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 366,470 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

Subhkaran and Sons, Mumbai vs. DCIT, Central Circle 7(1), Mumbai

In the result, appeal of the assessee is allowed and that by the

ITA 2906/MUM/2025[2017-18]Status: DisposedITAT Mumbai06 Jan 2026AY 2017-18

Bench: Shri Sandeep Gosain & Shri Girish Agrawal

For Appellant: Shri Snehal Shah, CAFor Respondent: Shri R A Dhyani, CIT DR
Section 132

…ITA No. 2906/Mum/2025 and others Subhkaran and Sons AYs: 2013-14 to 2017-18 IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA Nos. 2906, 2907, 2908, 2909 and 2910/MUM/2025 (Assessment Years: 2017-18, 2015-16, 2013-14, 2014-15 and 2016-17) vs Deputy Commissioner of Subhkaran & Sons 1 1, Pearl Mansion 91, Maharshi Karve Road, New Marine Lines, Mumbai - 400020 (PAN: AADFS1088B) Appellant Income Tax, Central Circle- 7(1), Mumbai Respondent ITA Nos. 3966, 3967, 3968, 3969 and 3986/MUM/2025 (Assessment Years: 2013-14, 2016-1…

Income Tax Officer, Ward - 2 (1), Varanasi vs. Prominent Datamatics Marketing Pvt. Ltd., Varanasi

ITA 135/VNS/2020[2017-2018]Status: DisposedITAT Varanasi05 Jan 2026AY 2017-2018

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

Section 124(1)(a)Section 124(2)Section 124(3)(a)Section 250(1)Section 255(4)Section 69A

…been meant to be served/ made known to the appellant at its Varanasi address. In this respect, kind attention of your honour is invited to the celebrated decision of Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. vs. CIT reported in (1954) 26 ITR 775 wherein their lordships have observed and held as under:- "The ITO is not barred by technical rules of evidence and pleadings, and he is entitled to act on material which may not be accepted as evidence in a Court of law, but in making the assessment under sub-s. (3) of s.23 the ITO is not entitled to make a pure guess and make an assessment witho…

Hardayal Milk Products Private Limited, Shikohabad vs. DCIT, Circle-2(2)(1), Firozabad

In the result, the appeal preferred by the assessee is partly

ITA 342/AGR/2025[2013-14]Status: DisposedITAT Agra29 Dec 2025AY 2013-14

Bench: : Shri S. Rifaur Rahman & Shri Sunil Kumar Singhassessment Year: 2013-14

Section 143(2)Section 145(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER Assessment Year: 2013-14 Hardayal Milk Products Private Vs. DCIT, Circle 2(2)(1), Limited, 318, Shambhoo Nagar, Firozabad. Shikohabad. PAN :AABCH7576E (Appellant) (Respondent) Assessee by Sh. Sahib P. Satsangee, C.A. Department by Sh. R.P. Maurya, CIT (A)-1/DR Date of hearing 16.12.2025 Date of pronouncement 29.12.2025 ORDER PER : S. RIFAUR RAHMAN, ACCOUNTANT MEMBER: The assessee has filed this appeal against the order of the learned Commissioner of Income-tax…

ACIT Central Circle 1(4) Mumbai, Mumbai vs. Kalyanee Fortune Constructions, Mumbai

In the result, all the above appeals in ITA Nos

ITA 5779/MUM/2024[2019-20]Status: DisposedITAT Mumbai23 Dec 2025AY 2019-20

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri Neelkanth Khandelwal, ARFor Respondent: Ms. Kavitha Kaushik, (Sr. DR)
Section 131Section 132(1)Section 133ASection 143(3)

…y single piece of evidence for the same. In this regard, I find that the Hon’ble Apex Court has, in plethora of cases, advised against the use of suspicion however strong, for the purpose of making addition as under: Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC) Whether though ITO is not fettered by technical rules of evidence and pleadings and he is entitled to act on material which may not be accepted as evidence on account of law, but in making assessment under section 23(3) of 1922 Act he is not entitled to make a pure guess and make an assessment without reference to any evidence or any material…

Assistant Commissioner of Income Tax Central Circle 1(4), Mumbai vs. Kalyanee Fortune Constructions, Mumbai

