KLM Royal Dutch Airlines v. Additional Director of Income Tax

292 ITR 49High Court2007#1455 most cited

What is KLM Royal Dutch Airlines v. Additional Director of Income Tax authority for?

Reassessment proceedings under Section 147 cannot be initiated based on a mere change of opinion or reappraisal of existing facts, but require new or fresh tangible material or information indicating escapement of income.

78

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2010 to 2025.

Also referred to as

KLM Royal Dutch Airlines v. ADIT · Section 147 · Section 148 · initiation of reassessment · fresh tangible material · mere change of opinion · escapement of income · full and true disclosure · reappraisal of existing facts · Kelvinator principle · 292 ITR 49

Sections most often in play

Section 143(3)Section 147Section 148Section 143(2)Section 142(1)Section 139Section 139(4)Section 237
Read the full judgment

Issues it is cited on

section 237section 55(2)assistant directorsection 139(9)section 49section 44bbfresh tangible materialsection 44bsection 114kelvinatormere change of opinionfull and true disclosure

Judgments citing KLM Royal Dutch Airlines v. Additional Director of Income Tax

M/S. Cj International Hotels Ltd., New Delhi vs. DCIT, New Delhi

ITA 771/DEL/2012[2003-04]Status: DisposedITAT Delhi05 Feb 2016AY 2003-04

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

For Appellant: Shri M.S. Syali, Senior Advocate and Shri Tarandeep Singh, AdvocateFor Respondent: Shri Sunil Chander Sharma, CIT DR

…vations have been rightly held to be contrary to the Full Bench 35 ITA No.771, 787 & 1107/Del./2012 ITA No.218 & 386/Del./2013 (supra). The said decision in Eicher Ltd. (supra ) makes reference to the decision of KLM Royal Dutch Airlines v. Asstt. CIT [2007] 292 ITR 49/ 159 Taxman 191 (Delhi). KLM Royal Dutch Airlines case (supra) deals with some other issues on which we do not express or make any observation approving or disapproving. Some of these aspects have been considered and explained in other decisions in light of the judgment of the Supreme Court in the case of Rajesh Jhaveri Stock Brokers (P.) Ltd. (su…

ACIT, New Delhi vs. M/S. C.J. International Hotels Ltd., New Delhi

ITA 1107/DEL/2012[2008-09]Status: DisposedITAT Delhi05 Feb 2016AY 2008-09

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

For Appellant: Shri M.S. Syali, Senior Advocate and Shri Tarandeep Singh, AdvocateFor Respondent: Shri Sunil Chander Sharma, CIT DR

…vations have been rightly held to be contrary to the Full Bench 35 ITA No.771, 787 & 1107/Del./2012 ITA No.218 & 386/Del./2013 (supra). The said decision in Eicher Ltd. (supra ) makes reference to the decision of KLM Royal Dutch Airlines v. Asstt. CIT [2007] 292 ITR 49/ 159 Taxman 191 (Delhi). KLM Royal Dutch Airlines case (supra) deals with some other issues on which we do not express or make any observation approving or disapproving. Some of these aspects have been considered and explained in other decisions in light of the judgment of the Supreme Court in the case of Rajesh Jhaveri Stock Brokers (P.) Ltd. (su…

R.P. Suvarna, Mumbai vs. CIT (33), Mumbai

The appeal of the assessee is disposed of in terms indicated hereinabove

ITA 5536/MUM/2015[2006-07]Status: DisposedITAT Mumbai01 Feb 2016AY 2006-07

Bench: Shri Joginder Singh, Assessment Year: 2006-07 Mr. R. P. Suvarna, Ito-18(3)(3), No.15, Rajanigandha Apts. Mumbai बनाम/ T.H. Kataria Marg, Mahim, Vs. Mumbai-400016 "नधा"रती / Assessee राज"व / Revenue P.A. No.Anbps3240G

