CIT v. Shelly Products

261 ITR 367Supreme Court of India2003#623 most cited

What is CIT v. Shelly Products authority for?

An assessee is not estopped from making a legitimate claim, even if it was erroneously or inadvertently not made in the original return of income, as the purpose of assessment is to correctly determine the tax liability in accordance with law through a justice-oriented approach.

158

judgments rely on this decision, according to BharatTax’s citation analysis of 366,421 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Shelly Products · 261 ITR 367 · legitimate claim · erroneous claim · inadvertent claim · estoppel · return of income · correct tax liability · assessment procedure · justice-oriented approach

Also reported as

129 Taxmann 271

Sections most often in play

Section 143(3)Section 153ASection 153CSection 147Section 132Section 132(4)Section 139(1)Section 148
Read the full judgment

Issues it is cited on

section 2(45)section 158bb(1)retraction of statementsection 158bbsection 131(1a)section 153c(1)section 292bsection 34regular assessmentsection 153a(1)block periodsection 153b

Judgments citing CIT v. Shelly Products

John Developers, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 847/BANG/2023[2016-17]Status: DisposedITAT Bangalore24 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…ception are not being properly instructed is either assessed or over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This view which flows from enumerable judgements including CIT Vs. Shelly Products 261 ITR 367 (SC), S.R. Kosti Vs. CIT 276 ITR 165 (Guj.), CIT Vs. Prithvi Brokers and Shareholders 349 ITR 336 (Bom) and so on. Therefore, the assessee is within legitimate right to alter wrong position taken earlier in the course of proceedings. In the instant case, assessee wanted to alter its position in the return filed u/s 153A of the Act filed in pursua…

John Developers, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

ITA 846/BANG/2023[2015-16]Status: DisposedITAT Bangalore24 Jul 2024AY 2015-16

…ception are not being properly instructed is either assessed or over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This view which flows from enumerable judgements including CIT Vs. Shelly Products 261 ITR 367 (SC), S.R. Kosti Vs. CIT 276 ITR 165 (Guj.), CIT Vs. Prithvi Brokers and Shareholders 349 ITR 336 (Bom) and so on. Therefore, the assessee is within legitimate right to alter wrong position taken earlier in the course of proceedings. In the instant case, assessee wanted to alter its position in the return filed u/s 153A of the Act filed in pursua…

John Developers, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 845/BANG/2023[2014-15]Status: DisposedITAT Bangalore24 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…ception are not being properly instructed is either assessed or over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This view which flows from enumerable judgements including CIT Vs. Shelly Products 261 ITR 367 (SC), S.R. Kosti Vs. CIT 276 ITR 165 (Guj.), CIT Vs. Prithvi Brokers and Shareholders 349 ITR 336 (Bom) and so on. Therefore, the assessee is within legitimate right to alter wrong position taken earlier in the course of proceedings. In the instant case, assessee wanted to alter its position in the return filed u/s 153A of the Act filed in pursua…

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 841/BANG/2023[2014-15]Status: DisposedITAT Bangalore24 Jul 2024AY 2014-15

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…ception are not being properly instructed is either assessed or over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This view which flows from enumerable judgements including CIT Vs. Shelly Products 261 ITR 367 (SC), S.R. Kosti Vs. CIT 276 ITR 165 (Guj.), CIT Vs. Prithvi Brokers and Shareholders 349 ITR 336 (Bom) and so on. Therefore, the assessee is within legitimate right to alter wrong position taken earlier in the course of proceedings. In the instant case, assessee wanted to alter its position in the return filed u/s 153A of the Act filed in pursua…

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 840/BANG/2023[2013-14]Status: DisposedITAT Bangalore24 Jul 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…ception are not being properly instructed is either assessed or over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This view which flows from enumerable judgements including CIT Vs. Shelly Products 261 ITR 367 (SC), S.R. Kosti Vs. CIT 276 ITR 165 (Guj.), CIT Vs. Prithvi Brokers and Shareholders 349 ITR 336 (Bom) and so on. Therefore, the assessee is within legitimate right to alter wrong position taken earlier in the course of proceedings. In the instant case, assessee wanted to alter its position in the return filed u/s 153A of the Act filed in pursua…

