CIT v. Surat Cotton

202 ITR 932High Court1993#4632 most cited

What is CIT v. Surat Cotton authority for?

Income should be taxed only once in the hands of the rightful assessee; substantive assessments cannot be made simultaneously on multiple legal heirs.

25

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2020 to 2025.

Also referred to as

CIT v. Surat Cotton · 202 ITR 932 · taxing income multiple hands · substantive assessment · legal heirs · protective assessment · section 159

Sections most often in play

Section 132(4)Section 69ASection 69Section 143(3)Section 132Section 153ASection 156Section 159

Issues it is cited on

commercial substancesection 159substantive assessmentrelated party transactionlegal representativestatement under section 132(4)retracted statementbusiness expediencysection 156protective assessmentsection 292bcolourable device

Judgments citing CIT v. Surat Cotton

Deputy Commissioner of Income Tax, Delhi vs. Artex Textile Private Limited, Delhi

Appeal is dismissed

ITA 5005/DEL/2024[2017-18]Status: DisposedITAT Delhi10 Sept 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

For Appellant: Dr. Kapil Goel, AdvocateFor Respondent: Shri Manoj Kumar, Sr. DR
Section 142Section 142(1)Section 143(2)Section 144

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.5005/DEL/2024 (Assessment Year: 2017-18) DCIT, New Delhi. VS. M/s. Artex Textile Private Limited, Khasra No.282, Gali No.04, Industrial Area Shalimar Bagh, Delhi – 110 088. (APPELLANT) (PAN :AAHCA7681B) (RESPONDENT) ASSESSEE BY: Dr. Kapil Goel, Advocate REVENUE BY: Shri Manoj Kumar, Sr. DR Date of Hearing : 22.08.2025 Date of Order : 10.09.2025 ORDER PER S. RIFAUR RAHMAN, AM: 1. This appeal has been filed by the assessee against the order of ld. Comm…

DCIT, Central Circle-1(3), Bengaluru vs. Late Shri V G Siddhartha, Represented by Legal Heir Ms. Malvika Hegde, Bengaluru

ITA 2132/BANG/2024[2018-19]Status: DisposedITAT Bangalore16 Jul 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to…

DCIT, Central Circle-1(3), Bengaluru vs. Late Shri V G Siddhartha, Represented by Legal Heir Ms. Malvika Hegde, Bengaluru

ITA 2131/BANG/2024[2017-18]Status: DisposedITAT Bangalore16 Jul 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…ves creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to 2…

DCIT, Central Circle-1(3), Bengaluru vs. Late Shri V G Siddhartha, Represented by Legal Heir Ms. Malvika Hegde, Bengaluru

In the result the appeal filed by the revenue is hereby dismissed

ITA 2130/BANG/2024[2016-17]Status: DisposedITAT Bangalore16 Jul 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

DCIT, Central Circle-1(3), Bengaluru vs. Late Shri V G Siddhartha, Represented by Legal Heir Ms. Malvika Hegde, Bengaluru

In the result the appeal filed by the revenue is hereby dismissed

ITA 2129/BANG/2024[2015-16]Status: DisposedITAT Bangalore16 Jul 2025AY 2015-16

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

Mr. Ishaan Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Incomer Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1459/BANG/2024[2018-19]Status: DisposedITAT Bangalore16 Jul 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…ves creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to 2…

Mr. Ishaan Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Incomer Tax, Central Circle-1(3), Bangalore

ITA 1458/BANG/2024[2017-18]Status: DisposedITAT Bangalore16 Jul 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…ves creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to 2…

Mr. Ishaan Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Incomer Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1457/BANG/2024[2016-17]Status: DisposedITAT Bangalore16 Jul 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

Mr. Ishaan Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Incomer Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1456/BANG/2024[2015-16]Status: DisposedITAT Bangalore16 Jul 2025AY 2015-16

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

Mr. Ishaan Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Incomer Tax, Central Circle-1(3), Bangalore

ITA 1455/BANG/2024[2014-15]Status: DisposedITAT Bangalore16 Jul 2025AY 2014-15

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…ves creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to 2…

Mr. Ishaan Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

ITA 1454/BANG/2024[2013-14]Status: DisposedITAT Bangalore16 Jul 2025AY 2013-14

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…ves creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to 2…

Mr. Amarthya Siddhartha L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

ITA 1453/BANG/2024[2018-19]Status: DisposedITAT Bangalore16 Jul 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to…

Mr. Amarthya Siddhartha L/R of Late Sri. V G . Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

ITA 1452/BANG/2024[2017-18]Status: DisposedITAT Bangalore16 Jul 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…ves creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 2129 to…

Mr. Amarthya Siddhartha L/R of Late Sri. V G . Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1451/BANG/2024[2016-17]Status: DisposedITAT Bangalore16 Jul 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

Mr. Amarthya Siddhartha L/R of Late Sri. V G . Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

ITA 1450/BANG/2024[2015-16]Status: DisposedITAT Bangalore16 Jul 2025AY 2015-16

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…reates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 212…

Mr. Amarthya Siddhartha L/R of Late Sri. V G . Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

Appeal of the revenue is hereby dismissed

ITA 1449/BANG/2024[2014-15]Status: DisposedITAT Bangalore16 Jul 2025AY 2014-15

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…reates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have ITA No.1442 to 1447, 212…

Mr. Amarthya Siddhartha L/R of Late Sri. V G . Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1448/BANG/2024[2013-14]Status: DisposedITAT Bangalore16 Jul 2025AY 2013-14

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

Mrs. Malavika Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1447/BANG/2024[2018-19]Status: DisposedITAT Bangalore16 Jul 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

Mrs. Malavika Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1446/BANG/2024[2017-18]Status: DisposedITAT Bangalore16 Jul 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…

Mrs. Malavika Hegde L/R of Late Sri. V G Siddhartha, Bangalore vs. The Deputy Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result the appeal filed by the revenue is hereby dismissed

ITA 1445/BANG/2024[2016-17]Status: DisposedITAT Bangalore16 Jul 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri C Ramesh, CAFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 132Section 143(3)Section 153A

…es creates legal lacunae in recovery and is contrary to settled legal principles, which mandates that income should be taxed only once in the hands of the rightful assessee. 15.3 Citing judicial precedents in the cases such as CIT v. Surat Cotton reported in 202 ITR 932, CIT v. Durgawati reported in 202 ITR 932 (Bombay-HC), and Jagannath Hanumanbux v. ITO reported in 31 ITR 603, the learned AR emphasizes that taxing the same income in different hands is impermissible under law. Substantive assessments cannot be made simultaneously on multiple legal heirs. At best, the AO could have . ITA No.1442 to 1447, 2129 t…