What is Sheo Nath Singh v. AAC authority for?

To initiate reassessment under Section 147/148, the Income Tax Officer must have an honest and reasonable 'reason to believe' that income has escaped assessment, based on cogent grounds and not mere suspicion. Reassessment is invalid if based only on a lack of analysis during the original assessment without new material.

How many judgments cite Sheo Nath Singh v. AAC?

129 judgments on BharatTax cite Sheo Nath Singh v. AAC (82 ITR 147), spanning 2012 to 2026.

Which sections of the Income Tax Act does Sheo Nath Singh v. AAC come up under?

It is most often cited in judgments turning on Section 147, Section 148, Section 139(1), Section 133A, Section 143(3), Section 151.

Sheo Nath Singh v. AAC (82 ITR 147)

ITO, Ward-1(3), Bhubaneswar vs. Smt. Chinmayee Rath, Angul

In the result, all appeals of the revenue are dismissed

ITA 471/CTK/2017[2012-13]Status: DisposedITAT Cuttack28 Dec 2017AY 2012-13

For Appellant: Shri S.S.Mishra/P.K.Panda, ARFor Respondent: Shri D.K.Pradhan, DR

Section 133ASection 147

…anges in the figures available in the relevant return. This clearly shows that the AO was not sure whether any income had escaped assessment for these years and if so under which head of income and how much. 3.2.1 In the case of Sheo Nath Singh vs. ACC (1971) 82 ITR 147, the Hon'ble Apex Court has held that the words 'reason to believe' suggest that the' belief must be that of an honest and reasonable person based upon reasonable grounds and that the ITO may act on direct or circumstantial evidence but not on mere suspicion, gossip or rumour. 3.2.2 It is also clear from the decisions of the Hon’ble Supreme Court…

ITO, Ward-1(3), Bhubaneswar vs. Smt. Chinmayee Rath, Angul

In the result, all appeals of the revenue are dismissed

ITA 470/CTK/2017[2011-12]Status: DisposedITAT Cuttack28 Dec 2017AY 2011-12

For Appellant: Shri S.S.Mishra/P.K.Panda, ARFor Respondent: Shri D.K.Pradhan, DR

Section 133ASection 147

…anges in the figures available in the relevant return. This clearly shows that the AO was not sure whether any income had escaped assessment for these years and if so under which head of income and how much. 3.2.1 In the case of Sheo Nath Singh vs. ACC (1971) 82 ITR 147, the Hon'ble Apex Court has held that the words 'reason to believe' suggest that the' belief must be that of an honest and reasonable person based upon reasonable grounds and that the ITO may act on direct or circumstantial evidence but not on mere suspicion, gossip or rumour. 3.2.2 It is also clear from the decisions of the Hon’ble Supreme Court…

ITO, Ward-1(3), Bhubaneswar vs. Smt. Chinmayee Rath, Angul

In the result, all appeals of the revenue are dismissed

ITA 469/CTK/2017[2010-11]Status: DisposedITAT Cuttack28 Dec 2017AY 2010-11

For Appellant: Shri S.S.Mishra/P.K.Panda, ARFor Respondent: Shri D.K.Pradhan, DR

Section 133ASection 147

…anges in the figures available in the relevant return. This clearly shows that the AO was not sure whether any income had escaped assessment for these years and if so under which head of income and how much. 3.2.1 In the case of Sheo Nath Singh vs. ACC (1971) 82 ITR 147, the Hon'ble Apex Court has held that the words 'reason to believe' suggest that the' belief must be that of an honest and reasonable person based upon reasonable grounds and that the ITO may act on direct or circumstantial evidence but not on mere suspicion, gossip or rumour. 3.2.2 It is also clear from the decisions of the Hon’ble Supreme Court…

ITO, Ward-1(3), Bhubaneswar vs. Smt. Chinmayee Rath, Angul

In the result, all appeals of the revenue are dismissed

ITA 468/CTK/2017[2009-10]Status: DisposedITAT Cuttack28 Dec 2017AY 2009-10

For Appellant: Shri S.S.Mishra/P.K.Panda, ARFor Respondent: Shri D.K.Pradhan, DR

Section 133ASection 147

…anges in the figures available in the relevant return. This clearly shows that the AO was not sure whether any income had escaped assessment for these years and if so under which head of income and how much. 3.2.1 In the case of Sheo Nath Singh vs. ACC (1971) 82 ITR 147, the Hon'ble Apex Court has held that the words 'reason to believe' suggest that the' belief must be that of an honest and reasonable person based upon reasonable grounds and that the ITO may act on direct or circumstantial evidence but not on mere suspicion, gossip or rumour. 3.2.2 It is also clear from the decisions of the Hon’ble Supreme Court…

