CIT v. Shapoorji Pallonji Mistry

44 ITR 891Supreme Court of India1962#284 most cited

What is CIT v. Shapoorji Pallonji Mistry authority for?

The Commissioner of Income-tax (Appeals) cannot enhance an assessment by introducing a new source of income or by changing the head of income during appellate proceedings.

278

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

Shapoorji Pallonji Mistry · 44 ITR 891 · CIT(A) powers · enhancement of assessment · new source of income · change of head of income · Section 251 · appellate proceedings · limitation on CIT(A) powers

Sections most often in play

Section 143(3)Section 147Section 153ASection 148Section 263Section 69ASection 132Section 251(1)(a)
Read the full judgment

Issues it is cited on

section 31(3)place of effective managementsection 6(3)section 127(1)peak credit theorylegal expensessection 31ddtsection 251(1)(a)section 251(1)section 131(1a)section 251

Judgments citing CIT v. Shapoorji Pallonji Mistry

Shyamprasad Reddy Gaddam, Hyderabad vs. DCIT., Central Circle-3(3), Hyderabad

In the result, the appeal filed by the assessee is allowed in terms of our aforesaid observations

ITA 196/HYD/2024[2014-15]Status: DisposedITAT Hyderabad10 Oct 2025AY 2014-15

Bench: Shri Manjunatha G. & Shri Ravish Soodआ.अपी.सं /Ita No. 196/Hyd/2024 (िनधा"रण वष"/Assessment Year: 2014-15) Shyamprasad Reddy Vs. Dcit, Gaddam, Central Circle-3(3), Hyderabad. Hyderabad. Pan: Aetpg9117P (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Sri P. Murali Mohan Rao, Ca राज" व "ारा/Revenue By: Sri Gurpreet Singh, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 06/10/2025 घोषणा की तारीख/Date Of 10/10/2025 Pronouncement: आदेश / Order Per. Ravish Sood, J.M: The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By The Commissioner Of Income-Tax (Appeals)- 11, Hyderabad, Dated 02/02/2004, Which In Turn Arises From The Order Passed By The Assessing Officer Under Section 144 R.W.S 153A Of The Income Tax Act, 1961 (For Short, “Act”), Dated 12/12/2019 For The Assessment Year 2014-15. 2 Shyamprasad Reddy Gaddam Vs. Dcit

For Appellant: Sri P. Murali Mohan Rao, CAFor Respondent: Sri Gurpreet Singh, Sr. AR
Section 132Section 132(4)Section 144Section 153ASection 250Section 68Section 69Section 69A

…e quashed. The Ld. AR to buttress his aforesaid contention has taken us through the observations of the CIT(A). The Ld. AR had relied upon the judgment of the Hon’ble Supreme Court in the case of Commissioner of Income Tax vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC). The Ld. AR submitted that the Hon’ble Apex Court in its aforesaid order had observed that the CIT(A) was divested of his jurisdiction to introduce a new source of addition while exercising the power of enhancement vested with him under Section 251(1) of the Act. Apart from that, the Ld. AR had relied upon the orders of the coordinate benches…

Super Cassettes Industries Private Limited, Delhi vs. DCIT Central Circle 3, Delhi

ITA 7/DEL/2024[2017-18]Status: DisposedITAT Delhi25 Sept 2025AY 2017-18

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distinguish…

Super Cassettes Industries Private Limited, Delhi vs. DCIT Central Circle-3, Delhi

ITA 51/DEL/2024[2018-19]Status: DisposedITAT Delhi25 Sept 2025AY 2018-19

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Dy. Commissioner of Income Tax, Central Circle - 3, New Delhi, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 326/DEL/2024[2019-20]Status: DisposedITAT Delhi25 Sept 2025AY 2019-20

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Dy. Commissioner of Income Tax, Central Circle - 3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 281/DEL/2024[2019-20]Status: DisposedITAT Delhi25 Sept 2025AY 2019-20

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Dy. Commissioner of Income Tax, Central Circle - 3, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 272/DEL/2024[2017-18]Status: DisposedITAT Delhi25 Sept 2025AY 2017-18

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Super Cassettes Industries Private Limited, Delhi vs. DCIT Central Circle 03, Delhi

ITA 271/DEL/2024[2019-20]Status: DisposedITAT Delhi25 Sept 2025AY 2019-20

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Deputy Commissioner of Income Tax, Central Circle 3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 2951/DEL/2023[2016-17]Status: DisposedITAT Delhi25 Sept 2025AY 2016-17

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Deputy Commissioner of Income Tax, Central Circle 3, New Delhi, Delhi vs. Bhushan Dua, Delhi

ITA 2950/DEL/2023[2015-16]Status: DisposedITAT Delhi25 Sept 2025AY 2015-16

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Deputy Commissioner of Income Tax, Central Circle 3, New Delhi, Delhi vs. Super Cassettes Industries Pvt. Ltd., Delhi

ITA 2756/DEL/2023[2016-17]Status: DisposedITAT Delhi25 Sept 2025AY 2016-17

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Super Cassettes Industries Pvt Ltd, Delhi vs. DCIT Central Circle-3, Delhi

ITA 2714/DEL/2023[2016-17]Status: DisposedITAT Delhi25 Sept 2025AY 2016-17

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Super Cassettes Industries Pvt Ltd, New Delhi vs. DCIT Central Circle-3, Delhi

ITA 2713/DEL/2023[2015-16]Status: DisposedITAT Delhi25 Sept 2025AY 2015-16

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Deputy Commissioner of Income Tax, Central Circle 3, Delhi vs. Super Cassettes Industries Private Limited, Delhi

