What is Swadeshi Cotton Mills Co. Ltd. v. CIT authority for?

The Assessing Officer's power to direct a special audit under Section 142(2A) requires an objective assessment of account complexity, not subjective satisfaction. Accounts are 'complex' only if they are genuinely difficult to understand, and the AO must first make a genuine attempt to comprehend them before ordering a special audit.

How many judgments cite Swadeshi Cotton Mills Co. Ltd. v. CIT?

99 judgments on BharatTax cite Swadeshi Cotton Mills Co. Ltd. v. CIT (171 ITR 634), spanning 2016 to 2025.

Which sections of the Income Tax Act does Swadeshi Cotton Mills Co. Ltd. v. CIT come up under?

It is most often cited in judgments turning on Section 142(2A), Section 153A, Section 132, Section 143(3), Section 148, Section 153D.

Swadeshi Cotton Mills Co. Ltd. v. CIT (171 ITR 634)

SHARDA STEEL TRADERS, RAIPUR,RAIPUR vs. ACIT/DCIT, CENTRAL CIRCLE-2, RAIPUR, RAIPUR

ITA 116/RPR/2025[2014-15]Status: DisposedITAT Raipur21 May 2025AY 2014-15

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita Nos: 111, 112, 113, 114, 115 & 116/Rpr/2025 (िनधा"रण वष" Assessment Years: 2008-09, 2009-10, 2010-11,2011-12, 2012-13, 2014-15 )

For Appellant: Shri Praveen Jain, CA &For Respondent: Shri S. L. Anuragi, CIT-DR

Section 153ASection 250Section 271(1)(c)

…essee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. The word "complexity" used in section 142(2A) is not defined or explained in the Act. As observed in Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634 1 (All.), it is a nebulous word. Its dictionary meaning is: "The state or quality of being intricate or complex or that is difficult to understand. However, all that is difficult to understand should not be regarded as complex. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometime…

SHARDA STEEL TRADERS, RAIPUR,RAIPUR vs. ACIT/DCIT, CENTRAL CIRCLE-2, RAIPUR, RAIPUR

ITA 115/RPR/2025[2012-13]Status: DisposedITAT Raipur21 May 2025AY 2012-13

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita Nos: 111, 112, 113, 114, 115 & 116/Rpr/2025 (िनधा"रण वष" Assessment Years: 2008-09, 2009-10, 2010-11,2011-12, 2012-13, 2014-15 )

For Appellant: Shri Praveen Jain, CA &For Respondent: Shri S. L. Anuragi, CIT-DR

Section 153ASection 250Section 271(1)(c)

…essee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. The word "complexity" used in section 142(2A) is not defined or explained in the Act. As observed in Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634 1 (All.), it is a nebulous word. Its dictionary meaning is: "The state or quality of being intricate or complex or that is difficult to understand. However, all that is difficult to understand should not be regarded as complex. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometime…

SHARDA STEEL TRADERS, RAIPUR,RAIPUR vs. ACIT/DCIT, CENTRAL CIRCLE-2, RAIPUR, RAIPUR

ITA 114/RPR/2025[2011-12]Status: DisposedITAT Raipur21 May 2025AY 2011-12

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita Nos: 111, 112, 113, 114, 115 & 116/Rpr/2025 (िनधा"रण वष" Assessment Years: 2008-09, 2009-10, 2010-11,2011-12, 2012-13, 2014-15 )

For Appellant: Shri Praveen Jain, CA &For Respondent: Shri S. L. Anuragi, CIT-DR

Section 153ASection 250Section 271(1)(c)

…essee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. The word "complexity" used in section 142(2A) is not defined or explained in the Act. As observed in Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634 1 (All.), it is a nebulous word. Its dictionary meaning is: "The state or quality of being intricate or complex or that is difficult to understand. However, all that is difficult to understand should not be regarded as complex. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometime…

SHARDA STEEL TRADERS, RAIPUR,RAIPUR vs. ACIT/DCIT, CENTRAL CIRCLE-2, RAIPUR, RAIPUR

ITA 113/RPR/2025[2010-11]Status: DisposedITAT Raipur21 May 2025AY 2010-11

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita Nos: 111, 112, 113, 114, 115 & 116/Rpr/2025 (िनधा"रण वष" Assessment Years: 2008-09, 2009-10, 2010-11,2011-12, 2012-13, 2014-15 )

For Appellant: Shri Praveen Jain, CA &For Respondent: Shri S. L. Anuragi, CIT-DR

Section 153ASection 250Section 271(1)(c)

…essee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. The word "complexity" used in section 142(2A) is not defined or explained in the Act. As observed in Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634 1 (All.), it is a nebulous word. Its dictionary meaning is: "The state or quality of being intricate or complex or that is difficult to understand. However, all that is difficult to understand should not be regarded as complex. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometime…

SHARDA STEEL TRADERS, RAIPUR,RAIPUR vs. ACIT/DCIT, CENTRAL CIRCLE-2, RAIPUR, RAIPUR

ITA 112/RPR/2025[2009-10]Status: DisposedITAT Raipur21 May 2025AY 2009-10

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita Nos: 111, 112, 113, 114, 115 & 116/Rpr/2025 (िनधा"रण वष" Assessment Years: 2008-09, 2009-10, 2010-11,2011-12, 2012-13, 2014-15 )

