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 366,470 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.

M/S. Dharampal Satyapal Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed and the appeal of the revenue is dismissed

ITA 5581/DEL/2013[2004-05]Status: DisposedITAT Delhi08 Jan 2016AY 2004-05

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

For Appellant: Shri R.S. Singhvi, CA and Shri Satyajeet Goel, CAFor Respondent: Ms. Nandita Kanchan, CIT DR
Section 115JSection 132Section 143(3)Section 14ASection 264Section 80I

…ible material in the possession of AO at the time of recording of impugned reasons is a sine qua none, before the AO can record reasons for reopening of the case. We begin with the judgment of Hon'ble Supreme Court in the case of CIT vs. Kelvinator India Ltd. 320 ITR 561 (SC), laying down that for reopening of the assessment, the AO should have in its possession 'tangible material'. The term 'tangible material' has been understood and explained by various courts subsequently. There has been unanimity of the courts on this issue that in absence of fresh material indicating escaped income, the AO cannot assume juri…

Infrastructure Leasing & Financial Services Ltd., Mumbai vs. ACIT-10(1), Mumbai

In the result, the appeal filed by the assessee is allowed and appeals filed by the revenue are dismissed

ITA 3338/MUM/2011[2003-04]Status: DisposedITAT Mumbai06 Jan 2016AY 2003-04

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2003-04 M/S. Infrastructure Leasing & Acit-10(1), Financial Services Ltd., The Il बनाम/ Mumbai - & Fs Centre, G. Glock, C-22, Vs. Bandra Kurla Complex Bandra (E) Mumbai-400051 (Assessee) (Revenue) P.A. No.Aaaci0989F

Section 143(3)Section 147Section 148Section 271(1)(c)

…ble material in the possession of AO at the time of recording of impugned reasons is a sine qua non, before the AO can record ‘Reasons’ for reopening of the case. We begin with the judgment of Hon’ble Supreme Court in the case of CIT vs. Kelvinator India Ltd. 320 ITR 561 (SC), laying down that for reopening of the assessment, the AO should have in its possession ‘tangible material’. The term ‘tangible material’ has been understood and explained by various courts subsequently. There has been unanimity of the courts on this issue that in absence of fresh material 10 Infrastructure Leasing indicating escaped income…

T Subbaramaiah, Shimoga vs. Income Tax Officer, Ward-1, Shimoga

In the result appeal of the assessee stands dismissed

ITA 1142/BANG/2014[2007-08]Status: DisposedITAT Bangalore06 Jan 2016AY 2007-08
For Appellant: Shri. A. R. Vivek, AdovateFor Respondent: Dr. P. K. Sreehari, Addl. CIT
Section 143(1)Section 148Section 234B

…imply made on a change of opinion since the AO at the time of processing the return originally was aware of the construction of Subbaiah Hospital Complex. Reliance was placed on the judgment of Hon’ble Apex Court in the case of CIT v. Kelvinator of India Ltd (320 ITR 56). 08. In so far as the merits of the issue was concerned Ld. AR submitted that if agricultural expenditure estimated at 30% only resulted in disallowance of a part of agricultural income. Nature of income still very much remained agricultural. According to him, agricultural income returned by the assessee was Rs.9 lakhs. AO had assessed a lesser…

Dr. M.B. Satish Kumar, Kadur vs. ITO, Chickmagalur

In the result, appeal of the assessee is partly allowed

ITA 702/BANG/2015[2004-05]Status: DisposedITAT Bangalore28 Dec 2015AY 2004-05
For Appellant: Shri. R. Chandrashekar, AdvocateFor Respondent: Dr. P. K. Sreehari, Addl.CIT
Section 148Section 68

…ITA.702/Bang/2015 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T.A No.702/Bang/2015 (Assessment Year : 2004-05) Dr. M. B. Satish Kumar, Prop : Sri Satya Sai Hospital, No.NH 206, Kadur, Chikmagalur District 577548 .. Appellant PAN : BATPS8308D v. Income-tax Officer, Ward – 1, Chikmagalur .. Respondent Assessee by : Shri. R. Chandrashekar, Advocate Revenue by : Dr. P. K. Sreehari, Addl.CIT Heard on : 17.12.2015 Pronounced on :28 .12.2015 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : In this appeal filed by assessee it has altoget…

Atul Kumar Dalmia, Kolkata vs. I.T.O WD - 33(3), Kolkata

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

ITA 1907/KOL/2013[2006-07]Status: DisposedITAT Kolkata03 Dec 2015AY 2006-07

Bench: Shri M. Balaganesh, A.M. & Shri S.S.Viswanethra Ravi, J.M.)