M/S. Paul Resorts & Hotels Pvt Ltd, Bangalore vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 839/BANG/2023[2012-13]Status: DisposedITAT Bangalore24 Jul 2024AY 2012-13

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…ception are not being properly instructed is either assessed or over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This view which flows from enumerable judgements including CIT Vs. Shelly Products 261 ITR 367 (SC), S.R. Kosti Vs. CIT 276 ITR 165 (Guj.), CIT Vs. Prithvi Brokers and Shareholders 349 ITR 336 (Bom) and so on. Therefore, the assessee is within legitimate right to alter wrong position taken earlier in the course of proceedings. In the instant case, assessee wanted to alter its position in the return filed u/s 153A of the Act filed in pursua…

M/S. Paul Resorts & Hotels Pvt. Ltd., Bangalore vs. Deputy Commissioner of Income-Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 838/BANG/2023[2011-12]Status: DisposedITAT Bangalore24 Jul 2024AY 2011-12

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…ception are not being properly instructed is either assessed or over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This view which flows from enumerable judgements including CIT Vs. Shelly Products 261 ITR 367 (SC), S.R. Kosti Vs. CIT 276 ITR 165 (Guj.), CIT Vs. Prithvi Brokers and Shareholders 349 ITR 336 (Bom) and so on. Therefore, the assessee is within legitimate right to alter wrong position taken earlier in the course of proceedings. In the instant case, assessee wanted to alter its position in the return filed u/s 153A of the Act filed in pursua…

Ritika Pvt Ltd, Gurgaon vs. ACIT Vcentral Circle-4, New Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 430/DEL/2021[2013-14]Status: DisposedITAT Delhi19 Jun 2024AY 2013-14

Bench: Shri Pradip Kumar Kedia & Shri Sudhir Kumarassessment Year 2013-14

For Respondent: Ms. Beenu, Sr.DR
Section 143(3)Section 28Section 43B

…conception or not being properly instructed is over assessed, the authorities under the Act 6 are required to ensure that only legitimate tax dues are collected. This is the view which flows form innumerable judgments including CIT vs. Shelly Products (2003) 261 ITR 367 (SC), S. R. Koshti vs. CIT (2005) 276 ITR 165 (Guj), Ester Industries vs. CIT (2009) 185 TAXMAN 266 (Delhi) and CIT vs. Pruthvi Brokers & Shareholders (P.) Ltd. [2012] 349 ITR 336 (Bom). The essence of these decisions are that mere admission on the part of the assessee with respect to an addition/disallowance in its original return or in revised…

Assistant Commissioner of Income Tax, Mumbai vs. Essar Ports Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

ITA 406/MUM/2024[2015-16]Status: DisposedITAT Mumbai09 May 2024AY 2015-16

Bench: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHRI (Accountant Member)

Section 115JSection 143(3)Section 144C(1)Section 14ASection 4A

…ntemplated that the assessed income of an assessee cannot go below the returned income was invalid. The Hon'ble High Court while concluding as hereinabove, had observed, that the judgment of the Hon'ble Apex Court in the case of CIT Vs. Shelly Products (2003) 261 ITR 367 (SC) relied upon by the revenue was distinguishable on facts. Also, we find that a similar view had been taken by a coordinate bench of the Tribunal in the case of Tejaskiran Pharamachem Industries Pvt. 7 M/s. Essar Ports Ltd. Ltd. Vs. Dy. CIT [ITA 3307/Mum/2014, dated 13.12.2017] (Mum). In the said case, the Tribunal relying on the judgment of…