For Appellant: Shri Praveen Jain, CA &For Respondent: Shri S. L. Anuragi, CIT-DR

Section 153ASection 250Section 271(1)(c)

…essee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. The word "complexity" used in section 142(2A) is not defined or explained in the Act. As observed in Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634 1 (All.), it is a nebulous word. Its dictionary meaning is: "The state or quality of being intricate or complex or that is difficult to understand. However, all that is difficult to understand should not be regarded as complex. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometime…

SHARDA STEEL TRADERS, RAIPUR,RAIPUR vs. ACIT/DCIT, CENTRAL CIRCLE-2, RAIPUR, RAIPUR

ITA 111/RPR/2025[2008-09]Status: DisposedITAT Raipur21 May 2025AY 2008-09

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Arun Khodpia, Am आयकर अपील सं. / Ita Nos: 111, 112, 113, 114, 115 & 116/Rpr/2025 (िनधा"रण वष" Assessment Years: 2008-09, 2009-10, 2010-11,2011-12, 2012-13, 2014-15 )

For Appellant: Shri Praveen Jain, CA &For Respondent: Shri S. L. Anuragi, CIT-DR

Section 153ASection 250Section 271(1)(c)

…essee to be complex, in order to protect the interests of the revenue, recourse to the said provision can be had. The word "complexity" used in section 142(2A) is not defined or explained in the Act. As observed in Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634 1 (All.), it is a nebulous word. Its dictionary meaning is: "The state or quality of being intricate or complex or that is difficult to understand. However, all that is difficult to understand should not be regarded as complex. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometime…

(LATE) LAXMAN RAO BANAPURAM REP BY L/R B RAMA DEVI,HYDERABAD vs. DCIT, CIRCLE-14(1), HYDERABAD

In the result appeal of the assessee for the assessment year 2017-2018 is dismissed

ITA 603/HYD/2022[2017-18]Status: DisposedITAT Hyderabad20 Mar 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA KA Sai PrasadFor Respondent: Shri Srinath Sadanala, Sr. AR

Section 132Section 142Section 153ASection 54F

…omplexity” in the accounts and the power of the Assessing Officer to invoke the provisions of sec.142(2A) of the Act and as per the judicial precedents, including the decision of Hon’ble Allahabad High court in the case of Swadeshi Cotton Mills vs. CIT [1988] 171 ITR 634 (All.) that the word “complexity” is a word and unless it is difficult to understand cannot be regarded as “complex”. The power u/sec.142(2A) of the Act by the Assessing Officer cannot be exercise lightly. It must be based on objective assessment 15 ITA.Nos.601, 602 & 603/Hyd./2022 having regard to the nature of accounts and it must not be based…

(LATE) LAXMAN RAO BANAPURAM, REP BY L/R B RAMA DEVI,HYDERABAD vs. DCIT,CIRCLE-14(1), HYDERABAD

In the result appeal of the assessee for the assessment year 2017-2018 is dismissed

ITA 602/HYD/2022[2015-16]Status: DisposedITAT Hyderabad20 Mar 2025AY 2015-16

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA KA Sai PrasadFor Respondent: Shri Srinath Sadanala, Sr. AR

Section 132Section 142Section 153ASection 54F

…omplexity” in the accounts and the power of the Assessing Officer to invoke the provisions of sec.142(2A) of the Act and as per the judicial precedents, including the decision of Hon’ble Allahabad High court in the case of Swadeshi Cotton Mills vs. CIT [1988] 171 ITR 634 (All.) that the word “complexity” is a word and unless it is difficult to understand cannot be regarded as “complex”. The power u/sec.142(2A) of the Act by the Assessing Officer cannot be exercise lightly. It must be based on objective assessment 15 ITA.Nos.601, 602 & 603/Hyd./2022 having regard to the nature of accounts and it must not be based…

(LATE) LAXMAN RAO BANAPURAM REP BY L/R B RAMA DEVI,HYDERABAD vs. DCIT-CIRCLE-14(1), HYDERABAD

In the result appeal of the assessee for the assessment year 2017-2018 is dismissed

ITA 601/HYD/2022[2014-15]Status: DisposedITAT Hyderabad20 Mar 2025AY 2014-15

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA KA Sai PrasadFor Respondent: Shri Srinath Sadanala, Sr. AR

Section 132Section 142Section 153ASection 54F

…omplexity” in the accounts and the power of the Assessing Officer to invoke the provisions of sec.142(2A) of the Act and as per the judicial precedents, including the decision of Hon’ble Allahabad High court in the case of Swadeshi Cotton Mills vs. CIT [1988] 171 ITR 634 (All.) that the word “complexity” is a word and unless it is difficult to understand cannot be regarded as “complex”. The power u/sec.142(2A) of the Act by the Assessing Officer cannot be exercise lightly. It must be based on objective assessment 15 ITA.Nos.601, 602 & 603/Hyd./2022 having regard to the nature of accounts and it must not be based…