← All Phrases

“Section 145(3)”

Section References (mined)Section 145Section 145(3)2,270 judgments

The decision most relied on for Section 145(3) is CIT v. Woodward Governor India Pvt. Ltd. (312 ITR 254), cited in 968 judgments on BharatTax.

Leading authorities on Section 145(3)

CIT v. Woodward Governor India Pvt. Ltd.
312 ITR 254 · 2009 · Supreme Court
968
citing judgments

Foreign exchange fluctuations, whether gains or losses, are inextricably linked to the underlying business transaction and must be accounted for under the mercantile system. The Supreme Court also affirmed the standard accounting principle of valuing stock at cost or net realisable value, whichever is lower.

CIT v. Jet Airways (I) Ltd.
331 ITR 236 · 2011 · High Court
694
citing judgments

The Assessing Officer loses jurisdiction and the entire reassessment becomes invalid if no addition is made in respect of the income that formed the basis of the reopening. Explanation 3 to Section 147 does not permit assessing other escaped income unless an addition is made for the original income forming the reason to believe.

Kedarnath Jute Mfg. Co. Ltd. v. CIT
82 ITR 363 · 1971 · Supreme Court
654
citing judgments

Tax liability for an item of income or expenditure is determined solely by the provisions of the Income-tax Act. Entries in an assessee's books of account are not conclusive and do not govern the taxability or deductibility of an item, as the legal rights and obligations under the Act prevail.

Lalchand Bhagat Ambica Ram v. CIT
37 ITR 288 · 1959 · Supreme Court
570
citing judgments

Where an assessee maintains regular books of account, and these books are not rejected or found defective by the Assessing Officer, any cash deposits or available cash shown in the cash book, if sufficient to cover the transaction, cannot be treated as unexplained income or an addition under sections 68 or 69A.

CIT v. President Industries
258 ITR 654 · 2002 · High Court
471
citing judgments

When books of account are rejected and unaccounted sales or receipts are discovered, the income addition is restricted to the net profit element embedded in these undisclosed transactions, not the entire sale proceeds or receipts, especially if corresponding purchases are not proven to be outside the books.

Vijay Proteins Ltd. v. Asst. CIT
58 ITD 428 · 1996 · ITAT
430
citing judgments

Where purchases are found to be non-genuine or fictitious, a reasonable disallowance of 25% of such purchases or the peak credit, whichever is higher, can be made. This is applied to address unexplained expenditure under Section 69C when actual goods are likely procured from the grey market.

CIT v. Nikunj Exim Enterprises Pvt. Ltd.
372 ITR 619 · 2015 · High Court
391
citing judgments

Transactions defying human probability cannot be applied to isolated purchases if sales are accepted as genuine, and purchases cannot be disallowed without considering the entire transaction and documentary evidence. Failure to produce parties in an assessment proceeding may not be fatal to the assessee.

Kachwala Gems v. JCIT
288 ITR 10 · 2007 · Supreme Court
332
citing judgments

In a best judgment assessment, some guesswork is inherent, but the estimate must be fair and not arbitrary. Books of account can be rejected under Section 145(3) if the assessee fails to substantiate entries or prove the genuineness of transactions, leading to estimation of income.

Judgments citing Section 145(3)

Vinayaga Fireworks, Sivakasi vs. DCIT, Non Corporate Circle-2, Madurai

In the result the appeal of the assessee is allowed

ITA 2282/CHNY/2025[2017-18]Status: DisposedITAT Chennai03 Mar 2026AY 2017-18

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunatha

For Appellant: Shri. V.Rajasekaran, CAFor Respondent: Ms. T. Mythili, JCIT
Section 143(1)Section 68

आयकर अपील"य अ"धकरण, ‘ए’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI "ी एस एस

Assistant Commissioner of Income Tax, Central Circle, Panaji, Goa vs. Bagkiya Constructions Pvt. Ltd, Goa

The appeal of the Revenue is partly allowed in aforestated terms

ITA 148/PAN/2023[2017-18]Status: DisposedITAT Panaji27 Feb 2026AY 2017-18

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliassessment Years: 2017-2018 Asstt. Commissioner Of Income Tax, Central Circle, Panaji, Goa. . . . . . . . Appellant V/S M/S Bagkiya Construction Pvt. Ltd. Sf-3, Building No.-3. Techno Cidade, Chogam Rd., Alto Porvorim, Goa-403521. Pan: Aaccb9382M . . . . . . . Respondent Represented Assessee By: None For The Respondent Revenue By: Mr Senthil Kumar [‘Ld. Dr’] Date Of Conclusive Hearing : 29/01/2026 Date Of Pronouncement : 27/02/2026 Order Per G. D. Padmahshali; This Revenue’S Appeal Filed U/S 253(2) Of The Income- Tax Act, 1961 [‘The Act’] Challenges The Order Dt. 29/05/2023 Passed U/S 250 Of The Act By Commissioner Of Income Tax(Appeals-2), Panaji [‘Ld. Cit(A)’] Which In Turn Wheeled From The Order Dt. 25/08/2021 Passed U/S 147 Of The Act By Acit, Central Circle, Panaji, Goa [‘Ld. Ao’] Anent To Assessment Year 2017-18.[‘Ay’]

