McDowell & Co. Ltd. v. CTO

154 ITR 148Supreme Court of India1985#68 most cited

What is McDowell & Co. Ltd. v. CTO authority for?

The Supreme Court held that while legitimate tax planning is permissible, transactions structured as a "colourable device" or "subterfuge" solely to avoid tax are impermissible. It mandates a judicial shift to look beyond the form to the substance of a transaction, allowing the lifting of the corporate veil in tax evasion arrangements.

741

judgments rely on this decision, according to BharatTax’s citation analysis of 367,164 Indian tax judgments — from 2008 to 2026.

Also referred to as

McDowell & Co. Ltd. v. CTO · 154 ITR 148 · tax avoidance vs. tax planning · colourable device · substance over form · lifting corporate veil · tax evasion · accommodation entry · genuineness of transaction · sections 143(3) · 147 · 68 · 69C

Also reported as

22 Taxmann 113 SCC 2301 SCR 914

Sections most often in play

Section 143(3)Section 148Section 147Section 68Section 69CSection 133ASection 132(4)Section 143(2)

Issues it is cited on

colourable deviceazadi bachao andolanlive linkentry operatorpenny stocksection 10(38)genuineness of the transactionlong term capital gainsaddition u/s 68share application moneyaccommodation entrysection 131

Judgments citing McDowell & Co. Ltd. v. CTO

Addl CIT RG 3(1), Mumbai vs. Bajaj Auto Ltd, Mumbai

In the result, the appeal of the assessee is partly allowed and appeal of the revenue is dismissed

ITA 2899/MUM/2010[2002-03]Status: DisposedITAT Mumbai24 Jun 2024AY 2002-03

Bench: Shri Vikas Awasthy & Shri Amarjit Singhbajaj Holdings & Vs. Additional Commissioner Investment Ltd. Of Income-Tax, Range 3(1) Erstwile Bajaj Auto Ltd.) Aayakar Bhavan, Bajaj Bhavan, 226, M.K. Road, Nariman Point, Mumbai – 400 020 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacb3370K Appellant .. Respondent Dcit-3(4) Vs. M/S Bajaj Holding & Room No. 481-2, 4Th Floor, Investment Limited Aaykar Bhavan, (Erstwhile Bajaj Auto Ltd) Mumbai – 400020 226, Bajaj Bhavan, 2Nd Floor, Jamnalal Bajaj Marg, Nariman Point Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaacb3370K Appellant .. Respondent Appellant By : Percy Pardiwala & Vasanti Patel Respondent By : Ankush Kapoor

For Appellant: Percy Pardiwala &For Respondent: Ankush Kapoor
Section 143(3)Section 2(47)

…d. Vs. ACIT, Range 3(1) the agreements between the assessee and the financial institution was to reduce the tax liability artificially of both the parties and as such the ratio of the decision of the hon'bleapexcourt in the case of McDowell Ltd. v, CTO [1985] 154 ITR 148 (SC) has wrongly been, interpreted" The Hon'ble High Court rejected the appeal of Revenue by holding as under: 3. "Only contention raised by the learned counsel for the Revenue is that the machinery was integral part of the bollers and the same continued to be with the assessee in spite of sale. The fact remains that the sale consideration was re…

Om Prakash Gupta, Delhi vs. ACIT, Circle- 64(1), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 3061/DEL/2019[2014-15]Status: DisposedITAT Delhi20 Jun 2024AY 2014-15

Bench: Dr. B.R.R. Kumar & Sh. Sudhir Kumarassessment Year: 2014-15 Om Prakash Gupta Vs. Acit 25, Surya Niketan, Circle – 64 (1) Delhi-110092 New Delhi Pan No.Aiopg4255H (Appellant) (Respondent) Appellant By Sh. Rakesh Sehgal, Ca Respondent By Sh. Anshul, Sr. Dr Date Of Hearing: 21/05/2024 Date Of Pronouncement: 20/06/2024 Order Per Sudhir Kumar, Jm:

Section 10(38)Section 143(3)

…457/- was deemed as income of the assessee u/s. 68 of the Act, over and above, the income already declared in ITR during AY 2014-15. In view of above discussions, the landmark decision of the Hon'ble Supreme Court in the case of McDowell and Company Limited, 154 ITR 148 is squarely applicable in this case wherein it has been held that tax planning may be legitimate provided it is within the framework of the law and any colourable devices cannot be part of tax planning and it is wrong to encourage or entertain the belief that it is honourable to avoid the payment of tax by dubious methods. However, the case laws…

ACIT-19(1), Mumbai vs. Adihemshree Financial, Rockside Apartment

In the result, all the appeals filed by the revenue are dismissed

ITA 936/MUM/2024[2014-15]Status: DisposedITAT Mumbai05 Jun 2024AY 2014-15

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

…ies only for the purpose of adjustment of said losses against income thereby reducing the taxable income and to give it a color of legitimate transactions. Strong reliance was placed on the decision of the Hon’ble Supreme Court in the case of Mc. Dowel Ltd., [154 ITR 148]. Reference was also made to the decision of the Hon’ble Supreme Court in the case of Sumati Dayal [214 ITR 804]. The Assessing Officer concluded by disallowing the losses. 12. Assessee strongly agitated the matter before the Ld. CIT(A). It was strongly contended that the assessee is a regular trader in Page No. 6 ITA NO. 933, 935 & 936/MUM/202…

ACIT-19(1), Mumbai vs. Adihemshree Financial, Mumbai

In the result, all the appeals filed by the revenue are dismissed

ITA 935/MUM/2024[2015-16]Status: DisposedITAT Mumbai05 Jun 2024AY 2015-16

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

…ies only for the purpose of adjustment of said losses against income thereby reducing the taxable income and to give it a color of legitimate transactions. Strong reliance was placed on the decision of the Hon’ble Supreme Court in the case of Mc. Dowel Ltd., [154 ITR 148]. Reference was also made to the decision of the Hon’ble Supreme Court in the case of Sumati Dayal [214 ITR 804]. The Assessing Officer concluded by disallowing the losses. 12. Assessee strongly agitated the matter before the Ld. CIT(A). It was strongly contended that the assessee is a regular trader in Page No. 6 ITA NO. 933, 935 & 936/MUM/202…

JCIT(OSD), Central Circle-3(4), Chennai vs. Late Shri Venkataram Raddy Bezawada Rep by L/H Smt. B. Kamakshi (Wife )& Others, Nellore

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 36/CHNY/2023[2008-09]Status: DisposedITAT Chennai17 May 2024AY 2008-09

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

JCIT(OSD), Central Circle-3(4), Chennai vs. Late Shri Venkataram Raddy Bezawada Rep by L/H Smt. B. Kamakshi (Wife )& Others, Nellore

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 35/CHNY/2023[2007-08]Status: DisposedITAT Chennai17 May 2024AY 2007-08

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

JCIT(OSD), Central Circle-3(4), Chennai vs. Late Shri Venkataram Raddy Bezawada Rep by L/H Smt. B. Kamakshi (Wife )& Others, Nellore

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 34/CHNY/2023[2006-07]Status: DisposedITAT Chennai17 May 2024AY 2006-07

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

Late Mr.Bezwada Venkatram Reddy (Rep by Legal Heir Smt.B.Kamakshi), Chennai vs. DCIT, Chennai

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 955/CHNY/2022[2010-2011]Status: DisposedITAT Chennai17 May 2024AY 2010-2011

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

Late Mr.Bezwada Venkatram Reddy (Rep by Legal Heir Smt.B.Kamakshi), Chennai vs. DCIT, Chennai

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 954/CHNY/2022[2009-2010]Status: DisposedITAT Chennai17 May 2024AY 2009-2010

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

Late Mr.Bezwada Venkatram Reddy (Rep by Legal Heir Smt.B.Kamakshi), Chennai vs. DCIT, Chennai

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 953/CHNY/2022[2008-2009]Status: DisposedITAT Chennai17 May 2024AY 2008-2009

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

Late Mr.Bezwada Venkatram Reddy (Rep by Legal Heir Smt.B.Kamakshi), Chennai vs. DCIT, Chennai

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 952/CHNY/2022[2007-2008]Status: DisposedITAT Chennai17 May 2024AY 2007-2008

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

Late Mr.Bezwada Venkatram Reddy (Rep by Legal Heir Smt.B.Kamakshi), Chennai vs. DCIT, Chennai

In the result, the assessee’s appeal for AYs 2006-07 to 2010-2011

ITA 951/CHNY/2022[2006-2007]Status: DisposedITAT Chennai17 May 2024AY 2006-2007

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ Ita No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ Ita No.955/Chny/2022 (िनधा"रण वष" / Assessment Year: 2010-11) & 6. आयकरअपील सं./ Ita No.956/Chny/2022 (िनधा"रण वष" / Assessment Year: 2011-12) & 7. आयकरअपील सं./ Ita No.957/Chny/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Smt. B.Kamakshi Dcit [L/H Of Shri Bezwada Venkatram Central Circle -3(4), Reddy (Deceased)] Chennai. बनाम/ Vs. Flat F3, Prakruthi Apartments, 20, Dr.Ranga Road, Mylapore Chennai-600 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Agdpb-3601-R

For Appellant: Shri B. Ramakrishnan (CA)- Ld.ARFor Respondent: Smt. Komali Krishna (CIT)-Ld. DR
Section 153ASection 234A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी.दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं./ ITA No.951/Chny/2022 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.952/Chny/2022 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.953/Chny/2022 (िनधा"रण वष" / Assessment Year: 2008-09) & 4. आयकरअपील सं./ ITA No.954/Chny/2022 (िनधा"रण वष" / Assessment Year: 2009-10) & 5. आयकरअपील सं./ ITA No.955/Chny/2022…

ACIT, Central Circle-3(4), Chennai vs. M Sukumar Reddy, Chennai

ITA 71/CHNY/2019[2008-09]Status: DisposedITAT Chennai17 May 2024AY 2008-09

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं. / Ita No.69/Chny/2019 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.70/Chny/2019 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.71/Chny/2019 (िनधा"रण वष" / Assessment Year: 2008-09) Acit Shri M. Sukumar Reddy बनाम 3Rd, 6A, Rajparis, Aishwarya, Central Circle-3(4) Chennai. Raj Apartment, Ranjeeth Road, / Vs. Kotturpuram, Chennai-600 085. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Adzpm-1863-H (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. Cross Objection No.24/Chny/2019 (In Ita No.69/Chny/2019) (िनधा"रण वष" / Assessment Year: 2006-07) & 5. Cross Objection No.25/Chny/2019 (In Ita No.70/Chny/2019) (िनधा"रण वष" / Assessment Year: 2007-08) & 6. Cross Objection No.26/Chny/2019 (In Ita No.71/Chny/2019) (िनधा"रण वष" / Assessment Year: 2008-09)

For Appellant: Shri P. Murali Mohan Rao (CA)-Ld. ARFor Respondent: Smt. Komali Krishna (CIT)- Ld. DR
Section 132Section 153A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.69/Chny/2019 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.70/Chny/2019 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.71/Chny/2019 (िनधा"रण वष" / Assessment Year: 2008-09) ACIT Shri M. Sukumar Reddy बनाम 3rd, 6A, Rajparis, Aishwarya, Central Circle-3(4) Chennai. Raj Apartment, Ranjeeth Road,…

ACIT, Central Circle-3(4), Chennai vs. M Sukumar Reddy, Chennai

ITA 70/CHNY/2019[2007-08]Status: DisposedITAT Chennai17 May 2024AY 2007-08

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं. / Ita No.69/Chny/2019 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.70/Chny/2019 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.71/Chny/2019 (िनधा"रण वष" / Assessment Year: 2008-09) Acit Shri M. Sukumar Reddy बनाम 3Rd, 6A, Rajparis, Aishwarya, Central Circle-3(4) Chennai. Raj Apartment, Ranjeeth Road, / Vs. Kotturpuram, Chennai-600 085. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Adzpm-1863-H (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. Cross Objection No.24/Chny/2019 (In Ita No.69/Chny/2019) (िनधा"रण वष" / Assessment Year: 2006-07) & 5. Cross Objection No.25/Chny/2019 (In Ita No.70/Chny/2019) (िनधा"रण वष" / Assessment Year: 2007-08) & 6. Cross Objection No.26/Chny/2019 (In Ita No.71/Chny/2019) (िनधा"रण वष" / Assessment Year: 2008-09)

For Appellant: Shri P. Murali Mohan Rao (CA)-Ld. ARFor Respondent: Smt. Komali Krishna (CIT)- Ld. DR
Section 132Section 153A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.69/Chny/2019 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.70/Chny/2019 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.71/Chny/2019 (िनधा"रण वष" / Assessment Year: 2008-09) ACIT Shri M. Sukumar Reddy बनाम 3rd, 6A, Rajparis, Aishwarya, Central Circle-3(4) Chennai. Raj Apartment, Ranjeeth Road,…

ACIT, Central Circle-3(4), Chennai vs. M Sukumar Reddy, Chennai

ITA 69/CHNY/2019[2006-07]Status: DisposedITAT Chennai17 May 2024AY 2006-07

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं. / Ita No.69/Chny/2019 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ Ita No.70/Chny/2019 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ Ita No.71/Chny/2019 (िनधा"रण वष" / Assessment Year: 2008-09) Acit Shri M. Sukumar Reddy बनाम 3Rd, 6A, Rajparis, Aishwarya, Central Circle-3(4) Chennai. Raj Apartment, Ranjeeth Road, / Vs. Kotturpuram, Chennai-600 085. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Adzpm-1863-H (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. Cross Objection No.24/Chny/2019 (In Ita No.69/Chny/2019) (िनधा"रण वष" / Assessment Year: 2006-07) & 5. Cross Objection No.25/Chny/2019 (In Ita No.70/Chny/2019) (िनधा"रण वष" / Assessment Year: 2007-08) & 6. Cross Objection No.26/Chny/2019 (In Ita No.71/Chny/2019) (िनधा"रण वष" / Assessment Year: 2008-09)

For Appellant: Shri P. Murali Mohan Rao (CA)-Ld. ARFor Respondent: Smt. Komali Krishna (CIT)- Ld. DR
Section 132Section 153A

…आयकर अपीलीय अिधकरण “डी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, CHENNAI माननीय "ी वी. दुगा" राव, "ाियक सद! एवं माननीय "ी मनोज कुमार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.69/Chny/2019 (िनधा"रण वष" / Assessment Year: 2006-07) & 2. आयकरअपील सं./ ITA No.70/Chny/2019 (िनधा"रण वष" / Assessment Year: 2007-08) & 3. आयकरअपील सं./ ITA No.71/Chny/2019 (िनधा"रण वष" / Assessment Year: 2008-09) ACIT Shri M. Sukumar Reddy बनाम 3rd, 6A, Rajparis, Aishwarya, Central Circle-3(4) Chennai. Raj Apartment, Ranjeeth Road,…

Sachin Kanodia, New Delhi vs. ITO Ward - 42(2), New Delhi

Appeal are dismissed

ITA 9504/DEL/2019[2015-16]Status: DisposedITAT Delhi10 May 2024AY 2015-16

Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 142(2)Section 143(2)Section 2Section 68Section 69C

…(1979) 120 ITR 46 (S.C) wherein it was held that- "One day, in our welfare state geared to social justice, this clever concept of 'avoidance' as against 'evasion' may have to be exposed." 5.2.4 Hon'ble Supreme Court in the case of McDowell & Co. Ltd. (1985) 154 ITR 148 (S.C), wherein the Hon'ble Supreme Court has denounced tax avoidance, if not bonafide. The relevant part of the observation of the Hon'ble Supreme Court is reproduced hereunder: "Tax planning may be legitimate provided it is within the framework of law. Colourable devices cannot be part of tax planning and it is wrong to encourage or entertain t…

Kapil Chhabra, Moradabad vs. DCIT Circle-2, Moradabad

In the result, the appeal is dismissed

ITA 6345/DEL/2019[2014-15]Status: DisposedITAT Delhi29 Apr 2024AY 2014-15

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Usasstt. Yr: 2014-15

Section 10(38)Section 143(3)Section 68

…,457/- was deemed as income of the assessee u/s. 68 of the Act, over and above, the income already declared in ITR during AY 2014-15. In view of above discussions, the landmark decision of the Hon'ble Supreme Court in the case of McDowell and Company Limited, 154 ITR 148 is squarely applicable in this case wherein it has been held that tax planning may be legitimate provided it is within the framework of the law and any colourable devices cannot be part of tax planning and it is wrong to encourage or entertain the belief that it is honourable to avoid the payment of tax by dubious methods. However, the case laws…

Shama Ajay Patel, Ahmedabad vs. The CIT(It & Tp), Ahmedabad

The appeal of the assessee is allowed

ITA 132/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad26 Apr 2024AY 2017-18

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumarिनधा"रण वष"/Assessment Year: 2017-18 Shama Ajay Patel, Vs. 2, Chandroday Society, The Cit(It & Tp), Opp. Golden Triangle, Sp Ahmedabad Stadium Road, Navjivan Post, Ahmedabad-380014 Pan : Alxpp 5273 E अपीलाथ" अपीलाथ"/ (Appellant) अपीलाथ" अपीलाथ" "" "" यथ" "" "" यथ" यथ"/ (Respondent) यथ" Assessee By : Shri Sunil Talati, Ar Revenue By : Dr. Darsi Suman Ratnam, Cit-Dr सुनवाई क" तारीख/Date Of Hearing : 01.02.2024 घोषणा क" तारीख /Date Of Pronouncement: 26.04.2024 आदेश आदेश/O R D E R आदेश आदेश Per Annapurna Gupta: The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By The Learned Commissioner Of Income-Tax (It & Tp), Ahmedabad [Hereinafter Referred To As Ld. "Cit(It & Tp)" For Short] Dated 08.02.2023, In Exercise Of His Revisionary Powers Under Section 263 Of The Income-Tax Act, 1961 [Hereinafter Referred To As “The Act”], For The Assessment Year (Ay) 2017-18. 2. The Grounds Raised By The Assessee Challenging The Impugned Order Of The Ld. Cit (It & Tp) Reads As Under:- “1. The Ld. Cit Has Erred In Passing Order U/S 263 Without Jurisdiction & Appropriate Powers Available Under The Act. It Is Submitted That The Order Passed U/S. 263 Is Bad In Law As A.O. Has Neither Committed Any Error Nor It Is Prejudicial To The Interest Of Revenue. It Be Held Now.

For Appellant: Shri Sunil Talati, ARFor Respondent: Dr. Darsi Suman Ratnam, CIT-DR
Section 132Section 147Section 263

…n law by the Hon'ble High Court. Further in case of Dineshkumar R. Tulsyan (HUF) Vs. ITO, the Hon'ble ITAT, Pune 'A Bench in ITA No.813/Pune/2018 for A.Y. 2014-15 held that "We also find that Hon'ble Supreme Court in the case of McDowell & Co. Vs. CTO (1985) 154 ITR 148 (SC) has given a strong verdict against any such arrangements by stating that "colourable devices cannot be a part of tax planning and it is wrong to encourage or entertain the belief that it 7 Shama Ajay Patel Vs. CIT(IT&TP) AY : 2017-18 is honorable to avoid the payment of taxes by resorting to dubious methods. It is the obligation of every cit…

ACIT CC-14, Delhi vs. Delhi Spot Bullion Trading Co. Pvt. Ltd., Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1965/DEL/2021[2017-18]Status: DisposedITAT Delhi23 Apr 2024AY 2017-18

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Anuj Jain, CAFor Respondent: Sh. Amit Katoch, Sr. DR
Section 143(3)

…fit of the situation and circumstances arised due to demonetization wherein the assessee just managed artificial entries of cash sales which is nothing but part of a colorable device, as held by Hon'ble Supreme Court in the case of Mc Dowell & Co. Ltd. Vs CTO 154 ITR 148(SC), to bring the unaccounted cash into the books of account.” 3. The assessee is in the business of trading of Gold/silver jewellery, Gold/Silver bullion and precious stones. The case was selected for scrutiny u/s 143(3) of the Income Tax Act, 1961 on the reason of cash deposits of Rs. 78,50,000/-made by it in its bank accounts. 4. During the s…

Spectrum Foods Limited, Jaipur vs. Income Tax Officer, Jaipur

In the result, the appeal of the assessee is allowed

ITA 38/JPR/2024[2010-11]Status: DisposedITAT Jaipur08 Apr 2024AY 2010-11

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. S. L. Poddar, AdvFor Respondent: Sh. Anup Singh (Addl. CIT)
Section 143(3)Section 147Section 148

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR Mk0 ,l- lhrky{eh] U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, vk;dj vihy la-@ITA No. 38/JP/2024 fu/kZkj.k o"kZ@Assessment Years : 2010-11 cuke M/s Spectrum Foods Limited The Income Tax Officer, Vs. L-5, B-II, Surya House, Krishna Jaipur Marg, C-Scheme, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADCS 3704 R vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Sh. S. L. Poddar, Adv. jktLo dh…