Transworld International Inc. v. Joint Commissioner of Income Tax

273 ITR 242High Court2005#11444 most cited

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2011 to 2025.

Sections most often in play

Section 143(3)Section 147 Section 148 Section 132(1)Section 153A Section 2(22)(e)Section 234B

Issues it is cited on

mere change of opinion change of opinion tangible material escapement of income reason to believe reopening of assessment reassessment proceedings notice under section 148 speaking order section 148 section 143(1)section 11

Judgments citing Transworld International Inc. v. Joint Commissioner of Income Tax

VIRAMGAM MAHESANA PROJECTS LTD.,NEW DELHI vs. ACIT, NEW DELHI

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

ITA 119/DEL/2015[2006-07]Status: DisposedITAT Delhi14 Aug 2025AY 2006-07

Bench: Shris.Rifaur Rahman & Shri Vimal Kumarviramgam Mahesana Project Limited, Vs. Acit, Circle 17(1), E – 9, 3Rd Floor, New Delhi. Ndse Part 2, New Delhi – 110 049. (Pan :Aabcv7027L) (Appellant) (Respondent) Assessee By : Shri K. Sampath, Advocate Shri V. Raja Kumar, Advocate Revenue By : Shri Dayainder Singh Sidhu, Citdr Date Of Hearing : 03.06.2025 Date Of Order : 14.08.2025 Order Per S.Rifaur Rahman: 1. Thisappeal Is Filed By The Assesseeagainst The Order Of Ld. Commissioner Of Income-Tax (Appeals)-19, New Delhi [Hereinafter Referred To As ‘Ld. Cit (A)]Dated 22.10.2014For Assessment Year 2006-07 Raising Following Grounds Of Appeal :- “1 That On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Has Erred In Confirming The Initiation Of The Reassessment Proceedings, U/S 148 Of The Income Tax Act & Also Failed To Appreciate That Neither The Mandatory Requirements Of Section 148 Of The Income Tax Act Nor The Pre-Conditions For Invoking The Provisions

For Appellant: Shri K. Sampath, AdvocateFor Respondent: Shri Dayainder Singh Sidhu, CITDR

Section 143(3)Section 147Section 148Section 234

…has thus been re-opened without any examination or application of mind and is based wholly on a borrowed satisfaction and being so is unsustainable in law, particularly in view of the judgement of Delhi High Court Tansworld International Inc. vs. JCIT (2005) 273 ITR 242 (para 24). 5 Any satisfaction recorded u/s 147 of the Act on the basis of a borrowed satisfaction is untenable in law. Authorities on this point are the jurisdictional High Court decisions in – a. Pro CIT vs. Meenakshi Overseas P. Ltd. (2017) 395 ITR 677 (Del) b. Sarthak Securities Co. Pvt. Ltd. vs. ITO (2010) 329 ITR 110 (Del) c. CIT vs. SFIL S…

AJAY BAKLIWAL,KOTA vs. ACIT, CENTRAL CIRCLE, KOTA, KOTA

ITA 1275/JPR/2024[2012-13]Status: DisposedITAT Jaipur11 Apr 2025AY 2012-13

For Appellant: Sh. Rajendra Sisodia, AdvFor Respondent: Mrs. Anita Rinesh, JCIT-DR

Section 132(1)Section 139Section 142Section 143(2)Section 143(3)Section 148Section 153ASection 2(22)(e)Section 250

…of judgments to the effect that\ninitiation of reassessment proceedings on the basis of audit report objections is\nbad in law. A reference in this regard can be made to the judgment of our High\nCourt titled Transworld International Inc. v. Joint CIT (2005) 273 ITR 242 (Delhi)\nand also the judgments of the Supreme Court in Indian and Eastern Newspaper\nSociety v. CIT (1979) 119 ITR 996 (SC) and CIT v. Lucas T.V.S. Ltd. (2001) 249\nITR 306 (SC). The sum and substance of the discussion is that reassessment\nproceedings under section 147 read with section 148 of the Act cannot be initiated\nmerely based on the au…

HSBC ASSET MANAGEMENT (INDIA) PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER 1(1)(2), MUMBAI

In the result, ground no.1 raised by assessee is allowed and assessment order framed found to be without jurisdiction

