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 367,154 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

Sanjay Singal (HUF), New Delhi vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

In the result, assessee’s appeals are allowed

ITA 221/CHANDI/2025[2016-17]Status: DisposedITAT Chandigarh09 Sept 2025AY 2016-17

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ashwani Kumar, C.A and Ms. Deepali Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 10(38)Section 132Section 250(6)Section 68Section 69C

…आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी राजपाल यादव, उपा"" एवं "ी कृणव" सहाय, लेखा सद" BEFORE: SHRI. RAJPAL YADAV, VP & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA Nos. 217 & 218/Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 & 2016-17 Aarti Singal बनाम The DCIT 53, Jor Bagh, New Delhi Central Circle-1 Chandigarh "ायी लेखा सं./PAN NO: AEFPS6299L अपीलाथ"/Appellant ""थ"/Respondent आयकर अपील सं./ ITA Nos. 219 /Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 Aniket Singal बनाम The DCIT 4, Amritashergil M…

Sanjay Singal, New Delhi vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

In the result, assessee’s appeals are allowed

ITA 220/CHANDI/2025[2016-17]Status: DisposedITAT Chandigarh09 Sept 2025AY 2016-17

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ashwani Kumar, C.A and Ms. Deepali Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 10(38)Section 132Section 250(6)Section 68Section 69C

…आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी राजपाल यादव, उपा"" एवं "ी कृणव" सहाय, लेखा सद" BEFORE: SHRI. RAJPAL YADAV, VP & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA Nos. 217 & 218/Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 & 2016-17 Aarti Singal बनाम The DCIT 53, Jor Bagh, New Delhi Central Circle-1 Chandigarh "ायी लेखा सं./PAN NO: AEFPS6299L अपीलाथ"/Appellant ""थ"/Respondent आयकर अपील सं./ ITA Nos. 219 /Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 Aniket Singal बनाम The DCIT 4, Amritashergil M…

Aniket Singal, New Delhi vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

In the result, assessee’s appeals are allowed

ITA 219/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh09 Sept 2025AY 2015-16

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ashwani Kumar, C.A and Ms. Deepali Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 10(38)Section 132Section 250(6)Section 68Section 69C

…आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी राजपाल यादव, उपा"" एवं "ी कृणव" सहाय, लेखा सद" BEFORE: SHRI. RAJPAL YADAV, VP & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA Nos. 217 & 218/Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 & 2016-17 Aarti Singal बनाम The DCIT 53, Jor Bagh, New Delhi Central Circle-1 Chandigarh "ायी लेखा सं./PAN NO: AEFPS6299L अपीलाथ"/Appellant ""थ"/Respondent आयकर अपील सं./ ITA Nos. 219 /Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 Aniket Singal बनाम The DCIT 4, Amritashergil M…

Aarti Singal, New Delhi vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

In the result, assessee’s appeals are allowed

ITA 218/CHANDI/2025[2016-17]Status: DisposedITAT Chandigarh09 Sept 2025AY 2016-17

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ashwani Kumar, C.A and Ms. Deepali Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 10(38)Section 132Section 250(6)Section 68Section 69C

…आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी राजपाल यादव, उपा"" एवं "ी कृणव" सहाय, लेखा सद" BEFORE: SHRI. RAJPAL YADAV, VP & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA Nos. 217 & 218/Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 & 2016-17 Aarti Singal बनाम The DCIT 53, Jor Bagh, New Delhi Central Circle-1 Chandigarh "ायी लेखा सं./PAN NO: AEFPS6299L अपीलाथ"/Appellant ""थ"/Respondent आयकर अपील सं./ ITA Nos. 219 /Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 Aniket Singal बनाम The DCIT 4, Amritashergil M…

Aarti Singal, New Delhi vs. Deputy Commissioner of Income Tax, Central Circle-1, Chandigarh

In the result, assessee’s appeals are allowed

ITA 217/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh09 Sept 2025AY 2015-16

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ashwani Kumar, C.A and Ms. Deepali Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR
Section 10(38)Section 132Section 250(6)Section 68Section 69C

…आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी राजपाल यादव, उपा"" एवं "ी कृणव" सहाय, लेखा सद" BEFORE: SHRI. RAJPAL YADAV, VP & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA Nos. 217 & 218/Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 & 2016-17 Aarti Singal बनाम The DCIT 53, Jor Bagh, New Delhi Central Circle-1 Chandigarh "ायी लेखा सं./PAN NO: AEFPS6299L अपीलाथ"/Appellant ""थ"/Respondent आयकर अपील सं./ ITA Nos. 219 /Chd/ 2025 िनधा"रण वष" / Assessment Years : 2015-16 Aniket Singal बनाम The DCIT 4, Amritashergil M…

Ashish Bhargava, Jaipur vs. DCIT, Jaipur

In the result, the appeal of the assessee is allowed

ITA 875/JPR/2025[2017-18]Status: DisposedITAT Jaipur08 Sept 2025AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

For Appellant: Shri Vinok Kumar Gupta, C.AFor Respondent: Shri Dharam Singh Meena, JCIT
Section 115BSection 139Section 143(2)Section 143(3)Section 145(3)Section 68

…of Hon’ble Apex Court in the case of Umacharan Saha & Bros Co. v/s CIT 37 ITR 21 (SC) wherein it was held that suspicion, however, strong cannot take place of proof. 5. Further, Hon’ble Supreme Court in the case of Dhakeshwari Cotton Mills Ltd v/s CIT (1954) 26 ITR 775 (SC) has held that although strict rules of evidence Act do not apply to income tax proceedings, assessment cannot be made on the basis of imagination and guess work. 6. Hon’ble ITAT, Jaipur in the case of Dinesh Kumar Soni, Jaipur vs Dcit Cen Cir 1 Jaipur, Jaipur, 27 September, 2024, [ITA. No. 863/JPR/2024], held as under: “….thereby he hold bal…

Narayan Suppliers Pvt. Ltd., Kolkata vs. I.T.O., Ward - 6(3), Kolkata

In the result, appeal of the assessee is dismissed

ITA 1077/KOL/2024[2011-2012]Status: DisposedITAT Kolkata08 Sept 2025AY 2011-2012

Bench: Shri George Mathan & Shri Rakesh Mishra

For Appellant: Shri Avijit Ghoshal, ARFor Respondent: Shri Raja Sengputa, CIT-DR
Section 10(38)

…duct the case himself so he is acting in a quasi-judicial authority. That is the essence of our judicial system as decided in plethora of case laws including Umacharan Shaw and Bros. -Vs-CIT (1959) 37 ITR 271 (SC), Dhakeswari Cotton Mills Ltd. -Vs- CIT (1954) 26 ITR 775 (SC) etc. Also the taxing authorities exercise quasi-judicial powers and in doing so they must act in a fair and not a partisan manner. Although it is a part of their duty to ensure that no tax which is legitimately due from an assessee should remain un-recovered, they must also, at the same time, not act in a manner as might indicate that scales…

M/S Kanak Vrindavan Resorts Limited, Jaipur vs. Income Tax Officer, Ward 6(2), Jaipur

In the result, the appeal of the assessee is allowed

ITA 543/JPR/2025[2016-17]Status: DisposedITAT Jaipur02 Sept 2025AY 2016-17

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. Tarun Mittal, CAFor Respondent: Sh. Gautam Singh Choudhary, Addl. CIT
Section 143(1)(a)Section 143(2)Section 143(3)Section 145Section 37

…37 ITR 271 (SC) Uma Charan Shaw & Bros. Co. Vs. CIT. It has been further held in the following cases that suspicion howsoever strong cannot take the place of proof: 1. 37 ITR 151 Omar Salay Mohammad Sait Vs. CIT 2. 26 ITR 736 Dhirajlal Girdharilal Vs. CIT 3. 26 ITR 775 Dhakeshwari Cotton MillsLtd. Vs. CIT 4. 37 ITR 288 Lal Chand Bhagat Ambica Ram Vs. CIT 5. 91 ITR 8 CIT Vs. Calcutta Discount Company Ltd. It is further submitted that the expenditure being incurred in the day to day business activity and is wholly and exclusively for the purpose of the business for which the AO cannot walk into the shoe of the bus…

Deputy Commissioner of Income Tax, Central Circle-2(1), Chennai vs. Kag India Private Limited, Velachery

