CIT v. Laxminarain Badridas

5 ITR 170Supreme Court of India1937#1434 most cited

What is CIT v. Laxminarain Badridas authority for?

An income tax officer making a best judgment assessment must act honestly, not dishonestly, vindictively, or capriciously. They must make a fair estimate of the assessment, considering local knowledge, repute, and previous assessments.

79

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2008 to 2026.

Also referred to as

CIT v. Laxminarain Badridas · 5 ITR 170 · SC · best judgment assessment · 144 · default in supplying information · fair estimate of assessment · local knowledge · previous assessments

Sections most often in play

Section 147Section 1961Section 139(1)Section 144Section 148Section 142(1)Section 143(3)Section 144B

Issues it is cited on

section 23(4)section 80ia(7)section 69dsection 142(3)section 245c(1)section 10basection 147(1)section 80a(5)section 4(1)section 193section 196trade creditors

Judgments citing CIT v. Laxminarain Badridas

M/S Best Bakery & Ice Cream Parlour, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 513/COCH/2010[2007-08]Status: DisposedITAT Cochin16 Dec 2019AY 2007-08

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…s activity of the assessee during this period. The CIT(A) relied on the following judicial pronouncements: 1. State of Orissa v. Maharaja Shri B.P. Singh Deo (1970) 76 ITR 690(SC) 2.RamdasJuganiv.CIT (2006) 282 ITR 356 (MP) 3.CTT v. LaxminarainBadridas (1937) 5 ITR 170 (PC) 4.State of Kerala v. C. Velukutty (1966) 60 ITR 239(SC) M/s.Best Bakery & Ice Cream Parlour. ITA Nos. 302 to 308/Coch/2010 & 269 to 275/coch/2010 M/s. Matha Enterprises. 9.6 According to the CIT(A), a fair and judicious attempt needed to be made in such set of circumstances to arrive at real income earned by the assessee out of such unaccount…

M/S Best Bakery & Ice Cream Parlour, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 509/COCH/2010[2003-04]Status: DisposedITAT Cochin16 Dec 2019AY 2003-04

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…s activity of the assessee during this period. The CIT(A) relied on the following judicial pronouncements: 1. State of Orissa v. Maharaja Shri B.P. Singh Deo (1970) 76 ITR 690(SC) 2.RamdasJuganiv.CIT (2006) 282 ITR 356 (MP) 3.CTT v. LaxminarainBadridas (1937) 5 ITR 170 (PC) 4.State of Kerala v. C. Velukutty (1966) 60 ITR 239(SC) M/s.Best Bakery & Ice Cream Parlour. ITA Nos. 302 to 308/Coch/2010 & 269 to 275/coch/2010 M/s. Matha Enterprises. 9.6 According to the CIT(A), a fair and judicious attempt needed to be made in such set of circumstances to arrive at real income earned by the assessee out of such unaccount…

M/S Best Bakery & Ice Cream Parlour, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 507/COCH/2010[2001-02]Status: DisposedITAT Cochin16 Dec 2019AY 2001-02

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…s activity of the assessee during this period. The CIT(A) relied on the following judicial pronouncements: 1. State of Orissa v. Maharaja Shri B.P. Singh Deo (1970) 76 ITR 690(SC) 2.RamdasJuganiv.CIT (2006) 282 ITR 356 (MP) 3.CTT v. LaxminarainBadridas (1937) 5 ITR 170 (PC) 4.State of Kerala v. C. Velukutty (1966) 60 ITR 239(SC) M/s.Best Bakery & Ice Cream Parlour. ITA Nos. 302 to 308/Coch/2010 & 269 to 275/coch/2010 M/s. Matha Enterprises. 9.6 According to the CIT(A), a fair and judicious attempt needed to be made in such set of circumstances to arrive at real income earned by the assessee out of such unaccount…

M/S. Matha Enterprises, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 308/COCH/2010[2007-08]Status: DisposedITAT Cochin16 Dec 2019AY 2007-08

