Lalji Haridas v. ITO

43 ITR 387Supreme Court of India1961#361 most cited

What is Lalji Haridas v. ITO authority for?

When an assessing authority is uncertain about the true ownership of funds or in whose hands income should be assessed, it can frame a protective assessment to safeguard the Revenue's interest. Such protective assessments remain valid until the substantive assessment is finalized.

238

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2011 to 2026.

Also referred to as

Lalji Haridas v. ITO · protective assessment · substantive assessment · uncertainty of ownership · doubt as to assessee · safeguarding revenue · Section 143(3) · Section 147 · Section 153C · Section 68 · assessment procedure

Sections most often in play

Section 143(3)Section 132Section 147Section 148Section 68Section 132(4)Section 153CSection 69A

Issues it is cited on

section 12ab(4)(ii)section 12aa(1)(b)(ii)substantive assessmentprotective assessmentcommercial substancesection 10(22)section 12aa(1)(b)section 12aa(1)section 10(26)section 61section 159section 13(1)(d)

Judgments citing Lalji Haridas v. ITO

PRATIBHA SINGH,SHIMLA vs. ACIT CIRCLE, CIRCLE SHIMLA

In the result, the appeal of the assessee is dismissed

ITA 860/CHANDI/2025[2009-10]Status: DisposedITAT Chandigarh25 Feb 2026AY 2009-10

Bench: The Hon’Ble High Court. The Hon’Ble High Court Upheld The Validity Of Assumption Of Jurisdiction Holding That The Assessing Officer Possessed

For Appellant: Shri Vishal Mohan, Sr. Advocate with Shri Aman Singhi, C.AFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Section 143(3)Section 147Section 69

…reopened and the matter is sub-judice the assessment of the same in the hands of the individual assessee amounts to double taxation which is not permissible as held by the Hon'ble Supreme Court of India in the case titled as Lalji Haridas Vs. ITO reported as 43 ITR 387 page (Supreme Court). 11. In that facts and legal circumstances of the case, the assessment of the investment as unexplained in the hands of the assessee (Pratibha Singh) is absolutely illegal and not sustainable in the eyes of the law. 12. Before parting, it is, most respectfully submitted that though the same has been assessed as out of agricul…

BRR SECURITIES PRIVATE LIMITED,NEW DELHI vs. DCIT CENTRAL CIRCLE -26, NEW DELHI

ITA 3345/DEL/2024[2016-17]Status: DisposedITAT Delhi09 Feb 2026AY 2016-17

Bench: Shri Satbeer Singh Godara

Section 271(1)(c)

…fficer’s identical quantum findings had first assessed the assessee on “protective” basis and then recommended the “substantive” assessment to be framed in the appropriate cases. This tribunal is of the considered view in light of Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC). that such a course of even quantum assessment on protective basis first followed by the substantive one itself is not sustainable in law. Be that as it may, the fact however remains that the assessee/appellant is aggrieved against penalty proceeding. Both these impugned penalties are hereby deleted in very terms. 2 | P a g e ITA Nos.3344 &…

BRR SECURITIES PRIVATE LIMITED,NEW DELHI vs. DCIT CENTRAL CIRCLE 26, NEW DELHI

ITA 3344/DEL/2024[2015-16]Status: DisposedITAT Delhi09 Feb 2026AY 2015-16

Bench: Shri Satbeer Singh Godara

Section 271(1)(c)

…fficer’s identical quantum findings had first assessed the assessee on “protective” basis and then recommended the “substantive” assessment to be framed in the appropriate cases. This tribunal is of the considered view in light of Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC). that such a course of even quantum assessment on protective basis first followed by the substantive one itself is not sustainable in law. Be that as it may, the fact however remains that the assessee/appellant is aggrieved against penalty proceeding. Both these impugned penalties are hereby deleted in very terms. 2 | P a g e ITA Nos.3344 &…

DCIT CENTRAL CIRCLE-32, NEW DELHI vs. VIKRAM KUMAR BAJAJ, NEW DELHI

In the result, appeal of the Revenue is dismissed

ITA 1737/DEL/2023[2017-18]Status: DisposedITAT Delhi30 Dec 2025AY 2017-18

Bench: SHRI ANUBHAV SHARMA (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Mahesh Kumar, CIT(DR)
Section 131Section 153A

…ng grounds: 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 65,35,57,000/- made by the AO ignoring the ratio decided and laid down by the Hon’ble Supreme Court in the case of Lalji Haridas Vs. ITO 43 ITR 387 (SC), 1961.” And Hon’ble Gujarat High Court in the case of CIT, Gujarat II Vs. Surendra Gulab Chand Modi 140 ITR 517 (Guj) 1983 wherein it is held that such ‘Protective Assessment’- which in law should be allowed to remain as such – till the matters attain finality by Superior Courts- High Court or Hon’ble Supreme Court. 2. On the facts and in the…

SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3952/DEL/2025[2020-21]Status: DisposedITAT Delhi22 Dec 2025AY 2020-21

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SHRI SANDEEPBHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3951/DEL/2025[2019-20]Status: DisposedITAT Delhi22 Dec 2025AY 2019-20

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3950/DEL/2025[2018-19]Status: DisposedITAT Delhi22 Dec 2025AY 2018-19

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3949/DEL/2025[2017-18]Status: DisposedITAT Delhi22 Dec 2025AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3948/DEL/2025[2016-17]Status: DisposedITAT Delhi22 Dec 2025AY 2016-17

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3947/DEL/2025[2015-16]Status: DisposedITAT Delhi22 Dec 2025AY 2015-16

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3946/DEL/2025[2014-15]Status: DisposedITAT Delhi22 Dec 2025AY 2014-15

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SHRI SANDEEP BHATI,FARIDABAD vs. DCIT,CENTRAL CIRCLE-27, DELHI

ITA 3945/DEL/2025[2013-14]Status: DisposedITAT Delhi22 Dec 2025AY 2013-14

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: Sh. S. S. Nagar, CAFor Respondent: Sh. Mahesh Kumar, CIT-DR
Section 153C

…ing the case, learned CIT-DR vehemently supports all the impugned assessments on legality as well as on merits wherein both the lower authorities have made protective additions under various heads involving varying sums. He quotes Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) to buttress the point that as and when there arises the doubt in the learned assessing authority’s mind as to in whose hands a particular head of income is to be assessed, it could indeed frame such a “protective” assessment to safeguard the Revenue’s interest. 5. Learned counsel representing assessee on the other hand seeks to raise various…

SURENDRA KUMAR JAIN,NEW DELHI vs. DCIT CENTRAL CIRCLE 32, NEW DELHI

Appeal is allowed

ITA 1209/DEL/2023[2012-13]Status: DisposedITAT Delhi04 Nov 2025AY 2012-13

Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)

Section 147Section 148

…in whose hands the 2 | P a g e corresponding substantive additions of the alleged accommodation entries had been made well before the impugned assessment or not. 5. We make it clear that the hon’ble apex court landmark decision in Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC) has settled the instant issue long back that when there arises a doubt in Assessing Officer’s mind as to in whose hands a particular item of income has to be assessed; he could indeed frame a “protective” assessment so as to safeguard the interest of the revenue. A perusal of the assessee’s instant appeal file suggests that no such “substanti…

NAVAYA INFRAPOWER PRIVATE LIMITED,DELHI vs. ASSESSING OFFICER, DELHI

Appeal is partly allowed

ITA 2003/DEL/2025[2014-15]Status: DisposedITAT Delhi28 Oct 2025AY 2014-15

Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)

Section 147

…ndication in para 5 of the assessment order as to what is the doubt in the mind of the Assessing Officer for making the impugned “protective” addition in the assessee’s hands so as to safeguard the Revenue’s interest as settled in Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC). We thus find merit in the assessee’s instant former substantive ground to delete the impugned “protective” addition of Rs.3,33,00,000/- in very terms. 2 | P a g e 4. Next comes the latter addition of Rs.25,82,274/- made by both the learned lower authorities whilst assessing the assessee’s alleged commission income on credit transactions of…

GAJANAND FINANCIAL CONSULTANCY PRIVATE LIMITED,NAGPUR vs. PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) NAGPUR, NAGPUR

In the result, assessee’s appeal is allowed

ITA 126/NAG/2025[2013-2014]Status: DisposedITAT Nagpur22 Sept 2025AY 2013-2014

Bench: Shri Narender Kumar Choudhry & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Manoj G. MoryaniFor Respondent: Shri Pankaj Kumar
Section 143(3)Section 263Section 68

…ed simultaneously where there is a doubt as to the hands in which income is to be assessed. The principle is well settled by the Hon’ble Supreme Court decision in Lalji 23 Gajanand Financial Consultancy Pvt. Ltd. ITA no.126/Nag./2025 Haridas v/s ITO, [1961] 43 ITR 387 (SC). It is excruciating to note that without disturbing the substantive assessment of other two companies under section 263 of the Act, the learned PCIT is embarking on a different trajectory to revise the assessment in the case of assessee which is made on a protective basis thereby creating a divergence in the quantum of additions under substan…

INCOME TAX OFFICER, WARD-2(2)(3), GHAZIABAD, GHAZIABAD vs. SANJAY THAKUR, GHAZIABAD

ITA 1778/DEL/2025[2009-10]Status: DisposedITAT Delhi02 Sept 2025AY 2009-10

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahmanita No. 1778/Del/2025 : Asstt. Year : 2009-10 Ita No. 1777/Del/2025 : Asstt. Year : 2010-11 Income Tax Officer, Vs Sanjay Thakur, 7Th Floor, 703, Satyam Ansal Ward-2(2)(3), Ghaziabad-201002 Building, Rdc, Ghaziabad-201001 (Appellant) (Respondent) Pan No. Ajrpt9741P Assessee By : None Revenue By : Sh. Mahesh Kumar, Cit-Dr & Sh. Pradumna Kumar Singh, Sr. Dr Date Of Hearing: 02.09.2025 Date Of Pronouncement: 02.09.2025 Order Per Satbeer Singh Godara: These Revenue’S Twin Appeals