ITA 632/CHNY/2025[2021-22]Status: DisposedITAT Chennai29 Aug 2025AY 2021-22

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R.Raghunathaआयकर अपील सं./Ita No.322/Chny/2025, A.Y.: 2014-15 आयकर अपील सं./Ita No.323/Chny/2025, A.Y.: 2015-16 आयकर अपील सं./Ita No.324/Chny/2025, A.Y.: 2017-18 आयकर अपील सं./Ita No.325/Chny/2025, A.Y.: 2018-19 आयकर अपील सं./Ita No.321/Chny/2025, A.Y.: 2019-20 आयकर अपील सं./Ita No.632/Chny/2025, A.Y.: 2021-22

For Appellant: Mr.Bipin C.N, CIT
Section 139(1)Section 142(1)Section 143(2)Section 144ASection 153A

…h approval u/s.153D of the Act, it is duty-bound to presume that the assessment has been concluded merely on surmises and suspicion. It is pertinent to rely on the decision of the Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC), under the Indian Income Tax Act, 1922, wherein the Hon’ble Supreme Court cautioned that"…There must be something more than bare suspicion to support the assessment…” and it is abundantly proven that the AO failed to cross this barrier and establish that the finding and direction of the JCIT in the order u/s.144A is baseless. 3.5 Therefore, w…

Deputy Commissioner of Income Tax, Central Circle-2(1), Chennai vs. Kag India Private Limited, Chennai

ITA 325/CHNY/2025[2018-19]Status: DisposedITAT Chennai29 Aug 2025AY 2018-19

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R.Raghunathaआयकर अपील सं./Ita No.322/Chny/2025, A.Y.: 2014-15 आयकर अपील सं./Ita No.323/Chny/2025, A.Y.: 2015-16 आयकर अपील सं./Ita No.324/Chny/2025, A.Y.: 2017-18 आयकर अपील सं./Ita No.325/Chny/2025, A.Y.: 2018-19 आयकर अपील सं./Ita No.321/Chny/2025, A.Y.: 2019-20 आयकर अपील सं./Ita No.632/Chny/2025, A.Y.: 2021-22

For Appellant: Mr.Bipin C.N, CIT
Section 139(1)Section 142(1)Section 143(2)Section 144ASection 153A

…h approval u/s.153D of the Act, it is duty-bound to presume that the assessment has been concluded merely on surmises and suspicion. It is pertinent to rely on the decision of the Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC), under the Indian Income Tax Act, 1922, wherein the Hon’ble Supreme Court cautioned that"…There must be something more than bare suspicion to support the assessment…” and it is abundantly proven that the AO failed to cross this barrier and establish that the finding and direction of the JCIT in the order u/s.144A is baseless. 3.5 Therefore, w…

Deputy Commissioner of Income Tax, Chennai vs. Kag India Private Limited, Chennai

ITA 324/CHNY/2025[2017-18]Status: DisposedITAT Chennai29 Aug 2025AY 2017-18

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R.Raghunathaआयकर अपील सं./Ita No.322/Chny/2025, A.Y.: 2014-15 आयकर अपील सं./Ita No.323/Chny/2025, A.Y.: 2015-16 आयकर अपील सं./Ita No.324/Chny/2025, A.Y.: 2017-18 आयकर अपील सं./Ita No.325/Chny/2025, A.Y.: 2018-19 आयकर अपील सं./Ita No.321/Chny/2025, A.Y.: 2019-20 आयकर अपील सं./Ita No.632/Chny/2025, A.Y.: 2021-22

For Appellant: Mr.Bipin C.N, CIT
Section 139(1)Section 142(1)Section 143(2)Section 144ASection 153A

…h approval u/s.153D of the Act, it is duty-bound to presume that the assessment has been concluded merely on surmises and suspicion. It is pertinent to rely on the decision of the Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC), under the Indian Income Tax Act, 1922, wherein the Hon’ble Supreme Court cautioned that"…There must be something more than bare suspicion to support the assessment…” and it is abundantly proven that the AO failed to cross this barrier and establish that the finding and direction of the JCIT in the order u/s.144A is baseless. 3.5 Therefore, w…

