Haryana Acrylic Manufacturing Company v. CIT

308 ITR 38High Court2009#349 most cited

What is Haryana Acrylic Manufacturing Company v. CIT authority for?

Reassessment proceedings are invalid if the reasons recorded for initiating action under section 148 are not served on the assessee within the limitation period prescribed by section 149. Furthermore, reassessment cannot be based on a mere change of opinion without tangible material, particularly when the assessee has made a full and true disclosure of material facts.

248

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2010 to 2026.

Also referred to as

Haryana Acrylic Manufacturing Company v. CIT · 308 ITR 38 · reassessment proceedings · section 147 · section 148 · section 149 · service of reasons · limitation period · mere change of opinion · full and true disclosure · escapement of income · Kelvinator

Also reported as

175 Taxmann 262

Sections most often in play

Section 147Section 148Section 143(3)Section 139Section 68Section 142(1)Section 151Section 133(6)

Issues it is cited on

material facts necessary for assessmentsection 147(a)first proviso to section 147beyond four yearsfull and true disclosurekelvinatormere change of opinionlive linkchange of opinionescapement of incomereason to believetangible material

Judgments citing Haryana Acrylic Manufacturing Company v. CIT

Behat Holdings Ltd., New Delhi vs. ITO Ward-4(3), New Delhi

In the result, appeal of Assessee allowed

ITA 8066/DEL/2019[2010-11]Status: DisposedITAT Delhi15 Jan 2020AY 2010-11

Bench: Shri Bhavnesh Saini & Shri N.K. Billaiya

For Appellant: Shri Deepesh Jain, C.A. And Shri Arpit Goel, C.AFor Respondent: Shri Ved Prakash Mishra, Sr. DR
Section 133(6)Section 147Section 148Section 151Section 68

…Yum Restaurants Asia Pte Ltd., vs., DDIT [2017] 397 ITR 665 (Del.) 05. Hirachand Kanuga vs., DCIT [2015] 68 SOT 205 {Mum.). 3.2. He has also relied upon Judgment of Hon’ble Delhi High Court in the case of Haryana Acrylic Manufacturing Company vs., CIT [2009] 308 ITR 38 (Del.) (HC) in which the assessee challenged the validity of the re- assessment proceedings under section 147. The Hon’ble Delhi High court quashed the proceedings inter alia, held that “if reasons are not served within the limitation period of six years, the proceedings initiated will be illegal”. Learned 9 ITA.No.8066/Del./2019 M/s. Behat Holdi…

Indian Wire and Steel Products, Kolkata vs. A.C.I.T., Circle-44, Kolkata

In the result, the appeal of the assessee is allow

ITA 1160/KOL/2019[2010-1]Status: DisposedITAT Kolkata10 Jan 2020

Bench: Sri J. Sudhakar Reddy) Assessment Year: 2010-11 Indian Wire & Steel Products.....…………........................................................……………….…......Appellant 2Nd Floor 113A, Manohar Das Katra Kolkata – 700 007 [Pan : Aaafi 7079 M] Vs. Asstt. Commissioner Of Income Tax, Circle-44, Kolkata………………………………….…....Respondent Appearances By: Shri Subash Agarwal, Advocate, Appeared On Behalf Of The Assessee. Shri Jayanta Khanra, Jcit Sr. D/R, Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : December 10Th, 2019 Date Of Pronouncing The Order : January 10Th, 2020 Order Per J. Sudhakar Reddy, Am :-

Section 132(1)Section 147Section 250

…Commissioner of 4.7. The Hon’ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. Commissioner of 4.7. The Hon’ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. Commissioner of Income-Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as fo Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: “26 Viewed in this light, the proviso to section 147 of the said Act, carves out an exception from Viewed in this light, the proviso to section 147 of the said Act, carves out an exception from Viewed in this light, the proviso to section 147 of the sai…

ACIT, Circle - 25, Kolkata vs. M/S. Mala Roy & Others, Kolkata

In the result, this appeal of the In the result, this appeal of the revenue is dismissed

ITA 407/KOL/2018[2012-13]Status: DisposedITAT Kolkata31 Dec 2019AY 2012-13

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2008-09 & Assessment Year: 2012-13

Section 139(1)Section 143(3)Section 148

…na Acrylic Manufacturing Co. v. 4.7. The Hon'ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. 4.7. The Hon'ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. Commissioner of Income-Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: "26Viewed in this light, the proviso to sect "26Viewed in this light, the proviso to section 147 of the said Act, carves out an exception ion 147 of the said Act, carves out…

