Dhakeshwari Cotton Mills Ltd. v. CIT

26 ITR 775Supreme Court of India1954#40 most cited

What is Dhakeshwari Cotton Mills Ltd. v. CIT authority for?

Corroborative evidence is essential to support evidence found on third-party premises, and an assessment cannot be based on suspicion, surmises, or conjecture.

1,061

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2007 to 2026.

Also referred to as

Dhakeshwari Cotton Mills Ltd. v. CIT · corroborative evidence · third-party premise · suspicion · surmises · conjecture · assessment · Income-tax Officer · evidence

Sections most often in play

Section 143(3)Section 132Section 68Section 153CSection 153ASection 132(4)Section 115BBESection 142(1)

Issues it is cited on

section 23(3)circular tradingsection 132(4a)dumb documentssection 292crejection of books of accountloose paperssection 145(3)documents seizedsection 34section 145on-money

Judgments citing Dhakeshwari Cotton Mills Ltd. v. CIT

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 804/IND/2019[2013-14]Status: DisposedITAT Indore31 Jan 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 803/IND/2019[2012-13]Status: DisposedITAT Indore31 Jan 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 802/IND/2019[2011-12]Status: DisposedITAT Indore31 Jan 2024AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 801/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 800/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 799/IND/2019[2015-16]Status: DisposedITAT Indore31 Jan 2024AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 798/IND/2019[2014-15]Status: DisposedITAT Indore31 Jan 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 797/IND/2019[2013-14]Status: DisposedITAT Indore31 Jan 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 796/IND/2019[2012-13]Status: DisposedITAT Indore31 Jan 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 795/IND/2019[2011-12]Status: DisposedITAT Indore31 Jan 2024AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 794/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

The ACIT, (Central)-1, Indore vs. M/S. Prakash Ashphlting & Toll Highway Ltd., Indore

Appeals are dismissed

ITA 793/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 269SSection 271DSection 271E

…anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 26 of 42 M/s Prakash Asphalting & Toll Highways (India) Ltd. ITA Nos. 793 to 799/Ind/2019 & ITA Nos. 800 to 805/Ind/2019 - AY 2009-10 to 2015-16 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 791/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

…t having anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 23 of 34 Late Shri Puneet Agrawal(Legal Representative – Smt. Neeti Agrawal) ITA Nos. 787,788, 790 & 791/Ind/2019 - AY 2009-10& 2010-11 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 790/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

…t having anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 23 of 34 Late Shri Puneet Agrawal(Legal Representative – Smt. Neeti Agrawal) ITA Nos. 787,788, 790 & 791/Ind/2019 - AY 2009-10& 2010-11 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 789/IND/2019[2012-13]Status: DisposedITAT Indore31 Jan 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

…t having anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 23 of 34 Late Shri Puneet Agrawal(Legal Representative – Smt. Neeti Agrawal) ITA Nos. 787,788, 790 & 791/Ind/2019 - AY 2009-10& 2010-11 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 788/IND/2019[2010-11]Status: DisposedITAT Indore31 Jan 2024AY 2010-11

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

…t having anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 23 of 34 Late Shri Puneet Agrawal(Legal Representative – Smt. Neeti Agrawal) ITA Nos. 787,788, 790 & 791/Ind/2019 - AY 2009-10& 2010-11 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

ACIT(Central)-1, Indore vs. Shri Punit Agrawal, Mhow

Appeals are dismissed

ITA 787/IND/2019[2009-10]Status: DisposedITAT Indore31 Jan 2024AY 2009-10

Bench: Shri Vijay Pal Rao & Shrib.M. Biyani

Section 132Section 153ASection 269SSection 269TSection 271DSection 271E

…t having anything to corroborate. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v/s CIT Page 23 of 34 Late Shri Puneet Agrawal(Legal Representative – Smt. Neeti Agrawal) ITA Nos. 787,788, 790 & 791/Ind/2019 - AY 2009-10& 2010-11 (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, still assessment cannot be made on the basis of imagination and guess work. It has been held in the case of UmacharanSaha& Bros co. v/s CIT 37 ITR 21 (SC) that suspicion, however strong cannot take place of evidence. Similar views have been expressed b…

D.C.I.T., CC - 2(3), Kolkata vs. Eko Diagnostic Pvt. Ltd., Kolkata

In the result, appeal of the revenue is dismissed

ITA 159/KOL/2023[2013-2014]Status: DisposedITAT Kolkata17 Jan 2024AY 2013-2014

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Ble

For Appellant: Shri A.K. Tulsyan, A/RFor Respondent: Smt. Madhumita Das, Addl. CIT, D/R
Section 143(2)Section 2(22)(e)Section 250Section 37(1)