For Appellant: NoneFor Respondent: Sh. Mahesh Kumar, CIT-DR &
Section 143(3)Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. S. Rifaur Rahman, Accountant Member ITA No. 1778/Del/2025 : Asstt. Year : 2009-10 ITA No. 1777/Del/2025 : Asstt. Year : 2010-11 Income Tax Officer, Vs Sanjay Thakur, 7th Floor, 703, Satyam Ansal Ward-2(2)(3), Ghaziabad-201002 Building, RDC, Ghaziabad-201001 (APPELLANT) (RESPONDENT) PAN No. AJRPT9741P Assessee by : None Revenue by : Sh. Mahesh Kumar, CIT-DR & Sh. Pradumna Kumar Singh, Sr. DR Date of Hearing: 02.09.2025 Date of Pronouncement: 02.09.2025 ORDER Per Satbeer Singh Godara, Judicia…

INCOME TAX OFFICER, WARD-2(2)(3), GHAZIABAD, GHAZIABAD vs. SANJAY THAKUR, GHAZIABAD

ITA 1777/DEL/2025[2010-11]Status: DisposedITAT Delhi02 Sept 2025AY 2010-11

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahmanita No. 1778/Del/2025 : Asstt. Year : 2009-10 Ita No. 1777/Del/2025 : Asstt. Year : 2010-11 Income Tax Officer, Vs Sanjay Thakur, 7Th Floor, 703, Satyam Ansal Ward-2(2)(3), Ghaziabad-201002 Building, Rdc, Ghaziabad-201001 (Appellant) (Respondent) Pan No. Ajrpt9741P Assessee By : None Revenue By : Sh. Mahesh Kumar, Cit-Dr & Sh. Pradumna Kumar Singh, Sr. Dr Date Of Hearing: 02.09.2025 Date Of Pronouncement: 02.09.2025 Order Per Satbeer Singh Godara: These Revenue’S Twin Appeals

For Appellant: NoneFor Respondent: Sh. Mahesh Kumar, CIT-DR &
Section 143(3)Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. S. Rifaur Rahman, Accountant Member ITA No. 1778/Del/2025 : Asstt. Year : 2009-10 ITA No. 1777/Del/2025 : Asstt. Year : 2010-11 Income Tax Officer, Vs Sanjay Thakur, 7th Floor, 703, Satyam Ansal Ward-2(2)(3), Ghaziabad-201002 Building, RDC, Ghaziabad-201001 (APPELLANT) (RESPONDENT) PAN No. AJRPT9741P Assessee by : None Revenue by : Sh. Mahesh Kumar, CIT-DR & Sh. Pradumna Kumar Singh, Sr. DR Date of Hearing: 02.09.2025 Date of Pronouncement: 02.09.2025 ORDER Per Satbeer Singh Godara, Judicia…

MARUTHI EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 873/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…clear that the A.O. appellant Society or the individuals. In our considered view, it is a well-established principle of law by the various judicial pronouncements, including the decision of the Hon’ble Supreme Court in the case of Lalji Haridas Vs. ITO[1961] 43 ITR 387 (SC), that in order to make substantive and protective assessments there should be uncertainty of ownership of the funds as well as that such uncertainty must be safeguarded to prevent actual loss to the revenue. In the present case, going by the assessment made by the A.O. towards cash found during the course of search in the hands of individuals…

MALLA REDDY EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 872/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23
Section 12A

…sh is belongs to the appellant Society or the individuals. In our considered view, it is a well-established principle of law by the various judicial pronouncements, including the decision of the Hon’ble Supreme Court in the case of Lalji Haridas Vs. ITO[1961] 43 ITR 387 (SC), that in order to make substantive and protective assessments there should be uncertainty of ownership of the funds as well as that such uncertainty must be safeguarded to prevent actual loss to the revenue. In the present case, going by the assessment made by the A.O. towards cash found during the course of search in the hands of individuals…

MALLA REDDY EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 871/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…sh is belongs to the appellant Society or the individuals. In our considered view, it is a well-established principle of law by the various judicial pronouncements, including the decision of the Hon’ble Supreme Court in the case of Lalji Haridas Vs. ITO[1961] 43 ITR 387 (SC), that in order to make substantive and protective assessments there should be uncertainty of ownership of the funds as well as that such uncertainty must be safeguarded to prevent actual loss to the revenue. In the present case, going by the assessment made by the A.O. towards cash found during the course of search in the hands of individuals…

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