Lalji Haridas v. ITO

43 ITR 387Supreme Court of India1961#367 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 366,005 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

D.C.I.T CC - VII, Kolkata vs. M/S Allworth Commodities Pvt Ltd, Kolkata

In the result, the appeals of the Revenue are allowed for statistical purposes

ITA 1858/KOL/2013[2008-09]Status: DisposedITAT Kolkata26 Mar 2019AY 2008-09

Bench: Shri Aby. T. Varkey & Shri M. Balaganeshi.T.A. Nos.1856, 1857& 1858/Kol/2013 (Assessment Years 2006-07, 2007-08 & 2008-09 Respectively) D.C.I.T, C.C-Vii, M/S. Allworth Commodities Pvt. Kolkata Ltd. -Vs- [Pan : Aacca5809Q]

Section 131Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL Kolkata Bench, Kolkata (Bench – “B”) BEFORE SHRI ABY. T. VARKEY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER I.T.A. Nos.1856, 1857& 1858/Kol/2013 (Assessment years 2006-07, 2007-08 & 2008-09 respectively) D.C.I.T, C.C-VII, M/s. Allworth Commodities Pvt. Kolkata Ltd. -Vs- [PAN : AACCA5809Q] (Revenue/Department) .. (Assessee) & I.T.A. No.1865/Kol/2013 (Assessment year 2005-06) D.C.I.T, C.C-VII, M/s. Kasmical Mercantile (P) Ltd. Kolkata -Vs- [PAN :AABCK0872A] (Revenue/Department) .. (Assessee) & I.T.A. Nos. 512, 513& 514/Kol/2013 (Assessment years 2006-07,…

D.C.I.T CC - VII, Kolkata vs. M/S Allworth Commodities Pvt Ltd, Kolkata

In the result, the appeals of the Revenue are allowed for statistical purposes

ITA 1857/KOL/2013[2007-08]Status: DisposedITAT Kolkata26 Mar 2019AY 2007-08

Bench: Shri Aby. T. Varkey & Shri M. Balaganeshi.T.A. Nos.1856, 1857& 1858/Kol/2013 (Assessment Years 2006-07, 2007-08 & 2008-09 Respectively) D.C.I.T, C.C-Vii, M/S. Allworth Commodities Pvt. Kolkata Ltd. -Vs- [Pan : Aacca5809Q]

Section 131Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL Kolkata Bench, Kolkata (Bench – “B”) BEFORE SHRI ABY. T. VARKEY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER I.T.A. Nos.1856, 1857& 1858/Kol/2013 (Assessment years 2006-07, 2007-08 & 2008-09 respectively) D.C.I.T, C.C-VII, M/s. Allworth Commodities Pvt. Kolkata Ltd. -Vs- [PAN : AACCA5809Q] (Revenue/Department) .. (Assessee) & I.T.A. No.1865/Kol/2013 (Assessment year 2005-06) D.C.I.T, C.C-VII, M/s. Kasmical Mercantile (P) Ltd. Kolkata -Vs- [PAN :AABCK0872A] (Revenue/Department) .. (Assessee) & I.T.A. Nos. 512, 513& 514/Kol/2013 (Assessment years 2006-07,…

D.C.I.T CC - VII, Kolkata vs. M/S Allworth Commodities Pvt Ltd, Kolkata

In the result, the appeals of the Revenue are allowed for statistical purposes

ITA 1856/KOL/2013[2006-07]Status: DisposedITAT Kolkata26 Mar 2019AY 2006-07

Bench: Shri Aby. T. Varkey & Shri M. Balaganeshi.T.A. Nos.1856, 1857& 1858/Kol/2013 (Assessment Years 2006-07, 2007-08 & 2008-09 Respectively) D.C.I.T, C.C-Vii, M/S. Allworth Commodities Pvt. Kolkata Ltd. -Vs- [Pan : Aacca5809Q]

