CIT v. S. Nelliappan

66 ITR 722Supreme Court of India1967#1303 most cited

What is CIT v. S. Nelliappan authority for?

An inference drawn by tax authorities regarding the connection between undisclosed income and unexplained cash credits or other unaccounted assets must be upheld if not based on speculation, even without direct evidence. This principle confirms the telescoping of unexplained income, preventing double taxation by allowing a single source of undisclosed funds to explain multiple additions.

87

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. S. Nelliappan · 66 ITR 722 SC · telescoping unexplained income · unexplained cash credits · undisclosed income assessment · inference of fact · no direct evidence · double taxation prevention · assessment of additions

Sections most often in play

Section 143(3)Section 115BBESection 142(1)Section 144C(13)Section 144C(5)Section 148Section 153(1)Section 153(4)

Issues it is cited on

section 142amat creditsection 150surrender of incomeaccumulated profitssection 158bdsection 80icsection 2(22)shell companydeemed dividendsection 2(22)(e)retracted statement

Judgments citing CIT v. S. Nelliappan

Sime Darby Engineering Sdn Bhd, Delhi vs. The Deputy Commissioner of Income Tax (International Taxation), Circle-1, Dehradun

In the result, appeals of the Assessee in ITA No

ITA 9/DDN/2021[2017-18]Status: DisposedITAT Dehradun27 Jan 2026AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Through Virtual Mode]

Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 153Section 153(4)

…THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN “DB” BENCH: DEHRADUN BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [THROUGH VIRTUAL MODE] ITA No.9/DDN/2021 (ASSESSMENT YEAR 2017-18) Sime Darby Engineering SDN DCIT, BHD, International C/o Pricewaterhouse Coopers Vs Taxation, Circle-2, Pvt. Ltd., 18th Floor, Building 13-A, Subhash 10, Tower-C, DLF Cyber City, Road, Dehradun, Gurugaon, Haryana-122002 Uttarakhand 248001 PAN-AAOCS1189B (Appellant) (Respondent) Assessee by Sh. Ravi Sharma, Sh. Kshity Bansal and Ms. Supriya Mehta, CA’s and AR’s Department by Shri Mohan Lal Joshi,…

Sime Darby Engineering Sdnbhd, Malaysia vs. The Deputy Commissioner of Income Tax (International Taxation ) Circle-1, Dehradun

In the result, appeals of the Assessee in ITA No

ITA 40/DDN/2021[2018-19]Status: DisposedITAT Dehradun27 Jan 2026AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Through Virtual Mode]

Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 153Section 153(4)

…THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN “DB” BENCH: DEHRADUN BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [THROUGH VIRTUAL MODE] ITA No.9/DDN/2021 (ASSESSMENT YEAR 2017-18) Sime Darby Engineering SDN DCIT, BHD, International C/o Pricewaterhouse Coopers Vs Taxation, Circle-2, Pvt. Ltd., 18th Floor, Building 13-A, Subhash 10, Tower-C, DLF Cyber City, Road, Dehradun, Gurugaon, Haryana-122002 Uttarakhand 248001 PAN-AAOCS1189B (Appellant) (Respondent) Assessee by Sh. Ravi Sharma, Sh. Kshity Bansal and Ms. Supriya Mehta, CA’s and AR’s Department by Shri Mohan Lal Joshi,…

Sime Darby Engineering Sdn Bhd, Gurgaon vs. DCIT (International Taxation), Circle-2, Dehradun

In the result, appeals of the Assessee in ITA No

ITA 7616/DEL/2018[2015-16]Status: DisposedITAT Dehradun27 Jan 2026AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal[Through Virtual Mode]

Section 143(3)Section 144CSection 144C(13)Section 144C(5)Section 153Section 153(4)

…THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN “DB” BENCH: DEHRADUN BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [THROUGH VIRTUAL MODE] ITA No.9/DDN/2021 (ASSESSMENT YEAR 2017-18) Sime Darby Engineering SDN DCIT, BHD, International C/o Pricewaterhouse Coopers Vs Taxation, Circle-2, Pvt. Ltd., 18th Floor, Building 13-A, Subhash 10, Tower-C, DLF Cyber City, Road, Dehradun, Gurugaon, Haryana-122002 Uttarakhand 248001 PAN-AAOCS1189B (Appellant) (Respondent) Assessee by Sh. Ravi Sharma, Sh. Kshity Bansal and Ms. Supriya Mehta, CA’s and AR’s Department by Shri Mohan Lal Joshi,…