ACIT, Circle - 25, Kolkata vs. M/S. Mala Roy & Others, Kolkata

In the result, this appeal of the In the result, this appeal of the revenue is dismissed

ITA 406/KOL/2018[2008-09]Status: DisposedITAT Kolkata31 Dec 2019AY 2008-09

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2008-09 & Assessment Year: 2012-13

Section 139(1)Section 143(3)Section 148

…na Acrylic Manufacturing Co. v. 4.7. The Hon'ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. 4.7. The Hon'ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. Commissioner of Income-Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: "26Viewed in this light, the proviso to sect "26Viewed in this light, the proviso to section 147 of the said Act, carves out an exception ion 147 of the said Act, carves out…

Charbuja Marmo (India) Pvt. Ltd., Delhi vs. Pr.CIT- 2, New Delhi

In the result, appeal of Assessee allowed

ITA 4749/DEL/2019[2010-11]Status: DisposedITAT Delhi31 Dec 2019AY 2010-11

Bench: Shri Bhavnesh Saini & Shri B.R.R. Kumar

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Ms. Nidhi Srivastava, CIT-DR
Section 143(1)Section 147Section 148Section 151Section 263

…ice who has submitted his report without pointing-out any specific discrepancy. PB-310-317 is order sheet. Learned Counsel for the Assessee relied upon decision of Hon’ble Delhi High Court in the case of Haryana Acrylic Manufacturing Company vs. CIT (2009) 308 ITR 38 (Del.) in which it was held as under : “Conclusion : AO while making assessment under s. 143(3) having made specific queries with regard to share application money in response to which assessee furnished all relevant documents and after considering this material, AO having completed the assessment, it could not be said that income escaped ass…

Taruna Verma, Delhi vs. ITO, Ward-35(3), New Delhi

In the result, appeal of the Assessee allowed

ITA 2496/DEL/2018[2012-13]Status: DisposedITAT Delhi15 Nov 2019AY 2012-13

Bench: Shri Bhavnesh Saini

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri Pradeep Singh Gautam
Section 133ASection 147Section 148Section 69A

…hi. reopened beyond the period of four years. This court considered the decision of the Supreme Page No : 0152 Court in Phool Chand Bajrang Lal v. ITO (supra) as well as the decision of this court in Haryana Acrylic Manufacturing Co. (P.) Ltd. v. CIT [2009] 308 ITR 38 (Delhi) The court noted that a material change had been brought about to section 147 of the Act with effect from April 1, 1989 and observed (page 368 of 378 ITR) : "It is at once seen that the amendment in section 147 of the Act brought about a material change in law with effect from April 1, 1989. Section 147(a) as it stood prior to April 1, 198…

M/S. Mkm Finsec (P) Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 6366/DEL/2013[2001-02]Status: DisposedITAT Delhi17 Sept 2019AY 2001-02

Bench: Shri N.K. Billaiya & Shri Kuldip Singh[A.Y 2001-02]

For Appellant: Shri Somil Agarwal, AdvFor Respondent: Shri Vijay Kumar Chadha, Sr. DR
Section 139Section 142Section 143Section 143(3)Section 147Section 148Section 151

…his assessment. 8. There is not even a whisper in the reasons recorded for the reopening of the assessee relating to non disclosure of full and true facts by the assessee. The Hon’ble High Court of Delhi in the case of Haryana Acrylic Manufacturing Company 308 ITR 38 had the occasion to consider a similar issue and observed as under:- “20. In the reasons supplied to the petitioner, there is no whisper, what to speak of any allegation, that the petitioner had failed to disclose fully and truly all material facts necessary for assessment and that because of this failure there has been an escapement of income ch…

ACIT 20(1), Mumbai vs. Dhananjay G Mishra, Mumbai

In the result, appeal of the revenue is dismissed

ITA 1663/MUM/2018[2009-10]Status: DisposedITAT Mumbai11 Sept 2019AY 2009-10

Bench: Shri M.Balaganesh, Am & Shri Ram Lal Negi, Jm Acit-20(1), Vs. Shri Dhananjay Mishra Room No.113, Unit No.29, Neelgiri 1St Floor, Piramal Chambers Industrial Estate Lalbaug, Mumbai – 400 012 T.J.Road, Sewree (W) Mumbai – 400 015 Pan/Gir No. Aflpm1475K (Appellant) .. (Respondent)

Section 143(3)Section 147Section 148Section 2(24)Section 2(24)(iv)

