S. Ranganathan J in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central)

126 ITR 48High Court1980#1467 most cited

What is S. Ranganathan J in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central) authority for?

Section 68 was introduced to codify and clarify existing judicial principles regarding unexplained cash credits and to plug loopholes, rather than to introduce entirely new law. The Assessing Officer must conduct exhaustive inquiries and gather material before making any additions for unexplained credits.

77

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2013 to 2026.

Also referred to as

Yadu Hari Dalmia v. CIT · 126 ITR 48 · Section 68 · unexplained cash credits · legislative intent Section 68 · Assessing Officer duty · onus of proof · exhaustive inquiries · plug loopholes · prior judicial decisions

Sections most often in play

Section 68Section 147Section 143(3)Section 148Section 10(38)Section 131Section 144Section 254(1)

Issues it is cited on

section 69dtrade creditorsonus of proofsection 153a(1)(b)section 69bmistake apparent from recordrejection of books of accountdumb documentsshare application moneysection 127addition u/s 68loose papers

Judgments citing S. Ranganathan J in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central)

The Principal Commissioner of Income Tax vs. Shri Shailendra Kumar Gupta

The appeals are dismissed

ITA/44/2025HC Rajasthan24 Mar 2026

Bench: SANJEEV PRAKASH SHARMA,SHUBHA MEHTA

Section 68

…as an incorrect legal position. Thus when there is an unexplained cash credit, it is open to the Assessing Officer to hold that it was income of the assessee and no further burden lies on him to show the source. In Yadu Hari Dalmia vs. CIT [1980] 126 ITR 48 (Delhi), a Division Bench of Delhi High Court has observed (page 57): [2026:RJ-JP:12292-DB] (4 of 6) [ITA-44/2025] “It is well known that the whole catena of sections starting from section 68 have been introduced into the taxing enactments step by step in order to plug loopholes and in order to place certain situ…

The Principal Commissioner of Income Tax vs. Shri Pawan Gupta

The appeals are dismissed

ITA/45/2025HC Rajasthan24 Mar 2026

Bench: SANJEEV PRAKASH SHARMA,SHUBHA MEHTA

Section 68

…as an incorrect legal position. Thus when there is an unexplained cash credit, it is open to the Assessing Officer to hold that it was income of the assessee and no further burden lies on him to show the source. In Yadu Hari Dalmia vs. CIT [1980] 126 ITR 48 (Delhi), a Division Bench of Delhi High Court has observed (page 57): [2026:RJ-JP:12292-DB] (4 of 6) [ITA-44/2025] “It is well known that the whole catena of sections starting from section 68 have been introduced into the taxing enactments step by step in order to plug loopholes and in order to place certain situ…

The Principal Commissioner of Income Tax vs. Shri Raj Rajeshwari Gupta

The appeals are dismissed

ITA/46/2025HC Rajasthan24 Mar 2026

Bench: SANJEEV PRAKASH SHARMA,SHUBHA MEHTA

Section 68

…as an incorrect legal position. Thus when there is an unexplained cash credit, it is open to the Assessing Officer to hold that it was income of the assessee and no further burden lies on him to show the source. In Yadu Hari Dalmia vs. CIT [1980] 126 ITR 48 (Delhi), a Division Bench of Delhi High Court has observed (page 57): [2026:RJ-JP:12292-DB] (4 of 6) [ITA-44/2025] “It is well known that the whole catena of sections starting from section 68 have been introduced into the taxing enactments step by step in order to plug loopholes and in order to place certain situ…

Accrecent Way Marketing (P) Ltd., Guwahati vs. Deputy Commissioner of Income Tax, Circle-3, Guwahati

ITA 358/GTY/2018[2010-11]Status: DisposedITAT Guwahati09 Jun 2025AY 2010-11

Bench: Shri Manomohan Das & Shri Rakesh Mishra

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 251Section 68

…me tax department has pointed out the unnatural rise in prices of the scripts of very little known companies. 25. While on this issue it would be beneficial to take note of the decision in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central) (1980) 126 ITR 48 wherein it was held that the whole catena of sections starting from Section 68 have been introduced in the taxing enactment step by step in order to pluck loopholes and in order to plug certain situation beyond doubts even though there were judicial decisions covering some of the aspects. It was pointed out that even prior to the introduction of S…

Krishnaraj Singh HUF, Jaipur vs. ITO-WD-6(2), Jaipur

In the result, the orders of the authorities below are set aside and the AO is directed to delete the additions made of Rs