Deputy Commissioner of Income Tax, Central Circle-2(1), Chennai vs. Kag India Private Limited, Chennai

ITA 323/CHNY/2025[2015-16]Status: DisposedITAT Chennai29 Aug 2025AY 2015-16

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R.Raghunathaआयकर अपील सं./Ita No.322/Chny/2025, A.Y.: 2014-15 आयकर अपील सं./Ita No.323/Chny/2025, A.Y.: 2015-16 आयकर अपील सं./Ita No.324/Chny/2025, A.Y.: 2017-18 आयकर अपील सं./Ita No.325/Chny/2025, A.Y.: 2018-19 आयकर अपील सं./Ita No.321/Chny/2025, A.Y.: 2019-20 आयकर अपील सं./Ita No.632/Chny/2025, A.Y.: 2021-22

For Appellant: Mr.Bipin C.N, CIT
Section 139(1)Section 142(1)Section 143(2)Section 144ASection 153A

…h approval u/s.153D of the Act, it is duty-bound to presume that the assessment has been concluded merely on surmises and suspicion. It is pertinent to rely on the decision of the Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC), under the Indian Income Tax Act, 1922, wherein the Hon’ble Supreme Court cautioned that"…There must be something more than bare suspicion to support the assessment…” and it is abundantly proven that the AO failed to cross this barrier and establish that the finding and direction of the JCIT in the order u/s.144A is baseless. 3.5 Therefore, w…

Deputy Commissioner of Income Tax, Central Circle-2(1), Chennai vs. Kag India Private Limited, Chennai, Tamilnadu

ITA 322/CHNY/2025[2014-15]Status: DisposedITAT Chennai29 Aug 2025AY 2014-15

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R.Raghunathaआयकर अपील सं./Ita No.322/Chny/2025, A.Y.: 2014-15 आयकर अपील सं./Ita No.323/Chny/2025, A.Y.: 2015-16 आयकर अपील सं./Ita No.324/Chny/2025, A.Y.: 2017-18 आयकर अपील सं./Ita No.325/Chny/2025, A.Y.: 2018-19 आयकर अपील सं./Ita No.321/Chny/2025, A.Y.: 2019-20 आयकर अपील सं./Ita No.632/Chny/2025, A.Y.: 2021-22

For Appellant: Mr.Bipin C.N, CIT
Section 139(1)Section 142(1)Section 143(2)Section 144ASection 153A

…h approval u/s.153D of the Act, it is duty-bound to presume that the assessment has been concluded merely on surmises and suspicion. It is pertinent to rely on the decision of the Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC), under the Indian Income Tax Act, 1922, wherein the Hon’ble Supreme Court cautioned that"…There must be something more than bare suspicion to support the assessment…” and it is abundantly proven that the AO failed to cross this barrier and establish that the finding and direction of the JCIT in the order u/s.144A is baseless. 3.5 Therefore, w…

Deputy Commissioner of Income Tax, Central Circle-2(1), Chennai vs. Kag India Private Limited, Chennai

ITA 321/CHNY/2025[2019-20]Status: DisposedITAT Chennai29 Aug 2025AY 2019-20

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R.Raghunathaआयकर अपील सं./Ita No.322/Chny/2025, A.Y.: 2014-15 आयकर अपील सं./Ita No.323/Chny/2025, A.Y.: 2015-16 आयकर अपील सं./Ita No.324/Chny/2025, A.Y.: 2017-18 आयकर अपील सं./Ita No.325/Chny/2025, A.Y.: 2018-19 आयकर अपील सं./Ita No.321/Chny/2025, A.Y.: 2019-20 आयकर अपील सं./Ita No.632/Chny/2025, A.Y.: 2021-22

For Appellant: Mr.Bipin C.N, CIT
Section 139(1)Section 142(1)Section 143(2)Section 144ASection 153A

…h approval u/s.153D of the Act, it is duty-bound to presume that the assessment has been concluded merely on surmises and suspicion. It is pertinent to rely on the decision of the Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC), under the Indian Income Tax Act, 1922, wherein the Hon’ble Supreme Court cautioned that"…There must be something more than bare suspicion to support the assessment…” and it is abundantly proven that the AO failed to cross this barrier and establish that the finding and direction of the JCIT in the order u/s.144A is baseless. 3.5 Therefore, w…

