Kapurchand Shrimal v. CIT

131 ITR 451Supreme Court of India1981#707 most cited

What is Kapurchand Shrimal v. CIT authority for?

Appellate authorities in income-tax proceedings have the jurisdiction and duty to correct all errors of lower authorities. They must remit matters for proper or fresh adjudication and issue appropriate directions to ensure substantial justice, unless expressly forbidden by statute.

143

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2010 to 2026.

Also referred to as

Kapurchand Shrimal v. CIT · 131 ITR 451 · appellate authority powers · duty to correct errors · remit for de novo assessment · fresh adjudication · substantial justice · speaking order · income tax appeals · appellate procedure

Also reported as

7 Taxmann 6

Sections most often in play

Section 147Section 143(3)Section 68Section 271(1)(c)Section 131Section 144Section 148Section 50C
Read the full judgment

Issues it is cited on

speaking ordergenuineness of the transactionunexplained investmentsection 153csection 139(1)assistant commissionersection 11section 139section 153transfersection 25section 69

Judgments citing Kapurchand Shrimal v. CIT

M/S.Sagar Tobacco & Industries Pvt.Ltd., Sagar vs. Assistance Commissioner of Income Tax Circle, Sagar

In the result, the assessee‟s appeals are allowed on the aforesaid terms

ITA 182/JAB/2018[2005-06]Status: DisposedITAT Jabalpur08 Sept 2022AY 2005-06

Bench: Shri Sanjay Arora, Hon‟Ble & Shri Manomohan Das, Hon'Ble

For Appellant: Shri Abhijeet Shrivastava, AdvocateFor Respondent: Shri Ravi Mehrotra, Sr. DR
Section 143(3)Section 254

…may though add, is not due to anything wrong with the average formula per se, with which we agree in principle, but due to its faulty application. This also explains our interference in the matter. The Apex Court explained in Kapurchand Shrimal v. CIT [1981] 131 ITR 451 (SC) that an appellate authority has the jurisdiction as well as the duty to correct all errors in the proceedings under appeal and to issue, if necessary, appropriate directions to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh, unless forbidden from doing so by the statute.…

M/S.Sagar Tobacco & Industries Pvt.Ltd., Sagar vs. Assistance Commissioner of Income Tax Circle, Sagar

In the result, the assessee‟s appeals are allowed on the aforesaid terms

ITA 181/JAB/2018[2004-05]Status: DisposedITAT Jabalpur08 Sept 2022AY 2004-05

Bench: Shri Sanjay Arora, Hon‟Ble & Shri Manomohan Das, Hon'Ble

For Appellant: Shri Abhijeet Shrivastava, AdvocateFor Respondent: Shri Ravi Mehrotra, Sr. DR
Section 143(3)Section 254

…may though add, is not due to anything wrong with the average formula per se, with which we agree in principle, but due to its faulty application. This also explains our interference in the matter. The Apex Court explained in Kapurchand Shrimal v. CIT [1981] 131 ITR 451 (SC) that an appellate authority has the jurisdiction as well as the duty to correct all errors in the proceedings under appeal and to issue, if necessary, appropriate directions to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh, unless forbidden from doing so by the statute.…

DCIT, New Delhi vs. M/S Insecticides (India) Ltd., Delhi

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

ITA 1296/DEL/2016[2012-13]Status: DisposedITAT Delhi13 Jul 2022AY 2012-13
For Appellant: Shri Devesh Parekh, CAFor Respondent: Shri Abhishek Kumar, Sr. DR
Section 143(3)Section 80ISection 8O

…on of mind. Without referring to any factual material on the basis of arguments and submissions, ld. CIT (A) has given finding on factual aspects which is not sustainable in law. 13. As held by Hon’ble Supreme Court in the case of Kapurchand Shrimal vs. CIT 131 ITR 451, it is the duty of the appellate authority to correct the errors in the orders of authorities below and remand the matter for re-adjudication with or without direction unless prohibited by law. Accordingly, in the interest of justice, we remit this issue to the file of AO. AO shall examine the grounds which are rejected by him by duly consider…

M/S. Chambal Fertilizers and Chemicals Limited, Kota vs. Assistant Commissioner of Income Tax, Circle-2, Kota

In the result, appeal of the revenue is dismissed

ITA 744/JPR/2018[2014-15]Status: DisposedITAT Jaipur13 May 2022AY 2014-15
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…his might have prompted the AO to deeply scrutinize the books of accounts of the assessee company. On the plea of conducting no enquiry by the AO, the ld. D/R placed reliance on the decision of Hon’ble Supreme Court in the case of Kapurchand Shrimal vs. CIT, 131 ITR 451 (SC) wherein it is held that it is not merely a discretion but duty of the appellate authority to remove all procedural defects such as lack of necessary inquiries by the assessing officer or failure in granting cross examination to the taxpayer, by exercising specific powers granted to first appellate authority under section 250(4) of the IT A…