ITA 1387/JPR/2024[2017-18]Status: DisposedITAT Jaipur13 Mar 2025AY 2017-18

Bench: Shri Gagan Goyal & Shri Narinder Kumar

For Appellant: Mr. Vijay Gupta, CA &For Respondent: Mr. Gautam Singh Choudhary, JCIT, Ld. DR
Section 131Section 139(4)Section 250Section 69A

…ents or accretions to property and are taxed accordingly. However, it shall be the duty of the Assessing Officer to make exhaustive enquiries and gather some material before making the addition as held by the Delhi High Court in Yadu Hari Dalmia v. CIT [1980] 126 ITR 48/ 4 Taxman 525. The Madras High Court in K.T.M.S. Mohammad’s case (supra) held that burden was not on the department to prove that the assessee was the owner of the amount found in the possession of the assessee. 9. Here in this case, there is no dispute about the ownership and amount involved. The only dispute here is whether the explanations of…

Sunita Jajoo, Surat vs. ITO Ward 2(2)(4), Surat

In the result, assessee’s appeal is allowed

ITA 882/SRT/2024[2011-12]Status: DisposedITAT Surat10 Feb 2025AY 2011-12

Bench: Shri Pawan Singh & Shri Bijayananda Prusethआयकर अपील सं./Ita No. 552/Srt/2024 (Ay 2011-12) (Physical Court Hearing) Rambilash Rajaram Jajoo Income Tax Officer, Ward- 429-432, Golden Point, Falsawadi, 2(2)(4), Aaykar Bhawan, Majura बनाम Ring Road, Surat City, Gate, Opp. New Civil Hospital, Vs Surat-395 002 Surat-395 001 [Pan : Aampj 0040 K] अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 147Section 148Section 254(1)Section 68Section 69C

…ch has already been taxed.” The law as stated above has not undergone any change because of the introduction of Section 68 in the Income Tax Act, 1961. As observed by S. Ranganathan J in Yadu Hari Dalmia Vs. Commissioner of Income Tax, Delhi (Central), (1980) 126 ITR 48, a decision of a Division Bench of this Court:- “It is well know that the whole catena of sections starting from s. 68 have been introduced into the taxing enactments step by step in order to plug loopholes and in order to place certain situations beyond doubt even through there were judicial decisions covering some of the aspects. For example, ev…

Rambilash Rajaram Jajoo, Surat vs. Income Tax Officer Ward-2(2)(4), Surat

ITA 552/SRT/2024[2011-12]Status: DisposedITAT Surat10 Feb 2025AY 2011-12

Bench: Shri Pawan Singh & Shri Bijayananda Prusethआयकर अपील सं./Ita No. 552/Srt/2024 (Ay 2011-12) Rambilash Rajaram Jajoo (Physical Court Hearing) 429-432, Golden Point, Falsawadi, Ring Road, Surat City, Surat-395 002 [Pan : Aampj 0040 K] अपीलार्थी/Appellant Vs Income Tax Officer, Ward- 2(2)(4), Aaykar Bhawan, Majura Gate, Opp. New Civil Hospital, Surat-395 001 प्रत्यर्थी / Respondent आयकर अपील सं./Ita No. 882/Srt/2024 (Ay 2011-12) Sunita Jajoo 429-432, Golden Point, Near Bsnl Office, Falsawadi, Ring Road, Surat-395 002 [Pan: Aampj 0040 K] बनाम Vs Income Tax Officer, Ward- 2(2)(4), Aaykar Bhawan, Majura Gate, Opp. New Civil Hospital, Surat-395 001 अपीलार्थी/Appellant प्रत्यर्थी / Respondent निर्धारिती की ओर से /Assessee By Ms. Richa Toshniwal. Ca राजस्व की ओर से /Revenue By Shri Minal Kamble, Sr. Dr सुनवाई की तारीख/Date Of Hearing 23.01.2025 उद्घोषणा की तारीख/Date Of Pronouncement 10.02.2025 Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. These Two Appeals By Separate Assessee Are Directed Against The Separate Orders Of Addl/Jcit(A)-7, Kolkata/National Faceless Appeal Centre, Delhi [For Short To As "Nfac/Ld.Cit(A)] Dated 21.03.2024 & 21.04.2023 For Same