For Appellant: Shri K.M.Roy, FCAFor Respondent: Shri Sanjit Kr. Das, JCIT
Section 143(3)Section 148Section 44A

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘C’, KOLKATA (Before Shri M. Balaganesh, A.M. & Shri S.S.Viswanethra Ravi, J.M.) ITA No. 1907/Kol/2013 : Asstt. Year : 2006-2007 Atul Kumar Dalmia Vs I.T.O., Ward-33(3) (PAN: ACSPD 2045G) Kolkata (APPELLANT) (RESPONDENT) Appellant by : Shri K.M.Roy, FCA Respondent by : Shri Sanjit Kr. Das, JCIT Date of Hearing : 14.10.2015 Date of Pronouncement : 10-12-2015 ORDER Per Shri S.S.Viswanethra Ravi, J.M. This is an appeal preferred by the assessee against the order dated 21.03.2013 passed by the CIT(Appeals)-XIX, Kolkata in Appeal No.41/CIT(A)-XIX/Wd-33(3)/Kol/1…

Commissioner of Income Tax vs. Visisth Chay Vyapar Ltd

ITA - 1109 / 2010HC Delhi03 Dec 2015
Section 143(3)Section 147Section 260ASection 271(1)(c)

…, if any, collected and must form a belief thereon. In the circumstances, there is no merit in the civil appeal. The Department was not entitled to reopen the assessment.” 26. The decision of the Supreme Court in CIT v. Kelvinator of India Ltd.: [2010] 320 ITR 561 (SC) was in an appeal against the decision of this Court. It was observed: “We must also keep in mind the conceptual difference between power to review and power to re-assess. The Assessing Officer has no power to review; he has the power to re-assess. But re-assessment has to be based on fulfilment of certain pre-condition and if the con…

Commissioner of Income Tax vs. Vishsht Chay Vyapar Ltd

ITA - 1108 / 2010HC Delhi03 Dec 2015
Section 143(3)Section 147Section 260ASection 271(1)(c)

…, if any, collected and must form a belief thereon. In the circumstances, there is no merit in the civil appeal. The Department was not entitled to reopen the assessment.” 26. The decision of the Supreme Court in CIT v. Kelvinator of India Ltd.: [2010] 320 ITR 561 (SC) was in an appeal against the decision of this Court. It was observed: “We must also keep in mind the conceptual difference between power to review and power to re-assess. The Assessing Officer has no power to review; he has the power to re-assess. But re-assessment has to be based on fulfilment of certain pre-condition and if the con…

Commissioner of Income Tax vs. Vishishth Chay Vyapar Ltd

ITA/1108/2010HC Delhi03 Dec 2015
Section 143(3)Section 147Section 260ASection 271(1)(c)

…, if any, collected and must form a belief thereon. In the circumstances, there is no merit in the civil appeal. The Department was not entitled to reopen the assessment.” 26. The decision of the Supreme Court in CIT v. Kelvinator of India Ltd.: [2010] 320 ITR 561 (SC) was in an appeal against the decision of this Court. It was observed: “We must also keep in mind the conceptual difference between power to review and power to re-assess. The Assessing Officer has no power to review; he has the power to re-assess. But re-assessment has to be based on fulfilment of certain pre-condition and if the con…

Commissioner of Income Tax vs. Vishishth Chay Vyapar Ltd

ITA/1109/2010HC Delhi03 Dec 2015
Section 143(3)Section 147Section 260ASection 271(1)(c)

…, if any, collected and must form a belief thereon. In the circumstances, there is no merit in the civil appeal. The Department was not entitled to reopen the assessment.” 26. The decision of the Supreme Court in CIT v. Kelvinator of India Ltd.: [2010] 320 ITR 561 (SC) was in an appeal against the decision of this Court. It was observed: “We must also keep in mind the conceptual difference between power to review and power to re-assess. The Assessing Officer has no power to review; he has the power to re-assess. But re-assessment has to be based on fulfilment of certain pre-condition and if the con…

