Sona Builders v. Union of India

251 ITR 197Supreme Court of India2001#6018 most cited

What is Sona Builders v. Union of India authority for?

A gross breach of natural justice, such as providing inadequate time to respond to a notice, means a matter cannot be remanded for reconsideration. The principles of natural justice require that parties have sufficient time to respond to allegations.

19

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2025.

Also referred to as

Sona Builders v. Union of India · 251 ITR 197 · natural justice · gross breach of natural justice · inadequate time to respond · remand · reassessment · section 263

Sections most often in play

Section 263Section 269-UDSection 37(I)

Issues it is cited on

section 23aretention moneysection 145(1)section 211section 115baasection 28(iv)section 145(2)project completion methodsection 43csection 35dpercentage completion methodsection 129

Judgments citing Sona Builders v. Union of India

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 715/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…ITA No.713/Del/2024 & Others THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Sl.No. ITA No. AY Name of Name of Appellant Respondent 1. 713/Del/2024 2019-20 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 2. 714/Del/2024 2020-21 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 3. 715/Del/2024 2021-22 DCIT, DLF Limite…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 714/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…ITA No.713/Del/2024 & Others THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Sl.No. ITA No. AY Name of Name of Appellant Respondent 1. 713/Del/2024 2019-20 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 2. 714/Del/2024 2020-21 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 3. 715/Del/2024 2021-22 DCIT, DLF Limite…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 713/DEL/2024[2019-20]Status: DisposedITAT Delhi30 Oct 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…ITA No.713/Del/2024 & Others THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Sl.No. ITA No. AY Name of Name of Appellant Respondent 1. 713/Del/2024 2019-20 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 2. 714/Del/2024 2020-21 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 3. 715/Del/2024 2021-22 DCIT, DLF Limite…

Dlf Limited, Delhi vs. National Faceless Assessment Centre, Delhi

In the result, appeal of the Revenue is dismissed

ITA 677/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…ITA No.713/Del/2024 & Others THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Sl.No. ITA No. AY Name of Name of Appellant Respondent 1. 713/Del/2024 2019-20 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 2. 714/Del/2024 2020-21 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 3. 715/Del/2024 2021-22 DCIT, DLF Limite…

Dlf Limited, Delhi vs. National Faceless Assessment Centre, Delhi

In the result, appeal of the Revenue is dismissed

ITA 676/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…ITA No.713/Del/2024 & Others THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Sl.No. ITA No. AY Name of Name of Appellant Respondent 1. 713/Del/2024 2019-20 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 2. 714/Del/2024 2020-21 DCIT, DLF Limited [Revenue’s Circle-7(1) 9th Floor, DLF appeal] Delhi-110002 Centre, Sansad Marg H.O.Sansad Marg, New Delhi- 110001 PAN-AAACD3494N 3. 715/Del/2024 2021-22 DCIT, DLF Limite…

Ashok Nariyani, Jaipur vs. ACIT, Circle-5, Jaipur

In the result, the appeal of the assessee is allowed

ITA 1532/JPR/2024[2017-18]Status: DisposedITAT Jaipur15 Sept 2025AY 2017-18
For Appellant: Sh.Deepak Sharma, Adv. &For Respondent: Mrs. Anita Rinesh, JCIT, Sr.-DR
Section 115BSection 131Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 68

…uch a requirement inheres in the principles of natural justice and would be applicable even if the statute governing the proceedings does not specifically mandate it." Three judge bench decision of hon'ble apex court in case of Sona Builder vs UOI reported at 251 ITR 197 (Three Judge bench Hon'ble Apex court order) in context of income tax law has held that “.... Further, the notice alleged that the apparent consideration of the transaction between the appellant and the transferor was low based on the sale instance mentioned thereon. To be able adequately to respond to that allegation, it was necessary for the ap…

Sinwan Ahmad Shah, Agra vs. PCIT-1, Agra

ITA 55/AGR/2022[2017-18]Status: DisposedITAT Agra24 Apr 2025AY 2017-18

Bench: : Smt. Annapurna Gupta & Shri Sunil Kumar Singhassessment Year: 2017-18

Section 263

…the ld. DR that the orders passed u/s. 263 without affording adequate opportunity be restored back for reconsideration, we are not inclined to agree with the same. Reason for the same being that the Apex Court in the case of Sona Builders vs. Union of India, 251 ITR 197 has categorically held that where there is gross breach of the principle of natural justice, matter could not be remanded back to the appropriate authority. In the said case notice of hearing gave only five days’ time to the parties to respond, which could not be responded. In such circumstances, it was held that there was gross breach of princ…