Section 143(1)Section 143(3)Section 50C

…CIT [2010] 329 ITR 257 (Bom) (para 26) International Woollen Mills v. Standard Wool (U. K.) Ltd. [2001] 5 SCC 265 (para 30) Kalyanji Mavji and Co. v. CIT [1976] 102 ITR 287 (SC) (paras 9, 33, 34, 35) KLM Royal Dutch Airlines v. Asst. Director of I. T. [2007] 292 ITR 49 (Delhi) (para 12) Kunhayammed v. State of Kerala [2000] 245 ITR 360 (SC) (para 31) Maharaj Kumar Kamal Singh v. CIT [1959] 35 ITR 1 (SC) (para 34) Muthukrishna Reddiar v. CIT [1973] 90 ITR 503 (Ker) (para 9) New Light Trading Co. v. CIT [2002] 256 ITR 391 (Delhi) (para 18) 9 Mr. R.P. Suvarna Praful Chunilal Patel v. Makwana (M. J.)/Asst. CIT [19…

Royal Jordanian Airlines vs. Commissioner of Income Tax

The appeals are disposed of and the writ petitions are allowed in the

ITA - 278 / 2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Royal Jordanian Airlines vs. Commissioner of Income Tax

The appeals are disposed of and the writ petitions are allowed in the

ITA - 279 / 2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Royal Jordanian Airlines vs. Commissioner of Income Tax

The appeals are disposed of and the writ petitions are allowed in the

ITA - 280 / 2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Royal Jordanian Ailines vs. Commissioner of Income Tax

The appeals are disposed of and the writ petitions are allowed in the

ITA - 580 / 2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Director of Income Tax vs. Royal Jordanian Airlines

The appeals are disposed of and the writ petitions are allowed in the

ITA/279/2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Director of Income Tax vs. Royal Jordanian Airlines

The appeals are disposed of and the writ petitions are allowed in the

ITA/278/2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Director of Income Tax vs. Royal Jordanian Airlines

The appeals are disposed of and the writ petitions are allowed in the

ITA/280/2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Director of Income Tax vs. Royal Jordanian Airlines

The appeals are disposed of and the writ petitions are allowed in the

ITA/159/2002HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Director of Income Tax vs. Royal Jordanian Airlines

The appeals are disposed of and the writ petitions are allowed in the

ITA/580/2006HC Delhi24 Nov 2015
Section 148

…two decisions of this Court 2015:DHC:9593-DB ITA Nos. 159/2002, 278, 279,280, 580/2006 & W.P(C) 16060, 16068/2006 Page 23 of 23 that support the Assessee. These are KLM Royal Dutch Airlines v. Additional Director of Income Tax (2007) 292 ITR 49 (Del) and Commissioner of Income Tax v. Ved & Co. (2008) 302 ITR 328(Del). This is, therefore, another reason why the notice under Section 148 of the Act for AY 1999-2000 is unsustainable in law. Conclusion 45. Consequently, the notices dated 23rd February 2006 issued to RJA under Section 148 of the Act and the rejection of the objections…

Kohinoor Foods Ltd. Formerly Satnam Overseasltd vs. Commissioner of Income Tax

ITA - 686 / 2009HC Delhi18 Nov 2011
Section 143Section 147Section 148Section 260Section 80Section 80HSection 80I

…ment. In the second appeal, the issue on merit is questioned. ![](_page_9_Picture_1.jpeg) ![](_page_10_Picture_1.jpeg) Relying upon the judgments, it was argued that such a course of action was not permissible. 9. In *KLM Royal Dutch Airlines* Vs. *ADIT*, 292 ITR 49 this Court held as under:- "The neat question which arises before us is on the commencement whether assessment proceedings must they first be brought to their logical conclusion by framing an assessment before embarking on the proceedings envisaged Sections as in 147/148 of the IT Act; or more precisely stated, can resort to Section 147 be made e…