…ppellant, the Ld. AO has not even alleged in the reason that there was failure on the part of the appellant to disclose fully and truly all material facts for assessment. Similar views are taken in the case of - Haryana Acrylic Manufacturing Co. v. CIT [2009] 308 ITR 38 (Del) wherein it is held that merely having reason to believe that income had escaped assessment, is not sufficient to reopen assessment beyond 4 years period. The escapement of income from assessment must also be occasioned by the failure on the part of the assessee to disclose material facts fully and truly. This is a necessary condition for ove…

M/S Bsn Joshi & Sons Ltd, Khurda vs. ACIT, Bhubaneswar

In the result, appeal filed by the assessee is allowed

ITA 6/CTK/2011[2003-04]Status: DisposedITAT Cuttack08 Aug 2019AY 2003-04

Bench: Shri Chandra Mohan Garg & Laxmi Prasad Sahuassessment Year : 2003-2004

For Appellant: Shri P.C.Sethi, ARFor Respondent: Shri Subhendu Dutta, DR
Section 143(3)Section 147Section 148

…ssing Officer to reopen the assessment u/s.147 of the Act. 13. At this juncture, we also find it appropriate to consdier the applicability of the rasio of the decision of Hon'ble Delhi High Court in the case of Haryna Acrylic Manufacturing Co. vs CIT & Ors, 308 ITR 38(Del) and in the case of Sabh Infrastructure Ltd vs ACIT, 398 ITR 198 (Del) has vehemently relied upon by ld A.R. pressing into with reference to legal ground of the assessee, wherein, it has been held that when the Assessing Officer intends to initiate reassessment proceedings after expiry of four years from the end of the relevant assessment y…

Punsumi India Ltd, Jaipur vs. Deputy Commissioner of Income Tax, Circle-3, Jaipur

In the result, all appeals of assessee for the assessment years

ITA 1204/JPR/2018[1995-96]Status: DisposedITAT Jaipur04 Jul 2019AY 1995-96

Bench: The Ld.

For Appellant: Shri Dileep Shivpuri (Adv.)For Respondent: Shri P.P. Meena (ACIT)
Section 143(3)Section 147Section 148Section 254(2)

…corded by the AO therefore, the reopening without jurisdiction and liable to be set aside. In support of his contention, he has relied upon the following decisions:- • Nokia India (P.) Ltd. 251 Taxmann 85 (Delhi) • Haryana Acrylic Manufacturing Co. vs. CIT 308 ITR 38. • Wel Intertrade (P.) Ltd. & Anr. Vs. ITO 308 ITR 22. • Poysha Investments (P.) Ltd. vs. ITO 20 taxmann.com 161. The ld. AR has also submitted that there is no proper approval before issuing the notice U/s 148 of the Act as the approval is only mechanical without full application of mind. Punsumi India Ltd. vs. DCIT 8. On the other hand, ld. DR…

Punsumi India Ltd, Jaipur vs. Deputy Commissioner of Income Tax, Circle-3, Jaipur

In the result, all appeals of assessee for the assessment years

ITA 1203/JPR/2018[1994-95]Status: DisposedITAT Jaipur04 Jul 2019AY 1994-95

Bench: The Ld.

For Appellant: Shri Dileep Shivpuri (Adv.)For Respondent: Shri P.P. Meena (ACIT)
Section 143(3)Section 147Section 148Section 254(2)

…corded by the AO therefore, the reopening without jurisdiction and liable to be set aside. In support of his contention, he has relied upon the following decisions:- • Nokia India (P.) Ltd. 251 Taxmann 85 (Delhi) • Haryana Acrylic Manufacturing Co. vs. CIT 308 ITR 38. • Wel Intertrade (P.) Ltd. & Anr. Vs. ITO 308 ITR 22. • Poysha Investments (P.) Ltd. vs. ITO 20 taxmann.com 161. The ld. AR has also submitted that there is no proper approval before issuing the notice U/s 148 of the Act as the approval is only mechanical without full application of mind. Punsumi India Ltd. vs. DCIT 8. On the other hand, ld. DR…

Punsumi India Ltd, Jaipur vs. Deputy Commissioner of Income Tax, Circle-3, Jaipur

In the result, all appeals of assessee for the assessment years

ITA 1202/JPR/2018[1993-94]Status: DisposedITAT Jaipur04 Jul 2019AY 1993-94

Bench: The Ld.