Shri. Sudhir Bansal, Agra vs. PCIT-1 Agra, Agra

ITA 54/AGR/2022[2017-18]Status: DisposedITAT Agra24 Apr 2025AY 2017-18

Bench: : Smt. Annapurna Gupta & Shri Sunil Kumar Singhassessment Year: 2017-18

Section 263

…the ld. DR that the orders passed u/s. 263 without affording adequate opportunity be restored back for reconsideration, we are not inclined to agree with the same. Reason for the same being that the Apex Court in the case of Sona Builders vs. Union of India, 251 ITR 197 has categorically held that where there is gross breach of the principle of natural justice, matter could not be remanded back to the appropriate authority. In the said case notice of hearing gave only five days’ time to the parties to respond, which could not be responded. In such circumstances, it was held that there was gross breach of princ…

Smt. Ritu Bansal, Agra vs. PCIT-1, Agra

ITA 53/AGR/2022[2017-18]Status: DisposedITAT Agra24 Apr 2025AY 2017-18

Bench: : Smt. Annapurna Gupta & Shri Sunil Kumar Singhassessment Year: 2017-18

Section 263

…the ld. DR that the orders passed u/s. 263 without affording adequate opportunity be restored back for reconsideration, we are not inclined to agree with the same. Reason for the same being that the Apex Court in the case of Sona Builders vs. Union of India, 251 ITR 197 has categorically held that where there is gross breach of the principle of natural justice, matter could not be remanded back to the appropriate authority. In the said case notice of hearing gave only five days’ time to the parties to respond, which could not be responded. In such circumstances, it was held that there was gross breach of princ…

Shree Blaji Concast Pvt.Ltd., Aligarh vs. Pr.CIT-1, Agra

ITA 151/AGR/2022[2017-17]Status: DisposedITAT Agra24 Apr 2025AY 2017-17

Bench: : Smt. Annapurna Gupta & Shri Sunil Kumar Singhassessment Year: 2017-18

Section 263

…the ld. DR that the orders passed u/s. 263 without affording adequate opportunity be restored back for reconsideration, we are not inclined to agree with the same. Reason for the same being that the Apex Court in the case of Sona Builders vs. Union of India, 251 ITR 197 has categorically held that where there is gross breach of the principle of natural justice, matter could not be remanded back to the appropriate authority. In the said case notice of hearing gave only five days’ time to the parties to respond, which could not be responded. In such circumstances, it was held that there was gross breach of princ…

Ganpati Enterprises, Agra vs. Pr.CIT.-1, Agra

ITA 100/AGR/2022[2017-18]Status: DisposedITAT Agra24 Apr 2025AY 2017-18

Bench: : Smt. Annapurna Gupta & Shri Sunil Kumar Singhassessment Year: 2017-18

Section 263

…the ld. DR that the orders passed u/s. 263 without affording adequate opportunity be restored back for reconsideration, we are not inclined to agree with the same. Reason for the same being that the Apex Court in the case of Sona Builders vs. Union of India, 251 ITR 197 has categorically held that where there is gross breach of the principle of natural justice, matter could not be remanded back to the appropriate authority. In the said case notice of hearing gave only five days’ time to the parties to respond, which could not be responded. In such circumstances, it was held that there was gross breach of princ…

I.K. Gujral Punjab Technical University, Kapurthala vs. Commissioner of Income Tax (Exemptions), Chandigarh

In the result, appeal of the Assessee is allowed

ITA 650/CHANDI/2024[N.A]Status: DisposedITAT Chandigarh28 Oct 2024

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Ajay Vohra, Sr. Advocate with Ms. Somya Jain, CAFor Respondent: Shri Rohit Sharma, CIT, DR
Section 10Section 12ASection 12A(1)(ac)Section 2(15)Section 2(31)Section 8