Shri Jitendra Behl, Sriganganagar vs. ITO, Ward-3(2), Jaipur

In the result, the appeal of the assessee is allowed

ITA 1080/JPR/2024[2017-18]Status: DisposedITAT Jaipur30 Oct 2025AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Mrs. Raksha Birla, C.AFor Respondent: Shri Gautam Singh Choudhary, JCIT a
Section 143(3)Section 250Section 69A

…l, or whether it is in respect of the subject matter of the action, strikes at the very authority of the Court to pass any decree, and such a defect cannot be cured even by consent of parties. ..." (p. 342) It has also been held in CIT v. S. Nelliappan [1967] 66 ITR 722 (SC) and CIT v. Delhi Sanitary Stores [1981] 127 ITR 822 (Raj.), that the Tribunal may allow new grounds to be urged before it. 5. In view of these facts, circumstances and authoritative observations, we have no hesitation to hold that the Tribunal was legally not right in not allowing the objections as to the jurisdiction of the ITO to initiate t…

Sunil Kumar Agarwal, Jaipur vs. ACIT, Cen. Cir-2, Jaipur

In the result the appeal of the assessee in ITA no

ITA 513/JPR/2025[2016-17]Status: DisposedITAT Jaipur14 Oct 2025AY 2016-17
For Appellant: Shri S. L. Poddar, AdvFor Respondent: Mrs. Anita Rinesh, JCIT, Sr-DR
Section 132Section 139Section 153ASection 234B

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA Nos. 513 & 519 to 521/JP/2025 fu/kZkj.k o"kZ@Assessment Years : 2016-17 & 2018-19 to 2020-21 cuke Sunil Kumar Agarwal ACIT, Vs. 395, Narnoli Mansion, Outside Central Circle-2, Sanganeri Gate, Jaipur Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: ABRPA9601M vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITSS No. 03/JP/2025 fu/kZkj.k…

ACIT., Central Circle-2(4), Hyderabad vs. Satyanarayana Reddy Manne, Hydreabad

ITA 472/HYD/2025[2017-18]Status: DisposedITAT Hyderabad30 Jun 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA M.V. Prasad andFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 143(3)Section 153ASection 251(1)(a)

…benefit of telescoping towards alleged on-money payment for purchase of lands. In this regard, he relied upon the decision of Hon'ble Supreme Court in the case of CIT vs., Devi Prasad Vishwanath Prasad [1969] 72 ITR 194 (SC) and CIT vs., S. Nelliappan [1967] 66 ITR 722 (SC). Therefore, he submitted that, the additions proposed by the learned CIT(A) on the basis of enhancement of assessment, should be deleted on this count also. 11. Shri B. Bala Krishna, learned CIT-DR, on the other hand, supporting the order of the learned CIT(A) on the issue of enhancement of assessment submitted that, the learned CIT(A) is hav…

Satyanarayana Reddy Manne, Hyderabad vs. ACIT., Central Circle-2(4), Hyderabad

In the result, appeal filed by the Assessee is allowed and appeal filed by the Revenue is dismissed

ITA 382/HYD/2025[2017-18]Status: DisposedITAT Hyderabad30 Jun 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA M.V. Prasad and Shri K.S. Rajendra KumarFor Respondent: Shri B. Bala Krishna, CIT-DR
Section 143(3)Section 153ASection 251(1)(a)

…benefit of telescoping towards alleged on-money payment for purchase of lands. In this regard, he relied upon the decision of Hon’ble Supreme Court in the case of CIT vs., Devi Prasad Vishwanath Prasad [1969] 72 ITR 194 (SC) and CIT vs., S. Nelliappan [1967] 66 ITR 722 (SC). Therefore, he submitted that, the additions proposed by the learned CIT(A) on the basis of enhancement of assessment, should be deleted on this count also. 11. Shri B. Bala Krishna, learned CIT-DR, on the other hand, supporting the order of the learned CIT(A) on the issue of enhancement of assessment submitted that, the learned CIT(A) is ha…

Scott Edil Advance Research Laboratories and Education Limited, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 857/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh03 Mar 2025AY 2016-17
Section 127Section 132Section 153ASection 153DSection 2(22)(e)

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her main c…

Scott Edil Advance Research Laboratories and Education Limited, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 856/CHANDI/2023[2015-16]Status: DisposedITAT Chandigarh03 Mar 2025AY 2015-16
Section 127Section 132Section 153ASection 153D

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her main c…

Scott Edil Advance Research Laboratories and Education Limited, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 845/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh03 Mar 2025AY 2017-18
Section 127Section 132Section 153ASection 153DSection 2(22)(e)