Section 131Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL Kolkata Bench, Kolkata (Bench – “B”) BEFORE SHRI ABY. T. VARKEY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER I.T.A. Nos.1856, 1857& 1858/Kol/2013 (Assessment years 2006-07, 2007-08 & 2008-09 respectively) D.C.I.T, C.C-VII, M/s. Allworth Commodities Pvt. Kolkata Ltd. -Vs- [PAN : AACCA5809Q] (Revenue/Department) .. (Assessee) & I.T.A. No.1865/Kol/2013 (Assessment year 2005-06) D.C.I.T, C.C-VII, M/s. Kasmical Mercantile (P) Ltd. Kolkata -Vs- [PAN :AABCK0872A] (Revenue/Department) .. (Assessee) & I.T.A. Nos. 512, 513& 514/Kol/2013 (Assessment years 2006-07,…

D.C.I.T CC - VII, Kol, Kolkata vs. M/S Apsara Fintrade Pvt Ltd, Kolkata

In the result, the appeal of the Revenue for A

ITA 489/KOL/2013[2008-2009]Status: DisposedITAT Kolkata25 Mar 2019AY 2008-2009

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…ase a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive I.T.A. Nos. 404 & 405/KOL/2011 Assessment Year: 2006-07 &…

DCIT, Central Circle - VII, Kolkata vs. M/S. Apsara Fintrade Pvt. Ltd., Kolkata

In the result, the appeal of the Revenue for A

ITA 405/KOL/2011[2007-08]Status: DisposedITAT Kolkata25 Mar 2019AY 2007-08

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…ase a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive I.T.A. Nos. 404 & 405/KOL/2011 Assessment Year: 2006-07 &…

DCIT, Central Circle - VII, Kolkata vs. M/S. Apsara Fintrade Pvt. Ltd., Kolkata

In the result, the appeal of the Revenue for A

ITA 404/KOL/2011[2006-07]Status: DisposedITAT Kolkata25 Mar 2019AY 2006-07

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…ase a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive I.T.A. Nos. 404 & 405/KOL/2011 Assessment Year: 2006-07 &…

Dy. C.I.T. - 3(3)(1), Mumbai vs. Dipti Dattaraj Salgaonkar, Mumbai

The appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 7403/MUM/2017[2006-07]Status: DisposedITAT Mumbai20 Mar 2019AY 2006-07

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year: 2006-07

For Appellant: Shri Vijay Mehta, A.RFor Respondent: Shri T. Kipgen, D.R
Section 143(1)Section 143(3)Section 147Section 148

…the assessee. Once it has been held that such investment belonged to Shri G.P. Goyal, then there was no further material to come to the conclusion that such Escaped income belonged to the assessee. 2.6 The Apex Court in the case of Lalji Haridas v. ITO [1961] 43 ITR 387 observed at page 392 as under:- "In case where it appears to the income-tax authorities that certain income has been received during the relevant assessment year but it is not clear who has received that income and prima facie, it appears that the income may have been received either by 'A' or 'B' or by both together. It would be open to the rele…

DCIT, Central Circle - VII, Kolkata vs. M/S. Banshidhar Vyapaar (P) Ltd., Kolkata

In the result, the appeals of the Revenue for A

ITA 1896/KOL/2010[2006-07]Status: DisposedITAT Kolkata20 Feb 2019AY 2006-07

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

Section 131Section 143(3)

…se a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas – vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is protective assessment which is to be…

DCIT, Central Circle - VII, Kolkata vs. M/S. Bakliwal Finvest (P) Ltd., Kolkata

In the result, the appeals of the Revenue for A

ITA 1894/KOL/2010[2006-07]Status: DisposedITAT Kolkata20 Feb 2019AY 2006-07

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

Section 131Section 143(3)

…se a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas – vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is protective assessment which is to be…

DCIT, New Delhi vs. M/S. Gupta & Co. Pvt. Ltd., New Delhi

In the result, both the Revenue’s Appeals stand dismissed and both the Assessee’s Cross Objections stand partly allowed in the aforesaid manner

ITA 730/DEL/2016[2009-10]Status: DisposedITAT Delhi14 Feb 2019AY 2009-10

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

For Appellant: Sh. Arvind Kumar, AdvFor Respondent: Smt. Sulekha Verma, CIT(DR)
Section 143(3)Section 153ASection 245C(3)Section 245D(4)Section 254Section 254C(3)

