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

Rohini Hotel (Madras) Pvt. Ltd., Chennai vs. ACIT Corporate Circle 5(4), Chennai

In the result, the appeals filed by the Revenue and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 1841/CHNY/2018[2005-06]Status: DisposedITAT Chennai01 Aug 2019AY 2005-06

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Mr. R.S.Balaji, AdvFor Respondent: Mr. R.Clement Ramesh-

…2,55,415 3 2006-07 Rs.10,77,19,084 4 2007-08 Rs.19,39,51,072 The following case laws throw light on the procedure to be followed for acting upon the loose sheets or estimates that had been found during survey or search. 1. Dhakeswari Cotton Mills Ltd Vs CIT 26 ITR 775 2. Kishinchand Chellaram Vs CIT (1980) 125 ITR 713(SC) 3. Amar Natwaralal Shaw Vs ACIT (1967) 60 ITD 560(Ahd) 4. lAshwani Kumar Vs ITO (1991) 39 ITD 183 ITAT (Delhi) 5. ACIT Vs Shallesh S shaw (1997) 63 ITD 153(Bom) 6. CIT Vs Daya Chand Vaidya (1975) 98 ITR 280(A11) 7. ITO Vs Chimbareswara Rao (1986) 15 ITD 471(Hyd Trib) Submission on facts on le…

ACIT Corporate Circle 5(2), Chennai vs. Rohini Hotels (Madras) Pvt. Ltd., Chennai

In the result, the appeals filed by the Revenue and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 1687/CHNY/2017[2007-08]Status: DisposedITAT Chennai01 Aug 2019AY 2007-08

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Mr. R.S.Balaji, AdvFor Respondent: Mr. R.Clement Ramesh-

…2,55,415 3 2006-07 Rs.10,77,19,084 4 2007-08 Rs.19,39,51,072 The following case laws throw light on the procedure to be followed for acting upon the loose sheets or estimates that had been found during survey or search. 1. Dhakeswari Cotton Mills Ltd Vs CIT 26 ITR 775 2. Kishinchand Chellaram Vs CIT (1980) 125 ITR 713(SC) 3. Amar Natwaralal Shaw Vs ACIT (1967) 60 ITD 560(Ahd) 4. lAshwani Kumar Vs ITO (1991) 39 ITD 183 ITAT (Delhi) 5. ACIT Vs Shallesh S shaw (1997) 63 ITD 153(Bom) 6. CIT Vs Daya Chand Vaidya (1975) 98 ITR 280(A11) 7. ITO Vs Chimbareswara Rao (1986) 15 ITD 471(Hyd Trib) Submission on facts on le…

ACIT Corporate Circle 5(2), Chennai vs. Rohini Hotels (Madras) Pvt. Ltd., Chennai

In the result, the appeals filed by the Revenue and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 1627/CHNY/2017[2006-07]Status: DisposedITAT Chennai01 Aug 2019AY 2006-07

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Mr. R.S.Balaji, AdvFor Respondent: Mr. R.Clement Ramesh-

…2,55,415 3 2006-07 Rs.10,77,19,084 4 2007-08 Rs.19,39,51,072 The following case laws throw light on the procedure to be followed for acting upon the loose sheets or estimates that had been found during survey or search. 1. Dhakeswari Cotton Mills Ltd Vs CIT 26 ITR 775 2. Kishinchand Chellaram Vs CIT (1980) 125 ITR 713(SC) 3. Amar Natwaralal Shaw Vs ACIT (1967) 60 ITD 560(Ahd) 4. lAshwani Kumar Vs ITO (1991) 39 ITD 183 ITAT (Delhi) 5. ACIT Vs Shallesh S shaw (1997) 63 ITD 153(Bom) 6. CIT Vs Daya Chand Vaidya (1975) 98 ITR 280(A11) 7. ITO Vs Chimbareswara Rao (1986) 15 ITD 471(Hyd Trib) Submission on facts on le…

M/S. Valentine Cine Vision Limited, Surat vs. The Income Tax Officer, Ward-4(4), Surat

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

ITA 2438/AHD/2015[2011-12]Status: DisposedITAT Surat31 Jul 2019AY 2011-12

Bench: Shri Sudhanshu Srivastava & Shri Vikram Singh Yadavassessment Year: 2011-12

For Appellant: Shri Rasesh Shah, CAFor Respondent: Shri B.P.K. Panda, Sr. DR
Section 43B