ACIT, Jhandewalan vs. M/S Mankind Pharma Ltd. (Earlier Known As M/S Magnet Labs Pvt. Ltd.), New Delhi

Accordingly, the appeal of assesse is allowed and of revenue dismissed

ITA 5141/DEL/2024[2017-18]Status: DisposedITAT Delhi27 Aug 2025AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharmaassessment Year: 2017-18 Acit, Vs M/S Mankind Pharma Ltd. (Earlier Circle-16(1), Known As M/S Magnet Labs Pvt. Delhi. Ltd.), 208, Okhla Industrial Estate Phase-3, Delhi – 110 020. Pan: Aaccm1861C Assessment Year: 2017-18 M/S Mankind Pharma Ltd. Vs. Acit, (Earlier Known As M/S Magnet Circle-16(1), Labs Pvt. Ltd.), Delhi 208, Okhla Industrial Estate Phase-3, Delhi – 110 020. Pan: Aaccm1861C (Appellant) (Respondent) Assessee By : Shri Gaurav Jain, Advocate & Shri Rahul Prabhakar, Advocate Revenue By : Shri Vipul Kashyap, Sr. Dr Date Of Hearing : 05.08.2025 Date Of Pronouncement : 27.08.2025 Order Per Anubhav Sharma, Jm: These Are Cross Appeals Preferred By The Revenue & The Assessee Against The Order Dated 08.08.2024 Of The Commissioner Of Income-Tax (Appeals)-30

For Appellant: Shri Gaurav Jain, Advocate &For Respondent: Shri Vipul Kashyap, Sr. DR
Section 143(3)

…by the AO in the impugned order. In such circumstances, the adhoc disallowance out of total expenditure could not be made by AO. Reliance, in this regard, is rightly placed by ld. AR on the catena of decisions including Dhakeshwari Cotton Mills Ltd. vs. CIT: 26 ITR 775 (SC) ITAs No.5141 & 4654/Del/2024 17. In view of the above we are of the view that AO had erred in making ad- hoc disallowance of 80 percent of the total travelling and conveyance expenses of Rs. 18,73,43,027/-, on the ground that same were not supported by bills/voucher, failing to appreciate that the same were backed by self – certificates/ vo…

Mankind Pharma Limited (As Successor of Magnet Labs Pvt. Ltd.), New Delhi vs. DCIT Circle 16(1) Delhi, Delhi

Accordingly, the appeal of assesse is allowed and of revenue dismissed

ITA 4654/DEL/2024[2017-18]Status: DisposedITAT Delhi27 Aug 2025AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharmaassessment Year: 2017-18 Acit, Vs M/S Mankind Pharma Ltd. (Earlier Circle-16(1), Known As M/S Magnet Labs Pvt. Delhi. Ltd.), 208, Okhla Industrial Estate Phase-3, Delhi – 110 020. Pan: Aaccm1861C Assessment Year: 2017-18 M/S Mankind Pharma Ltd. Vs. Acit, (Earlier Known As M/S Magnet Circle-16(1), Labs Pvt. Ltd.), Delhi 208, Okhla Industrial Estate Phase-3, Delhi – 110 020. Pan: Aaccm1861C (Appellant) (Respondent) Assessee By : Shri Gaurav Jain, Advocate & Shri Rahul Prabhakar, Advocate Revenue By : Shri Vipul Kashyap, Sr. Dr Date Of Hearing : 05.08.2025 Date Of Pronouncement : 27.08.2025 Order Per Anubhav Sharma, Jm: These Are Cross Appeals Preferred By The Revenue & The Assessee Against The Order Dated 08.08.2024 Of The Commissioner Of Income-Tax (Appeals)-30

For Appellant: Shri Gaurav Jain, Advocate &For Respondent: Shri Vipul Kashyap, Sr. DR
Section 143(3)