E.I. Dupont Private Ltd., Gurgaon vs. ACIT, New Delhi

In the result appeal of the assessee is allowed

ITA 3218/DEL/2011[2004-05]Status: DisposedITAT Delhi18 Nov 2015AY 2004-05

Bench: Sh. A.T.Varkey, Jm & Sh. Prashant Maharishi, Am A.Y. 2004-05

For Appellant: Sh. Deepak Chopra, Amit Shrivastava, AdvFor Respondent: Sh. Hemant Gupta, SR. DR
Section 115JSection 143(3)Section 147Section 148Section 234BSection 250(6)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. A.T.VARKEY, JM AND SH. PRASHANT MAHARISHI, AM A.Y. 2004-05 E.I. DuPont Private Ltd. Vs ACIT 7th Floor, Tower-C, Circle-11(1) DLF Cyber Greens,Sector-25-A Phase-III Gurgaon New Delhi (APPELLANT) (RESPONDENT) PAN No. AAACE2462M A.Y. 2004-05 DCIT Vs E.I. DuPont Private Ltd. 7th Floor, Tower-C, Circle – 11(1), Room No. 312, C.R.Building DLF Cyber Greens,Sector-25-A New Delhi Phase-III Gurgaon (APPELLANT) (RESPONDENT) PAN No. AAACE2462M Appellant by : Sh. Deepak Chopra, Amit Shrivastava, Adv. Respondent by : Sh. Hemant Gupta, SR. DR Da…

DCIT, New Delhi vs. M/S E.I. Dupont India (P) Ltd., Gurgaon

In the result appeal of the assessee is allowed

ITA 2357/DEL/2011[2004-05]Status: DisposedITAT Delhi18 Nov 2015AY 2004-05

Bench: Sh. A.T.Varkey, Jm & Sh. Prashant Maharishi, Am A.Y. 2004-05

For Appellant: Sh. Deepak Chopra, Amit Shrivastava, AdvFor Respondent: Sh. Hemant Gupta, SR. DR
Section 115JSection 143(3)Section 147Section 148Section 234BSection 250(6)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. A.T.VARKEY, JM AND SH. PRASHANT MAHARISHI, AM A.Y. 2004-05 E.I. DuPont Private Ltd. Vs ACIT 7th Floor, Tower-C, Circle-11(1) DLF Cyber Greens,Sector-25-A Phase-III Gurgaon New Delhi (APPELLANT) (RESPONDENT) PAN No. AAACE2462M A.Y. 2004-05 DCIT Vs E.I. DuPont Private Ltd. 7th Floor, Tower-C, Circle – 11(1), Room No. 312, C.R.Building DLF Cyber Greens,Sector-25-A New Delhi Phase-III Gurgaon (APPELLANT) (RESPONDENT) PAN No. AAACE2462M Appellant by : Sh. Deepak Chopra, Amit Shrivastava, Adv. Respondent by : Sh. Hemant Gupta, SR. DR Da…

Hanil Era Textiles Ltd, Mumbai vs. ACIT 6(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 5359/MUM/2011[200-05]Status: DisposedITAT Mumbai13 Nov 2015

Bench: Shri Amit Shukla & Shri Ramit Kochar

For Respondent: Shri L K Dehiya
Section 1Section 10BSection 115JSection 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 234CSection 34A

…e on mere change of opinion. The reasons recorded must be based on tangible material and not on the material which are already on record. He also relied upon a decision of Hon’ble Supreme Court in the case of CIT vs Kelvinator of India Ltd, reported in [2010] 320 ITR 561 (SC), wherein the Hon’ble Supreme Court has emphasized that power to reopen an assessment is not akin to power to review. The order of assessment based on mere change of opinion could not justify the reopening u/s 147. 6. Mr. Agrawal further submitted that, when the assessee has chosen initial assessment year, that is, 1997-98, then as per the am…

Srenik Singhvi, Kolkata vs. ACIT, Circle - 54, Kolkata

In the result, the appeal of the assessee for assessment year

ITA 1203/KOL/2011[1998-99]Status: DisposedITAT Kolkata06 Nov 2015AY 1998-99

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 143(3)Section 147

…ing of assessment on the basis of the same record was based on a mere change of opinion, which is not permissible in law. In support of this contention, he relied on the decision of the Hon’ble Supreme Court in the case of Kelvinator India Limited reported in 320 ITR 561 as well as the decision of the Hon’ble Calcutta High Court in the case of Man Mohan Kedia –vs.- ITO reported in 344 ITR 187 (Cal.). 8. Ld. D.R., on the other hand, strongly relied on the impugned order of the ld. CIT(Appeals) in support of the revenue’s case on this issue and I.T.A. Nos. 1203, 1204, 1205 & 1206/KOL./2011 Assessment years: 1998-…