…d Bench held as under: “Undisputedly and as observed by the ld. CIT(A) in the impugned order the AO did not point out any defects in the books of account while ignoring the book results…The ratio of the judgments in Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC); Raghubir Mandal Harihar Mandal v. State of Bihar [1957] 8 STC 770 (SC); State of Kerala v. C. Velukutty [1966] 60 ITR 239 (SC); State of Orissa v. Maharaja Shri B.P. Singh Deo [1970] 76 ITR 690 (SC); Brij Bhusan Lal Parduman 12 ITA 2419, CO 181, ITA 2438/Ahd/2015 Kumar v. CIT [1978] 115 ITR 524 (SC); Chouthmal Agarwalla v. CIT [1962] 46 IT…

DCIT 5(1), Indore vs. Shri Mahesh Banasal, Indore

In the result both the appeals of the Revenue and Assessee

ITA 499/IND/2018[10-11]Status: DisposedITAT Indore29 Jul 2019

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Boradassessment Year 2010-11 The Deputy Commissioner Of Vs. Shri Mahesh Bansal, Income Tax 5(1), 44, Manish Bagh, Indore Agrawal Nagar, Indore

Section 132Section 139(1)Section 143(1)Section 143(3)Section 147Section 148Section 68

….) (2008) 174 Taxmann 96 (Chandigarh) Smt. Neena Syal Vs. ACrT (1999) 70 ITD 62 (Chd.) h) 4.3 The judgments delivered by the Hon'ble Supreme Court 1D the case of Dhirajlal Girdharilal vs. CIT (1954) 26 ITR 736 (SC); Dhakeswari Cotton Mills Ltd vs, CIT (1954) 26 ITR 775 (SC); Lalchand Bhagat Ambica Ram vs, CIT (1959) 37 ITR 288 (SC); 11 Mahesh Bansal ITA No.499/2018 & C.O.No.10/Ind/2019 Umacharan Shaw& Bros. vs. CIT (1959) 37 ITR 271 (SC) & Omar Salay Mohamed Sait vs, CIT (1959) 37 ITR 151 (SC) also applies to the facts and circumstances of the case because the adverse inference drawn by the AO was purely based…

ACIT, New Delhi vs. M/S. Hal Offshore Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and appeal of the Revenue is dismissed

ITA 4673/DEL/2016[2012-13]Status: DisposedITAT Delhi23 Jul 2019AY 2012-13

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 4673/Del/2016 : Asstt. Year : 2012-13 Acit, Vs M/S Hal Offshore Ltd., Central Circle-15, 25, Bazar Lane, Bengali Market, New Delhi-110055 New Delhi-110001 (Appellant) (Respondent) Pan No. Aaach3144B Ita No. 2081/Del/2016 : Asstt. Year : 2012-13 M/S Hal Offshore Ltd., Vs Dcit, C/O M/S Rra Taxindia, Circle-12(1), D-28, South Extension, Part-I, New Delhi New Delhi-110049 (Appellant) (Respondent) Pan No. Aaach3144B Assessee By : Sh. Somil Agarwal, Ca Revenue By : Sh. Amit Katoch, Sr. Dr Date Of Hearing: 22.07.2019 Date Of Pronouncement: 23.07.2019 Order Per Dr. B. R. R. Kumar:

For Appellant: Sh. Somil Agarwal, CAFor Respondent: Sh. Amit Katoch, Sr. DR
Section 143(3)Section 41(1)

…ts on record and find that the only reason, the Revenue authorities disallowed is the “increase” in expenses without any iota of evidence or cogent reason. Keeping in view, the judgments of Hon’ble Apex Court in the case of Dhakeswari Cotton Mills Ltd. Vs CIT 26 ITR 775, Sayaji Iron & Engg. Co. Vs CIT (Guj.) 253 ITR 749 and DCIT Vs Haryana Oxygen Ltd. 76 ITD 32 (Del.), we hereby hold that the disallowance made by the Assessing Officer cannot be legally sustained. 7. Ground No. 4 pertains to disallowance on account of legal and professional expenses. The Revenue disallowed the payment of Rs. 64,000/- made to R.N.…

M/S. Hal Offshore Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and appeal of the Revenue is dismissed

ITA 2081/DEL/2016[2012-13]Status: DisposedITAT Delhi23 Jul 2019AY 2012-13

Bench: Sh. H. S. Sidhudr. B. R. R. Kumarita No. 4673/Del/2016 : Asstt. Year : 2012-13 Acit, Vs M/S Hal Offshore Ltd., Central Circle-15, 25, Bazar Lane, Bengali Market, New Delhi-110055 New Delhi-110001 (Appellant) (Respondent) Pan No. Aaach3144B Ita No. 2081/Del/2016 : Asstt. Year : 2012-13 M/S Hal Offshore Ltd., Vs Dcit, C/O M/S Rra Taxindia, Circle-12(1), D-28, South Extension, Part-I, New Delhi New Delhi-110049 (Appellant) (Respondent) Pan No. Aaach3144B Assessee By : Sh. Somil Agarwal, Ca Revenue By : Sh. Amit Katoch, Sr. Dr Date Of Hearing: 22.07.2019 Date Of Pronouncement: 23.07.2019 Order Per Dr. B. R. R. Kumar:

For Appellant: Sh. Somil Agarwal, CAFor Respondent: Sh. Amit Katoch, Sr. DR
Section 143(3)Section 41(1)

…ts on record and find that the only reason, the Revenue authorities disallowed is the “increase” in expenses without any iota of evidence or cogent reason. Keeping in view, the judgments of Hon’ble Apex Court in the case of Dhakeswari Cotton Mills Ltd. Vs CIT 26 ITR 775, Sayaji Iron & Engg. Co. Vs CIT (Guj.) 253 ITR 749 and DCIT Vs Haryana Oxygen Ltd. 76 ITD 32 (Del.), we hereby hold that the disallowance made by the Assessing Officer cannot be legally sustained. 7. Ground No. 4 pertains to disallowance on account of legal and professional expenses. The Revenue disallowed the payment of Rs. 64,000/- made to R.N.…

P Mittal Manufacturing Pvt. Ltd., New Delhi vs. ITO, Ward- 19(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 6906/DEL/2018[2010-11]Status: DisposedITAT Delhi23 Jul 2019AY 2010-11

Bench: Shri H.S. Sidhu

For Appellant: Shri Anmol Sinha, Adv. & Sh. AshviniFor Respondent: Shri S.L. Anuragi, Sr. DR

…rtunity to the assessee to examine such information and explain its position especially when the assessee has requested the same to the Assessing officer. 2.10 In this regard, the Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT (1954) 26 ITR 775 (SC) (Copy at Case Law PB 812- 818) 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 Sinqh 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…

Deputy Commissioner of Income Tax 1(1)(1), Mumbai vs. M/S.Adventure Marketing Private Limited, Mumbai

Appeal stands allowed

ITA 6091/MUM/2017[2013-14]Status: DisposedITAT Mumbai03 Jul 2019AY 2013-14

Bench: Hon’Ble Shri C.N. Prasad, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Vijay Mehta & Shri Mahesh Rajora-For Respondent: Shri Anadi Varma - Ld. CIT-DR
Section 143(3)Section 14ASection 28Section 57Section 69B

…nce was placed, inter-alia, on the decision of Hon’ble Bombay High Court in CIT V/s Rupee Finance & Management Ltd. [ITA No.1208 of 2009 20/10/2008], CIT V/s Devesh Agarwal [81 Taxmann.com 257] & Hon’ble Supreme Court in Dhakeshwari Cotton Mills Ltd. V/s CIT [26 ITR 775]. 3.2 After due consideration of assessee’s submissions and factual matrix, Ld. CIT(A) concurred with the same and deleted the additions u/s 69B by making following observations: - From the above discussion, the following inferences are drawn: a) The Ld. AO has estimated the investment made in purchase of shares i.e. 82,78,180 shares by relying on…

Birendra Kumar Sharma, Gwalior vs. ACIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 542/IND/2017[09-10]Status: DisposedITAT Indore04 Jun 2019

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Dharmendra Kumar Choudhary, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 710/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Vijay Kumar Shrivastava, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 709/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Ramesh Chandra Parashar, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 708/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Pradeep Kumar Sharma, Dabra vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 707/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Lalta Prasad Choudhary, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 706/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Santosh Kumar Sharma, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 705/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Kamlesh Kumar Choudhary, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 704/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Khemraj Singh Chauhan, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 703/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Sukhdev Singh Dhariwal, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 702/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…

Shri Sanjay Kumar Sahu, Gwalior vs. The DCIT 1(1), Bhopal

In the result these bunch of fourteen appeals of the assessee’s for Assessment Year 2009-10 are partly allowed for statistical purposes

ITA 701/IND/2016[2009-10]Status: DisposedITAT Indore04 Jun 2019AY 2009-10

Bench: Hon'Ble Kul Bharat & Hon'Ble Manish Borad

…itten on the right side of the slip represent incomes earned by the assessee. It was conceded by the Departmental Representative that no such evidence have brought out on record”. Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd V/s CIT 1954 261 ITR 775 held that “in making assessment u/s 23(3) of the Indian Income Tax Act, the ITO is not fractured by technical rules of evidence and fluctuations and he is entitled to act on material which may not accept an evidence in the court of law, but the IT is not entitled to make and power comes and making assessment without reference to any evidence or a…