Section 143(3)Section 147Section 148Section 254(1)Section 68Section 69C

…ch has already been taxed.” The law as stated above has not undergone any change because of the introduction of Section 68 in the Income Tax Act, 1961. As observed by S. Ranganathan J in Yadu Hari Dalmia Vs. Commissioner of Income Tax, Delhi (Central), (1980) 126 ITR 48, a decision of a Division Bench of this Court:- “It is well know that the whole catena of sections starting from s. 68 have been introduced into the taxing enactments step by step in order to plug loopholes and in order to place certain situations beyond doubt even through there were judicial decisions covering some of the aspects. For example, ev…

Balhanuman Commodeal Pvt. Ltd., Kolkata vs. ITO, Ward-5(4), Kolkata

ITA 116/KOL/2024[2012-13]Status: DisposedITAT Kolkata03 Oct 2024AY 2012-13

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2012-13

For Appellant: NoneFor Respondent: Shri Vineet Kumar, Addl. CIT, Sr. DR
Section 131Section 143(2)Section 143(3)Section 14ASection 250Section 68

…tax department has pointed out the unnatural rise in prices of the scripts of very little known compa- nies. 25. While on this issue it would be beneficial to take note of the decision in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central) (1980) 126 ITR 48 wherein it was held that the whole catena of sections starting from Section 68 have been intro- duced in the taxing enactment step by step in order to pluck loopholes and in order to plug certain situation beyond doubts even though there were judicial decisions covering some of the aspects. It was pointed out that even prior to the introduction of…

Padmavati Agrico (India) Pvt Ltd, Ajmer vs. ACIT Circle - 1, Ajmer

In the result, the appeal of the assessee is allowed

ITA 702/JPR/2023[2010-11]Status: DisposedITAT Jaipur05 Sept 2024AY 2010-11

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. Tarun Mittal (CA)For Respondent: Sh. Anoop Singh (Addl. CIT)
Section 143Section 147

…oney or some other person had made investment in the name of that person. The burden then shifts on Revenue to establish that such investment has come from assessee-company itself. – CIT Vs. Shree Barkha Synthetics Ltd. (2003) 270 ITR (Raj.) 477 followed. 2. 126 ITR 48 Yadu Hari Dalmia Vs. CIT (Delhi) Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive enquiries an…

Kishan Singh, Jhajjar vs. ITO, Ward-2, Rohtak

In the result, the appeal of the assessee is dismissed

ITA 768/DEL/2020[2010-11]Status: DisposedITAT Delhi22 May 2024AY 2010-11

Bench: Shri M. Balaganesh & Shri Vimal Kumarkishan Singh, Vs. Ito, Vpo-Jakhoda, Tehsil- Ward-2, Bahadurgarh, Distt. Jajjar, Rohtak Bahadurgarh, Haryana (Appellant) (Respondent) Pan: Dqlps9421M Assessee By : Shri Naveen Gupta, Adv Revenue By: Shri Sandeep Kr. Mishra, Sr. Dr Date Of Hearing 13/05/2024 Date Of Pronouncement 22/05/2024

For Appellant: Shri Naveen Gupta, AdvFor Respondent: Shri Sandeep Kr. Mishra, Sr. DR
Section 144Section 147

…the assessee because the onus was not discharged by the assessee. He placed reliance on the decision of the Hon'ble Supreme Court in the case of CIT Vs. Devi Prasad Vishwanath reported in 72 ITR 194 (SC) and in the case of Yadu Hari Dalmia Vs. CIT reported in 126 ITR 48 (SC). 8. In the instant case, we find that the assessee has been deriving some agriculture income. The ld CIT(A) had categorically stated that the assessee owns 7.5 acres of land and that there is no proof of cultivating 10 to 15 acres of land on lease, which was allegedly given to the assessee. It is a case that the assessee had not provided any…

Balgopal Merchants Pvt Ltd vs. Principal Commissioner of Income Tax 2 Kolkata

Accordingly, the appeal fails and is dismissed

ITAT/232/2023HC Calcutta13 May 2024

Bench: THE HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

Section 131Section 143(1)Section 143(2)Section 260A

…s are of an assessable nature. 19. In Yadu Hari Dalmia Versus Commissioner of Income Tax 5 it was held that several Sections starting from Section 68 have been 4 (1958) 34 ITR 807 5 (1980) 126 ITR 48 ITAT NO. 232 OF 2023 REPORTABLE Page 12 of 26 introduced into the taxing enactments step by step in order to plug loopholes and in order to place certain situations beyond doubt even though there were judicial decisions covering some of the aspects. Even long prior to introduction of Section 68 in the statute book, the courts have…

