Vasantlal & Co. v. CIT

45 ITR 206Supreme Court of India1962#487 most cited

What is Vasantlal & Co. v. CIT authority for?

The Income Tax Officer (ITO) can gather material for assessment through private enquiries but must disclose such material to the assessee and provide an opportunity to explain it to uphold the principles of natural justice. The ITO is not bound by strict rules of evidence and can use material collected privately, provided disclosure and explanation are afforded.

193

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

Vasantlal & Co. v. CIT · 45 ITR 206 · SC · private enquiry · disclosure of material · opportunity to explain · natural justice · cross-examination

Sections most often in play

Section 147Section 148Section 153CSection 68Section 143(3)Section 144BSection 250Section 132

Issues it is cited on

buyback of sharesretention moneyonus of proofsection 269tsection 158bbsection 269sthird party informationsection 271eicdsdumb documentssection 132(4a)section 292c

Judgments citing Vasantlal & Co. v. CIT

Raghav Softech Pvt Ltd, New Delhi vs. ITO Ward - 20(4), New Delhi

The appeal of the assessee is allowed for statistical purpose

ITA 7127/DEL/2019[2011-12]Status: DisposedITAT Delhi18 Jan 2022AY 2011-12

Bench: Shri Kul Bharat[Assessment Year : 2011-12] Raghav Softech Pvt. Ltd. Vs Ito Vardhman Grand Plaza, Manglam Ward-20(4) Place, Sector-3, Rohini, New Delhi New Delhi Aaecr2527G Appellant Respondent Appellant By None Respondent By Shri Om Prakash, Sr. Dr Date Of Hearing 03.01.2022 Date Of Pronouncement 18.01.2022

Section 147Section 148Section 69

…null and void and the order made in such a case needs to be struck down on that score. 24 24. Similar view was expressed by Hon’ble Supreme Court in the case of Nawab Khan Abbas Vs. State of Gujarat AIR 974 at page 1479. In C. Vasantilal & Co. V. CIT (1962) 45 ITR 206 (S.C) the Hon'ble Supreme Court held that it was open to an Income tax officer to collect materials to facilitate assessment even by private enquiry, But If he desires to use the materials so collected, the assessee must be informed of the materials and must be given an adequate opportunity of explaining it Similar view- was expressed in Dhakeswar…

Smt Manorama Singhal, Indore vs. ITO-3(2), Indore

In the result, assessee’s appeal in ITANo

ITA 130/IND/2020[2013-14]Status: DisposedITAT Indore21 Sept 2021AY 2013-14

Bench: Shri Chandra Mohan Garg & Shri Manish Boradvirtual Hearing Assessment Years: 2013-14

Section 132Section 143(2)Section 147Section 148Section 153CSection 69

…ounsel for the assessee reiterated the submission made before the Ld. CIT(A) placed at pages 1 to 9 of the paper book and also referred to the written submissions placed at pages 1 to 11. Reliance was placed on following decisions: i. C. Vasantlal and Co. 45 ITR 206 (SC) ii. Kishan Chand Chellaram vs. CIT (125 ITR 713) iii. CIT, Central Jaipur vs. Smt. Sunita Dhadda iv. M/s. Andaman Timber Industries v. Commissioner of Central Excise 92015) 281 CTR 241(SC) 7. Per contra Ld. DR vehemently argued supporting the finding of both lower authorities. 8. We have heard rival contentions and perused the records plac…

ITO, Ward-6(2), Hyderabad vs. Ms Agarwal Foundries Private Limited, Secunderabad

In the result both the appeals of the revenue are dismissed in above terms

ITA 279/HYD/2013[2009-10]Status: DisposedITAT Hyderabad24 Aug 2021AY 2009-10

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri BurraFor Respondent: Shri Rajat Mitra &
Section 143(3)