…f principles of natural justice in as much as the period of one day cannot be taken to be reasonable time to enable the assessee to file response to the show cause notice. Reliance has been placed on the following case laws:  Sona Builders v. Union of India; 251 ITR 197(SC)  Vodafone India Ltd. vs. UOI; 221 Taxman 88 (Bom.)(Mag)  Smt. Ritu Devi vs CIT; 271 ITR 466 (Mad.)  Rameshwaram Paper Mills(P) Ltd. v. State of U.P. & others, (2009) 11VLJ33(All);  Padam Traders & others v. State of U.P. & others, (2009) 47 STJ 392 (All) 9. So far as regards the Ground Nos. 2 & 3, according to these grounds, the ld. CIT(E…

M/S. Iconic Infrabuild LLP, Rajkot vs. The Pr. CIT- Central, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 58/RJT/2021[2015-16]Status: DisposedITAT Rajkot17 Nov 2023AY 2015-16

Bench: Smt.Annapurna Gupta & Smt.Madhumita Royassessment Year : 2015-16 Iconic Infrabuild Llp The Pr.Cit, Central 75, Nandkishor Ahmedabad. University Road Gangotri Park Opp: Bts, Rajkot. Pan : Aaifc 5100 F (Applicant) (Responent)

For Appellant: Shri D.M. Rindani, ld.ARFor Respondent: Shri Ashish Kumar Pandey, Sr.DR
Section 263Section 263oSection 68

…to the notice issued. The impugned order was passed thereafter without even giving a fair opportunity of hearing to the assessee, which is in gross violation of the principles of natural justice. 7. The Hon’ble Apex Court in the case of Sona Builders vs UOI 251 ITR 197(SC) has held that orders passed in violation of principles of natural justice have to be set aside and cannot be restored back for hearing afresh. The Hon’ble court held that having regard to the statutory limit within which appropriate authority has to Act and his failure to act in conformity with the principles of natural justice, the matter ca…

Rishabh Kumar Jain, Sagar vs. Income Tax Officer-1, Sagar

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 91/JAB/2023[2015-16]Status: DisposedITAT Jabalpur12 Sept 2023AY 2015-16

Bench: Shri Om Prakash Kantshri Pavan Kumar Gadalerishabh Kumar Jain, Vs Ito-1, Prop. Of M/S. Roop Chand Sagar Jain, H.No.146, Lig, Gour Nagar, Makroniya, Sagar, Madhya Pradesh-470004. (Appellant) (Respondent) Pan No. Amwpj0852F Assessee By Shri Dhiraj Ghai, Fca Revenue By Shri Shiv Kumar, Sr.Dr Date Of Hearing 12/09/2023 Date Of Pronouncement 12/09/2023

…gain. 2. Looking to facts and circumstances of the case and without prejudice to ground no 1 ,CIT (A) erred in passing appeal order without giving proper opportunity is contrary to Hon'ble Supreme Court decision in the case of Sona Builders Vs. Union of India 251 ITR 197(SC) and accordingly needs to be quashed even on account of natural justice too as has been held in the case of Praful M. Shah Vs National Faceless Assessment &Ors. (Bombay High Court). 3. Looking to facts and circumstances of the case and without prejudice to ground no 1 and 2, CIT (A) erred in confirming addition of Rs.15,37,984/- by totally ign…

Mesers Ganesh Rice Mills, Muktsar vs. Deputy Commissioner of Income Tax, Circle-II, Bathinda

In the result the appeal of the assessee ITA No

ITA 287/ASR/2018[2014-15]Status: DisposedITAT Amritsar15 Feb 2023AY 2014-15

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: Sh. Sudhir Sehgal, A. RFor Respondent: Sh. Rohit Mehra, CIT DR
Section 133ASection 143(3)Section 250(6)

…The AO only completed the formality of confronting without waiting for the reply which proves that there is a denial of principle of natural justice. Respectfully Reliance in this regard is being placed on the judgment of: Sona Builders vs. Union of India 251 ITR 197 (S. C.). The relevant paragraphs are extracted as follows: - “6. There is no doubt in our mind that on both counts there has been a gross breach of the principles of natural justice because adequate opportunity to meet the case made out in the notice was not given to the appellant. 7. Having regard to the statutory limit within which the approp…

Mr. Seenisubbanaicker Sundararjaperumal, Tuticorin vs. The Principal Commissioner of Income Tax, Madurai

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 968/CHNY/2020[2015-16]Status: DisposedITAT Chennai28 Mar 2022AY 2015-16

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manoj Kumar Aggarwal, Hon’Bleआयकरअपीलसं./Ita No.968/Chny/2020 िनधा"रणवष"/Assessment Year: 2015-16