In the result, all the above appeals in ITA Nos

ITA 4448/MUM/2024[2017-18]Status: DisposedITAT Mumbai23 Dec 2025AY 2017-18

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Revenue byFor Respondent: Date of Hearing
Section 131Section 132(1)Section 133ASection 143(3)

…y single piece of evidence for the same. In this regard, I find that the Hon'ble Apex Court has, in plethora of cases, advised against the use of suspicion however strong, for the purpose of making addition as under: Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC) Whether though ITO is not fettered by technical rules of evidence and pleadings and he is entitled to act on material which may not be accepted as evidence on account of law, but in making assessment under section 23(3) of 1922 Act he is not entitled to make a pure guess and make an assessment without reference to any evidence or any material…

Assistant Commissioner of Income Tax, Mumbai vs. Kalyanee Fortune Constructions, Mumbai

In the result, all the above appeals in ITA Nos

ITA 4445/MUM/2024[2018-19]Status: DisposedITAT Mumbai23 Dec 2025AY 2018-19

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri Neelkanth Khandelwal, ARFor Respondent: Ms. Kavitha Kaushik, (Sr. DR)
Section 131Section 132(1)Section 133ASection 143(3)

…y single piece of evidence for the same. In this regard, I find that the Hon’ble Apex Court has, in plethora of cases, advised against the use of suspicion however strong, for the purpose of making addition as under: Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC) Whether though ITO is not fettered by technical rules of evidence and pleadings and he is entitled to act on material which may not be accepted as evidence on account of law, but in making assessment under section 23(3) of 1922 Act he is not entitled to make a pure guess and make an assessment without reference to any evidence or any material…

Assistant Commissioner of Income Tax Central Circle 1 4 Mumbai, Mumbai vs. Ms. Kalyanee Fortune Constructions, Mumbai

In the result, all the above appeals in ITA Nos

ITA 4444/MUM/2024[2020-21]Status: DisposedITAT Mumbai23 Dec 2025AY 2020-21

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri Neelkanth Khandelwal, ARFor Respondent: Ms. Kavitha Kaushik, (Sr. DR)
Section 131Section 132(1)Section 133ASection 143(3)

…y single piece of evidence for the same. In this regard, I find that the Hon'ble Apex Court has, in plethora of cases, advised against the use of suspicion however strong, for the purpose of making addition as under: Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC) "Whether though ITO is not fettered by technical rules of evidence and pleadings and he is entitled to act on material which may not be accepted as evidence on account of law, but in making assessment under section 23(3) of 1922 Act. ITO is not entitled to make a pure guess without any reference to any evidence or volitional material at all."…

DCIT, Central Circle 7(1), Mumbai vs. Lloyds Steels Industries Limited, Mumbai

ITA 3997/MUM/2025[2015-16]Status: DisposedITAT Mumbai08 Dec 2025AY 2015-16

Bench: Shri Pawan Singh, Jm & Ms Padmavathy S, Am

For Appellant: Shri Vijay Mehta & Shri TarangFor Respondent: Shri Rajesh Kumar Yadav – CIT-
Section 145Section 145(3)Section 250Section 68

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount h…

Lloyds Engineering Works Limited (Earlier Known As Loyds Steels Industries Limited ), Mumbai vs. Assistant Commissioner of Income Tax, Central Circle 7(1), Mumbai

ITA 2857/MUM/2025[2018-19]Status: DisposedITAT Mumbai08 Dec 2025AY 2018-19

Bench: Shri Pawan Singh, Jm & Ms Padmavathy S, Am

For Appellant: Shri Vijay Mehta & Shri TarangFor Respondent: Shri Rajesh Kumar Yadav – CIT-
Section 145Section 145(3)Section 250Section 68

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount h…

Dy. Commissioner of Income Tax, Noida vs. M/S. Ace Infracity Developers Pvrivate Ltd, Noida