…one thing to say that AO can make two assessments one substantive and other protective and it is another thing to say that they could not only make the assessment in respect of one set of dues but proceeds to realize both. (Refer: Lalji Haridas v. ITO (1961) 43 ITR 387 (SC): Banarsi Das v. CWT (1970) 76 ITR 104 (All). It is further held that until there is a final assessment in existence, the raising of alternative assessment by the revenue cannot be prevented. But where a final assessment is in existence (order u/s 245 D(4) in the case of M/s Gupta Perfumes) is it legal to proceed to make an alternative assessm…

DCIT, New Delhi vs. M/S. Gupta & Co. Pvt. Ltd., New Delhi

In the result, both the Revenue’s Appeals stand dismissed and both the Assessee’s Cross Objections stand partly allowed in the aforesaid manner

ITA 729/DEL/2016[2008-09]Status: DisposedITAT Delhi14 Feb 2019AY 2008-09

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

For Appellant: Sh. Arvind Kumar, AdvFor Respondent: Smt. Sulekha Verma, CIT(DR)
Section 143(3)Section 153ASection 245C(3)Section 245D(4)Section 254Section 254C(3)

…one thing to say that AO can make two assessments one substantive and other protective and it is another thing to say that they could not only make the assessment in respect of one set of dues but proceeds to realize both. (Refer: Lalji Haridas v. ITO (1961) 43 ITR 387 (SC): Banarsi Das v. CWT (1970) 76 ITR 104 (All). It is further held that until there is a final assessment in existence, the raising of alternative assessment by the revenue cannot be prevented. But where a final assessment is in existence (order u/s 245 D(4) in the case of M/s Gupta Perfumes) is it legal to proceed to make an alternative assessm…

DCIT, Cen. Cir-VII, Kolkata vs. M/S Topgrain Management Pvt. Ltd., Kolkata

In the result, the appeals of the Revenue for A

ITA 525/KOL/2014[2006-2007]Status: DisposedITAT Kolkata08 Feb 2019AY 2006-2007

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…ase a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is I.T.A. Nos. 524, 525/KOL/2014 Asse…

DCIT, CC-VII, Kolkata vs. M/S Topgrain Management Pvt. Ltd., Kolkata

In the result, the appeals of the Revenue for A

ITA 524/KOL/2014[2005-2006]Status: DisposedITAT Kolkata08 Feb 2019AY 2005-2006

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…ase a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is I.T.A. Nos. 524, 525/KOL/2014 Asse…

DCIT, Cen. Cir-VII, Kolkata vs. M/S Ankita Finvest Pvt. Ltd., Kolkata

In the result, the appeal of the Revenue for A

ITA 365/KOL/2014[2008-09]Status: DisposedITAT Kolkata08 Feb 2019AY 2008-09

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…of a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is protective assessment which is to be…

DCIT, Cen. Cir-VII, Kolkata vs. M/S Ventex Trade Pvt. Ltd., Kolkata

In the result, the appeal of the Revenue for A

ITA 181/KOL/2014[2008-2009]Status: DisposedITAT Kolkata08 Feb 2019AY 2008-2009

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…of a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is protective assessment which is to be…

D.C.I.T CC - VII, Kolkata vs. M/S Nalimbur Suppliers (P) Ltd, Kolkata

In the result, the appeals of the Revenue for A

ITA 1861/KOL/2013[2008-09]Status: DisposedITAT Kolkata08 Feb 2019AY 2008-09

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…of a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is protective assessment which is to be…

D.C.I.T C.C - VII, Kolkata vs. M/S Nalimbur Suppliers (P) Ltd, Kolkata

In the result, the appeals of the Revenue for A

ITA 1860/KOL/2013[2007-08]Status: DisposedITAT Kolkata08 Feb 2019AY 2007-08

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…of a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is protective assessment which is to be…

D.C.I.T C.C - VII, Kolkata vs. M/S Nalimbur Suppliers (P) Ltd, Kolkata

In the result, the appeals of the Revenue for A

ITA 1859/KOL/2013[2006-2007]Status: DisposedITAT Kolkata08 Feb 2019AY 2006-2007

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri S.S. Viswanethra Ravi

Section 131Section 143(3)

…of a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have recourse to make a protective assessment. As held by the Hon’ble Supreme Court in the case of Lalji Haridas –vs.- ITO (43 ITR 387), the Officer may, when in doubt, to safeguard the interest of the revenue can assess it in more than one hand but this procedure can be permitted only at the stage of assessment. Protective assessment becomes redundant when the substantive assessment becomes final and if the substantive assessment fails, it is protective assessment which is to be…

ACIT, Circle-33(1) vs. Alps International

In the result, the appeal of the Revenue is partly allowed for statistical purposes

ITA 4709/DEL/2003[2001-2002]Status: DisposedITAT Delhi09 Jan 2019AY 2001-2002

Bench: Shri Sudhanshu Srivastava & Shri O.P. Kantassessment Year: 2001-02 Acit, Vs. M/S. Alps International, Circle-33(1), New Delhi 16/11, Iind Floor, R.D. Chamber, Karol Bagh, New Delhi Pan :Aaafa5155A (Appellant) (Respondent) Appellant By Ms. Rinku Singh, Sr.Dr Respondent By Shri Rohit Jain, Adv.; Ms. Deepashree Rao, Ca; & Sh. Vibhu Gupta, Ca

Section 40A(3)Section 69BSection 80H

…(d): Protective Vs. Substantive assessment; " In the present case, the assessing officer made protective assessment, without any prior substantive addition/ assessment, which is erroneous, as has been held in the following decisions: - Lalji Haridas vs. ITO: 43 ITR 387 (SC) - ITO vs. Fussy Financial Services Pvt. Ltd.: ITA No. 4227 of 2014 (Del) Suresh K. Jajoo vs. ACIT: 39 SOT 514 (Mum) Re (e): No addition - without prejudice " Without prejudice to the aforesaid, it is submitted that on facts no addition is called for in the year under consideration in view of the following: 11 - Firstly, total alleged purchas…

Shri Saroj Kumar Poddar, Kolkata vs. DCIT, Circle - 6(1), Kolkata

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1695/KOL/2017[2014-15]Status: DisposedITAT Kolkata16 Nov 2018AY 2014-15

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am & Shri S.S.Godara, Jm] Assessment Year : 2014-15 Shri Saroj Kumar Poddar -Versus- D.C.I.T., Circle-6(1) Kolkata Kolkata (Pan: Aftpp 2386 N) (Appellant) (Respondent) For The Appellant: Shri J.D.Mistry, Sr.Counsel, Sri Ronak G.Doshi & Shri A.K.Gupta, Ar For The Respondent: Shri Girish Dave, Special Counsel & Shri P.K.Srihari, Cit Date Of Hearing : 21.08.2018. Date Of Pronouncement : 16.11.2018 Order Per J.Sudhakar Reddy, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of The Commissioner Of Income Tax-(A)-2, Kolkata Dated 10.07..2017 Passed U/S 250 Of The Income Tax Act, 1961 (The ‘Act ‘) Relating To A.Y. 2014-15, Wherein The Order Passed By The Assessing Officer U/S 143(3) Of The Income Tax Act, 1961 (The ‘ Act’ ) Dated 30.12.2016 Was Confirmed.

For Appellant: Shri J.D.Mistry, Sr.Counsel, Sri Ronak G.Doshi &For Respondent: Shri Girish Dave, Special Counsel & Shri P.K.Srihari, CIT
Section 143(3)Section 250

…ITA No.1695/Kol/2017 Shri Saroj Kumar Poddar A.Y.2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH ‘A’ KOLKATA [Before Hon’ble Shri J.Sudhakar Reddy, AM & Shri S.S.Godara, JM] Assessment Year : 2014-15 Shri Saroj Kumar Poddar -versus- D.C.I.T., Circle-6(1) Kolkata Kolkata (PAN: AFTPP 2386 N) (Appellant) (Respondent) For the Appellant: Shri J.D.Mistry, Sr.Counsel, Sri Ronak G.Doshi & Shri A.K.Gupta, AR For the Respondent: Shri Girish Dave, Special Counsel & Shri P.K.Srihari, CIT Date of Hearing : 21.08.2018. Date of Pronouncement : 16.11.2018 ORDER PER J.SUDHAKAR REDDY, AM: This is an appeal filed by the as…