…/2013 & 1719/H/2014 M/s Agarwal Foundries Pvt. Ltd., Hyd. may be allowed to inspect the file and take notes. The AO cannot rely on third party statement without giving assessee copies and right to cross examine the deponent [Vasantlal & CO., (c) v CIT (1962) 45 ITR 206 (SC). Based on the above details and case laws, I am of the opinion that the material received from third party cannot be used against it unless the appellant is provided with a copy of the same and given an opportunity to contest the same. 8.3.10 Taking into consideration the observations of the Assessing Officer and the submissions and explanati…

ACIT., Circle-16(2), Hyderabad vs. M/S M S Agarwal Foundries Private Limited, Hyderabad

In the result both the appeals of the revenue are dismissed in above terms

ITA 1719/HYD/2014[2011-12]Status: DisposedITAT Hyderabad24 Aug 2021AY 2011-12

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri BurraFor Respondent: Shri Rajat Mitra &
Section 143(3)

…/2013 & 1719/H/2014 M/s Agarwal Foundries Pvt. Ltd., Hyd. may be allowed to inspect the file and take notes. The AO cannot rely on third party statement without giving assessee copies and right to cross examine the deponent [Vasantlal & CO., (c) v CIT (1962) 45 ITR 206 (SC). Based on the above details and case laws, I am of the opinion that the material received from third party cannot be used against it unless the appellant is provided with a copy of the same and given an opportunity to contest the same. 8.3.10 Taking into consideration the observations of the Assessing Officer and the submissions and explanati…

M/S. Sri Devaraj Urs Educational Trust for Backward Classes (Regd), Kolar vs. Assistant Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 506/BANG/2020[2016-17]Status: DisposedITAT Bangalore16 Aug 2021AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramaniam, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 12ASection 132Section 143(1)Section 153ASection 37

…e given to the assessee else it cannot be used and no adverse inference can be drawn on such material. 69. He placed reliance on the judgement of the Hon’ble Supreme Court in the case of C. Vasantlal and Company v. CIT 1962 (2) TMI 7 - SUPREME COURT / [1962] 45 ITR 206 (SC) held as under:- “The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining i…

M/S. Sri Devaraj Urs Educational Trust for Backward Classes (Regd), Kolar vs. Assistant Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 505/BANG/2020[2015-16]Status: DisposedITAT Bangalore16 Aug 2021AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramaniam, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 12ASection 132Section 143(1)Section 153ASection 37

…e given to the assessee else it cannot be used and no adverse inference can be drawn on such material. 69. He placed reliance on the judgement of the Hon’ble Supreme Court in the case of C. Vasantlal and Company v. CIT 1962 (2) TMI 7 - SUPREME COURT / [1962] 45 ITR 206 (SC) held as under:- “The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining i…

M/S. Sri Devaraj Urs Educational Trust for Backward Classes (Regd), Kolar vs. Assistant Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 504/BANG/2020[2014-15]Status: DisposedITAT Bangalore16 Aug 2021AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramaniam, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 12ASection 132Section 143(1)Section 153ASection 37

…e given to the assessee else it cannot be used and no adverse inference can be drawn on such material. 69. He placed reliance on the judgement of the Hon’ble Supreme Court in the case of C. Vasantlal and Company v. CIT 1962 (2) TMI 7 - SUPREME COURT / [1962] 45 ITR 206 (SC) held as under:- “The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining i…

M/S. Sri Devaraj Urs Educational Trust for Backward Classes (Regd), Kolar vs. Assistant Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 503/BANG/2020[2013-14]Status: DisposedITAT Bangalore16 Aug 2021AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramaniam, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 12ASection 132Section 143(1)Section 153ASection 37

…e given to the assessee else it cannot be used and no adverse inference can be drawn on such material. 69. He placed reliance on the judgement of the Hon’ble Supreme Court in the case of C. Vasantlal and Company v. CIT 1962 (2) TMI 7 - SUPREME COURT / [1962] 45 ITR 206 (SC) held as under:- “The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining i…

M/S. Sri Devaraj Urs Educational Trust for Backward Classes (Regd), Kolar vs. Assistant Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 502/BANG/2020[2012-13]Status: DisposedITAT Bangalore16 Aug 2021AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramaniam, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 12ASection 132Section 143(1)Section 153ASection 37