For Appellant: None for theFor Respondent: Mr Senthil Kumar [‘Ld. DR’]
Section 127(2)Section 131Section 133ASection 139(1)Section 143(1)Section 143(2)Section 147Section 148Section 250Section 253(2)

148/PAN/2025 AY: 2017-18 account were not rejected by the Ld. AO rather not specifically rejected in terms of section 145(3) of the Act and (ii) impugned addition was solitarily based on the admission made by the director of the assessment company on statement recorded in the course ... Therefore the Ld. AO had no occasion to reject them without being produced because for rejection in our considered view the provision of section 145(3) of the Act requires him to underline the defects. 8. By no stretch of imagination, one can be asked to do something against nothing

DCIT, Central Cirlcle 1, Rajkot vs. Buildcon Creations LLP, Rajkot

ITA 679/RJT/2024[2022-23]Status: DisposedITAT Rajkot27 Feb 2026AY 2022-23

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

DCIT, Central Circle 1, Rajkot vs. Buildcon Creations LLP, Rajkot

ITA 678/RJT/2024[2021-22]Status: DisposedITAT Rajkot27 Feb 2026AY 2021-22

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

DCIT, Central Circle-1, Rajkot vs. Buildcon Creations LLP, Rajkot

ITA 677/RJT/2024[2020-21]Status: DisposedITAT Rajkot27 Feb 2026AY 2020-21

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

DCIT, Central Circle 1, Rajkot vs. Buildcon Creations LLP, Rajkot

ITA 676/RJT/2024[2019-20]Status: DisposedITAT Rajkot27 Feb 2026AY 2019-20

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Shiv Enterprise, Rajkot vs. The Deuty Commissioner of Income Tax, Central - 1, Rajkot

ITA 616/RJT/2024[2020-21]Status: DisposedITAT Rajkot27 Feb 2026AY 2020-21

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

For Appellant: Shri D.M. Rindani & Ms. Devina Patel Ld. ARsFor Respondent: Shri Abhimanyu Singh Yadav, Ld. SR. DR
Section 132Section 133ASection 143(3)Section 147

accounts, present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) were invoked by the assessing officer, and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the respective years invoking provisions of section 145(3) of the Act. 12. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Shiv Enterprise, Rajkot vs. The Deputy Commissioner of Income Tax, Central-1, Rajkot

ITA 615/RJT/2024[2019-20]Status: DisposedITAT Rajkot27 Feb 2026AY 2019-20

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

For Appellant: Shri D.M. Rindani & Ms. Devina Patel Ld. ARsFor Respondent: Shri Abhimanyu Singh Yadav, Ld. SR. DR
Section 132Section 133ASection 143(3)Section 147

accounts, present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) were invoked by the assessing officer, and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the respective years invoking provisions of section 145(3) of the Act. 12. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Shiv Enterprise, Rajkot vs. The Deputy Commissioner of Income Tax, Central -1, Rajkot

ITA 614/RJT/2024[2018-19]Status: DisposedITAT Rajkot27 Feb 2026AY 2018-19

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

For Appellant: Shri D.M. Rindani & Ms. Devina Patel Ld. ARsFor Respondent: Shri Abhimanyu Singh Yadav, Ld. SR. DR
Section 132Section 133ASection 143(3)Section 147

accounts, present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) were invoked by the assessing officer, and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the respective years invoking provisions of section 145(3) of the Act. 12. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Shiv Enterprise, Rajkot vs. The Deputy Commissioner of Income Tax, Central 1, Rajkot

ITA 613/RJT/2024[2017-18]Status: DisposedITAT Rajkot27 Feb 2026AY 2017-18

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

For Appellant: Shri D.M. Rindani & Ms. Devina Patel Ld. ARsFor Respondent: Shri Abhimanyu Singh Yadav, Ld. SR. DR
Section 132Section 133ASection 143(3)Section 147

accounts, present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) were invoked by the assessing officer, and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the respective years invoking provisions of section 145(3) of the Act. 12. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Buildcon Creations LLP, Rajkot vs. The Deputy Commissioner of Income Tax, Central-1, Rajkot

