Dhakeshwari Cotton\nMills Ltd. v. CIT

26 ITR 776Supreme Court of India#10427 most cited

What is Dhakeshwari Cotton\nMills Ltd. v. CIT authority for?

An Assessing Officer cannot make an addition to income purely on guesswork without any material or tangible evidence, even though they are not bound by strict rules of evidence.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2022 to 2025.

Also referred to as

Dhakeshwari Cotton Mills Ltd. v. CIT · addition without evidence · conjectural reasoning · assessment addition · tangible evidence · AO powers · guessing addition · income tax assessment

Sections most often in play

Section 10(38)Section 143(3)Section 147Section 148Section 153CSection 68Section 69C

Issues it is cited on

section 250(2)circular tradinginterest u/s 234acommercial expediencyrule 46arevenue expenditurecapital expendituresection 234ascrutiny assessmentsection 139(1)section 153csalary

Judgments citing Dhakeshwari Cotton\nMills Ltd. v. CIT

ACIT Central Circle 7 (1), Mumbai vs. Elecmec Engineering & Projects Private Limited, Mumbai

In the result, appeals of the revenue and cross-objections by the assessee are dismissed

ITA 3057/MUM/2025[2017-18]Status: DisposedITAT Mumbai08 Oct 2025AY 2017-18

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Shri Vijay Mehta, A/RFor Respondent: Shri Ritesh Misra, CIT, D/R
Section 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 776) (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. Elecmec Engineering & Projects Private Limited, Mumbai

In the result, appeals of the revenue and cross-objections by the

ITA 3056/MUM/2025[2018-19]Status: DisposedITAT Mumbai08 Oct 2025AY 2018-19

Bench: Shri Saktijit Dey, Hon'Ble & Shri Narendra Kumar Billaiya, Hon'Ble

For Appellant: Shri Vijay Mehta, A/RFor Respondent: Shri Ritesh Misra, CIT, D/R
Section 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 776) (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. Elecmec Engineering & Projects Private Limited, Mumbai

In the result, appeals of the revenue and cross-objections by the

ITA 3055/MUM/2025[2016-17]Status: DisposedITAT Mumbai08 Oct 2025AY 2016-17

Bench: Shri Saktijit Dey, Hon'Ble & Shri Narendra Kumar Billaiya, Hon'Ble

For Appellant: Shri Vijay Mehta, A/RFor Respondent: Shri Ritesh Misra, CIT, D/R
Section 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 776) (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…

Aditya Baheti, Jaipur vs. Income Tax Officer, Jaipur

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

ITA 562/JPR/2023[2014-15]Status: DisposedITAT Jaipur23 Sept 2024AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Ms. Nupur Khandelwal, C.A ( V.H.)For Respondent: Smt. Monisha Choudhary (Addl. CIT)
Section 10Section 10(38)Section 147Section 148

…a handsome price, which price is supported by official quotation issued byMagadh Stock Exchange, therefore, there can not be any reason to doubt the genuineness of the sale transaction of the shares. It is settled position of law by the decisions reported in 26 ITR 776(SC), 37 ITR 288(SC), 63 ITR 449(SC) and 1 SOT90(Mum)(supra)tosupportthatsuspicionevenstrongenoughcannottake the character of evidence. Consideringthefactthattheshareswereallottedtotheassessewhichwerekept in demat account, the decision was made in favour of assesse. The AO has doubted the transactions of purchase and sale of shares by the assessee…

ACIT (Central)-1, Bhopal vs. Som Distilleries and Breweries Ltd., Bhopal

Appeal is partly allowed for statistical

ITA 297/IND/2023[2014-15]Status: DisposedITAT Indore08 Aug 2024AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniay: 2013-14 Som Distilleries & Income-Tax Officer, बनाम/ Breweries Limited, 1(1), Vs. Som House, Bhopal. 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Assessee/Appellant) (Revenue/Respondent) Ay:2014-15 Acit (Central)-1, Som Distilleries & बनाम/ Bhopal Breweries Limited, Vs. Som House, 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Revenue/Appellant) (Assessee/Respondent)

Section 139(1)Section 143(2)Section 143(3)Section 14ASection 234A

…eject books of accounts before making such disallowance which is against the various judicial pronouncements wherein it has been held that such disallowance is not legally sustainable. Hon’ble Apex Court in the case of Dhakeshwari Cotton Mills Ltd reported in 26 ITR 776 (WB) has held that the Income Tax Officer is not entitled to make a pure guess work and make an assessment without reference to any evidence or material at all. Hon’ble M.P. High Court in the case of V.B. Gadkari Vs. STO – 59 STC 362 (M.P.) has held that “…The order of assessment does not refer to any material whatsoever on which the estimate is b…

Som Distilleries and Breweries Ltd., Bhopal vs. ITO-1(1), Bhopal

Appeal is partly allowed for statistical

ITA 271/IND/2023[2013-14]Status: DisposedITAT Indore08 Aug 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniay: 2013-14 Som Distilleries & Income-Tax Officer, बनाम/ Breweries Limited, 1(1), Vs. Som House, Bhopal. 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Assessee/Appellant) (Revenue/Respondent) Ay:2014-15 Acit (Central)-1, Som Distilleries & बनाम/ Bhopal Breweries Limited, Vs. Som House, 23, Zone Ii, M.P. Nagar, Bhopal (Pan: Aabcs3374B) (Revenue/Appellant) (Assessee/Respondent)