…by the AO in the impugned order. In such circumstances, the adhoc disallowance out of total expenditure could not be made by AO. Reliance, in this regard, is rightly placed by ld. AR on the catena of decisions including Dhakeshwari Cotton Mills Ltd. vs. CIT: 26 ITR 775 (SC) ITAs No.5141 & 4654/Del/2024 17. In view of the above we are of the view that AO had erred in making ad- hoc disallowance of 80 percent of the total travelling and conveyance expenses of Rs. 18,73,43,027/-, on the ground that same were not supported by bills/voucher, failing to appreciate that the same were backed by self – certificates/ vo…

ACIT, Circle-49(1), New Delhi vs. Pradeep Patil, New Delhi

In the result, the Appeal of the Revenue is dismissed

ITA 2671/DEL/2022[2017-18]Status: DisposedITAT Delhi27 Aug 2025AY 2017-18

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwali.T.A. No. 2671/Del/2022 (A.Y 2017-18) Acit Vs Pradeep Patil Circle-49(1) 306, Gold Plaza Building, Room No. 1505, E-2 Block, Gurudwara Road, Dr.Spm Civic Centre, Karol Bagh, New Delhi New Delhi Pan: Baipp4632G

Section 143(3)Section 68

…ollowing judgements on this issue:- Krishnand v. State of Madhya Pradesh: AIR 1977 SC 796 JayadayalPoddar v. Mst. BibiHazra: AIR 1974 SC 171 CIT v. K MahimUdma [2000] 158 CTR (Ken) 100: [2000] 242 ITR 133 (Ker.) Dhakeshwari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 (SC) Omar Salay Mohamed Sait v. CIT [1959] 37 ITR 151 (SC) Asstt. CIT v. Jindal Saw Pipes Ltd [2008] 118 TTJ 228: [2008] 11 DTR (Delhi) (Trib.) 281 DhirajLalGirdhariLalVs. CIT 26ITR 736 LalehandBhagatAmbika Ram VS. CIT 37 ITR 288 10.2.8 It is also seen that the total cash-sales during the year was Rs.10.27,91,367/- which was only 10,04% of th…

ACIT, Range-1, Lucknow vs. Medhraj Techno Concept Pvt. Ltd., Lucknow

The appeal of the Department is dismissed

ITA 429/LKW/2020[2017-18]Status: DisposedITAT Lucknow22 Aug 2025AY 2017-18

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudharyassessment Year: 2017-18 Asstt. Commissioner Of V. Medhraj Techno Concept Pvt. Ltd. Income Tax G-05, Sky Hi Chambers, Park Road, Range – 1 Hazratganj Lucknow Lucknow Tan/Pan:Aafcm1276N (Appellant) (Respondent) Appellant By: Shri Rakesh Garg, Advocate Respondent By: Shri Amit Singh Chouhan, D.R. O R D E R

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Shri Amit Singh Chouhan, D.R
Section 115BSection 68

…r enquiries ought to have been made by the AO before rejecting the Assessee’s explanation outright. 12. It will not be out of place at this juncture to refer to the judgment of the Hon’ble Apex Court in the case of Dhakeshwari Cotton Mills Ltd vs. CIT (1954) 26 ITR 775 (SC) on the issue of suspicion vs. proof. The Hon’ble Apex Court held as under: “As regards the second contention, although ITO is not fettered by technical rules of evidence and pleadings, and that he is entitled to act on material which may not be ITA No.429/LKW/2020 Page 15 of 17 accepted as evidence in a court of law, but there the agreement…

DCIT, Central Circle 7(1), Mumbai vs. Insco Steels Private Limited, Mumbai

In the result, all the appeals raised by the assessee are allowed and all the appeals filed by the revenue are dismissed

ITA 3980/MUM/2025[2015-16]Status: DisposedITAT Mumbai22 Aug 2025AY 2015-16

Bench: SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & PRABHASH SHANKAR (Accountant Member)

Section 143(3)Section 153CSection 250

…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…

DCIT, Central Circle 7(1), Mumbai vs. Insco Steels Private Limited, Mumbai

In the result, all the appeals raised by the assessee are allowed and all the appeals filed by the revenue are dismissed

ITA 3964/MUM/2025[2014-15]Status: DisposedITAT Mumbai22 Aug 2025AY 2014-15

Bench: SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & PRABHASH SHANKAR (Accountant Member)

Section 143(3)Section 153CSection 250

…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…