmedi.T.A. No.93/Kol/2016 Assessment Year 2005-06 M/S. Paramount Properties & I.T.O., Wd-3(1), Kolkata. P-7, Chowringhee Square, Estate Developments Ltd. -Vs- Kolkata – 700 069. 3, Pretoria Street, 4Th Floor, Kolkata – 700 071. [Pan : Aabcp 8731 B] (Appellant) (Respondent)

Section 143(3)Section 147Section 148

…nion which cannot form the basis for reopening a completed assessment. In support of the above contention, reliance is placed on the judgment of the Hon'ble Supreme Court in the case of Commissioner of Income-Tax v. Kelvinator of India Ltd. reported in [2010] 320 ITR 561. In the said case it was held as under- "The concept of "change of opinion" on the part of the Assessing Officer to reopen an assessment does not stand obliterated after the substitution of section 147 of the Income-tax Act, 1961, by the Direct Tax Laws (Amendment) Acts, 1987 and 1989. After the amendment, the Assessing Officer has to have reason…

P Praveen Kumar, Chennai vs. DCIT, Non Corporate Circle-5(1), Chennai

In the result, the appeal of assessee is allowed

ITA 2212/CHNY/2017[2010-11]Status: DisposedITAT Chennai06 Dec 2017AY 2010-11

Bench: Shri Chandra Poojari

For Appellant: Mr.B.Sagadevan, JCIT, D.RFor Respondent: 21.11.2017
Section 143(3)Section 148

…asons to be recorded by him in writing". But there were representations against the proposal and bowing to them the original expression was restored. This aspect of the matter has 10 been brought out by the Supreme Court in the case of CIT v. Kelvinator in 320 ITR 561 as follows:- "However, one needs to give a schematic interpretation to the words 'reason to believe' failing which, we are afraid, section 147 would give arbitrary powers to the Assessing Officer to reopen assessments on the basis of 'mere change of opinion', which cannot be per se reason to reopen. We must also keep in mind the conceptual diffe…

DCIT Cir 6(2)(1), Mumbai vs. Century Textiles & Industries Ltd, Mumbai

In the result appeal of the Revenue in ITA 5739/Mum/2015 for assessment year 2009-10 is allowed

ITA 5739/MUM/2015[2009-10]Status: DisposedITAT Mumbai28 Nov 2017AY 2009-10

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No. 5739/Mum/2015 (नििाारण वर्ा / Assessment Year : 2009-10)

For Appellant: Shri. P.R. TopraniFor Respondent: Shri Rajat Mittal
Section 143(3)Section 147Section 260ASection 80Section 80I

…आयकर अपीऱीय अधिकरण “C” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER आयकर अपीऱ सं./I.T.A. No. 5739/Mum/2015 (नििाारण वर्ा / Assessment Year : 2009-10) बिाम/ DCIT CIR 6(2)(1) Century Textiles & R.No. 563 Aayakar Bhavan, Industries Ltd., M.K Road, Mumbai 400020 Century Bhavan, v. 2n d floor, Dr. A.B. Road, Worli, Mumbai 400030 स्थायी ऱेखा सं./ PAN : AAACC2659Q (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue by : Shri Rajat Mittal Assessee by: Shri. P.R. Toprani सुनवाई की तारीख /Date of Heari…

M/S. Network Programme (India) Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 4147/DEL/2014[2002-03]Status: DisposedITAT Delhi17 Nov 2017AY 2002-03

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahuassessment Year: 2002-03

Section 143(3)Section 147Section 148Section 36(1)Section 43B

…nion, which is impermissible under the provisions of section 147 of the Act, as the Assessing Officer had no tangible material to reopen the completed assessment. Reliance is placed on the decision of Hon’ble Supreme Court in the case of Kelvinator of India, 320 ITR 561 (SC) and of Hon’ble Delhi High Court in DIT vs. Rolls Royce Industries Power India Ltd., 394 ITR 547 (Del.) and Delhi High ITA No. 4147/Del./2014 6 Court in Indu Lata Rangwala vs. DCIT, 384 ITR 337 Del.). Several other decisions have also been relied upon by the assessee (copies placed on record). 4. On the other hand, the ld. DR relied on th…

DCIT, New Delhi vs. M/S. Psb Industries India Pvt. Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 2967/DEL/2013[2004-05]Status: DisposedITAT Delhi09 Nov 2017AY 2004-05

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Atiq Ahmad, D.RFor Respondent: Shri S.D. Ray, Advocate
Section 143(3)Section 147Section 148Section 14ASection 23

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. No.2967/DEL/2013 Assessment Year:2004-05 DCIT v. PSB Industrial (India) Pvt. Ltd. Circle 14(1) 207, 2nd Floor, 87, Zamrudpur New Delhi Greater Kailash Part I New Delhi TAN/PAN:AAACP0009M (Appellant) (Respondent) Appellant by: Shri Atiq Ahmad, D.R. Respondent by: Shri S.D. Ray, Advocate Date of hearing: 02 11 2017 Date of pronouncement: 09 11 2017 O R D E R PER AMIT SHUKLA, J.M.: The aforesaid appeal has been filed by the Revenue against impugned order d…