Principal Commissioner of Income Tax Central 2 Kolkata vs. M/S Bst Infratech Ltd

In the result the appeal is allowed, the order passed by the learned

ITAT/67/2024HC Calcutta23 Apr 2024

Bench: THE HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA

Section 142(1)Section 143(2)Section 143(3)Section 260ASection 68

…income tax as income of the assessee during the relevant previous year. That Section 68 was inserted in the Act only to provide statutory recognition to a principle which had been clearly 7 (1980) 126 ITR 48 ITAT 67 OF 2024 REPORTABLE Page 23 of 35 adumbrated in judicial decisions. Section 68 thus only codified the law as it existed before 01.04.1962 and did not introduce any new principle or rule. 26. We also take note of the Finance Bill, 2012 which brought about certain amendments to the Act with effect from the assessment year…

DCIT, CC-2, Jaipur vs. Shri Jitendra Kumar Agarwal, Jaipur

In the result, appeal of the assessee is dismissed and that of the revenue is also stands dismissed

ITA 181/JPR/2020[2017-18]Status: DisposedITAT Jaipur07 Jun 2023AY 2017-18

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal (CIT) &
Section 132Section 143Section 143(3)Section 145(3)Section 68

…nt must make an honest and fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

DCIT, CC-2, Jaipur vs. M/S. Royal Jewellers, Jaipur

The appeal of the assessee is partly allowed and that of the revenue stands dismissed

ITA 177/JPR/2020[2017-18]Status: DisposedITAT Jaipur07 Jun 2023AY 2017-18

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal (CIT) &
Section 132Section 143Section 143(3)Section 145(3)Section 68

…fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. Royal Jewellers vs. DCIT 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

DCIT, CC-2, Jaipur vs. M/S. Royal Jewellers, Jaipur

In the result, appeal of the assessee in ITA No

ITA 176/JPR/2020[2016-17]Status: DisposedITAT Jaipur07 Jun 2023AY 2016-17

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal(CIT)&
Section 143Section 143(3)Section 145(3)

…nt must make an honest and fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

DCIT, CC-2, Jaipur vs. M/S. Royal Jewellers, Jaipur

In the result, appeal of the assessee in ITA No

ITA 175/JPR/2020[2015-16]Status: DisposedITAT Jaipur07 Jun 2023AY 2015-16

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal(CIT)&
Section 143Section 143(3)Section 145(3)

…nt must make an honest and fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

DCIT, CC-2, Jaipur vs. M/S. Royal Jewellers, Jaipur

In the result, appeal of the assessee in ITA No

ITA 174/JPR/2020[2014-15]Status: DisposedITAT Jaipur07 Jun 2023AY 2014-15

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal(CIT)&
Section 143Section 143(3)Section 145(3)

…nt must make an honest and fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

M/S. Royal Jewellers, Jaipur vs. DCIT, Central Circle, Jaipur

The appeal of the assessee is partly allowed and that of the revenue stands dismissed

ITA 116/JPR/2020[2017-18]Status: DisposedITAT Jaipur07 Jun 2023AY 2017-18

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal (CIT) &
Section 132Section 143Section 143(3)Section 145(3)Section 68

…fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. Royal Jewellers vs. DCIT 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

M/S. Royal Jewellers, Jaipur vs. DCIT, Central Circle, Jaipur

In the result, appeal of the assessee in ITA No

ITA 115/JPR/2020[2016-17]Status: DisposedITAT Jaipur07 Jun 2023AY 2016-17

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal(CIT)&
Section 143Section 143(3)Section 145(3)

…nt must make an honest and fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

M/S. Royal Jewellers, Jaipur vs. DCIT, Central Circle, Jaipur

In the result, appeal of the assessee in ITA No

ITA 114/JPR/2020[2015-16]Status: DisposedITAT Jaipur07 Jun 2023AY 2015-16

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Sanjay Dhariwal(CIT)&
Section 143Section 143(3)Section 145(3)

…nt must make an honest and fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case. 126 ITR 48 Yadu Hari Dalmia V/s CIT, Delhi (Central): Income from undisclosed sources – Expenditure not accounted for – Can be estimated and treated as income from undisclosed sources – Correctness of estimate is question of fact and degree – Absence of direct evidence does not preclude assessment by inference and estimate – Duty of ITO to make exhaustive en…

S. Ranganathan J in Yadu Hari Dalmia v. Commissioner of Income Tax, Delhi (Central) (126 ITR 48) — Cited in 77 Judgments | BharatTax