ITA 7292/MUM/2017[2008-09]Status: DisposedITAT Mumbai29 Apr 2022AY 2008-09

Bench: Shri Rahul Chaudhary & Shri Gagan Goyalhsbc Asset Management (India) Pvt. Ltd. 3Rd Floor, Mercantile Bank Chamber, 16 Veer Nariman, Mumbai-400001 Pan: Aabch0007N ...... Appellant Vs. Ito-1(1)(2) Mumbai. ..... Respondent Appellant By : Sh. Niraj Sheth, Ar Respondent By : Sh. Tejinder Pal Singh Anand, Sr. Dr Date Of Hearing : 28/02/2022 Date Of Pronouncement : 29/04/2022 Order Per Gagan Goyal, A.M: This Appeal By The Assessee Is Directed Against The Order Of Commissioner Of Income Tax (Appeals)-6, Mumbai [Hereinafter Referred To As ‘The Cit (A)’] Vide Order Dated 13.10.2017 For The Assessment Year (Ay) 2008-09. The Assessee Has Raised The Following Grounds Of Appeal: The Following Grounds Of Appeal Are Distinct & Separate & Without Prejudice To Each Other. 1. On The Facts & In Law, The Commissioner Of Income-Tax (Appeals) - 6, Mumbai [‘Cit(A)’] Erred In Upholding The Reassessment Proceedings Under Section 148 Of The Income-Tax Act, 1961 (‘The Act’) Initiated After Four Years From The End Of Relevant Assessment Year, Without Appreciating The Fact That Assessment Under Section 143(3) Was Made & The Appellant Had Disclosed Fully & Truly All Material Facts Necessary

For Appellant: Sh. Niraj Sheth, ARFor Respondent: Sh. Tejinder Pal Singh Anand, Sr. DR

Section 142(1)Section 143(2)Section 143(3)Section 148Section 37(1)Section 40A(9)

…ch escaped the notice of the officer concerned constitutes “information”. The part which embodies the opinion of the audit party in regard to the application or interpretation of the law cannot be taken into account. ) > Transworld International Inc V. JCIT (273 ITR 242)(Delhi) wherein it has been held that the primary function of audit in relation to assessments and refunds is the consideration whether the internal procedures are adequate and sufficient. It is not intended that the purpose of audit should go any further. Whether it is the Comptroller and Auditor-General, they perform essentially administrative…

SHRI ANIL NANDA,NEW DELHI vs. DCIT, NEW DELHI

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

ITA 3318/DEL/2017[2007-08]Status: DisposedITAT Delhi18 Aug 2021AY 2007-08

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2007-08 Anil Nanda, Vs Dcit, 12-C, Friends Colony, Circle-68(1), New Delhi. New Delhi. Pan Aafpn4381A (Appellant) (Respondent) Assessee By : Shri Deepak Ostwal, Ca Revenue By : Shri Satpal Gulati, Cit, Dr Date Of Hearing : 02.06.2021 Date Of Pronouncement : 18.08.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 31St March, 2017 Of The Cit(A)-32, New Delhi Relating To Assessment Year 2007-08. 2. Facts Of The Case, In Brief, Are That The Assessee Is An Individual & It Filed Its Return Of Income On 30Th July, 2007 Declaring Total Income At Rs.8,25,64,675/-. The Assessment Was Completed U/S 143(3) Of The Act On 30Th October, 2009 Accepting The Returned Income. Subsequently, The Ao Reopened The Assessment U/S 147 Of The It Act, 1961 After Recording The Following Reasons:-

For Appellant: Shri Deepak Ostwal, CAFor Respondent: Shri Satpal Gulati, CIT, DR

Section 143(3)Section 147Section 148Section 151Section 2(22)(e)Section 246

…ot be invoked 11 Transworld International Inc. Delhi High Only AO should examine the 124-132 vs Jt. Commissioner Of Income Court matter and no other higher or Tax Equivalent citations lower authority (2004)192 CTR DEL 97,113(20040 DLT865,2004(76)DRJ 626, 2005 273 ITR 242 Del Date 12 Vijendra Kumar, Bulandshahr ITAT Borrowed Satisfaction 10.8 133-151 vs Department Of Income Tax DELHI ITA No. 1202/Del/09 Date of Order 04/02/2009. 13 CIT Vs Ankitech deemed Delhi High 152-201 dividend ITA No. 462 of 2009 Court Date of Order 11/05-/2011. 14 Arjun Singh & Anr. vs Asstt. Madhya 202-221 Direction Of Income Tax Pradesh Eq…