Chambal Fertilisers and Chemicals Limited, Kota vs. ACIT, Kota

In the result, appeal of the revenue is dismissed

ITA 291/JPR/2017[2013-14]Status: DisposedITAT Jaipur13 May 2022AY 2013-14
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…his might have prompted the AO to deeply scrutinize the books of accounts of the assessee company. On the plea of conducting no enquiry by the AO, the ld. D/R placed reliance on the decision of Hon’ble Supreme Court in the case of Kapurchand Shrimal vs. CIT, 131 ITR 451 (SC) wherein it is held that it is not merely a discretion but duty of the appellate authority to remove all procedural defects such as lack of necessary inquiries by the assessing officer or failure in granting cross examination to the taxpayer, by exercising specific powers granted to first appellate authority under section 250(4) of the IT A…

Chambal Fertilisers and Chemicals Limited, Kota vs. DCIT, Kota

In the result, appeal of the revenue is dismissed

ITA 201/JPR/2017[2012-13]Status: DisposedITAT Jaipur13 May 2022AY 2012-13
For Appellant: Shri Percy PardiwallaFor Respondent: Shri Sanjay Dhariwal (CIT)
Section 40A(2)(b)

…his might have prompted the AO to deeply scrutinize the books of accounts of the assessee company. On the plea of conducting no enquiry by the AO, the ld. D/R placed reliance on the decision of Hon’ble Supreme Court in the case of Kapurchand Shrimal vs. CIT, 131 ITR 451 (SC) wherein it is held that it is not merely a discretion but duty of the appellate authority to remove all procedural defects such as lack of necessary inquiries by the assessing officer or failure in granting cross examination to the taxpayer, by exercising specific powers granted to first appellate authority under section 250(4) of the IT A…

ACIT, CC-1, Jaipur vs. Dr. Shiv Gautam, Jaipur

In the result, appeal of the Revenue is dismissed

ITA 85/JPR/2021[2017-18]Status: DisposedITAT Jaipur31 Mar 2022AY 2017-18

Bench: Shri Sandeep Gosain, Jm & Shri Rathod Kamlesh Jayantbhai, Am Vk;Dj Vihy La-@Ita No. 85/Jp/2021 Fu/Kzkj.K O"Kz@Assessment Year :2017-18 A.C.I.T., Cuke Dr. Shiv Gautam, Central Circle-1, Vs. 1, Gokul, Jacob Road, Civil Lines, Jaipur. Jaipur. Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Abopg 4893 N Vihykfkhz@Appellant Izr;Fkhz@Respondent Jktlo Dh Vksj Ls@ Revenue By : Shri Sanjay Dhariwal (Cit-Dr) Fu/Kzkfjrh Dh Vksj Ls@ Assessee By : Shri P.C. Parwal (Ca) Lquokbz Dh Rkjh[K@ Date Of Hearing : 16/02/2022 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 31/03/2022 Vkns'K@ Order Per: Sandeep Gosain, J.M. This Is An Appeal Filed By The Revenue Against The Order Of Ld. Cit(A)- 4, Jaipur Dated 28/05/2021 For The A.Y. 2017-18 In The Matter Of Order Passed U/S 143(3) Read With Section 153B(1)(B) Of The Income Tax Act, 1961 (In Short, The Act), Wherein Following Grounds Have Been Taken. “1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Is Justified In Deleting The Addition Of Rs.17.30 Lakhs Inspite Of The Fact That The Assessee Has Made Surrender Of This Amount In His Statement Recorded As Per Law & Had Attributed It To Hitherto Undisclosed Receipts. 2. Whether On The Facts & In Circumstances Of The Case & In Law The Ld. Cit(A) Is Justified In Deleting The Addition Of Rs. 1,77,34,000/-

For Appellant: Shri P.C. Parwal (CA)For Respondent: Shri Sanjay Dhariwal (CIT-DR) fu/kZkfjrh dh vksj ls@
Section 143(3)Section 153B(1)(b)Section 250Section 250(4)

…ey were necessary. It was duty of ld. CIT(A) to get the needful done as per powers available to her within the meaning of provisions of Section 250(4) of the Income Tax Act, 1961. 2.2 It has been held by the Hon’ble SC in the case of Kapurchand shrimal vs CIT 131 ITR 451, 460 (SC) at para 13 “It is well known that an appellate authority has the jurisdiction as well as the duty to correct all errors in the proceedings under appeals and to issue, if necessary, appropriate directions to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh unless forbid…