In the result, appeal of the Revenue is dismissed

ITA 4104/DEL/2025[2022-23]Status: DisposedITAT Delhi28 Nov 2025AY 2022-23

Bench: Shri Anubhav Sharma & Shri Manish Agarwal[Assessment Year 2022-23] Dcit Vs M/S. Ace Infracity Developers Pvt. Central Circle-1, Ltd., Plot No. Ib, Gautam Budh A.R.T.O Complex, Nagar-201301 Sector-33, Noida-201301. Pan-Aakca8693E Appellant Respondent

Section 132Section 139(1)Section 143(2)Section 143(3)Section 37Section 37(1)Section 68Section 69A

…t. 41. It is trite law that suspicion, howsoever strong, cannot take the place of proof as held in Umacharan Shaw & Bros. vs. CIT (1959) 37 ITR 271 (SC). The Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd v. Commissioner of Income Tax (1954) 26 ITR 775 (SC) has observed that powers given to the Revenue authority, howsoever, wide, do not entitle him to make the assessment on pure guess without reference to any evidence or material. The assessment cannot be framed only on bare suspicion. The assessment should rest on principles of law and one should avoid presumption of evasion in every matter. Th…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Metals and Energy Limited, Mumbai

In the result, for all the

ITA 3094/MUM/2025[2018-19]Status: DisposedITAT Mumbai27 Nov 2025AY 2018-19
Section 143(3)Section 145Section 153C

…ctures was also accepted by the Ld. CIT(A). In our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed upon the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775), in which, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to tangible or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount has not be…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Metals and Energy Limited, Mumbai

ITA 3080/MUM/2025[2017-18]Status: DisposedITAT Mumbai27 Nov 2025AY 2017-18

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRIISH AGRAWAL (Accountant Member)

Section 143(3)Section 145Section 153C

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount ha…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Metals and Energy Limited, Mumbai

ITA 3079/MUM/2025[2019-20]Status: DisposedITAT Mumbai27 Nov 2025AY 2019-20

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRESH AGRAWAL (Accountant Member)

Section 143(3)Section 145Section 153C

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount ha…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Metals and Energy Limited, Mumbai

In the result, for all the

ITA 3078/MUM/2025[2016-17]Status: DisposedITAT Mumbai27 Nov 2025AY 2016-17
Section 143(3)Section 145Section 153C

…n our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to tangible or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount h…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Metals and Energy Limited, Mumbai

ITA 3077/MUM/2025[2015-16]Status: DisposedITAT Mumbai27 Nov 2025AY 2015-16

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(3)Section 145Section 153C

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount ha…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Metals and Energy Limited, Mumbai

In the result, for all the

ITA 3076/MUM/2025[2013-14]Status: DisposedITAT Mumbai27 Nov 2025AY 2013-14
Section 143(3)Section 145Section 153C

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to tangible or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount h…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Metals and Energy Limited, Mumbai

In the result, for all the

ITA 3075/MUM/2025[2014-15]Status: DisposedITAT Mumbai27 Nov 2025AY 2014-15
Section 143(3)Section 145Section 153C

…n our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount h…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Enterprises Limited, Mumbai

In the result, for all the

ITA 3074/MUM/2025[2018-19]Status: DisposedITAT Mumbai27 Nov 2025AY 2018-19
Section 143(3)Section 145Section 153C

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount h…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Enterprises Limited, Mumbai

In the result, for all the

ITA 3073/MUM/2025[2017-18]Status: DisposedITAT Mumbai27 Nov 2025AY 2017-18
Section 143(3)Section 145Section 153C

…n our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to tangible or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount ha…

ACIT Central Circle 7 (1), Mumbai vs. Lloyds Enterprises Limited, Mumbai

In the result, for all the

ITA 3072/MUM/2025[2016-17]Status: DisposedITAT Mumbai27 Nov 2025AY 2016-17
Section 143(3)Section 145Section 153C

…our considered view, such conjectural reasoning cannot form the basis for a sustainable addition under the Act. On this proposition, reliance is being placed up on the decision of the Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd. v. CIT (26 ITR 775) (PBP 144), wherein, it was held that although, the AO is not restricted by the strict and technical rules of the evidence and pleadings, he cannot proceed to make an addition purely on a guess work without any reference to material or tangible evidence. 22. After evaluating the entire records, we also found that the payer of the alleged amount h…