Dhanuka Agritech Ltd., Delhi vs. ACIT, Circle-2, New Delhi

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

ITA 1401/DEL/2021[2018-19]Status: DisposedITAT Delhi19 Apr 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri Pradip Kumar Kediaassessment Year 2018-19

For Respondent: Shri Amit Katoch, CIT-DR
Section 143(3)

…isconception or not being properly instructed, is over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This is the view which flows from innumerable judgments including CIT vs. Shelly Products (2003) 261 ITR 367 (SC), S. R. Koshti vs. CIT (2005) 276 ITR 165 (Guj), Ester Industries vs. CIT (2009) 185 TAXMAN 266 (Delhi) and CIT vs. Pruthvi Brokers & Shareholders (P.) Ltd. [2012] 349 ITR 336 (Bom). The 4 essence of these decisions are that mere admission on the part of the assessee with respect to an addition/disallowance in its original return or in revise…

Kolaparthy Suvarna Lakshmi, Nellore vs. The Deputy Commissioner of Income Tax, Circle-1, Nellore

In the result, the appeal of the assessee is dismissed

ITA 595/HYD/2023[A.Y.2018-19]Status: DisposedITAT Hyderabad22 Mar 2024

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2018-19 Kolaparthy Suvarna Lakshmi, Vs. The Deputy Commissioner Of Income Tax, Nellore. Central Circle – 1, Nellore. Pan : Agupk4977A. (Appellant) (Respondent) Assessee By: Shri M.V. Prasad, C.A. Revenue By: Ms. Sheetal Sarin, Sr. Ar. Date Of Hearing: 19.03.2024 Date Of Pronouncement: 22.03.2024

For Appellant: Shri M.V. Prasad, C.AFor Respondent: Ms. Sheetal Sarin, Sr. AR
Section 115BSection 143(1)Section 143(3)Section 153CSection 69A

…he assessee that the addition cannot be made on the basis of search is required to be rejected being devoid of any merit. For the above said proposition, we may rely upon the decision of Hon'ble Supreme Court in the case of CIT Vs. Shelly Products reported in 261 ITR 367 and also the decision of this Tribunal in the case of Nagarjuna Construction Company Limited Vs. DCIT (ITA 13 Nos.73 to 75/Hyd/2017) wherein it was held that the income of the assessee cannot be computed below the returned income. In view of the above, the amount of Rs.28,55,377/- had been correctly assessed by the lower authorities. Having held…

Appdynamics International Limited, Noida vs. ACIT Intl Taxation Circle 1(1)(1), New Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2413/DEL/2023[2020-21]Status: DisposedITAT Delhi29 Feb 2024AY 2020-21

Bench: Shri Saktijit Dey- & Shri Pradip Kumar Kedia-

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Shri Vizay B. Vasanta, CIT-DR
Section 143(3)Section 144CSection 144C(13)Section 144C(5)

…misconception or not being properly instructed is over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This is the view which flows form innumerable judgments including CIT vs. Shelly Products (2003) 261 ITR 367 (SC), S. R. Koshti vs. CIT (2005) 276 ITR 165 (Guj), Ester Industries vs. CIT (2009) 185 TAXMAN 266 (Delhi) and CIT vs. Pruthvi Brokers & Shareholders (P.) Ltd. [2012] 349 ITR 336 (Bom). The essence of these decisions are that mere admission on the part of the assessee with respect to an addition/disallowance in its original return or in revised…

Kandathil Jewellers, Kerala vs. DCIT, Circle Ingtl. Txan, Kerala

In the result, the assessee’s appeals are dismissed

ITA 874/COCH/2022[2019-20]Status: DisposedITAT Cochin21 Feb 2024AY 2019-20

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri Jyothison J., CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 133ASection 148(1)Section 44A