For Appellant: Mr.V.S.Jayakumar, AdvFor Respondent: Mr.R.N.Siddhappaji, CIT
Section 143(3)Section 263

…आयकर अपीलीय अिधकरण, ‘बी’ "ायपीठ,चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI "ी महावीर िसंह, माननीय उपा"", एवं "ी मनोज कुमार अ"वाल, माननीय लेखा सद" के सम" BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./ITA No.968/Chny/2020 िनधा"रणवष"/Assessment Year: 2015-16 Mr.Seenisubbanaicker- v. The Principal Commissioner- Sundararajaperumal, of Income Tax, 5/36, PerumalKoil North Street, Madurai-1, Pottalurani Village, Ellainaikenpatti, Madurai. Srivaikuntam Taluk, Tuticorin-628 851. [PAN:CVUPS 3477 C] (अपीलाथ"/Appellant) (""थ"/Respond…

Deepak Valji Karia, Mumbai vs. ITO - 28(1)(3), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 259/MUM/2021[2015-16]Status: DisposedITAT Mumbai10 Mar 2022AY 2015-16

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Bleshri Deepak Valji Karia V. Income Tax Officer – 28(1)(3) Flat No. 2501, B Wing Room No. 327 Maroj Palm Paradise Tower No. 6, 3Rd Floor Palm Beach Road, Sector 17 Vashi Railway Station Building Complex Vashi, Navi Mumbai-400703 Sanpada, Navi Mumbai 400705 Pan: Ahfpk2679F (Appellant) (Respondent) Assessee By : Ms. Dinkle Hariya Department By Shri Sanjeev Kashyp

For Appellant: Ms. Dinkle Hariya
Section 10(38)Section 131Section 143(2)Section 143(3)

…ons and supported case law, which are given below: - “1. No proper, adequate, fair and reasonable opportunity of being heard provided to the Appellant. Assessee for the above proposition relies on the following case law: - (i). Sona Builders v. UOI [(2001) 251 ITR 197 (SC) 2. No Copy of material / information / statement confronted to the Appellant: - “2A. If no copy of the exact material / information / statements as referred in the assessment order and ultimately relied upon by the 27 Shri Deepak Valji Karia A.O. to support the addition were not confronted the Appellant during the assessment proceeding, thi…

M/S Fortune Metaliks Limited, Ludhiana vs. Pr.CIT(Central), Ludhiana

In the result appeal of the assessee is allowed

ITA 82/CHANDI/2021[2016-17]Status: DisposedITAT Chandigarh09 Mar 2022AY 2016-17
For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Sandeep Dahiya, CIT-DR Khanna
Section 143(3)Section 263Section 263(1)Section 56(2)Section 56(2)(vii)

…s denied to the assessee, we find the order passed deserves to be quashed. For this, reference may be made to CIT Vs Girdh ari Lal 147 ITR 379 (Raj). Reference may also be made to the decision of the Apex Court in the case of Sona Builders Vs Union of India 251 ITR 197 (S.C) which, no doubt was in the context of acquisition of immovable property , wherein the Appropriate Authority had not granted sufficient opportunity of being heard to the parties, the Court considering the statutory limit within which the Appropriate Authority, had to act and its failure to confirm to that time limit invoking the princip…

M/S. Anila Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3415/DEL/2014[2008-09]Status: DisposedITAT Delhi26 Apr 2017AY 2008-09

Bench: Shri N. K. Saini

For Appellant: Shri Sandeep Sapra, AdvFor Respondent: Shri Rajesh Kumar, Sr. DR
Section 133ASection 142Section 144ASection 245(4)Section 251Section 292CSection 68

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER ITA No. 3415/Del/2014 : Asstt. Year : 2008-09 M/s. Anila Industries Limited, Vs DCIT (HQ), 308, Aruncahal Building, Central Circle III, 19, Barakhamba Road, New Delhi. New Delhi – 110 001. (APPELLANT) (RESPONDENT) PAN No. AAECA0390A Assessee by : Shri Sandeep Sapra, Adv. Revenue by : Shri Rajesh Kumar, Sr. DR Date of Hearing : 01.02.2017 Date of Pronouncement : 26.04.2017 ORDER This is an appeal by the assessee against the order dated 01.02.2017 of ld. CIT (A)-XXXIII, New Delhi. 2. Following grounds h…