…e given to the assessee else it cannot be used and no adverse inference can be drawn on such material. 69. He placed reliance on the judgement of the Hon’ble Supreme Court in the case of C. Vasantlal and Company v. CIT 1962 (2) TMI 7 - SUPREME COURT / [1962] 45 ITR 206 (SC) held as under:- “The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining i…

M/S. Sri Devaraj Urs Educational Trust for Backward Classes (Regd), Kolar vs. Assistant Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 501/BANG/2020[2011-12]Status: DisposedITAT Bangalore16 Aug 2021AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramaniam, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 12ASection 132Section 143(1)Section 153ASection 37

…e given to the assessee else it cannot be used and no adverse inference can be drawn on such material. 69. He placed reliance on the judgement of the Hon’ble Supreme Court in the case of C. Vasantlal and Company v. CIT 1962 (2) TMI 7 - SUPREME COURT / [1962] 45 ITR 206 (SC) held as under:- “The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining i…

M/S. Sri Devaraj Urs Educational Trust for Backward Classes (Regd), Kolar vs. Assistant Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 500/BANG/2020[2010-11]Status: DisposedITAT Bangalore16 Aug 2021AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramaniam, CAFor Respondent: Shri Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 11Section 11(1)(a)Section 12ASection 132Section 143(1)Section 153ASection 37

…e given to the assessee else it cannot be used and no adverse inference can be drawn on such material. 69. He placed reliance on the judgement of the Hon’ble Supreme Court in the case of C. Vasantlal and Company v. CIT 1962 (2) TMI 7 - SUPREME COURT / [1962] 45 ITR 206 (SC) held as under:- “The Income-tax Officer is not bound by any technical rules of the law of evidence. It is open to him to collect materials to facilitate assessment even by private enquiry. But if he desires to use the material so collected, the assessee must be informed of the material and must be given an adequate opportunity of explaining i…

M/S Wembley'S Coop House Building Society Ltd., Mohali vs. ITO, W-6(4), Mohali

In the result, all the above appeals are allowed for statistical purposes

ITA 674/CHANDI/2018[2009-10]Status: DisposedITAT Chandigarh30 Jun 2021AY 2009-10
For Appellant: Shri R.R. Thakur, AdvocateFor Respondent: Shri Ashok Khanna, Addl. CIT
Section 148

…ipts during the relevant previous year. Ground of appeal no. 2 is dismissed. The reliance was placed on the following case laws: • M/s Moosa S Midha Vs. CIT 89 ITR 65 (SC) • Dhakeshwari Cotton Mills Ltd. Vs. CIT 26 ITR 775 (SC) • C Basant Lal Company Vs. CIT 45 ITR 206 (SC) 6. Now the Assessee is in appeal. 7. Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that although agreement was signed by the assessee with M/s Wembley Coop. H/B Society, however no amount was received as alleged by the Department. It was further submitted that no original rece…

M/S Wembley'S Coop House Building Society Ltd., Mohali vs. ITO, W-6(4), Mohali

In the result, all the above appeals are allowed for statistical purposes

ITA 673/CHANDI/2018[2008-09]Status: DisposedITAT Chandigarh30 Jun 2021AY 2008-09
For Appellant: Shri R.R. Thakur, AdvocateFor Respondent: Shri Ashok Khanna, Addl. CIT
Section 148

…ipts during the relevant previous year. Ground of appeal no. 2 is dismissed. The reliance was placed on the following case laws: • M/s Moosa S Midha Vs. CIT 89 ITR 65 (SC) • Dhakeshwari Cotton Mills Ltd. Vs. CIT 26 ITR 775 (SC) • C Basant Lal Company Vs. CIT 45 ITR 206 (SC) 6. Now the Assessee is in appeal. 7. Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that although agreement was signed by the assessee with M/s Wembley Coop. H/B Society, however no amount was received as alleged by the Department. It was further submitted that no original rece…

