Section 144(3) of the Income Tax Act

Income-tax Act, 2025: s.271

Section 144(3) falls under section 144 of the Income-tax Act, 1961, which corresponds to section 271 (Best judgment assessment) of the Income-tax Act, 2025.

Read section 271 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 144(3) is Sony Ericsson Mobile Communication India Pvt. Ltd. v. CIT-3 (75 Taxmann.com 213), cited in 23 of the 27 judgments on BharatTax that turn on this section.

Leading authorities on Section 144(3)

Sony Ericsson Mobile Communication India Pvt. Ltd. v. CIT-3
75 Taxmann.com 213 · 2016 · High Court
23
citing judgments

The Transfer Pricing Officer (TPO) cannot isolate and adjust a single element, such as salary cross-charge, if it is already factored into a broader transfer pricing method like TNMM, and the TPO should not determine the arm's length price (ALP) of cross-charges as nil without proper justification.

Cummins India Ltd. v. ACIT
153 Taxmann.com 223 · 2023 · High Court
4
citing judgments

Judgments on Section 144(3)

Square Yards Consulting Pvt. Ltd., New Delhi vs. ACIT, Circle-24(1), New Delhi

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

ITA 880/DEL/2021[2016-17]Status: DisposedITAT Delhi05 Aug 2026AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumar

For Appellant: Shri Prabhakar Kumar, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 143(3)Section 144Section 144CSection 92BSection 92C

Beta Cae Systems International Ag, Bangalore vs. DCIT, International Taxation, Circle-1(1), Bangalore

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

ITITA 548/BANG/2025[2022-23]Status: DisposedITAT Bangalore01 Apr 2026AY 2022-23

Bench: Shri Prashant Maharishi, Vice – & Shri Soundararajan K.

For Appellant: Shri Rajgopal, CAFor Respondent: Dr. Divya K.J, CIT-DR
Section 144(3)Section 9(1)(vi)

M/S Vivek Construciton, Balco Nagar vs. ACIT Circle 1(1), Bilaspur

In the result, both appeals of assessee are allowed for statistical purposes as above

ITA 67/RPR/2026[2023-24]Status: DisposedITAT Raipur06 Mar 2026AY 2023-24

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Avdhesh Kumar Mishra, Am आयकर अपील सं. / Ita No: 66 & 67/Rpr/2026 (िनधा"रण वष" Assessment Years: 2021-22 & 2023-24) Vivek Construction, C-17, Vs Assistant Commissioner Of Income Housing Board Colony Balco Nagar, Tax, Circle-1(1), Ayakar Bhawan, Korba, Chhattisgarh, 495684. Vyapar Vihar, Bilaspur, Cg - 495001 Pan: Aaffv3390P (अपीलाथ"/Appellant) (""थ" / Respondent) : िनधा"रती की ओर से / Assessee By : None. (Adjournment Petition Filed) राज" की ओर से / Revenue By : Ms. Bharti Singh, Cit-Dr Dr. Priyanka Patel, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 20/02/2026 घोषणा की तारीख / Date Of : 06/03/2026 Pronouncement आदेश / O R D E R Per Avdhesh Kumar Mishra, Am:

For Appellant: None. (Adjournment petition filed)For Respondent: Ms. Bharti Singh, CIT-DR
Section 143(3)Section 145Section 250Section 250(6)Section 251(1)(a)Section 251(2)Section 36(1)(iii)

Vivek Construction, Balco Korba vs. ACIT Circle 1(1), Bilaspur

In the result, both appeals of assessee are allowed for statistical purposes as above