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…s activity of the assessee during this period. The CIT(A) relied on the following judicial pronouncements: 1. State of Orissa v. Maharaja Shri B.P. Singh Deo (1970) 76 ITR 690(SC) 2.RamdasJuganiv.CIT (2006) 282 ITR 356 (MP) 3.CTT v. LaxminarainBadridas (1937) 5 ITR 170 (PC) 4.State of Kerala v. C. Velukutty (1966) 60 ITR 239(SC) M/s.Best Bakery & Ice Cream Parlour. ITA Nos. 302 to 308/Coch/2010 & 269 to 275/coch/2010 M/s. Matha Enterprises. 9.6 According to the CIT(A), a fair and judicious attempt needed to be made in such set of circumstances to arrive at real income earned by the assessee out of such unaccount…

M/S. Matha Enterprises, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 304/COCH/2010[2003-04]Status: DisposedITAT Cochin16 Dec 2019AY 2003-04

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…s activity of the assessee during this period. The CIT(A) relied on the following judicial pronouncements: 1. State of Orissa v. Maharaja Shri B.P. Singh Deo (1970) 76 ITR 690(SC) 2.RamdasJuganiv.CIT (2006) 282 ITR 356 (MP) 3.CTT v. LaxminarainBadridas (1937) 5 ITR 170 (PC) 4.State of Kerala v. C. Velukutty (1966) 60 ITR 239(SC) M/s.Best Bakery & Ice Cream Parlour. ITA Nos. 302 to 308/Coch/2010 & 269 to 275/coch/2010 M/s. Matha Enterprises. 9.6 According to the CIT(A), a fair and judicious attempt needed to be made in such set of circumstances to arrive at real income earned by the assessee out of such unaccount…

M/S. Matha Enterprises, Angamally vs. ACIT, Ernakulam

In the result, the appeals of the assessee in ITA Nos

ITA 303/COCH/2010[2002-03]Status: DisposedITAT Cochin16 Dec 2019AY 2002-03

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…s activity of the assessee during this period. The CIT(A) relied on the following judicial pronouncements: 1. State of Orissa v. Maharaja Shri B.P. Singh Deo (1970) 76 ITR 690(SC) 2.RamdasJuganiv.CIT (2006) 282 ITR 356 (MP) 3.CTT v. LaxminarainBadridas (1937) 5 ITR 170 (PC) 4.State of Kerala v. C. Velukutty (1966) 60 ITR 239(SC) M/s.Best Bakery & Ice Cream Parlour. ITA Nos. 302 to 308/Coch/2010 & 269 to 275/coch/2010 M/s. Matha Enterprises. 9.6 According to the CIT(A), a fair and judicious attempt needed to be made in such set of circumstances to arrive at real income earned by the assessee out of such unaccount…

DCIT, Ernakulam vs. Matha Enterprises, Angamally

In the result, the appeals of the assessee in ITA Nos

ITA 269/COCH/2010[2001-02]Status: DisposedITAT Cochin16 Dec 2019AY 2001-02

Bench: Shri Chandra Poojari, Am &Shri George George K, Jm

For Respondent: Sri. Sudhanshu Shekhar Jha, CIT(DR)

…s activity of the assessee during this period. The CIT(A) relied on the following judicial pronouncements: 1. State of Orissa v. Maharaja Shri B.P. Singh Deo (1970) 76 ITR 690(SC) 2.RamdasJuganiv.CIT (2006) 282 ITR 356 (MP) 3.CTT v. LaxminarainBadridas (1937) 5 ITR 170 (PC) 4.State of Kerala v. C. Velukutty (1966) 60 ITR 239(SC) M/s.Best Bakery & Ice Cream Parlour. ITA Nos. 302 to 308/Coch/2010 & 269 to 275/coch/2010 M/s. Matha Enterprises. 9.6 According to the CIT(A), a fair and judicious attempt needed to be made in such set of circumstances to arrive at real income earned by the assessee out of such unaccount…

D.C.I.T. Central Cricle, Raipur vs. Mahamaya Steel Industries Ltd, Raipur

In the result, cross objections preferred by the assessee in CO

ITA 233/BIL/2014[2010-11]Status: DisposedITAT Raipur07 Nov 2019AY 2010-11

Bench: Shri Anil Chaturvedi, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita Nos.232 To 235/Rpr/2014 धनधाारण वषा / Assessment Years : 2009-10 To 2012-13