…, a product of the law as applied to the facts of a case, cannot be lower than the returned income. Rather, it is only where an assessment fails, that the assessee may not be able to avoid the tax incident on his returned income (CIT v. Shelly Products [2003] 261 ITR 367 (SC)). 6.3 We decide accordingly. 10 ITA Nos. 872-874/Coch/2022 (AYs.: 2015-16, 16-17 & 19-20) Mytheenkunju Muhammed Kunju v. Dy. CIT 7. In the result, the assessee’s appeals are dismissed. Order pronounced on February 21, 2024 under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963 (Manomohan Das) Accountant Member Cochin, Dated: Febru…

Kandathil Jewellers, Kerala vs. DCIT, Circle Ingtl. Txan, Kerala

In the result, the assessee’s appeals are dismissed

ITA 873/COCH/2022[2016-17]Status: DisposedITAT Cochin21 Feb 2024AY 2016-17

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri Jyothison J., CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 133ASection 148(1)Section 44A

…, a product of the law as applied to the facts of a case, cannot be lower than the returned income. Rather, it is only where an assessment fails, that the assessee may not be able to avoid the tax incident on his returned income (CIT v. Shelly Products [2003] 261 ITR 367 (SC)). 6.3 We decide accordingly. 10 ITA Nos. 872-874/Coch/2022 (AYs.: 2015-16, 16-17 & 19-20) Mytheenkunju Muhammed Kunju v. Dy. CIT 7. In the result, the assessee’s appeals are dismissed. Order pronounced on February 21, 2024 under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963 (Manomohan Das) Accountant Member Cochin, Dated: Febru…

Kandathil Jewellers, Kerala vs. DCIT International Taxation Circle, Trivandrum

In the result, the assessee’s appeals are dismissed

ITA 872/COCH/2022[2015-16]Status: DisposedITAT Cochin21 Feb 2024AY 2015-16

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri Jyothison J., CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 133ASection 148(1)Section 44A

…, a product of the law as applied to the facts of a case, cannot be lower than the returned income. Rather, it is only where an assessment fails, that the assessee may not be able to avoid the tax incident on his returned income (CIT v. Shelly Products [2003] 261 ITR 367 (SC)). 6.3 We decide accordingly. 10 ITA Nos. 872-874/Coch/2022 (AYs.: 2015-16, 16-17 & 19-20) Mytheenkunju Muhammed Kunju v. Dy. CIT 7. In the result, the assessee’s appeals are dismissed. Order pronounced on February 21, 2024 under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963 (Manomohan Das) Accountant Member Cochin, Dated: Febru…

Navayuga Engineering Company Limited, Hyderabad vs. ACIT Circle-1(1), Hyderabad

In the result, all the three appeals filed by the assessee are dismissed

ITA 241/HYD/2022[2015-16]Status: DisposedITAT Hyderabad11 Dec 2023AY 2015-16

Bench: Shri R.K. Panda, Vice- & Shri Laliet Kumar

For Appellant: Shri Pawan Kumar Chakrapany, C.AFor Respondent: Smt.Mamata Choudhary
Section 115JSection 132Section 143(2)Section 143(3)Section 153ASection 80I

…come declaring ‘nil’ income and sought a refund of Rs. 40,75,88,535/-. For all the three years the assessee has sought a refund of Rs. 113,63,24,502/-. It was submitted that as per the law laid down by the Hon'ble Supreme Court in the case of Shelly Products (261 ITR 367), the income of the assessee cannot be assessed at lower than the income declared by the assessee in the return of income. Further, it was submitted that assuming in a hypothetical case for any reason, the search conducted by the Revenue was held to be bad in law, in that eventuality, the return subsequently filed will not determine the income of…

Navayuga Engineering Company Limited, Hyderabad vs. ACIT Circle-1(1), Hyderabad

In the result, all the three appeals filed by the assessee are dismissed

ITA 240/HYD/2022[2014-15]Status: DisposedITAT Hyderabad11 Dec 2023AY 2014-15

Bench: Shri R.K. Panda, Vice- & Shri Laliet Kumar

For Appellant: Shri Pawan Kumar Chakrapany, C.AFor Respondent: Smt.Mamata Choudhary
Section 115JSection 132Section 143(2)Section 143(3)Section 153ASection 80I