Sh. Satkar Singh Bawa, Mohali vs. ITO, W-6(4), Mohali

In the result, all the above appeals are allowed for statistical purposes

ITA 664/CHANDI/2018[2009-10]Status: DisposedITAT Chandigarh30 Jun 2021AY 2009-10
For Appellant: Shri R.R. Thakur, AdvocateFor Respondent: Shri Ashok Khanna, Addl. CIT
Section 148

…ipts during the relevant previous year. Ground of appeal no. 2 is dismissed. The reliance was placed on the following case laws: • M/s Moosa S Midha Vs. CIT 89 ITR 65 (SC) • Dhakeshwari Cotton Mills Ltd. Vs. CIT 26 ITR 775 (SC) • C Basant Lal Company Vs. CIT 45 ITR 206 (SC) 6. Now the Assessee is in appeal. 7. Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that although agreement was signed by the assessee with M/s Wembley Coop. H/B Society, however no amount was received as alleged by the Department. It was further submitted that no original rece…

Sh. Satkar Singh Bawa, Mohali vs. ITO, W-6(4), Mohali

In the result, all the above appeals are allowed for statistical purposes

ITA 663/CHANDI/2018[2008-09]Status: DisposedITAT Chandigarh30 Jun 2021AY 2008-09
For Appellant: Shri R.R. Thakur, AdvocateFor Respondent: Shri Ashok Khanna, Addl. CIT
Section 148

…ipts during the relevant previous year. Ground of appeal no. 2 is dismissed. The reliance was placed on the following case laws: • M/s Moosa S Midha Vs. CIT 89 ITR 65 (SC) • Dhakeshwari Cotton Mills Ltd. Vs. CIT 26 ITR 775 (SC) • C Basant Lal Company Vs. CIT 45 ITR 206 (SC) 6. Now the Assessee is in appeal. 7. Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that although agreement was signed by the assessee with M/s Wembley Coop. H/B Society, however no amount was received as alleged by the Department. It was further submitted that no original rece…

Shri Manoj Kumar Gupta, Jaipur vs. ITO, Ward 5(2), Jaipur

In the result, the ground no

ITA 307/JPR/2020[2012-13]Status: DisposedITAT Jaipur04 May 2021AY 2012-13
For Appellant: Sh. M L. Borad (Adv.) &For Respondent: Smt. Monisha Choudhary (Addl. CIT)

…T. Acts and the real test with regard to genuineness of transactions is "Preponderance of probabilities" and not "Beyond reasonable doubt". Reliance is placed on, Chaturbhuj Panauj AIR 1969 (SC) 255, Sumati Dayal V/s CIT, 214 ITR 801 (SC), C. Vasant Lal & Co, 45 ITR 206 (SC). In view of the above facts and circumstances of the case, I disallow a sum of Rs. 11,07,370/- (Rs. 11,47,370 — Rs. 40,000) which are claimed on a/c of discount and referral amount paid to student treating ingenuine u/s 37 of the Income-tax Act, 1961 in view of decision of decision of Hon’ble Supreme Court in cases of Chaturbhuj Panauj AIR 19…

Deepak Kumar Agarwal, HUF, Jaipur vs. ITO, Ward-2(3), Jaipur

ITA 222/JPR/2020[2014-15]Status: DisposedITAT Jaipur09 Feb 2021AY 2014-15
For Appellant: Shri B. P. Mundra (CA)For Respondent: Smt. Runi Pal (Addl. CIT)
Section 10(38)Section 131Section 68Section 69C

…to Shri Anil Agrawal which was denied by the AO as under :- “(ii) The assessee’s pleas that effective opportunity may be provided to cross examination. In this regard, it is pointed out that the Hon’ble Supreme Court in the case of C.Vasantlal & Co. v/s CIT 45 ITR 206 (SC) (3 Judge Bench) has observed that “the ITO is not bound by any technical rules of the law of evidence. It is open to him to collect material to facilitate assessment even by Private enquiry.” Thus, in view of the decision of Hon’ble Supreme Court in case of CCE vs. Andaman Timber Industries (supra) the assessment based on statement without g…