Nh Securities Ltd, Mumbai vs. Asst CIT Cen Cir 40, Mumbai

In the result, the appeal of the assessee is hereby allowed accordingly

ITA 3190/MUM/2012[2004-05]Status: DisposedITAT Mumbai06 Nov 2015AY 2004-05

Bench: S/Shri B.R.Baskaran & Amarjit Singhआयकर अपील सं/ I.T.A. No.3190/M/12 ("नधा"रण वष" / Assessment Year: 2004-05) M/S. N. H. Securities Ltd., Assistant Commissioner Of बनाम/ Bhupen Chambers, Ground Income Tax, Central Circle Vs. Floor, 9, Dalal Street, Fort, 40, Mumbai Mumbai 400023 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs7140Q .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: Shri. Rajiv KhandelwalFor Respondent: Dr. P. Daniel
Section 143(3)Section 271(1)(c)

…आयकर अपील"य अ"धकरण,“डी” "यायपीठ, मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI "ी बी. आर. बा"करन, लेखा सद"य यवं "ी अमरजीत "संह, "या"यक सद"य, के सम" BEFORE S/SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND AMARJIT SINGH, JUDICIAL MEMBER आयकर अपील सं/ I.T.A. No.3190/M/12 ("नधा"रण वष" / Assessment Year: 2004-05) M/s. N. H. Securities Ltd., Assistant Commissioner of बनाम/ Bhupen Chambers, Ground Income Tax, Central Circle Vs. Floor, 9, Dalal Street, Fort, 40, Mumbai Mumbai 400023 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACS7140Q .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Assessee by: Shri. Rajiv Khandel…

DCIT 7(3), Mumbai vs. Zodiac Clothing Co. Ltd, Mumbai

In the result, both the appeals of the Revenue stand dismissed

ITA 3386/MUM/2013[2005-06]Status: DisposedITAT Mumbai30 Oct 2015AY 2005-06

Bench: Shri Saktijit Dey & Shri Ashwani Taneja

For Appellant: Ms. Vasanti B. PatelFor Respondent: Shri Vachaspati Tripathi
Section 143(3)Section 147Section 148Section 154Section 195Section 200Section 40

…ies (supra) and judgment dated 26th March 2015, M/s. Zodiac Clothing Co. Ltd. 18 in W.P. no.2959 of 2015, in case of Tata Business Supply services Ltd. v/s DCIT, as well as the decision of the Hon'ble Supreme Court in CIT v/s Kelvinator of India Ltd., [2010] 322 ITR 561 (SC). Thus, the Assessing Officer having already formed an opinion on an issue at the time of completion of original assessment, re-opening of assessment on the very same issue by relying upon the same set of facts and material on the basis of which original assessment was completed and there being no fresh tangible material available to the Asse…

D.C.I.T. RG.3(3), Mumbai vs. Rama Capital and Fiscal Services Ltd., Mumbai

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

ITA 206/MUM/2013[2009-10]Status: DisposedITAT Mumbai30 Oct 2015AY 2009-10

Bench: S/Shri B.R.Baskaran & Amarjit Singh] आयकर अपील सं/ I.T.A. No.205/M/13 ("नधा"रण वष" / Assessment Year: 2002-03) & आयकर अपील सं/ I.T.A. No.206/M/13 ("नधा"रण वष" / Assessment Year: 2009-10) Dcit Cir 3(3), Room M/S. Rama Capital & बनाम/ No.609, 6Th Floor, Aayakar Fiscal Services Ltd., Vs. Bhavan, M.K.Road, Mumbai- 51/52, Free Press House, 400020 215, Nariman Point, Mumbai - 400021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacr7189J

For Appellant: Shri. J.D.Mistri
Section 142(1)Section 143(3)Section 147Section 148

…O. other than what was available on record. Hence I am of the considered view that A.O.’s action of reopening of assessment will amounts to change of opinion, as has been declared and stated by the Hon’ble Supreme Court in the case of Kelvinator of India Ltd. 320 ITR 561(SC). Further I find that the Hon’ble Supreme Court in the case of ACTI & Others vs. ICICI Securities Primary Dealership Ltd. has clearly held that “rejection of the objections of the assessee to the reopening of the assessment by the Assessing officer was clearly a change of opinion and the order reopening the assessment was not sustainable. In a…