Siya Real Estate Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 865/DEL/2013[2008-09]Status: DisposedITAT Delhi20 Dec 2017AY 2008-09

Bench: Sh. N. K. Sainiita No. 865/Del/2013 : Asstt. Year : 2008-09 Siya Real Estate Pvt. Ltd., Vs Income Tax Officer, Up-12, Pitampura, Ward-8(4), New Delhi-110034 New Delhi (Appellant) (Respondent) Pan No. Aaics7889N Assessee By : Smt. Rano Jain, Adv. & Sh. Ashish Chadha, Adv. Revenue By : Sh. T. Vasanthan, Sr. Dr Date Of Hearing : 21.09.2017 Date Of Pronouncement : 20.12.2017 Order This Is An Appeal By The Assessee Against The Order Dated 21.12.2012 Of Ld. Cit(A)-Xi, New Delhi.

For Appellant: Smt. Rano Jain, Adv. &For Respondent: Sh. T. Vasanthan, Sr. DR

Section 143(1)Section 143(2)Section 147Section 148Section 68

…6) ITR 352 (Pat.) " Ganga Saran & Sons (P) Ltd. (1981) 130 ITR 1 (SC) " CST Vs Bhagwan Industries (P) Ltd. (1973) 31 STC 293 (SC) " Calcutta Discount Co. Ltd. Vs ITO (1961) 41 ITR 191 " Ashok Kumar Sen Vs ITO 132 ITR 707 (Del.) " Sheo Nath Singh Vs AAC (1971) 82 ITR 147 (SC) " Technocraft Industries Vs AO (1990) 186 ITR 514 " Murlidhar Bhagwandas (1961) 52 ITR 335 (SC) " Gardhara Singh (1980) 125 ITR 340 (P&H) " Phool Chand Bajrang Lal (1993) 203 ITR 456 (SC) " ITO Vs Rajeev Aggarwal 89 TTJ 1095 (Del.) " Kishenchand Chellaram Vs CIT 125 ITR 713 (SC) " ACIT Vs G. M. Infrastructure IT(SS) No. 133/Ind/2008 to 135/In…

Kamakshi Hospitality Pvt. Ltd., Jaipur vs. DCIT, Jaipur

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

ITA 481/JPR/2016[2010-11]Status: DisposedITAT Jaipur15 Dec 2017AY 2010-11

For Appellant: Shri Rajeev Sogani, CAFor Respondent: Shri R.A. Verma, Addl. CIT - DR &

Section 132Section 153ASection 69

…ther (1978) 42 STC 348 (SC) 79 3 Omar Salay Mohamed Sait v. CIT (1959) 37 ITR 151 (SC) 79 4 Lalchand Bhagat Ambica Ram v. CIT (1959) 37 ITR 288 (SC) 80 Sheo Nath Singh v. Appellate Assistant Commissioner of Income Tax (Central), 5 80-81 Calcutta & Ors. (1971) 82 ITR 147 (SC) 10. No additions can be made on the basis of statements of third parties and documents found from the possession of third parties unless copies are supplied and opportunity for cross examination is allowed to 13 M/s. Kamakshi Hospitality Pvt. Ltd vs DCIT, Central Circle-1, Jaipur the assessee. The legal position settled by the following ju…

Wallace Sports and Research Foundation, Chennai vs. ACIT Non Corporate Circle 3, Chennai

In the result, the appeal of the assessee is partly allowed

ITA 2057/CHNY/2017[2011-12]Status: DisposedITAT Chennai08 Dec 2017AY 2011-12

Bench: Shri Chandra Poojari

For Respondent: Mr.B.Sagadevan, JCIT, D.R

Section 143(3)

…this limited extent, the action of the Income-tax Officer in starting proceedings under section 34 of the Act is open to challenge in a court of law (see Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC))." 7. In Sheo Nath Singh v. AAC of I. T. [1971] 82 ITR 147 (SC) the Supreme Court (Hegde J.) observed as under (page 153) : "There can be no manner of doubt that the words 'reason to believe' suggest that the belief must be that of an honest and reasonable person based upon reasonable grounds and that the Income- tax Officer may act on direct or circumstances evidence but not on mere 12 suspicion, gossi…