For Appellant: Shri Dileep Shivpuri (Adv.)For Respondent: Shri P.P. Meena (ACIT)
Section 143(3)Section 147Section 148Section 254(2)

…corded by the AO therefore, the reopening without jurisdiction and liable to be set aside. In support of his contention, he has relied upon the following decisions:- • Nokia India (P.) Ltd. 251 Taxmann 85 (Delhi) • Haryana Acrylic Manufacturing Co. vs. CIT 308 ITR 38. • Wel Intertrade (P.) Ltd. & Anr. Vs. ITO 308 ITR 22. • Poysha Investments (P.) Ltd. vs. ITO 20 taxmann.com 161. The ld. AR has also submitted that there is no proper approval before issuing the notice U/s 148 of the Act as the approval is only mechanical without full application of mind. Punsumi India Ltd. vs. DCIT 8. On the other hand, ld. DR…

Neeta Garg, Jaipur vs. ITO, Ajmer

In the result, appeal of the assessee is dismissed

ITA 5/JPR/2017[2008-09]Status: DisposedITAT Jaipur21 Jun 2019AY 2008-09
For Appellant: Shri Mahendra Gargieya (Advocate)For Respondent: Shri Rajendra Jha (Addl. CIT)
Section 134ASection 143(3)Section 147Section 148

…ailure on his part to fully and truly disclose material facts necessary for assessment, then the reopening beyond four years is not valid. He has also relied upon the decision of Hon’ble Delhi High Court in case of Haryana Acrylic Manufacturing Co. vs. CIT, 308 ITR 38 (Del.) as well as the decision of Hon’ble 4 Smt. Neeta Garg, Ajmer. Jurisdictional High Court in case of Banswara Syntex Ltd. vs. ACIT, 272 ITR 154 (Raj.) and submitted that when the reasons recorded by the AO do not show satisfaction of the AO that escapement of the income chargeable to tax is on account of failure on the part of the assessee…

Anjan Kumar Naha, Kolkata vs. I.T.O., Ward - 44(1), Kolkata

Appeals are allowed

ITA 2381/KOL/2017[2011-12]Status: DisposedITAT Kolkata15 May 2019AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 147Section 148

…to the ITAT, a reference was made by the Assessee to the decision of this Court in Haryana Acrylic ITA No.2379-2381/Kol/2017 A.Ys. 09-10 to 11-12 Anjan Kr. Naha Vs. ITO, Wd-44(1), Kol. Page 9 Manufacturing Company v. The Commissioner of Income Tax IV [2009] 308 ITR 38 (Del) and that of the Bombay High Court in CIT v. Fomento Resorts and Hotels Limited (decision dated 27th November 2006 in ITA No. 7112006). It was held that the decision of this Court in Haryana Acrylic (supra) was binding on the Revenue. The failure to supply the reasons under Section 148 of the Act despite requests was held to have vitiated the…

Anjan Kumar Naha, Kolkata vs. I.T.O., Ward - 44(1), Kolkata

Appeals are allowed

ITA 2380/KOL/2017[2010-11]Status: DisposedITAT Kolkata15 May 2019AY 2010-11

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 147Section 148

…to the ITAT, a reference was made by the Assessee to the decision of this Court in Haryana Acrylic ITA No.2379-2381/Kol/2017 A.Ys. 09-10 to 11-12 Anjan Kr. Naha Vs. ITO, Wd-44(1), Kol. Page 9 Manufacturing Company v. The Commissioner of Income Tax IV [2009] 308 ITR 38 (Del) and that of the Bombay High Court in CIT v. Fomento Resorts and Hotels Limited (decision dated 27th November 2006 in ITA No. 7112006). It was held that the decision of this Court in Haryana Acrylic (supra) was binding on the Revenue. The failure to supply the reasons under Section 148 of the Act despite requests was held to have vitiated the…

Anjan Kumar Naha, Kolkata vs. I.T.O., Ward - 44(1), Kolkata

Appeals are allowed

ITA 2379/KOL/2017[2009-10]Status: DisposedITAT Kolkata15 May 2019AY 2009-10

Bench: Shri S.S.Godara & Dr. A.L. Saini

Section 143(3)Section 147Section 148

…to the ITAT, a reference was made by the Assessee to the decision of this Court in Haryana Acrylic ITA No.2379-2381/Kol/2017 A.Ys. 09-10 to 11-12 Anjan Kr. Naha Vs. ITO, Wd-44(1), Kol. Page 9 Manufacturing Company v. The Commissioner of Income Tax IV [2009] 308 ITR 38 (Del) and that of the Bombay High Court in CIT v. Fomento Resorts and Hotels Limited (decision dated 27th November 2006 in ITA No. 7112006). It was held that the decision of this Court in Haryana Acrylic (supra) was binding on the Revenue. The failure to supply the reasons under Section 148 of the Act despite requests was held to have vitiated the…