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her main c…

Scott Edil Advance Research Laboratories and Education Limited, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 843/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh03 Mar 2025AY 2012-13
Section 127Section 132Section 153ASection 153D

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 71 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her mai…

Scott Edil Pharmacia Ltd., Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 833/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh03 Mar 2025AY 2017-18
Section 127Section 132Section 153ASection 153D

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 71 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her mai…

Scott Edil Pharmacia Ltd., Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 832/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh03 Mar 2025AY 2016-17
Section 127Section 153DSection 2(22)(e)

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her main c…

Scott Edil Pharmacia Ltd., Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 829/CHANDI/2023[2013-14]Status: DisposedITAT Chandigarh03 Mar 2025AY 2013-14

Bench: Shri Sanjay Garg & Shri Krinwant Sahayआयकर अपील सं./Ita No. 579/Chd /2023 निर्धारण वर्ष / Assessment Year : 2017-18 & आयकर अपील सं./Ita Nos.582 To 584/Chd/ 2023 निर्धारण वर्ष / Assessment Years : 2014-15 To 2016-17 & आयकर अपील सं./Ita No. 591/Chd /2023 निर्धारण वर्ष / Assessment Year : 2018-19

Section 127Section 132Section 153ASection 153D

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 71 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 732/CHANDI/2023[2018-19]Status: DisposedITAT Chandigarh03 Mar 2025AY 2018-19
Section 127Section 132Section 153ASection 153D

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR ... ... ... ... 71 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discusse…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 731/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh03 Mar 2025AY 2017-18
Section 127Section 132Section 153ASection 153DSection 2(22)

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her main c…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 730/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh03 Mar 2025AY 2016-17
Section 127Section 132Section 153ASection 153DSection 2

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 71 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her mai…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 728/CHANDI/2023[2014-15]Status: DisposedITAT Chandigarh03 Mar 2025AY 2014-15

Bench: Shri Sanjay Garg & Shri Krinwant Sahayआयकर अपील सं./Ita No. 579/Chd/2023 निर्धारण वर्ष / Assessment Year : 2017-18 & आयकर अपील सं./Ita Nos.582 To 584/Chd/2023 निर्धारण वर्ष / Assessment Years : 2014-15 To 2016-17 & आयकर अपील सं./Ita No. 591/Chd/2023 निर्धारण वर्ष / Assessment Year : 2018-19 Maxport India Pvt. Ltd. C/O Parikshit Aggarwal, Chartered Accountant, H. No. 3035, Sector 27D, Chandigarh- 160019. स्था.लेखा सं./Pan No: Aaicm9120E अपीलाथ/Appellant बनाम प्रथीय/Respondent Deputy Commissioner Of Income-Tax, Centre Circle-1, Chandigarh. & आयकर अपील सं./Ita Nos.482 & 483/Chd/2023 निर्धारण वर्ष / Assessment Years : 2017-18 & 2018-19 Vaishali Aggarwal C/O Parikshit Aggarwal, Chartered Accountant, H No. 3035, Sector 27D, Chandigarh- 160022. स्था.लेखा सं./Pan No: Aaqpa4025M अपीलाथ/Appellant बनाम प्रथीय/Respondent Deputy Commissioner Of Income-Tax, Centre Circle-1, Chandigarh. & आयकर अपील सं./Ita No. 846/Chd/2023

Section 127Section 132Section 153ASection 153DSection 2(22)(e)

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon'ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 72 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her m…

Shri Balram Krishan, Chandigarh vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 726/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh03 Mar 2025AY 2012-13
Section 153A

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her main c…

Maxport India Private Limited, Chandigarh vs. Dy. Commissioner of Income Tax, Central Circle-1, Chandigarh

ITA 583/CHANDI/2023[2015-16]Status: DisposedITAT Chandigarh03 Mar 2025AY 2015-16
Section 127Section 132Section 153ASection 153DSection 2(22)(e)

…made multiple additions, resulting in double taxation which was wrong and against the principles of natural justice. For this proposition the ld. Counsel of the assessee relied on the judgment of Hon’ble Apex Court in the case of CIT vs. S. Nelliappan (1967) 66 ITR 722 (SC) and hon’ble Allahabad HC in the case of CIT vs. Saraf Trading Co. (2015) 376 ITR 71 534, wherein the principle of telescoping for adjusting unexplained income was confirmed and it was also held that income cannot be added twice. 79. The ld. DR, on the other hand has relied upon the findings of the lower authorities as discussed above. Her mai…