…amal Dey (ITA No.41Q/Kol/2012) (Kolkata IT AT) 2. BrijBhushan Lai Parduman Kum&Vs. CIT (1978) 115 ITR 524 (SC) 3. Banshidhar Onkarmall Vs. CIT (1953) 23 ITR 353 (Orisssa) 4. CIT Vs. Kameshwar Singh (1933) 1 1TR 94 (PC) 5. Dhirajlal Giridharilal Vs. CIT (1954) 26 ITR 775 (SC) 6. Pioneer Himudyog Pvt. Ltd. Vs. ACIT (ITA No.338/Kol/2017 order dated 23.08.2017) 7. Lalchand Bhagat Ambica Ram Vs. CIT (1959) 37 ITR 288 (SC) Appellant further submits that it had also incurred similar expenditure in some of the other years, AO has accepted the genuineness of such payments for AY: 2012-13 and AY: 2014-15. Assessee has been…

DCIT, Central Circle Ajmer vs. Vijay Granimarmo Private Limited, Naya Ghar Gulab Bari Ajmer

In the result of the cross objection of the assessee in CO No

ITA 648/JPR/2023[2020-21]Status: DisposedITAT Jaipur17 Jan 2024AY 2020-21

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. C. M. Agarwal (CA)For Respondent: Sh. Alka Gautam (CIT) (V.H)
Section 143(3)

…lso the books cost and valuation does not match. Therefore, she strongly objected to the finding of the ld. CIT(A). To support the contentions so raised the ld. DR relied on the decision of the apex court in the case of Dhakeswari Cotton Mills Ltd. Vs. CIT 26 ITR 775 (SC) and combated the finding of the ld. CIT(A) as argued. 9. Per contra, the ld. AR of the assessee argued that though the ld. AO made reference of the incriminating material but the same was neither confronted to the assessee nor referred to by the ld.AO in the assessment order, merely mentioning that material found will 15 ITA Nos. 647 & 64…

Samrat Finvestors Private Limited., Kolkata vs. ITO, Ward- 10(2), Kolkata.

In the result, appeal of the assessee is allowed

ITA 840/KOL/2023[2014-15]Status: DisposedITAT Kolkata11 Jan 2024AY 2014-15

Bench: Shri Rajesh Kumar, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 840/Kol/2023 Assessment Year: 2014-15 Samrat Finvestors Private Limited Income Tax Officer, Ward – 10(2), 20/1, Maharshi Debendra Vs Kolkata 2Nd Floor, Room No. 13A Kolkata - 700007 [Pan : Aadcs4698G] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Soumitra Choudhury, A/R Revenue By : Shri B.K. Singh, Jcit, Sr. D/R सुनवाई क" तारीख/Date Of Hearing : 14/12/2023 घोषणा क" तारीख /Date Of Pronouncement: 11/01/2024 आदेश/O R D E R Per Shri Rajesh Kumar: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre, Delhi, [Hereinafter The “Ld. Cit(A)”] Dt. 27/06/2023, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2014-15. 2. The Assessee In The Instant Appeal Has Raised Two Effective Issues In The Various Grounds Before Us Which Are Summed Up As Under:- (I) That The Ld. Cit(A) Has Erred On Facts & In Law In Confirming The Disallowance Of Rs.3,98,50,208/- As Made By The Assessing Officer On Account Alleged Bogus Loss In Share Trading & In F&O Segment. (Ii) The Ld. Cit(A) Has Erred On Facts & In Law In Upholding The Addition Of Rs.11,58,944/- As Made By The Assessing

For Appellant: Shri Soumitra Choudhury, A/RFor Respondent: Shri B.K. Singh, JCIT, Sr. D/R
Section 133(6)Section 14ASection 250

…ities ought to have called upon the manager to produce the documents and papers on the basis of which he made the statement and confronted the assessee with those documents and papers.” 30. In the case of Dhakeswari Cotton Mills Ltd. v. CIT reported in (1954) 26 ITR 775 (SC) the Hon'ble Supreme Court has held that “the rule of law on this subject has been fairly and rightly stated by the Lahore High Court in the case of Seth Gurmukh Singh where it was stated that while proceeding under sub-section (3) of section 23, the Income-tax Officer, though not bound to rely on evidence produced by the assessee as he consid…