M/S. Maa Tara Agro Industries, Murshidabad vs. ITO, Ward-4, Murshidabad

In the result, the appeal of the assessee is allowed

ITA 233/KOL/2014[2006-2007]Status: DisposedITAT Kolkata08 May 2019AY 2006-2007

Bench: Sri J. Sudhakar Reddy] I.T.A. No. 233/Kol/2014 Assessment Year: 2006-07 M/S. Maa Tara Agro Industries……………………………....………………..…………………….….Appellant Vill. + P.O. Satitara Murshidabad – 742 132 [Pan : Aamfm 5316 R] Income Tax Officer, Ward-4, Murshidabad...........................................................…...Respondent Appearances By: Shri V.N. Purohit, Fca, Appeared On Behalf Of The Assessee. Shri Sankar Halder, Jcit Sr. D/R, Appearing On Behalf Of The Revenue.

Section 143(3)Section 147Section 148Section 151Section 250

…bsequent to the issue of the intimation. It reflects an arbitrary exercise of the power conferred under section 147.” 4.7. The Hon’ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. Commissioner of Income-Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: “26 Viewed in this light, the proviso to section 147 of the said Act, carves out an exception from the main provisions of section 147. If a case were to fall within the proviso, whether or not it was covered under the main provisions of section 147 of the said Act would not be material. Once the exception carved out by…

M/S. Satyam Investment Advisory Pvt. Ltd., Kolkata vs. DCIT, Central Circle - 3(3), Kolkata

In the result appeal of the assessee is allowed

ITA 116/KOL/2018[2008-09]Status: DisposedITAT Kolkata03 Apr 2019AY 2008-09

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi] I.T.A. No. 116/Kol/2018 Assessment Year: 2008-09 M/S. Satyam Investment Advisory Pvt. Ltd……………....……………....…………………….....Appellant 51, Panchanna Gram Kolkata – 700 039 [Pan : Aalcs 2500 H] Deputy Commissioner Of Income Tax, Circle-3(3), Kolkata......……….....................Respondent

Section 143(3)Section 147Section 151Section 156Section 250

…bsequent to the issue of the intimation. It reflects an arbitrary exercise of the power conferred under section 147." 4.7. The Hon'ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. Commissioner of Income-Tax and Anor. reported in [2009] 308 ITR 38 (Delhi) has held as follows: "Viewed in this light, the proviso to section 147 of the said Act, carves out an exception from the main provisions of section 147. If a case were to fall within the proviso, whether or not it was covered under the main provisions of section 147 of the said Act would not be material. Once the exception carved ITA No. 2…

Hightech Construction P.Ltdr, New Delhi vs. ITO, Ward-1(3), Faridabad

In the result, both the Appeals of the assessee are partly

ITA 1606/DEL/2019[2012-13]Status: DisposedITAT Delhi22 Mar 2019AY 2012-13

Bench: Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: SH. KAPIL GOEL, ADVFor Respondent: SH. AMIT KATOCH, SR. DR
Section 133(6)Section 143(2)Section 147Section 148Section 292B

…performed their salutary duties as per law and those authorities by their own actions has allowed the case of revenue to become weakened causing loss to exchequer. We are supported by following observations of Delhi high court in case of Haryana Acrylic case 308 ITR 38 wherein it is lucidly held that: “…23. Secondly, let us assume for the sake of argument that the ‘actual’ reasons were those as noted in the said form. Then why did the Assessing Officer communicate a different set of reasons to the petitioner? Did he think that the supplying of reasons and the inviting of objections were mere charades? Did he th…

Hightech Construction P.Ltdr, New Delhi vs. ITO, Ward-1(3), Faridabad

In the result, both the Appeals of the assessee are partly

ITA 1605/DEL/2019[2011-12]Status: DisposedITAT Delhi22 Mar 2019AY 2011-12

Bench: Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: SH. KAPIL GOEL, ADVFor Respondent: SH. AMIT KATOCH, SR. DR
Section 133(6)Section 143(2)Section 147Section 148Section 292B

…performed their salutary duties as per law and those authorities by their own actions has allowed the case of revenue to become weakened causing loss to exchequer. We are supported by following observations of Delhi high court in case of Haryana Acrylic case 308 ITR 38 wherein it is lucidly held that: “…23. Secondly, let us assume for the sake of argument that the ‘actual’ reasons were those as noted in the said form. Then why did the Assessing Officer communicate a different set of reasons to the petitioner? Did he think that the supplying of reasons and the inviting of objections were mere charades? Did he th…