ITA 66/RPR/2026[2021-22]Status: DisposedITAT Raipur06 Mar 2026AY 2021-22

Bench: Shri Partha Sarathi Chaudhury, Jm & Shri Avdhesh Kumar Mishra, Am आयकर अपील सं. / Ita No: 66 & 67/Rpr/2026 (िनधा"रण वष" Assessment Years: 2021-22 & 2023-24) Vivek Construction, C-17, Vs Assistant Commissioner Of Income Housing Board Colony Balco Nagar, Tax, Circle-1(1), Ayakar Bhawan, Korba, Chhattisgarh, 495684. Vyapar Vihar, Bilaspur, Cg - 495001 Pan: Aaffv3390P (अपीलाथ"/Appellant) (""थ" / Respondent) : िनधा"रती की ओर से / Assessee By : None. (Adjournment Petition Filed) राज" की ओर से / Revenue By : Ms. Bharti Singh, Cit-Dr Dr. Priyanka Patel, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 20/02/2026 घोषणा की तारीख / Date Of : 06/03/2026 Pronouncement आदेश / O R D E R Per Avdhesh Kumar Mishra, Am:

For Appellant: None. (Adjournment petition filed)For Respondent: Ms. Bharti Singh, CIT-DR
Section 143(3)Section 145Section 250Section 250(6)Section 251(1)(a)Section 251(2)Section 36(1)(iii)

Asst. Commissioner of Income Tax, Central Circle-1, Mangalore vs. Raj Diamonds, Mumbai

In the result the appeal of the Revenue is dismissed &

ITA 1361/BANG/2025[2018-19]Status: DisposedITAT Bangalore05 Mar 2026AY 2018-19

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year : 2018-19

For Appellant: Sri V. Srinivasan, A.RFor Respondent: Sri Subramanian, D.R
Section 132Section 143(1)Section 143(2)Section 144(3)Section 148Section 153CSection 250

Jasibai Dayaram Amlani, Amravati vs. DCIT Amravati Circle, Amravati

In the result, appeal of the Assessee is partly allowed

ITA 749/NAG/2025[2014-15]Status: DisposedITAT Nagpur12 Feb 2026AY 2014-15

Bench: Dr. Manish Borad

For Appellant: Shri Rajesh Loya, CAFor Respondent: Shri Surjit Kumar Saha, Sr.DR
Section 143(2)Section 143(3)Section 144(3)Section 234ASection 250Section 40A(2)(b)

Bombay Tyres, Navi Mumbai vs. Income Tax Officer-15(1)(1), Mumbai

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

ITA 6608/MUM/2025[2017-18]Status: DisposedITAT Mumbai24 Dec 2025AY 2017-18

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Respondent byFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. AR
Section 133(6)Section 142(1)Section 144Section 144ASection 147Section 250Section 270ASection 272A(1)(d)

Bombay Tyres, Navi Mumbai vs. Income Tax Officer-15(1)(1), Mumbai

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

ITA 6607/MUM/2025[2017-2018]Status: DisposedITAT Mumbai24 Dec 2025AY 2017-2018

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Respondent byFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. AR
Section 133(6)Section 142(1)Section 144Section 144ASection 147Section 250Section 270ASection 272A(1)(d)

Bombay Tyres, Navi Mumbai vs. Income Tax Officer-15(1)(1), Mumbai

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

ITA 6606/MUM/2025[2017-2018]Status: DisposedITAT Mumbai24 Dec 2025AY 2017-2018

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Respondent byFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. AR
Section 133(6)Section 142(1)Section 144Section 144ASection 147Section 250Section 270ASection 272A(1)(d)

Bombay Tyres, Navi Mumbai vs. Income Tax Officer-15(1)(1), Mumbai

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

ITA 6605/MUM/2025[2017-2018]Status: DisposedITAT Mumbai24 Dec 2025AY 2017-2018

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Respondent byFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. AR
Section 133(6)Section 142(1)Section 144Section 144ASection 147Section 250Section 270ASection 272A(1)(d)

Hi-Lex India Private Limited, Gurgaon vs. Assessment Unit Income Tax Department, Gurgaon

In the result, Appeal of the Assessee is allowed

ITA 4288/DEL/2024[2020-21]Status: DisposedITAT Delhi28 Nov 2025AY 2020-21

Bench: Shri Yogesh Kumar U.S. & Shri Brajesh Kumar Singh

Section 144(3)Section 144BSection 144C(13)