ITO 5 (2)(2), Mumbai vs. M/S Karteek Ferromet Pvt. Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

ITA 1461/MUM/2019[2009-10]Status: DisposedITAT Mumbai12 Jan 2021AY 2009-10

Bench: Shri C.N. Prasad, Hon'Ble & Shri N.K. Pradhan, Hon'Ble

For Appellant: Department by Ms. Smita Verma
Section 133(6)Section 143(1)Section 147

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “SMC” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI N.K. PRADHAN, HON'BLE ACCOUNTANT MEMBER ITA NO. 1460 & 1461/MUM/2019 (A.Y. 2011-12 & A.Y. 2009-10) Income Tax Officer – 5(2)(2) v. M/s. Karteek Ferromet Pvt. Ltd., Room No. 567, 5th Floor 2nd Floor, Plot No. 162 Aayakar Bhavan, M.K. Road Fanjawala Building Mumbai – 400020 M.G. Mahimtura Marg Kumbharwada, Giarguaum Mumbai - 400004 PAN: AADCK4241K (Appellant) (Respondent) None Assessee by : Department by Ms. Smita Verma Date of Hearing : 12.01.2021 Date of Pronouncement : 12.01.2021 O…

ITO 5 (2)(2), Mumbai vs. M/S Karteek Ferromet Pvt. Ltd., Mumbai

In the result, appeals of the Revenue are dismissed

ITA 1460/MUM/2019[2011-12]Status: DisposedITAT Mumbai12 Jan 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri N.K. Pradhan, Hon'Ble

For Appellant: Department by Ms. Smita Verma
Section 133(6)Section 143(1)Section 147

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) “SMC” BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI N.K. PRADHAN, HON'BLE ACCOUNTANT MEMBER ITA NO. 1460 & 1461/MUM/2019 (A.Y. 2011-12 & A.Y. 2009-10) Income Tax Officer – 5(2)(2) v. M/s. Karteek Ferromet Pvt. Ltd., Room No. 567, 5th Floor 2nd Floor, Plot No. 162 Aayakar Bhavan, M.K. Road Fanjawala Building Mumbai – 400020 M.G. Mahimtura Marg Kumbharwada, Giarguaum Mumbai - 400004 PAN: AADCK4241K (Appellant) (Respondent) None Assessee by : Department by Ms. Smita Verma Date of Hearing : 12.01.2021 Date of Pronouncement : 12.01.2021 O…

Shri Badresh Mansukhlal Dodhia, Mumbai vs. ACIT Circle-1, Kalyan

ITA 5544/MUM/2018[2015-16]Status: DisposedITAT Mumbai06 Jan 2021AY 2015-16

Bench: Shri C. N. Prasad, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 5544/Mum/2018 (निर्धारणवर्ा / Assessment Year: 2015-16) Acit-Circle-1, Shri Bhadresh Mansukhlal Dodhia, Kalyan, Pin- H. No. 69/100, Dodhia बिधम/ House, Narpoli, New Mavji Vs. Compound, B/H Ratan Talkies, Bhiwandi, Thane-421302 स्थायीलेखासं./जीआइआरसं./ Pan No. Afhjpd2871E (अपीलाथी/Appellant) (प्रत्यथी / Respondent) :

Section 10(38)Section 143(2)

…d to Shri Anil Agrawal which was denied by the AO as under :- "(ii) The assessee's pleas that effective opportunity may be provided to cross examination. In this regard, it is pointed out that the Hon'ble Supreme Court in the case of C.Vasantlal & Co. v/s CIT 45 ITR 206 (SC) (3 Judge Bench) has observed that "the ITO is not bound by any technical rules of the law of evidence. It is open to him to collect material to facilitate assessment even by Private enquiry." Thus, in view of the decision of Hon'ble Supreme Court in case of CCE vs. Andaman Timber Industries (supra) the assessment based on statement without gi…