What is Duggal & Co. v. CIT authority for?

An assessment order becomes erroneous and prejudicial to the revenue under Section 263 if the Assessing Officer fails to conduct a proper inquiry or investigation, even if the return appears prima facie correct. The Income-tax Officer has a duty to investigate and cannot remain passive.

How many judgments cite Duggal & Co. v. CIT?

84 judgments on BharatTax cite Duggal & Co. v. CIT (220 ITR 456), spanning 2009 to 2025.

Which sections of the Income Tax Act does Duggal & Co. v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 263, Section 271(1)(c), Section 40A(2)(b), Section 43B, Section 69C.

Duggal & Co. v. CIT (220 ITR 456)

BE HEALTHY PHARMACY,MUMBAI vs. DCIT 41(3)(1), KAUTILYA BHAVAN, MUMBAI

ITA 3666/MUM/2025[2021-22]Status: DisposedITAT Mumbai02 Dec 2025AY 2021-22

Bench: Shri Anikesh Banerjee (Jm) & Shri Omkareshwar Chidara (Am) Be Healthy Pharmacy Pcit-41 Shop No. 04, Gala Residency Room No. 541 Chsl, Gala Compound, Haji Vs. Kautilya Bhavan, Bkc Bapu Road, Malad East C-41 To 43 Mumbai-400 097. Bandra-E, Mumbai-51. Pan : Aatfb6476A Appellant Respondent

For Appellant: Shri Satyaparkash R. SinghFor Respondent: Shri Ronak Doshi

Section 143(3)Section 194Section 194CSection 194HSection 263

…tting aside the order of the Assessing Officer, simply directed the Assessing Officer to carry thorough and detailed inquiry. It is this order which is upheld by the High Court. We see no reason to interfere with the order of the High Court”. b) Duggal & Co. 220 ITR 456 (Del) : The ITO is not only an adjudicator but also an investigator. He cannot remain passive in the face of a Return of Income which is apparently in order but call for further enquiry. It is incumbent on the ITO to further investigate the facts sated in Return of Income, when circumstances would make such an enquiry prudent and the word “errone…

AJAY KUMAR DUA,NEW DELHI vs. PCIT CIRCLE 61(1) - 12, NEW DELHI

Appeal is allowed

ITA 3359/DEL/2024[2012-13]Status: DisposedITAT Delhi16 Dec 2024AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri M. Balaganeshassessment Year: 2012-13 Sh. Ajay Kumar Dua, Vs. Pcit, B-3, Defence Colony, Circle-61(1)-12, New Delhi New Delhi Pan :Aajpd3532B (Appellant) (Respondent) Assessee By Sh. Ved Jain, Advocate Sh. Ayush Garg, Ca Department By Mr. Javed Akhtar, Cit(Dr) Date Of Hearing 19.11.2024 Date Of Pronouncement 16.12.2024 Order

Section 143(2)Section 143(3)Section 147Section 263

…in absence of any supporting material and without making any inquiry. It is incumbent on the officer to investigate the facts stated in the return. The order becomes erroneous if such as enquiry has not been made as held in case of Duggal & Co. V/s CIT (1996) 220 ITR 456 (Del.). 10.2 Where the Assessing Officer keeps a letter on record and does not carry out necessary investigations which are per se required to verify the correctness of the averments, there being an error in the sense that he has failed to carry out the requisite enquiry which can be rectified in a revision. Thus the Commissioner was to pass a fr…