Indravadan Gamanlal Gandhi, Surat vs. Assistant Commissioner of Income Tax, Central Circle - 2(1)(1), Surat

In the result, appeal of the assessee is allowed for statistical purposes

ITA 142/SRT/2024[2017-18]Status: DisposedITAT Surat30 Oct 2025AY 2017-18

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethआयकर अपील सं./Ita No.142/Srt/2024 Assessment Year: (2017-18) (Physical Hearing) Indravadan Gamanlal Gandhi बनाम/ Assistant Commissioner Of Income- Vs. At: Areth, Post. Areth, Tal: Tax, Central Circle-2(1)(1), Surat, Mandvi, Surat-394 010 Aayakar Bhawan, Majura Gate, Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aajpn 9673 M (अपीलाथ"/Appellant) (""थ" /Respondent) िनधा"रती की ओर से /Appellant By Shri Shaunak Zaveri, Ca राज" की ओर से/Respondent By Shri Ajay Uke, Sr. Dr सुनवाई की तारीख /Date Of Hearing 10/09/2025 उद्घोषणा की तारीख /Date Of Pronouncement 30/10/2025

Section 115BSection 143(2)Section 143(3)Section 144(3)Section 250Section 253(3)Section 271ASection 69A

Harshadbhai Maganbhai Patel, Surat vs. Income Tax Officer - Ward 1(3)(2), Surat

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

ITA 111/SRT/2024[2016-17]Status: DisposedITAT Surat17 Oct 2025AY 2016-17

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethआयकर अपील सं./Ita No.111/Srt/2024 Assessment Year: 2016-17 (Hybrid Hearing) Harshadbhai Maganbhai Patel Income Tax Officer Ward-1(3)(2), बनाम/ C-1007, Pratisha Tower, Surat, Anavil Business Center, Vs. Sarela Wadi, Ghod-Dod Road, Adajan Hazira Road, Adajan, Surat- 395 007 Surat-395 007 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Adgpp 3387 C (अपीलाथ"/Appellant) (""थ" /Respondent) िनधा"रती की ओर से /Appellant By Shri Rasesh Shah, Ca राज" की ओर से /Respondent By Shri Ravinder Sindhu, Cit-Dr सुनवाई की तारीख/Date Of Hearing 24/07/2025 उद्घोषणा की तारीख/Date Of Pronouncement 17/10/2025

Section 142(1)Section 143(2)Section 144(3)Section 250

ACIT, Central Circle 1(1), Bengaluru vs. Sunil Suresh, Bengaluru

In the result, appeal filed by the Revenue is dismissed

ITA 2168/BANG/2024[2020-21]Status: DisposedITAT Bangalore11 Sept 2025AY 2020-21

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan Kassessment Year : 2020-21 Acit, Vs. Shri. Sunil Suresh, Central Circle – 1(1), S-02, Skyline Apartment, Ieonard Lane, Bangalore. Richmond Town, Bangalore – 560 025, Karnataka. Pan : Akrps 0614 D Appellant Respondent Assessee By : Shri. V. Srinivasan, Advocate Revenue By : Shri. Sankar Ganesh D, Addl. Cit(Dr)(Itat), Bangalore. Date Of Hearing : 12.08.2025 Date Of Pronouncement : 11.09.2025

For Appellant: Shri. V. Srinivasan, AdvocateFor Respondent: Shri. Sankar Ganesh D, Addl. CIT(DR)(ITAT), Bangalore
Section 132Section 132(1)Section 132(4)Section 144(3)Section 69

Vishal Suryakant Malvankar, Sindhudurg vs. Income Tax Officer, Ratnagiri

In the result, appeal of the assessee is partly allowed

ITA 1104/PUN/2025[2017-18]Status: DisposedITAT Pune28 Jul 2025AY 2017-18

Bench: Dr.Manish Borad

For Appellant: Shri Pramod S ShingteFor Respondent: Shri Deepak Kumar Kedia
Section 144(3)Section 250