Section 139(1)Section 143(2)Section 143(3)Section 14ASection 234A

…eject books of accounts before making such disallowance which is against the various judicial pronouncements wherein it has been held that such disallowance is not legally sustainable. Hon’ble Apex Court in the case of Dhakeshwari Cotton Mills Ltd reported in 26 ITR 776 (WB) has held that the Income Tax Officer is not entitled to make a pure guess work and make an assessment without reference to any evidence or material at all. Hon’ble M.P. High Court in the case of V.B. Gadkari Vs. STO – 59 STC 362 (M.P.) has held that “…The order of assessment does not refer to any material whatsoever on which the estimate is b…

Asst. Commissioner of Income Tax (Central)-I, Bhopal vs. Som Distilleries Private Limited, Bhopal

Appeal is partly allowed for statistical

ITA 289/IND/2023[2014-15]Status: DisposedITAT Indore02 Aug 2024AY 2014-15

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

Section 139(1)Section 143(2)Section 143(3)Section 234A

…eject books of accounts before making such disallowance which is against the various judicial pronouncements wherein it has been held that such disallowance is not legally sustainable. Hon’ble Apex Court in the case of Dhakeshwari Cotton Mills Ltd reported in 26 ITR 776 (WB) has held that the Income Tax Officer is not entitled to make a pure guess work and make an assessment without reference to any evidence or material at all. Hon’ble M.P. High Court in the case of V.B. Gadkari Vs. STO – 59 STC 362 (M.P.) has held that “…The order of assessment does not refer to any material whatsoever on which the estimate is b…

Som Distilleries Pvt. Ltd., Bhopal vs. ITO-1(3), Bhopal

Appeal is partly allowed for statistical

ITA 272/IND/2023[2014-15]Status: DisposedITAT Indore02 Aug 2024AY 2014-15

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

Section 139(1)Section 143(2)Section 143(3)Section 234A

…eject books of accounts before making such disallowance which is against the various judicial pronouncements wherein it has been held that such disallowance is not legally sustainable. Hon’ble Apex Court in the case of Dhakeshwari Cotton Mills Ltd reported in 26 ITR 776 (WB) has held that the Income Tax Officer is not entitled to make a pure guess work and make an assessment without reference to any evidence or material at all. Hon’ble M.P. High Court in the case of V.B. Gadkari Vs. STO – 59 STC 362 (M.P.) has held that “…The order of assessment does not refer to any material whatsoever on which the estimate is b…

Income Tax Officer-3(4), Kanpur vs. Shri Santosh Kumar Agarwal, Kanpur

In the result, the appeal of the Revenue is dismissed

ITA 153/LKW/2020[2014-15]Status: DisposedITAT Lucknow17 Feb 2022AY 2014-15

Bench: Shri T. S. Kapoor

Section 10(38)Section 143(3)Section 69A

…I.T.A. No.153/Lkw/2020 Assessment. Year:2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘SMC’, LUCKNOW (THROUGH VIRTUAL HEARING) BEFORE SHRI T. S. KAPOOR, ACCOUNTANT MEMBER I.T.A. No.153/Lkw/2020 Assessment Year:2014-15 Income Tax Officer-3(4), Vs. Shri Santosh Kumar Agarwal, Kanpur. Ratan Dham Apt, 12/483, Macrobert Ganj, Kanpur. PAN:ABHPA5568M (Appellant) (Respondent) Appellant by Shri Rakesh Garg, Advocate Respondent by Shri Harish Gidwani, D.R. Date of hearing 10/02/2022 Date of pronouncement 17/02/2022 O R D E R This is an appeal filed by the Revenue against the order of learned CIT(A)…

Income Tax Officer-1(3), Kanpur vs. Shri Raj Kumar Agarwal, Kanpur

In the result, both the appeals of the Revenue are dismissed

ITA 205/LKW/2020[2014-15]Status: DisposedITAT Lucknow17 Jan 2022AY 2014-15

Bench: Shri T.S. Kapoor

Section 10(38)Section 143(3)Section 69A

…IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘SMC’ LUCKNOW BEFORE SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA Nos.204/Lkw/2020 A.Y. 2014-15 Income Tax Officer 1(3), Vs. Smt. Renu Agarwal, Kanpur 16/19-A, Civil Lines, Kanpur PAN-ABTPA 6753A ITA Nos.205/Lkw/2020 A.Y. 2014-15 Income Tax Officer 1(3), Vs. Shri Raj Kumar Agarwal, Kanpur 35/48-A, Bengali Mohal, Kanpur PAN- ADNPA 5935E (Appellant) (Respondent) Appellant by Shri Harish Gidwani, DR Respondent by Shri Rakesh Garg, Advocate Date of hearing 23/12/2021 Date of pronouncement 17/01/2022 O R D E R These are two appeals filed by Revenue against separate or…