Aggressive Digital Systems Private Limited, Haryana vs. ITO, Ward-1(1), Gurgaon

In the result, the appeal of the assessee is allowed

ITA 874/DEL/2021[2016-17]Status: DisposedITAT Delhi10 Jan 2022AY 2016-17

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 874/Del/2021 : Asstt. Year : 2016-17 Aggressive Digital Systems Pvt. Ltd., Vs Income Tax Officer, Plot No. 596-597, Sector-8, Imt Ward-1(1), Manesar, Gurgaon, Haryana-122050 Gurgaon (Appellant) (Respondent) Pan No. Aanca7751J Assessee By : Mr. Siddhartha Sinha, Adv. Revenue By : Sh. Anand Kumar Kedia, Cit Dr Date Of Hearing: 06.01.2022 Date Of Pronouncement: 10.01.2022

For Appellant: Mr. Siddhartha Sinha, AdvFor Respondent: Sh. Anand Kumar Kedia, CIT DR
Section 143(3)Section 271(1)(c)

…it has been held by courts that where AO's investigations is not complete matter should be remanded. It is the duty of appellate authorities to correct the lacune in orders of authorities below and is required to remit the issue to the AO. KAPURCHAND SRIMAL: 131 ITR 451 (SC), 40 ITR 298 (SC) Guduthur Bro vs ITO 9. In the written submission the assessee has stated that the product profile of the assessee is different and therefore some of the comparables introduced by the AO should be rejected on the ground of functional difference. This issue has been dealt by Hon. DRP in page 6 para 3.1. 7 and para 3.1.8 of th…

Rockline Developers P. Ltd, Mumbai vs. ITO 9(3)(4), Mumbai

In the result, ground “A” raised in the appeal by the assessee stands dismissed

ITA 6595/MUM/2014[2011-12]Status: DisposedITAT Mumbai12 Nov 2021AY 2011-12
Section 115JSection 80Section 80I

…SC) has expounded that non- consideration of jurisdictional High Court decision can render a decision of the Tribunal suffering from mistake apparent from record. 13. Furthermore, we note that honourable Supreme Court in the case of Kapurchand Shrimal v CIT, 131 ITR 451 (SC) had expounded that it is the duty of the appellate authority to correct the errors in the orders of the authorities below and remit the matter, with or without directions for their consideration, unless prohibited by law. 14. Considering this present issue on the conspectus of aforesaid discussion and case laws, in our considered opinion, t…

Sikkim Ferro Alloys Ltd, Mumbai vs. DCIT Cen Cir 6, Mumbai

In the result, all these appeals are allowed for statistical purpose

ITA 2062/MUM/2018[2011-12]Status: DisposedITAT Mumbai11 Aug 2021AY 2011-12

Bench: Shri Shamim Yahya (Am) & Shri Amarjit Singh (Jm)

For Appellant: Shri D.C.Bothra & Shri R. K. SinghFor Respondent: Shri Manpreet S Duggal
Section 132(1)

…required. In our considered opinion, the same should have been 8 Sikkim Ferro Alloys Ltd. conducted by the Ld.CIT(A) himself as his powers are coterminous with that of AO. In this regard, we note that Hon’ble Supreme Court in the case of Kapoor chand Shrimal 131 ITR 451 has held that it is the duty of the appellate authority to correct the errors in the orders of the authorities below and remit the matter with or without direction, unless prohibited by law. Here, we note that even after noting that the payments are in multiple of large amounts with no relationship whatsoever with the invoice value, Ld.CIT(A) has…

DCIT Cen Cir 1(4), Mumbai vs. Sikkim Ferro Alloys Ltd, Mumbai

In the result, all these appeals are allowed for statistical purpose

ITA 3968/MUM/2016[2007-08]Status: DisposedITAT Mumbai11 Aug 2021AY 2007-08

Bench: Shri Shamim Yahya (Am) & Shri Amarjit Singh (Jm)

For Appellant: Shri D.C.Bothra & Shri R. K. SinghFor Respondent: Shri Manpreet S Duggal
Section 132(1)

…required. In our considered opinion, the same should have been 8 Sikkim Ferro Alloys Ltd. conducted by the Ld.CIT(A) himself as his powers are coterminous with that of AO. In this regard, we note that Hon’ble Supreme Court in the case of Kapoor chand Shrimal 131 ITR 451 has held that it is the duty of the appellate authority to correct the errors in the orders of the authorities below and remit the matter with or without direction, unless prohibited by law. Here, we note that even after noting that the payments are in multiple of large amounts with no relationship whatsoever with the invoice value, Ld.CIT(A) has…