ITA 542/RJT/2024[2022-23]Status: DisposedITAT Rajkot27 Feb 2026AY 2022-23

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Buildcon Creations LLP, Rajkot vs. The Deputy Commissioner of Income Tax, Central -1, Rajkot

ITA 541/RJT/2024[2021-22]Status: DisposedITAT Rajkot27 Feb 2026AY 2021-22

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Buildcon Creations LLP, Rajkot vs. The Deputy Commissioner of Income Tax, Central -1, Rajkot

ITA 540/RJT/2024[2020-21]Status: DisposedITAT Rajkot27 Feb 2026AY 2020-21

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Buildcon Creations LLP, Rajkot vs. The Deputy Commissioner of Income Tax, Central -1, Rajkot

ITA 539/RJT/2024[2019-20]Status: DisposedITAT Rajkot27 Feb 2026AY 2019-20

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 539 To 542/Rjt/2024 (Assessment Year: 2019-20 To 2022-23) (Hybrid Hearing)

For Appellant: Shri D.M. Rindani / Ms. Devina Patel, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 143(3)Section 147

they present incomplete and incorrect state of affairs of business of the assessee and requires to be disregarded invoking the provisions of section 145(3) of the Act. Accordingly, provisions of section 145(3) are invoked by the assessing officer and the assessment of total income of the assessee ... above the regular business income reported by the assessee in the Income-tax Return filed for the year under consideration, invoking provisions of section 145(3) of the Act. 13. Aggrieved by the various additions made by the assessing officer, the assessee carried the matter in appeal before the learned

Arrow Clothing Private Limited, Ahmedabad vs. The ITO, Ward-1(1)(3), Ahmedabad

The appeal of the assessee is partly allowed in above terms

ITA 2532/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad27 Feb 2026AY 2017-18

Bench: Shri Sanjay Garg & Smt. Annapurna Gupta

For Appellant: Respondent byFor Respondent: Shri Rajenkumar M Vasavda, Sr. DR
Section 145Section 250Section 68

concluded that cash sales have been inflated to cover up for the unaccounted money deposited during demonetization. The reason behind invoking provisions of section 145(3) was that the books of accounts did not portray a true and correct picture of the business of the appellant. The appellant

DCIT, Central Circle 7(1), Mumbai vs. Superways Enterprises Private Limited, Mumbai

ITA 4007/MUM/2025[2018-19]Status: DisposedITAT Mumbai27 Feb 2026AY 2018-19

Bench: Shri Saktijit Dey & Shri Jagadish

For Respondent: Shri Siddharth Srivastava
Section 132Section 143(3)Section 68

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER

DCIT, Central Circle 7(1), Mumbai vs. Superways Enterprises Private Limited, Mumbai

In the result, Revenue’s appeals are dismissed and assessee’s appeals are partly allowed

ITA 3993/MUM/2025[2017-18]Status: DisposedITAT Mumbai27 Feb 2026AY 2017-18

Bench: Shri Saktijit Dey & Shri Jagadish

For Appellant: Shri Siddharth SrivastavaFor Respondent: Shri Arun Kanti Datta, CIT-DR
Section 132Section 143(3)Section 68

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER

DCIT, Central Circle 7(1), Mumbai vs. Superways Enterprises Private Limited, Mumbai

In the result, Revenue’s appeals are dismissed and assessee’s appeals are partly allowed

ITA 3976/MUM/2025[2015-16]Status: DisposedITAT Mumbai27 Feb 2026AY 2015-16

Bench: Shri Saktijit Dey & Shri Jagadish

For Appellant: Shri Siddharth SrivastavaFor Respondent: Shri Arun Kanti Datta, CIT-DR
Section 132Section 143(3)Section 68

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER

DCIT, Central Circle 7(1), Mumbai vs. Superways Enterprises Private Limited, Mumbai

In the result, Revenue’s appeals are dismissed and assessee’s appeals are partly allowed

ITA 3975/MUM/2025[2014-15]Status: DisposedITAT Mumbai27 Feb 2026AY 2014-15

Bench: Shri Saktijit Dey & Shri Jagadish

For Appellant: Shri Siddharth SrivastavaFor Respondent: Shri Arun Kanti Datta, CIT-DR
Section 132Section 143(3)Section 68

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER

DCIT, Central Circle 7(1), Mumbai vs. Superways Enterprises Private Limited, Mumbai

In the result, Revenue’s appeals are dismissed and assessee’s appeals are partly allowed

ITA 3972/MUM/2025[2013-14]Status: DisposedITAT Mumbai27 Feb 2026AY 2013-14

Bench: Shri Saktijit Dey & Shri Jagadish

For Appellant: Shri Siddharth SrivastavaFor Respondent: Shri Arun Kanti Datta, CIT-DR
Section 132Section 143(3)Section 68

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER