What is S.P. Agarwalla Alias Sukhdeo Prasad Agarwalla v. ITO authority for?

A mere confessional statement by a third party, such as a lender, admitting to name-lending or bogus transactions, is insufficient to justify reassessment proceedings against an assessee unless the assessee is specifically implicated in obtaining bogus loans. Additions to income solely based on third-party statements are not legally sustainable.

Which sections of the Income Tax Act does S.P. Agarwalla Alias Sukhdeo Prasad Agarwalla v. ITO come up under?

It is most often cited in judgments turning on Section 143(3), Section 147, Section 133A, Section 142(1), Section 250, Section 271(1)(c).

S.P. Agarwalla Alias Sukhdeo Prasad Agarwalla v. ITO (140 ITR 1010)

Q: How many judgments cite S.P. Agarwalla Alias Sukhdeo Prasad Agarwalla v. ITO?

27 judgments on BharatTax cite S.P. Agarwalla Alias Sukhdeo Prasad Agarwalla v. ITO (140 ITR 1010), spanning 2016 to 2025.

YADAV RICE MILLS,MUKTSAR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, BATHINDA, BATHINDA

In the result, the appeal filed by the assessee is allowed

ITA 415/ASR/2024[2012-13]Status: DisposedITAT Amritsar17 Sept 2025AY 2012-13

Bench: Sh. Manoj Kumar Aggarwal & Sh. Udayan Dasgupta

For Appellant: Sh. Ashwani Kumar, Ms. Deepali Aggarwal

Section 131Section 143(1)Section 143(3)Section 147Section 148Section 151Section 250Section 68Section 69C

…Cold Storage Pvt. Ltd. v. I.T.O. Ward 1(5), Aligarh [2019] 73 ITR (Trib.) 95 (ITAT Agra) 14 I.T.A. No. 415/Asr/2024 Assessment Year: 2012-13 CIT v. Smt. Paramjit Kaur v. CIT [2009] 311 ITR 38 (P&H) S P Agarwalla Alias Sukhdeo Prasad Agarwala v. ITO [1983] 140 ITR 1010 (Cal) Signature Hotels (P) Ltd. v. ITO [2011] 338 ITR 51 (Delhi HC ) CIT v. SFIL Stock Broking Ltd. [2010] 325 ITR 285 (Del) CIT v. Meenakshi Overseas Pvt. Ltd. [2017] 99CCH 0028 (Delhi HC)” 16. The Ld AR relying on the above decisions on legal grounds against the initiation of proceedings u/s 148 and also on the merits of the case arising o…

INDRAVADAN HANJARIMAL JAIN,MUMBAI vs. CIRCLE 42(2)(1), MUMBAI

In the result, all the appeals filed by the assessee stands allowed

ITA 6281/MUM/2024[2009-10]Status: DisposedITAT Mumbai04 Apr 2025AY 2009-10

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Prabhash Shankar

Section 142(1)Section 143(1)Section 147Section 250Section 271(1)(c)

…record by the assessee in respect of explained & genuine purchases, had made the additions by merely relying upon statement of third parties which is not sustainable at laws as held in the case of a) S.P. Agarwalla alias Sukhdeo Prasad Agarwalla v. ITO [1983] 140 ITR 1010 (Cal.) wherein it is held that a mere confessional statement by a third party (who is a lender of the assessee) that he was a mere name-lender and that all his transactions of loans were bogus, without naming the assessee as one who had obtained bogus loans, would not be sufficient to hold that the assessee's income had escaped assessment. b) Fu…

INDRAVADAN HANJARIMAL JAIN,MUMBAI vs. CIRCLE 42(2)(1), MUMBAI

In the result, all the appeals filed by the assessee stands allowed

ITA 6280/MUM/2024[2008-09]Status: DisposedITAT Mumbai04 Apr 2025AY 2008-09

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Prabhash Shankar

Section 142(1)Section 143(1)Section 147Section 250Section 271(1)(c)

…record by the assessee in respect of explained & genuine purchases, had made the additions by merely relying upon statement of third parties which is not sustainable at laws as held in the case of a) S.P. Agarwalla alias Sukhdeo Prasad Agarwalla v. ITO [1983] 140 ITR 1010 (Cal.) wherein it is held that a mere confessional statement by a third party (who is a lender of the assessee) that he was a mere name-lender and that all his transactions of loans were bogus, without naming the assessee as one who had obtained bogus loans, would not be sufficient to hold that the assessee's income had escaped assessment. b) Fu…

INDRAVADAN HANJARIMAL JAIN,MUMBAI vs. CIRCLE 42(2)(1), MUMBAI

In the result, all the appeals filed by the assessee stands allowed

ITA 6279/MUM/2024[2007-08]Status: DisposedITAT Mumbai04 Apr 2025AY 2007-08

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Prabhash Shankar

Section 142(1)Section 143(1)Section 147Section 250Section 271(1)(c)

…record by the assessee in respect of explained & genuine purchases, had made the additions by merely relying upon statement of third parties which is not sustainable at laws as held in the case of a) S.P. Agarwalla alias Sukhdeo Prasad Agarwalla v. ITO [1983] 140 ITR 1010 (Cal.) wherein it is held that a mere confessional statement by a third party (who is a lender of the assessee) that he was a mere name-lender and that all his transactions of loans were bogus, without naming the assessee as one who had obtained bogus loans, would not be sufficient to hold that the assessee's income had escaped assessment. b) Fu…

MEENA HASMUKH SAVLA,MATUNGA MUMBAI vs. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE

In the result the appeal filed by the assessee is\nallowed

ITA 2910/MUM/2024[2016-17]Status: DisposedITAT Mumbai18 Feb 2025AY 2016-17

Section 10Section 10(38)Section 143Section 143(1)Section 143(2)Section 147Section 148Section 151Section 250Section 68

…ute good material for founding the belief that income has escaped assessment The Supreme Court therefore upheld the High Court's action in quashing the reassessment proceedings.\n\nB] In the case before the Culcutta High Court namely SP Agarwal vs. ITO [1983] 140 ITR 1010 [cal.] the assessment of the assesse was proposed to be re-opened on the ground that the lender had given a confessional statement that all his loan transaction were bogus. The Culcutta High Court, following the decision of the Supreme Court in the case of ITO vs. Lakhmani Mewal Das [1976] 101 ITR 427 [SC] cited above, struck down the reassessme…

SATELITE TRADE IMPEX PRIVATE LIMITED,MUMBAI vs. CIRCLE 5(3)(1), MUMBAI

In the result the appeal filed by the assessee stands\nallowed

ITA 912/MUM/2024[2012-13]Status: DisposedITAT Mumbai31 Jan 2025AY 2012-13

Section 142Section 143Section 147Section 148Section 250

…that it is a\nmere accommodation entry and treated the genuine\npurchases as ingenuine in our view the addition based\nmerely on statement are not sustainable as held in the\nfollowing decision:\na) S.P. Agarwalla alias Sukhdeo Prasad Agarwalla v. ΙΤΟ\n[1983] 140 ITR 1010 (Cal.) wherein it is held that a mere\nconfessional statement by a third party (who is a lender of the\nassessee) that he was a mere name-lender and that all his\ntransactions of loans were bogus, without naming the assessee as\none who had obtained bogus loans, would not be sufficient to hold\nthat the assessee's income had escaped assessment.\…

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4, JAIPUR, JAIPUR vs. SUNDER DAS SONKIYA, JAIPUR

In the result, both appeals of the revenue are dismissed

ITA 454/JPR/2024[2013-14]Status: DisposedITAT Jaipur09 Oct 2024AY 2013-14

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. S. R. Sharma, CA &For Respondent: Sh. Anup Singh, Addl.CIT

Section 143(1)Section 143(2)Section 143(3)Section 148

…ncluding Bank A/c. The assessee further submitted that alleged statements made on behalf of alleged concerns cannot be relied and used in case of assessee and for this relies on judgement in case of S. P. Agarwalla Alias Sukhdev Prasad Agarwala Vs. ITO (1983) 140 ITR 1010 (Cal) wherein it was held that mere confession statement by a third party that he was a mere name lender in transaction without naming the assessee would not be sufficient to hold that same transaction as bogus. However Ld. A.O. not found any of contention of assessee as tenable. The Ld. A.O. further held that onus is on assessee to prove the pu…

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4, JAIPUR, JAIPUR vs. SUNDER DAS SONKIYA, JAIPUR

In the result, both appeals of the revenue are dismissed

ITA 453/JPR/2024[2012-13]Status: DisposedITAT Jaipur09 Oct 2024AY 2012-13

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Revenue Has Assailed The Appeal In Ita No.453/Jp/2024 On The Following Grounds; “(I) Whether On The Facts & In The Circumstances Of The Case, The Ld. Cit(A) Is Justified In Deleting The Addition Of Rs.43,33,606/- Without Appreciating The Fact That Assessee Has Shown Bogus Purchase Of Rs 1,73,34,424/- During The Year From A Bogus Concern. 3

Section 132Section 143(1)Section 143(2)Section 148

…ncluding Bank A/c. The assessee further submitted that alleged statements made on behalf of alleged concerns cannot be relied and used in case of assessee and for this relies on judgement in case of S. P. Agarwalla Alias Sukhdev Prasad Agarwala Vs. ITO (1983) 140 ITR 1010 (Cal) wherein it was held that mere confession statement by a third party that he was a mere name lender in transaction without naming the assessee would not be sufficient to hold that same transaction as bogus. However Ld. A.O. not found any of contention of assessee as tenable. The Ld. A.O. further held that onus is on assessee to prove the pu…