A.C.I.T. RG.3(3), Mumbai vs. Rama Capital and Fiscal Services Ltd., Mumbai

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

ITA 205/MUM/2013[2002-03]Status: DisposedITAT Mumbai30 Oct 2015AY 2002-03

Bench: S/Shri B.R.Baskaran & Amarjit Singh] आयकर अपील सं/ I.T.A. No.205/M/13 ("नधा"रण वष" / Assessment Year: 2002-03) & आयकर अपील सं/ I.T.A. No.206/M/13 ("नधा"रण वष" / Assessment Year: 2009-10) Dcit Cir 3(3), Room M/S. Rama Capital & बनाम/ No.609, 6Th Floor, Aayakar Fiscal Services Ltd., Vs. Bhavan, M.K.Road, Mumbai- 51/52, Free Press House, 400020 215, Nariman Point, Mumbai - 400021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacr7189J

For Appellant: Shri. J.D.Mistri
Section 142(1)Section 143(3)Section 147Section 148

…O. other than what was available on record. Hence I am of the considered view that A.O.’s action of reopening of assessment will amounts to change of opinion, as has been declared and stated by the Hon’ble Supreme Court in the case of Kelvinator of India Ltd. 320 ITR 561(SC). Further I find that the Hon’ble Supreme Court in the case of ACTI & Others vs. ICICI Securities Primary Dealership Ltd. has clearly held that “rejection of the objections of the assessee to the reopening of the assessment by the Assessing officer was clearly a change of opinion and the order reopening the assessment was not sustainable. In a…

Pr. Commissioner of Income Tax-(Central-2) vs. Victoria Marketing Pvt. Ltd

ITA/825/2015HC Delhi30 Oct 2015

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…” There has to be a definite recording in the reasons that there was an escapement of income as a result of failure on the part of the Assessee to disclose fully and truly all the material facts necessary." 10. In CIT v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC), the Supreme Court reiterated that, under Section 147 of the Act, the AO does not have the power to reopen an assessment on the basis of ‘mere change of opinion’. It observed: “....the Assessing Officer has no power to review; he has the power to re-assess. But re-assessment has to be based on fulfilment of certain pre-condition and…

Golden Tobacco Ltd ( Formerly Gtc Industries Ltd), Mumbai vs. Jt CIT (OSD) 8(1), Mumbai

In the result, both the appeals are allowed, on the grounds as discussed above

ITA 5859/MUM/2012[2006-07]Status: DisposedITAT Mumbai28 Oct 2015AY 2006-07

Bench: Shri Saktijit Dey, Jm & Shri Ashwani Taneja, Am

For Appellant: Shri S.C.Gupta (AR)For Respondent: Shri Vachaspati Tripathi (DR)
Section 143(3)Section 147Section 148

…ible material in the possession of AO at the time of recording of impugned reasons is a sine qua none, before the AO can record reasons for reopening of the case. We begin with the judgment of Hon’ble Supreme Court in the case of CIT vs. Kelvinator India Ltd. 320 ITR 561 (SC), laying down that for reopening of the assessment, the AO should have in its possession ‘tangible material’. The term ‘tangible material’ has been understood and explained by various courts subsequently. There has been unanimity of the courts on this issue that in absence of fresh material indicating escaped income, the AO cannot assume juri…

Golden Tobacco Ltd ( Formerly Gtc Industries Ltd), Mumbai vs. Jt CIT (OSD) 8(1), Mumbai

In the result, both the appeals are allowed, on the grounds as discussed above

ITA 5858/MUM/2012[2005-06]Status: DisposedITAT Mumbai28 Oct 2015AY 2005-06

Bench: Shri Saktijit Dey, Jm & Shri Ashwani Taneja, Am

For Appellant: Shri S.C.Gupta (AR)For Respondent: Shri Vachaspati Tripathi (DR)
Section 143(3)Section 147Section 148

…ible material in the possession of AO at the time of recording of impugned reasons is a sine qua none, before the AO can record reasons for reopening of the case. We begin with the judgment of Hon’ble Supreme Court in the case of CIT vs. Kelvinator India Ltd. 320 ITR 561 (SC), laying down that for reopening of the assessment, the AO should have in its possession ‘tangible material’. The term ‘tangible material’ has been understood and explained by various courts subsequently. There has been unanimity of the courts on this issue that in absence of fresh material indicating escaped income, the AO cannot assume juri…