Lsi India Research & Development Private Limited, Bangalore vs. The Principal Commissioner of Income Tax, Bengaluru-2, Bengaluru

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 1061/BANG/2024[2017-18]Status: DisposedITAT Bangalore23 Jul 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2017-18

For Appellant: Smt. Tanmayee Rajkumar, AdvocateFor Respondent: Shri Shivanand Kalakeri, CIT (DR)
Section 139Section 143(3)Section 263Section 28

Income Tax Officer, Mumbai vs. Harsh Sandeep Thakore, Mumbai

In the result, the ground no

ITA 1703/MUM/2024[2009-10]Status: DisposedITAT Mumbai19 May 2025AY 2009-10

Bench: Ms. Kavitha Rajagopal, Jm & Shri Renu Jauhri, Am Income Tax Officer, Mumbai Harsh Sandeep Thakore 4Th Floor, Harvansh, N. S. Road, 8, 502, Piramal Chambers, Lalbaug, Parel, Mumbai – 400012. Vs. Jvpd Scheme, Vile Parle, West, Mumbai – 400049. Pan/Gir No. Aaapt4930A (Appellant) : (Respondent) C.O. No. 81/Mum/2024 (Arising Out Of Ita No. 1703/Mum/2024) (Assessment Year: 2009-10) Income Tax Officer, Mumbai Harsh Sandeep Thakore 4Th Floor, Harvansh, N. S. Road, 8, 502, Piramal Chambers, Lalbaug, Parel, Mumbai – 400012. Vs. Jvpd Scheme, Vile Parle, West, Mumbai – 400049. Pan/Gir No. Aaapt4930A (Appellant) : (Respondent) : Shri. Reepal Tralshawala Assessee By Respondent By : Shri. Hemanshu Joshi (Sr. Dr.) Date Of Hearing : 20.02.2025 Date Of Pronouncement : 19.05.2025 O R D E R Per Bench: These Are Cross Appeals Filed By The Revenue & Assessee, Challenging The Order Of The Learned Commissioner Of Income Tax (Appeals) Delhi (‘Ld. Cit(A)’ For Short)

For Respondent: Shri. Hemanshu Joshi (SR. DR.)
Section 143(2)Section 143(3)Section 144(3)Section 148Section 250Section 54F

DCIT, CC- 1, Faridabad vs. Empire Realtech Pvt. Ltd., New Delhi

In the result, Appeal of the Assessee is allowed

ITA 4288/DEL/2017[2012-13]Status: DisposedITAT Delhi24 Feb 2025AY 2012-13

Bench: Shri Yogesh Kumar U.S. & Shri Brajesh Kumar Singh

Section 144(3)Section 144BSection 144C(13)

Harsh Nareshbhai Patel, Ahmedabad vs. The Income Tax Officer, Ward-3(3)(2), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 332/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad04 Dec 2024AY 2017-18

Bench: Dr. Brr Kumar & Ms Suchitra Kambleआयकर अपील सं./Ita No. 332/Ahd/2024 िनधा"रण वष"/Asstt. Year: 2017-2018 Harsh Nareshbhai Patel, The Income Tax Officer, C/O. Ms Chhajed & Co. Ca, बनामVs Ward 3(3)(2), . “Kamal Shanti”, Ahmedabad. Near Sardar Patel Statue, Ahmedabad-380014. Pan: Bocpp1618C

For Appellant: Ms Preyashi Tated, ARFor Respondent: Shri C Dharani Nath, Sr. DR
Section 143(2)Section 57

Panetar Saree, Kalyan vs. Income Tax Officer 3 2 Kalyan, Kalyan

In the result, the appeal filed by the Assessee stands allowed for statistical purposes

ITA 2184/MUM/2024[2015-16]Status: DisposedITAT Mumbai30 Aug 2024AY 2015-16

Bench: Shri Narender Kumar Choudhry & Shri Omkareshwar Chidaraassessment Year: 2015-16

For Appellant: Shri Mandar Vaidya, A.RFor Respondent: Shri R.R. Makwana, Sr. D.R
Section 144(3)