P Praveen Kumar, Chennai vs. DCIT, Non Corporate Circle-5(1), Chennai

In the result, the appeal of assessee is allowed

ITA 2212/CHNY/2017[2010-11]Status: DisposedITAT Chennai06 Dec 2017AY 2010-11

Bench: Shri Chandra Poojari

For Appellant: Mr.B.Sagadevan, JCIT, D.RFor Respondent: 21.11.2017

Section 143(3)Section 148

…To this limited extent, the action of the Income-tax Officer in starting proceedings under section 34 of the Act is open to challenge in a court of law (see Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC))." In Sheo Nath Singh v. AAC of I. T. [1971] 82 ITR 147 (SC) 6.4 the Supreme Court (Hegde J.) observed as under (page 153) : "There can be no manner of doubt that the words 'reason to believe' suggest that the belief must be that of an honest and rea sonable 13 person based upon reasonable grounds and that the Income- tax Officer may act on direct or circumstances evidence but not on mere suspicion,…

K.R.Jayaram, Chennai vs. ACIT, Coimbatore

In the result, the appeal of the assessee is partly allowed

ITA 1698/CHNY/2016[2009-2010]Status: DisposedITAT Chennai17 Oct 2017AY 2009-2010

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddy

For Appellant: Mr.Arjunraj, C.A ""For Respondent: Mr.K.Ravi, JCIT, DR

Section 143(3)Section 50C

…his limited extent, the action of the Income-tax Officer in starting proceedings under section 34 of the Act is open to challenge in a court of law (see Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC))." 12. In Sheo Nath Singh v. AAC of I. T. [1971] 82 ITR 147 (SC) the Supreme Court (Hegde J.) observed as under (page 153) : "There can be no manner of doubt that the words 'reason to believe' suggest that the belief must be that of an honest and rea sonable person based upon reasonable grounds and that the Income- tax Officer may act on direct or circumstances evidence but not on mere suspicion, gossip…

Crystal Natural Food Processors P.Ltd, Mumbai vs. ITO WD 5(1)(3), Mumbai

In the result appeal of the assessee is allowed in terms indicated hereinabove

ITA 1513/MUM/2017[2008-09]Status: DisposedITAT Mumbai06 Oct 2017AY 2008-09

Bench: Shri R.C.Sharma, Am M/S. Crystal Natural Food Vs. Ito Wd 5(1)(3) Processor Pvt. Ltd., Aayakar Bhavan My Home Apartments, M.K. Road Forjet Cross Road Mumbai – 400 020 Gowali Tank Mumbai – 400 036 Pan/Gir No. Aadcc5431H Appellant) Respondent) ..

Section 143(1)Section 143(3)Section 148Section 151

…has categorically held that where there is a mere suspicion that some income has escaped assessment, there cannot be any reassessment proceedings. Similar view has been taken up by the Hon. Supreme Court in the case of Sheo Nath Singh Vs. Appellate Asst. CIT 82 ITR 147 (SC). 8. Further reliance was placed on the following judicial pronouncements:-  Bhor Industries Ltd. v/s. AC1T 267 ITR 161 (Bom)  Ajanta Pharma Ltd. v/s. ACIT 267 ITR 200 (Bom)  Grindwell Norton v/s. Jagdish Prasad Jabgid, ACIT 267 ITR 673 (Bom)  Hindutan Lever Ltd. v/s. R. B. Wadkar, ACIT 268 ITR 332 (Bom)  Bhagwati Sahakari Sakhar Karkhana…

Shri Mohan Chandra Dalakoti, New Delhi vs. ITO, Haldwani

In the result, the appeal of the assessee is allowed

ITA 297/DEL/2017[2007-08]Status: DisposedITAT Delhi30 Jun 2017AY 2007-08

Bench: Sh. N. K. Sainiita No. 297/Del/2017 : Asstt. Year : 2007-08 Mohan Chandra Dalakoti, Vs Income Tax Officer, C/O Sandeep Sapra, Advocate, C- Ward-1(2), 763, New Friends Colony, Haldwani New Delhi-110025 (Appellant) (Respondent) Pan No. Acxpd1990R Assessee By : Sh. Sandeep Sapra, Adv. Revenue By : Sh. T. Vasanthan, Sr. Dr Date Of Hearing : 27.06.2017 Date Of Pronouncement : 30.06.2017 Order This Is An Appeal By The Assessee Against The Order Dated 04.10.2016 Of Ld. Cit(A), Haldwani.