…come declaring ‘nil’ income and sought a refund of Rs. 40,75,88,535/-. For all the three years the assessee has sought a refund of Rs. 113,63,24,502/-. It was submitted that as per the law laid down by the Hon'ble Supreme Court in the case of Shelly Products (261 ITR 367), the income of the assessee cannot be assessed at lower than the income declared by the assessee in the return of income. Further, it was submitted that assuming in a hypothetical case for any reason, the search conducted by the Revenue was held to be bad in law, in that eventuality, the return subsequently filed will not determine the income of…

Navayuga Engineering Company Limited, Hyderabad vs. ACIT Circle-1(1), Hyderabad

In the result, all the three appeals filed by the assessee are dismissed

ITA 239/HYD/2022[2013-14]Status: DisposedITAT Hyderabad11 Dec 2023AY 2013-14

Bench: Shri R.K. Panda, Vice- & Shri Laliet Kumar

For Appellant: Shri Pawan Kumar Chakrapany, C.AFor Respondent: Smt.Mamata Choudhary
Section 115JSection 132Section 143(2)Section 143(3)Section 153ASection 80I

…come declaring ‘nil’ income and sought a refund of Rs. 40,75,88,535/-. For all the three years the assessee has sought a refund of Rs. 113,63,24,502/-. It was submitted that as per the law laid down by the Hon'ble Supreme Court in the case of Shelly Products (261 ITR 367), the income of the assessee cannot be assessed at lower than the income declared by the assessee in the return of income. Further, it was submitted that assuming in a hypothetical case for any reason, the search conducted by the Revenue was held to be bad in law, in that eventuality, the return subsequently filed will not determine the income of…

Titagarh Capital Management Services(P)Ltd, Kolkata vs. ITO, Kolkata

In the result, the appeal of the assessee stands allowed

ITA 382/KOL/2023[2013-14]Status: DisposedITAT Kolkata21 Nov 2023AY 2013-14

Bench: Shri Sanjay Garg & Shri Girish Agrawal

Section 14ASection 250

…आयकर अपील"य अ"धकरण, कोलकाता पीठ ‘बी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA "ी संजय गग", "या"यक सद"यएवं "ी "गर"श अ"वा लेखा सद"य के सम" , Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T.A. No.382/Kol/2023 Assessment Year: 2013-14 M/s Titagarh Capital Management Services (P) Ltd......................……....Appellant C/o. M/s Salarpuria Jajodia & Co., 7, C.R. Avenue, 3rd Floor, Kolkata-700072. [PAN: AACCT5853F] vs. ITO, Ward-7(2), Kolkata........…...............................................…..…..... Respondent Appearances by: Shri S. Jhajaria, AR, a…

Sri.E.Noushad, Kollam vs. The DCIT, Kollam

In the result, the appeals filed by the assessee are allowed, and the stay petitions dismissed as infructuous

ITA 18/COCH/2021[2009-10]Status: DisposedITAT Cochin30 Oct 2023AY 2009-10

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri Anil D. Nair, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. DR
Section 132Section 132ASection 153ASection 153C

…in law. The assessee’s taxable income shall, accordingly, be that as returned or otherwise admitted by him, even if by way of self-assessment (CIT Page 4 ITANos. 16 to 18/Coch/2021 SP Nos. 01 to 03/Coch/2021 E. Noushad vs. Dy. CIT v. Shelly Products [2003] 261 ITR 367 (SC)). As we have decided the assessee’s appeals, his stay petitions become infructuous. We decide accordingly. 6. In the result, the appeals filed by the assessee are allowed, and the stay petitions dismissed as infructuous. Order pronounced in the open court onOctober30, 2023 under Rule 34 of The Income Tax(Appellate Tribunal) Rules, 1963. (Ma…