Kohinoor Foods Ltd. Formerly Satnam Overseas Ltd vs. Commissioner of Income Tax

ITA - 685 / 2009HC Delhi18 Nov 2011
Section 143Section 143(1)(a)Section 147Section 148Section 260Section 80Section 80HSection 80I

…f the Act i.e. reopening the assessment. 2011:DHC:5843-DB ITA No. 685/2009 & 686/2009 Page 10 of 21 Relying upon the judgments, it was argued that such a course of action was not permissible. 9. In KLM Royal Dutch Airlines Vs. ADIT, 292 ITR 49 this Court held as under:- “The neat question which arises before us is whether on the commencement of assessment proceedings must they first be brought to their logical conclusion by framing an assessment before embarking on the proceedings as envisaged in Sections 147/148 of the IT Act; or more precisely stated, can resort to Se…

Commissioner of Income Tax vs. Xerox Modicorp Limited

Appeals are dismissed

ITA/1274/2007HC Delhi14 Sept 2010

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MS. JUSTICE REVA KHETRAPAL

Section 32A

…port of his submissions that where two views were possible mere change of opinion would not provide sufficient ground for a reopening of the assessment:- (i) CIT Vs. Kelvinator of India Ltd. 256 ITR 1 (Del) (ii) KLM Royal Dutch Airlines Vs. ADIT, 292 ITR 49 (Del.) Analysis of the issue involved: 24. After having considered the submissions of both the counsel, we proceed to discuss and decide the following question which arises for consideration in the following manner:- ITA No. 1274 of 2007 & Others Page 18 of 22 “(i) Whether notice under Section 148 of the Act was warr…

Commissioner of Income Tax vs. Xerox Modicorp Limited

Appeals are dismissed

ITA - 1286 / 2007HC Delhi14 Sept 2010
Section 32A

…n support of his submissions that where two views were possible mere change of opinion would not provide sufficient ground for a reopening of the assessment:- - (i) CIT Vs. Kelvinator of India Ltd. 256 ITR 1 (Del) - (ii) KLM Royal Dutch Airlines Vs. ADIT, 292 ITR 49 (Del.) #### **Analysis of the issue involved:** - 24. After having considered the submissions of both the counsel, we proceed to discuss and decide the following question which arises for consideration in the following manner:- - "(i) Whether notice under Section 148 of the Act was warranted, beyond four years from the date when the assessment…

Commissioner of Income Tax Central I vs. Xerox Modicorp Ltd

Appeals are dismissed

ITA - 67 / 2008HC Delhi14 Sept 2010
Section 32A

…n support of his submissions that where two views were possible mere change of opinion would not provide sufficient ground for a reopening of the assessment:- - (i) CIT Vs. Kelvinator of India Ltd. 256 ITR 1 (Del) - (ii) KLM Royal Dutch Airlines Vs. ADIT, 292 ITR 49 (Del.) ### **Analysis of the issue involved:** - 24. After having considered the submissions of both the counsel, we proceed to discuss and decide the following question which arises for consideration in the following manner:- - "(i) Whether notice under Section 148 of the Act was warranted, beyond four years from the date when the assessments…

Commissioner of Income Tax vs. Xerox Modicorp Limited

Appeals are dismissed

ITA - 1274 / 2007HC Delhi14 Sept 2010
Section 32A

…port of his submissions that where two views were possible mere change of opinion would not provide sufficient ground for a reopening of the assessment:- (i) CIT Vs. Kelvinator of India Ltd. 256 ITR 1 (Del) (ii) KLM Royal Dutch Airlines Vs. ADIT, 292 ITR 49 (Del.) Analysis of the issue involved: 24. After having considered the submissions of both the counsel, we proceed to discuss and decide the following question which arises for consideration in the following manner:- 2010:DHC:4533-DB “(i) Whether notice under Section 148 of the Act was warranted, beyond four years from the date whe…