For Appellant: Shri Veekaas S. SharmaFor Respondent: Shri Santosh Kumar
Section 132

…आयकर अपीलीय अधधकरण न्यायपीठ रायपुर में । IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM आयकर अपील सं. / ITA Nos.232 to 235/RPR/2014 धनधाारण वषा / Assessment Years : 2009-10 to 2012-13 Deputy Commissioner of Income-tax, Central Circle, Raipur (C.G.) .......अपीलाथी / Appellant बनाम / V/s. M/s. Mahamaya Steel Industries Ltd., Mahamaya Tower, 3rd & 4th Floor, In front of Anupam Nagar, Near Varun Honda, G.E. Road, Raipur (C.G.) PAN: AABCR0695Q ……प्रत्यथी / Respondent CO Nos.32 to 35/RPR/2015 Assessment Years : 2009-10 to 2012-13 M/s.…

D.C.I.T. Central Cricle, Raipur vs. Mahamaya Steel Industries Ltd, Raipur

In the result, cross objections preferred by the assessee in CO

ITA 232/BIL/2014[2009-10]Status: DisposedITAT Raipur07 Nov 2019AY 2009-10

Bench: Shri Anil Chaturvedi, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita Nos.232 To 235/Rpr/2014 धनधाारण वषा / Assessment Years : 2009-10 To 2012-13

For Appellant: Shri Veekaas S. SharmaFor Respondent: Shri Santosh Kumar
Section 132

…आयकर अपीलीय अधधकरण न्यायपीठ रायपुर में । IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM आयकर अपील सं. / ITA Nos.232 to 235/RPR/2014 धनधाारण वषा / Assessment Years : 2009-10 to 2012-13 Deputy Commissioner of Income-tax, Central Circle, Raipur (C.G.) .......अपीलाथी / Appellant बनाम / V/s. M/s. Mahamaya Steel Industries Ltd., Mahamaya Tower, 3rd & 4th Floor, In front of Anupam Nagar, Near Varun Honda, G.E. Road, Raipur (C.G.) PAN: AABCR0695Q ……प्रत्यथी / Respondent CO Nos.32 to 35/RPR/2015 Assessment Years : 2009-10 to 2012-13 M/s.…

ITO 20(2)(3), Mumbai vs. Karan R. Shah, Mumbai

ITA 3652/MUM/2015[2010-11]Status: DisposedITAT Mumbai04 Oct 2018AY 2010-11

Bench: Hon’Ble Shri R. C. Sharma, Am & Hon’Ble Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 3652 & 4290/Mum/2015 (निर्धारणवर्ा / Assessment Year: 2010-11 & 2009-10)

For Appellant: Shri M. C. OmiFor Respondent: Shri Syed Nadeem
Section 133(6)Section 40A(2)(b)

…able, incorrect or incomplete before it can reject the accounts". The Honorable Kerala High Court further considered about how a best judgment is to made and quoted the Judgement of Privy Council in the matter of CIT Vs. Laxm ina rain Badridas as under (1937) 5 ITR 170: 43 I.T.A. No. 3652 & 4290/Mum/2015 & 1238/Mum/2018 Karan R. Shah "He (the assessing authority) must not act dishonestly or vindictively or capriciously because he must exercise judgment in the matter. He must make what he honestly believes to be a fair estimate of the proper figure of assessment, and for this purpose he must, their Lordships thin…

M/S Khumore Manufacturing and Industries Ltd., Kolkata vs. The DCIT, Cir-3, Kolkata

In the result the appeal by the assessee is allowed

ITA 356/KOL/2015[2006-2007]Status: DisposedITAT Kolkata02 Feb 2018AY 2006-2007

Bench: Hon’Ble Sri N.V.Vasudevan, Jm ] I.T.A No. 356/Kol/2015 Assessment Year : 2006-07

For Appellant: Shri Arvind Agarwal, AdvocateFor Respondent: Shri Satyajit Mondal, Addl. CIT
Section 143(1)Section 143(2)Section 144Section 144(1)