Sikkim Ferro Alloys Ltd, Mumbai vs. DCIT Cen Cir 6 (Old), Mumbai

In the result, all these appeals are allowed for statistical purpose

ITA 3245/MUM/2016[2007-08]Status: DisposedITAT Mumbai11 Aug 2021AY 2007-08

Bench: Shri Shamim Yahya (Am) & Shri Amarjit Singh (Jm)

For Appellant: Shri D.C.Bothra & Shri R. K. SinghFor Respondent: Shri Manpreet S Duggal
Section 132(1)

…required. In our considered opinion, the same should have been 8 Sikkim Ferro Alloys Ltd. conducted by the Ld.CIT(A) himself as his powers are coterminous with that of AO. In this regard, we note that Hon’ble Supreme Court in the case of Kapoor chand Shrimal 131 ITR 451 has held that it is the duty of the appellate authority to correct the errors in the orders of the authorities below and remit the matter with or without direction, unless prohibited by law. Here, we note that even after noting that the payments are in multiple of large amounts with no relationship whatsoever with the invoice value, Ld.CIT(A) has…

Manoj Kumar Jain, Ghaziabad vs. DCIT, Central Circle, Ghaziabad

In the result, ground No. 2 of the appeal of the assessee is also dismissed

ITA 4163/DEL/2018[2008-09]Status: DisposedITAT Delhi27 Jul 2021AY 2008-09

Bench: Ms. Suchitra Kamblea N D Shri Prashant Maharishi

For Appellant: N o n eFor Respondent: Ms. Parmita M. Biswas
Section 147Section 153CSection 251Section 251(1)(i)

…if necessary, appropriate direction to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh unless forbidden from doing so by the statute. Such is the mandate of the honourable Supreme Court in 131 ITR 451 in case of Kapoorchand Shrimal V CIT . Further the honourable Calcutta High Court in 204 ITR 580 has clearly held that where the assessing officer commits an error in the course of completing the assessment proceedings after having duly assumed jurisdiction, it is the duty of the appellate authority to remove the particular defect or irregularity…

Manoj Kumar Jain, Ghaziabad vs. DCIT, Central Circle, Ghaziabad

In the result, ground No. 2 of the appeal of the assessee is also dismissed

ITA 4162/DEL/2018[2007-08]Status: DisposedITAT Delhi27 Jul 2021AY 2007-08

Bench: Ms. Suchitra Kamblea N D Shri Prashant Maharishi

For Appellant: N o n eFor Respondent: Ms. Parmita M. Biswas
Section 147Section 153CSection 251Section 251(1)(i)

…if necessary, appropriate direction to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh unless forbidden from doing so by the statute. Such is the mandate of the honourable Supreme Court in 131 ITR 451 in case of Kapoorchand Shrimal V CIT . Further the honourable Calcutta High Court in 204 ITR 580 has clearly held that where the assessing officer commits an error in the course of completing the assessment proceedings after having duly assumed jurisdiction, it is the duty of the appellate authority to remove the particular defect or irregularity…

Manoj Kumar Jain, Ghaziabad vs. DCIT, Central Circle, Ghaziabad

In the result, ground No. 2 of the appeal of the assessee is also dismissed

ITA 4161/DEL/2018[2006-07]Status: DisposedITAT Delhi27 Jul 2021AY 2006-07

Bench: Ms. Suchitra Kamblea N D Shri Prashant Maharishi

For Appellant: N o n eFor Respondent: Ms. Parmita M. Biswas
Section 147Section 153CSection 251Section 251(1)(i)

…if necessary, appropriate direction to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh unless forbidden from doing so by the statute. Such is the mandate of the honourable Supreme Court in 131 ITR 451 in case of Kapoorchand Shrimal V CIT . Further the honourable Calcutta High Court in 204 ITR 580 has clearly held that where the assessing officer commits an error in the course of completing the assessment proceedings after having duly assumed jurisdiction, it is the duty of the appellate authority to remove the particular defect or irregularity…

Manoj Kumar Jain, Ghaziabad vs. DCIT, Central Circle, Ghaziabad

In the result, ground No. 2 of the appeal of the assessee is also dismissed

ITA 4160/DEL/2018[2005-06]Status: DisposedITAT Delhi27 Jul 2021AY 2005-06

Bench: Ms. Suchitra Kamblea N D Shri Prashant Maharishi

For Appellant: N o n eFor Respondent: Ms. Parmita M. Biswas
Section 147Section 153CSection 251Section 251(1)(i)

…if necessary, appropriate direction to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh unless forbidden from doing so by the statute. Such is the mandate of the honourable Supreme Court in 131 ITR 451 in case of Kapoorchand Shrimal V CIT . Further the honourable Calcutta High Court in 204 ITR 580 has clearly held that where the assessing officer commits an error in the course of completing the assessment proceedings after having duly assumed jurisdiction, it is the duty of the appellate authority to remove the particular defect or irregularity…

Income Tax Officer-15(1)(2), Mumbai vs. F.M.Land Developers Private Limited, Mumbai

In the result, this appeal by the revenue stands allowed for statistical purposes

ITA 4540/MUM/2017[2012-13]Status: DisposedITAT Mumbai20 Jul 2021AY 2012-13
Section 133(6)Section 68

…he statutory duties cast upon him, as his powers are coterminous with that of the assessing officer. He has held that assessing officer should have made some more enquiry. In this regard we note that honourable Supreme Court in t he case of Kaporchand Shrimal 131 ITR 451 held that it is the duty of the appellate authority to correct the errors in the orders of the authorities below and remand the matter for further enquiry with without direction unless prohibited by law . 11 F.M.Land Developers Pvt.Ltd. 14. In this view of the matter and drawing support from the honourable Supreme Court decision as referred abo…

DCIT- 10 (3)(1), Mumbai vs. Opera Infra Projects Pvt. Ltd., Mumbai

In the result, Revenue’s appeal is allowed for statistical purposes

ITA 5606/MUM/2018[2010-11]Status: DisposedITAT Mumbai22 Jun 2021AY 2010-11
Section 143(1)Section 143(2)Section 147Section 148Section 68

…h that of the Assessing Officer. If Assessing Officer had not done some further examination required it is incumbent upon learned CIT(A) to consider that himself. This view is support by Hon'ble Supreme Court in the case Shri Kapurchand Shrimal vs. CIT [1981] 131 ITR 451 (SC), where with reference to first appellate authority’s order it was observed that it is the duty of the appellate authority to correct the errors in the orders of the authority below. In this view of the matter, in our considered opinion order of learned CIT(A) is not at all sustainable. We also note that various decisions of Hon'ble Bombay Hi…

Assistant Commissioner of Income Tax Circle-6(2)(2), Mumbai vs. Diligent Media Corporation Limited, Mumbai

In the result this appeal by the Revenue stands partly allowed for statistical purposes

ITA 4314/MUM/2017[2012-13]Status: DisposedITAT Mumbai03 Jun 2021AY 2012-13

Bench: The A. O. That The Transaction In Its Books Were True, Genuine & Justified." 3. The Appellant Prays That The Order Of The Cit (Appeals) On The Above Grounds Be Set Aside & That Of The Ao Be Restored." 4. "The Appellant Craves Leave To Amend Or Alter Any Ground Or To Submit Additional New Ground, Which May Be Necessary."

Section 68

…eard. The learned CIT(A) will also bear in mind our observation hereinabove. In remitting the matter to the file of the learned CIT(A), we also draw support from the order of Hon’ble Supreme Court decision in the case of Shri Kapurchand Shrimal vs. CIT [1981] 131 ITR 451 (SC) for the proposition that it is the duty of appellate authority to correct the errors in the order of authority below and remand the matter with or without direction unless prohibited by law. 10. In the result this appeal by the Revenue stands partly allowed for statistical purposes. Pronounced in the open court on 3.6.2021. (PAVANKUMAR GADA…

Piramal Enterprise Limited (Formerly Known As Piramal Healthcare Limited), Mumbai vs. Pr. Commissioner of Income Tax, Range 7, Mumbai

In the result, the appeal is allowed for statistical purposes in the specific terms indicated above

ITA 2489/MUM/2019[2012-13]Status: DisposedITAT Mumbai03 Mar 2021AY 2012-13
Section 143(3)Section 154Section 263

…ITA No. 2489/Mum/19 Assessment year: 2012-13 Page 1 of 16 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI C BENCH, MUMBAI [Coram: Justice P P Bhatt (President) and Pramod Kumar (Vice President)] ITA No. 2489/Mum/19 Assessment year: 2012-13 Pirmal Enterprises Limited (formerly Piramal Healthcare Limited) ……………….………Appellant Piramal Ananta, Agastaya Corporate Park, Kamani Junction, LBS Marg, Kurla (West) Mumbai 400 070 [PAN: AAACN4538P] Vs Deputy Commissioner of Income Tax Circle 7(3)(2), Mumbai ……………………Respondent Appearances by J D Mistry, along with Madhur Agarwal, Ronak Doshi and Manshi Padhiar for the appellant…