ITA 2512/DEL/2023[2014-15]Status: DisposedITAT Delhi25 Sept 2025AY 2014-15

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Deputy Commissioner of Income Tax, Central Circle 3, Delhi vs. Super Cassettes Industries Private Limited, Delhi

ITA 2511/DEL/2023[2013-14]Status: DisposedITAT Delhi25 Sept 2025AY 2013-14

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Deputy Commissioner of Income Tax, Central Circle-3, Delhi vs. Bhushan Dua, New Delhi

ITA 2510/DEL/2023[2013-14]Status: DisposedITAT Delhi25 Sept 2025AY 2013-14

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Deputy Commissioner of Income Tax, Central Circle 3, Delhi vs. Bhushan Dua, New Delhi

ITA 2509/DEL/2023[2014-15]Status: DisposedITAT Delhi25 Sept 2025AY 2014-15

Bench: Ms. Madhumita Roy & Shri Naveen Chandraa.Y. 2015-16 A.Y. 2016-17 A.Y. 2017-18 A.Y. 2018-19 A.Y. 2019-20

…VS Assistant Commissioner of Income-tax, Circle-63(1), New Delhi [2019] 110 taxmann.com 119 (Delhi - Trib.) c) CIT VS Union Tyres (1999) 107 Taxmann 447 (Delhi High Court) d) Rai Bahadur Hardutroy Motilal Chamaria 66 ITR 443 (SC) e) Shapoorji Pallonji Mistry 44 ITR 891 (SC) 17.6 The Ld DR has drawn attention of the Bench to the Judgement of Supreme Court in the case of CIT v. Nirbheram Daluram 224 ITR 610 to argue that the powers of CIT(A) are wide and CIT(A) can make enhancement on new source of income. The Ld. Counsel for the assessee argued that the case laws relied upon by him have considered and distingui…

Plhr Hospitality Private Limited, Delhi vs. DCIT, Central Circle 32, Delhi

ITA 4571/DEL/2025[2020-21]Status: DisposedITAT Delhi28 Aug 2025AY 2020-21

Bench: Shri Satbeer Singh Godaraassessment Year: 2020-21

Section 147Section 2Section 251(1)(a)

…d view that impugned twin additions stand deleted under the specific provision; no alleged general provision would come to the Revenue’s aid as is done in the lower appellate discussion in issue. And also that going by CIT vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC), CIT vs. Union Tyres (1990) 240 ITR 556 (Del.) and CIT vs. Sardari Lal & Co. (2001) 251 ITR 864 (Del.)(FB), there is no such option of changing the head of income in section 251(1)(a) “enhancement” jurisdiction as well. The impugned twin additions of Rs. 20 lakh as well as Rs. 60,000/- herein, are hereby deleted, therefore. 3. This assessee’…

M/S Kohinoor Foods Ltd., Delhi vs. ACIT, New Delhi

In the result, both the appeals of the assessee are allowed as indicated above

ITA 1549/DEL/2016[2011-12]Status: DisposedITAT Delhi22 Aug 2025AY 2011-12

Bench: SHRI PRAKASH CHAND YADAV (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)

…ons. We do not think it necessary and appropriate to proliferate this judgment by making reference to all the decisions. A few of the important ones need to be noticed. One of the earliest decisions on the point was in CIT vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC) : TC 7R.576. The matter related to corresponding provisions of the IT Act, 1922 (in short, ‘the old Act’). It was held inter alia that in an appeal filed by the assessee, AAC has no power to enhance the assessment by discovering a new source of income not considered by the ITO in the order appealed against. A similar view was expressed in CIT…

M/S Kohinoor Foods Ltd, New Delhi vs. Deputy Commissioner of Income-Tax, New Delhi

In the result, both the appeals of the assessee are allowed as indicated above

ITA 1900/DEL/2015[2010-11]Status: DisposedITAT Delhi22 Aug 2025AY 2010-11

Bench: SHRI PRAKASH CHAND YADAV (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)

…ons. We do not think it necessary and appropriate to proliferate this judgment by making reference to all the decisions. A few of the important ones need to be noticed. One of the earliest decisions on the point was in CIT vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC) : TC 7R.576. The matter related to corresponding provisions of the IT Act, 1922 (in short, ‘the old Act’). It was held inter alia that in an appeal filed by the assessee, AAC has no power to enhance the assessment by discovering a new source of income not considered by the ITO in the order appealed against. A similar view was expressed in CIT…

Takshshila Co-Op Group Housing Society Limited, Delhi vs. ITO Ward 59(2), Vikas Bhawan

Appeal is allowed

ITA 4245/DEL/2025[2016-17]Status: DisposedITAT Delhi18 Aug 2025AY 2016-17

Bench: Shri Satbeer Singh Godara

Section 144Section 57Section 69A

…ed by the Assessing Officer for the purpose of adding cash deposits herein amounting to Rs.13,57,800/- to that under section 69A of the Act, in the lower appellate discussion. 4. That being the case, I hereby quote CIT Vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC); CIT Vs. Sardari Lal & Co. (2001) 251 ITR 864 (Del.) and CIT Vs. Union Tyres (1999) 240 ITR 556 (Del.) to conclude that such a course of action changing heads of the impugned addition, in the course of lower appellate proceedings, is not sustainable in law. The learned CIT(A)/NFAC's impugned findings are hereby reversed therefore. 5. Th…