For Appellant: Sh. Sandeep Sapra, AdvFor Respondent: Sh. T. Vasanthan, Sr. DR

Section 147Section 148Section 69A

…(Del.) " Signature Hotels Pvt. Ltd. Vs ITO 338 ITR 51 (Del.) " CIT Vs SFIL Stock Broking Ltd. 325 ITR 285 (Del) " Krown Agro Foods Pvt. Ltd. Vs ACIT 375 ITR 460 (Del.) " Rustagi Engineering Udyog Pvt. Ltd. Vs DCIT 382 ITR 443 (Del.) " Sheo Nath Singh Vs ACIT 82 ITR 147 (SC) 11. In his rival submissions the ld. DR supported the orders of the authorities below and further submitted that the income of the assessee was meager as compared to the expenses incurred in the marriage of his daughter. Therefore, the reopening was valid and the ld. CIT(A) was fully justified in confirming the action of the AO. The reliance…

Cable Corporation of India Ltd, Mumbai vs. ITO 2(1)(4), Mumbai

In the result, assessee’s appeals are allowed

ITA 843/MUM/2010[2000-01]Status: DisposedITAT Mumbai09 May 2017AY 2000-01

Bench: Shri G S Pannu, Am & Shri Saktijit Dey, Jm

For Appellant: Shri Nitesh Joshi, ARFor Respondent: Shri Rajat Mittal, DR

Section 143(1)Section 143(3)Section 147Section 148

…tangible material and merely on suspicion. In support of said contention the learned AR relied upon the following decisions: • Chhugamal Rajpal vs. S P Chaliha (1971) 79 ITR 603 (SC) • Sheo Nath Singh vs. Appellate Assistant Commissioner of Income tax (1971) 82 ITR 147 (SC) 4. The learned DR justifying the reopening of assessment submitted that on the basis of specific information received from the AO of M/s. Narotam Agencies at Madras, the AO has reopened the assessment. The learned DR submitted, when the AO has formed belief that income had escaped assessment, the sufficiency of reasons recorded cannot be…

Cable Corporation India Ltd, Mumbai vs. ACIT Cir 2(1), Mumbai

In the result, assessee’s appeals are allowed

ITA 4/MUM/2009[1998-1999]Status: DisposedITAT Mumbai09 May 2017AY 1998-1999

Bench: Shri G S Pannu, Am & Shri Saktijit Dey, Jm

For Appellant: Shri Nitesh Joshi, ARFor Respondent: Shri Rajat Mittal, DR

Section 143(1)Section 143(3)Section 147Section 148

…tangible material and merely on suspicion. In support of said contention the learned AR relied upon the following decisions: • Chhugamal Rajpal vs. S P Chaliha (1971) 79 ITR 603 (SC) • Sheo Nath Singh vs. Appellate Assistant Commissioner of Income tax (1971) 82 ITR 147 (SC) 4. The learned DR justifying the reopening of assessment submitted that on the basis of specific information received from the AO of M/s. Narotam Agencies at Madras, the AO has reopened the assessment. The learned DR submitted, when the AO has formed belief that income had escaped assessment, the sufficiency of reasons recorded cannot be…

Reghuveer Singh Tanwar, Jaipur vs. DCIT, Jaipur

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

ITA 357/JPR/2015[2009-10]Status: DisposedITAT Jaipur10 Mar 2017AY 2009-10

For Appellant: Shri Mahendra Gargia (CA)For Respondent: Shri R.A. Verma (Addl. CIT)

Section 143(3)Section 147Section 148Section 234ASection 244ASection 50CSection 54FSection 80C

…not material or relevant to the belief required by the provisions of law. The court can always examine this aspect though the declaration of sufficiency of the reasons for the belief cannot be investigated by the court. Held in Sheo nath Singh v/s AAC (1971) 82 ITR 147 (SC). 2. In the instant case however, the AO proceeded on mere suspicion. The only information which the AO disclosed in the impugned reasons (PB 5 Shri Raghuveer Singh Tanwar. 9) is that though the assessee declared sales consideration at Rs. 21 lakh however as per section 50C it should has been Rs. 1,95,15,472/- and as against the Nil LTCG de…