…in a dishonest, vindictive or capricious manner. The assessment made on the basis of best judgment and the estimate made by the AO should be honest and fair. In this regard the assessee relied on the decision in the case of CIT vs Laxminarain Badridas [1937] 5 ITR 170 (PC) and the decision of the Hon’ble Supreme Court in the case of Brij Bhushan Lal Parduman Kumar vs. CIT [1978] 115 ITR 524 (SC) and certain other decisions. (3) The assessee brought to the notice of CIT(A) that the assessment made by the AO was a wild guess which is not supported by any material on record. The assessee drew our attention of the C…

Assistant Commissioner of Income Tax-1(1), Raipur vs. Shri. Javed Ali Pradhan, Raipur

In the result, all appeals filed by the Revenue are dismissed

ITA 132/BIL/2011[2007-08]Status: DisposedITAT Raipur10 Jan 2018AY 2007-08

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member

For Appellant: NoneFor Respondent: Shri R.K.Singh, CITDR

…against the appellant demonstrates that the power for exercising discretion for delivering the judgment was not exercised judiciously and hence his action in this regard, in my considered view, is opposed to the decision in CIT v. Laxminarayan Badridas (1937) 5 ITR 170 (PC) and the decision in State of Kerala v. V.C.Velukutty (1966) 60 ITR 239 (SC) wherein it was held that the AO must not act dishonestly or capriciously because he must exercise his discretion and judgment in the matter judiciously to ensure that the scales of justice were not weighed against the appellant. Reliance for this proposition is placed…

Assistant Commissioner of Income Tax-1(1), Raipur vs. Shri. Javed Ali Pradhan, Raipur

In the result, all appeals filed by the Revenue are dismissed

ITA 131/BIL/2011[2006-07]Status: DisposedITAT Raipur10 Jan 2018AY 2006-07

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member

For Appellant: NoneFor Respondent: Shri R.K.Singh, CITDR

…against the appellant demonstrates that the power for exercising discretion for delivering the judgment was not exercised judiciously and hence his action in this regard, in my considered view, is opposed to the decision in CIT v. Laxminarayan Badridas (1937) 5 ITR 170 (PC) and the decision in State of Kerala v. V.C.Velukutty (1966) 60 ITR 239 (SC) wherein it was held that the AO must not act dishonestly or capriciously because he must exercise his discretion and judgment in the matter judiciously to ensure that the scales of justice were not weighed against the appellant. Reliance for this proposition is placed…

Assistant Commissioner of Income Tax-1(1), Raipur vs. Shri. Javed Ali Pradhan, Raipur

In the result, all appeals filed by the Revenue are dismissed

ITA 130/BIL/2011[2005-06]Status: DisposedITAT Raipur10 Jan 2018AY 2005-06

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member

For Appellant: NoneFor Respondent: Shri R.K.Singh, CITDR

…against the appellant demonstrates that the power for exercising discretion for delivering the judgment was not exercised judiciously and hence his action in this regard, in my considered view, is opposed to the decision in CIT v. Laxminarayan Badridas (1937) 5 ITR 170 (PC) and the decision in State of Kerala v. V.C.Velukutty (1966) 60 ITR 239 (SC) wherein it was held that the AO must not act dishonestly or capriciously because he must exercise his discretion and judgment in the matter judiciously to ensure that the scales of justice were not weighed against the appellant. Reliance for this proposition is placed…

Assistant Commissioner of Income Tax-1(1), Raipur vs. Shri. Javed Ali Pradhan, Raipur

In the result, all appeals filed by the Revenue are dismissed

ITA 128/BIL/2011[2003-04]Status: DisposedITAT Raipur10 Jan 2018AY 2003-04

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member

For Appellant: NoneFor Respondent: Shri R.K.Singh, CITDR

…against the appellant demonstrates that the power for exercising discretion for delivering the judgment was not exercised judiciously and hence his action in this regard, in my considered view, is opposed to the decision in CIT v. Laxminarayan Badridas (1937) 5 ITR 170 (PC) and the decision in State of Kerala v. V.C.Velukutty (1966) 60 ITR 239 (SC) wherein it was held that the AO must not act dishonestly or capriciously because he must exercise his discretion and judgment in the matter judiciously to ensure that the scales of justice were not weighed against the appellant. Reliance for this proposition is placed…

Assistant Commissioner of Income Tax-1(1), Raipur vs. Shri. Javed Ali Pradhan, Raipur