YES BANK LTD,MUMBAI vs. DCIT 7(3), MUMBAI

The appeal of the AO is dismissed

ITA 1991/MUM/2015[2008-09]Status: DisposedITAT Mumbai24 Aug 2016AY 2008-09

For Appellant: Ms. Krupa Gandhi and Shri Nimesh Jain-ARFor Respondent: Ms. Vidisha Kalra-DR

Section 143(3)Section 148Section 14ASection 254(1)Section 35DSection 36Section 36(1)(viia)

…ot in the nature of capital expenditure”. In the circumstances, the reopening of the assessment was not founded on tangible material and the AO had acted outside the fold of his jurisdiction. Now,we would refer to the judgment of Transworld International Inc.(273 ITR 242),of the Hon’ble Delhi High Court.Facts of the case were that the petitioner,a non-resident foreign company,was engaged in the business of producing television programmes primarily of sport activities.For the AY.1997-98 a return of income u/s. 139(1) of the Act was filed declaring an income of Rs.95,59,750/- wherein a claim was made for depreciati…

E.I. DUPONT PRIVATE LTD.,GURGAON vs. ACIT, NEW DELHI

In the result appeal of the assessee is allowed

ITA 3218/DEL/2011[2004-05]Status: DisposedITAT Delhi18 Nov 2015AY 2004-05

Bench: Sh. A.T.Varkey, Jm & Sh. Prashant Maharishi, Am A.Y. 2004-05

For Appellant: Sh. Deepak Chopra, Amit Shrivastava, AdvFor Respondent: Sh. Hemant Gupta, SR. DR

Section 115JSection 143(3)Section 147Section 148Section 234BSection 250(6)Section 40

…at reopening has been done at the behest of the audit party. For this he relied on decision of (a) Honorable Supreme court in Indian And Eastern Newspaper society V CIT 1119 ITR 996 and (b) Honourable Delhi high court in Transworld international Inc. v JCIT 273 ITR 242 and Xerox Modi Corp Ltd V DCIT 350 ITR 308 and (c) Honourable Gujarat high court in Rajratna metal Industries Limited V ACIT and Vodafone West Ltd V ACIT 37 Taxmann.com 158 where audit objection is contested but case is reopened. However, AR of the assessee could not produce any evidence before us that the reopening has been initiated at the beh…

DCIT, NEW DELHI vs. M/S E.I. DUPONT INDIA (P) LTD., GURGAON

In the result appeal of the assessee is allowed

ITA 2357/DEL/2011[2004-05]Status: DisposedITAT Delhi18 Nov 2015AY 2004-05

Bench: Sh. A.T.Varkey, Jm & Sh. Prashant Maharishi, Am A.Y. 2004-05

For Appellant: Sh. Deepak Chopra, Amit Shrivastava, AdvFor Respondent: Sh. Hemant Gupta, SR. DR

Section 115JSection 143(3)Section 147Section 148Section 234BSection 250(6)Section 40

COMMISSIONER OF INCOME TAX vs. THE SIMBHAOLI SUGAR MILLS LTD.

The appeals are dismissed

ITA/1391/2009HC Delhi09 Mar 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 143(1)(a)Section 143(2)Section 143(3)Section 148Section 271(1)(c)

…ITAs No.1391/2009, 1362/2009 & 1130/2009 Page 1 of 11 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA Nos.1391/2009, 1362/2009 & 1130/2009 % Date of Decision: 09.03.2011 Commissioner of Income Tax …. APPELLANT Through: MS.Prem Lata Bansal, Sr. Advocate with Mr.Deepak Anand, Advocates Versus The Simbhaoli Sugar Mills Limited …. RESPONDENT Through: Mr.Ajay Vohra, Advocate CORAM: HON'BLE MR. JUSTICE A.K. SIKRI HON’BLE MR. JUSTICE M.L. MEHTA 1. Whether reporters of Local papers be allowed to see the judgment? Yes. 2. To be referred to the reporter or not?…

COMMISSIONER OF INCOME TAX vs. THE SIMBHAOLI SUGAR MILLS LTD.

The appeals are dismissed

ITA - 1391 / 2009HC Delhi09 Mar 2011

Section 143(1)(a)Section 143(2)Section 143(3)Section 148Section 271(1)(c)