In the result, all appeals filed by the Revenue are dismissed

ITA 127/BIL/2011[2002-03]Status: DisposedITAT Raipur10 Jan 2018AY 2002-03

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member

For Appellant: NoneFor Respondent: Shri R.K.Singh, CITDR

…against the appellant demonstrates that the power for exercising discretion for delivering the judgment was not exercised judiciously and hence his action in this regard, in my considered view, is opposed to the decision in CIT v. Laxminarayan Badridas (1937) 5 ITR 170 (PC) and the decision in State of Kerala v. V.C.Velukutty (1966) 60 ITR 239 (SC) wherein it was held that the AO must not act dishonestly or capriciously because he must exercise his discretion and judgment in the matter judiciously to ensure that the scales of justice were not weighed against the appellant. Reliance for this proposition is placed…

Assistant Commissioner of Income Tax-1(1), Raipur vs. Shri. Javed Ali Pradhan, Raipur

In the result, all appeals filed by the Revenue are dismissed

ITA 126/BIL/2011[2001-02]Status: DisposedITAT Raipur10 Jan 2018AY 2001-02

Bench: : Shri N.S.Saini & Shri Pavan Kumar Gadale, Judical Member

For Appellant: NoneFor Respondent: Shri R.K.Singh, CITDR

…against the appellant demonstrates that the power for exercising discretion for delivering the judgment was not exercised judiciously and hence his action in this regard, in my considered view, is opposed to the decision in CIT v. Laxminarayan Badridas (1937) 5 ITR 170 (PC) and the decision in State of Kerala v. V.C.Velukutty (1966) 60 ITR 239 (SC) wherein it was held that the AO must not act dishonestly or capriciously because he must exercise his discretion and judgment in the matter judiciously to ensure that the scales of justice were not weighed against the appellant. Reliance for this proposition is placed…

Janta Construction Co., Jaipur vs. ITO, Jaipur

In the result, the appeal of the assessee is allowed

ITA 861/JPR/2014[2011-12]Status: DisposedITAT Jaipur28 Apr 2017AY 2011-12

Bench: The Itat By Taking Following Grounds Of Appeal:

For Appellant: Shri Manish Agarwal (CA)For Respondent: Shri R.A. Verma (Addl.CIT)
Section 145(3)

…March, (i) 2004. (ii) Kansara Bearings Pvt. Ltd. vs. ACIT reported in 270 ITR 235 (iii) Collector Ram SharmaVs. DCIT [ITAT (JPR) in ITA no. 771/Jp/2012 (iv) Prashant Oil mill Vs. ITO [72 Taxmann.com 136 (Guj)] (v) 99 TTJ 164 Ajay Goyal Vs. ITO (Jd.) (vi) 5 ITR 170 (PC) CIT V/s Laxminarain Badridas (vii) 60 ITR 239 (SC) State of Kerala V/s Velukutty ITA 861/JP/2014_ 6 Janta Construction Co. Vs ITO (viii) 115 ITR 524 (SC) Brij Bhushan Lal Parduman Kumar, etc. V/s CIT, Haryana, Himachal Pradesh and New Delhi-III Further he also pleaded that there was no need to disturb the declared results as the NP rate d…

Central Govt.Emp. Consumer Coo vs. Commissioner of Income Tax

Appeal is dismissed and pending applications

ITA/407/2007HC Delhi19 Sept 2008

Bench: HON'BLE MR. JUSTICE BADAR DURREZ AHMED,HON'BLE MR. JUSTICE RAJIV SHAKDHER

Section 35Section 40Section 63Section 8(1)

…stion of fact and it has also been decided that a finding by the Commissioners of a fact under a misapprehension of law or want of evidence to support a finding are both questions of law. 25. The Privy Council in CIT v. Laxminarain Badridas [(1937) 5 ITR 170, 179] said: “No question of law was involved; nor is it possible to turn a mere question of fact into a question of law by asking whether as a matter of law the officer came to a correct conclusion upon a matter of fact.” 26. Bose, J., in Seth Suwalal Chhogalal v. CIT [(1949) 17 ITR 269, 277] stated the test as follows: “A fact is…