Which cases are most cited on Section 194-IA?

State of Kerala v. C. Velukutty (60 ITR 239) — 78 citing judgments; 121 ITR 232 (Punj. & Har.), Kanti Lal Purshottam & Co. v. CIT (155 ITR 519) — 13 citing judgments; 109 ITR 1 (AIl), PH. Textiles v. CIT (121 ITR 232) — 12 citing judgments; Sajowanlal Jaiswal v. CIT (104 ITR 664) — 9 citing judgments; Hukumchand Mills Ltd. v. State of Madhya Pradesh (52 ITR 583) — 9 citing judgments.

How many judgments are there on Section 194-IA?

BharatTax indexes 25 ITAT, High Court and Supreme Court judgments that turn on Section 194-IA of the Income Tax Act, 1961.

Section 194-IA of the Income Tax Act

Q: What is the leading case on Section 194-IA of the Income Tax Act?

State of Kerala v. C. Velukutty (60 ITR 239) is the decision most relied on for Section 194-IA, cited in 78 judgments. An assessment, including a best judgment assessment, must be conducted rationally, based on available material, and after collecting all necessary information. It is essential to adhere to the principles of natural justice by providing the assessee an effective and adequate opportunity of being heard.

The decision most relied on for Section 194-IA is State of Kerala v. C. Velukutty (60 ITR 239), cited in 78 of the 25 judgments on BharatTax that turn on this section.

Leading authorities on Section 194-IA

State of Kerala v. C. Velukutty

60 ITR 239 · 1966 · Supreme Court

citing judgments

An assessment, including a best judgment assessment, must be conducted rationally, based on available material, and after collecting all necessary information. It is essential to adhere to the principles of natural justice by providing the assessee an effective and adequate opportunity of being heard.

121 ITR 232 (Punj. & Har.), Kanti Lal Purshottam & Co. v. CIT

155 ITR 519 · 1985 · High Court

citing judgments

109 ITR 1 (AIl), PH. Textiles v. CIT

121 ITR 232 · 1980 · High Court

citing judgments

Sajowanlal Jaiswal v. CIT

104 ITR 664 · 1976 · High Court

citing judgments

Hukumchand Mills Ltd. v. State of Madhya Pradesh

52 ITR 583 · 1964 · Supreme Court

citing judgments

121 ITR 229 (Punj. & Har.), Fakri Automobiles v. CIT

165 ITR 253 · 1987 · High Court

citing judgments

Tejinder Singh v. Dy. CIT

19 Taxmann.com 4 · 2012 · Reported

citing judgments

CIT v. Hardware Exchange

190 ITR 61 · 1991 · High Court

citing judgments

103 ITR 706 (Ori.), U.P. Hardware Store v. CIT

109 ITR 1 · 1977 · High Court

citing judgments

104 ITR 664 Allahabad; Ratan Udyog v. ITO

121 ITR 237 · 1980 · High Court

citing judgments

Judgments on Section 194-IA

AMEY JAIN,INDORE vs. OFFICER, INDORE

In the result, appeal of the assessee is allowed

ITA 296/IND/2025[2019-2020]Status: DisposedITAT Indore27 Mar 2026AY 2019-2020

Bench: Shri B.M. Biyani & Shri Paresh M. Joshiassessment Year: 2019-20 Amey Jain, Ito 1(1), 127, Anurag Nagar Bh Indore Press Complex, बनाम/ Vijay Nagar, Vs. Indore (Assessee/Appellant) (Revenue/Respondent) Pan: Aqbpj1217D Assessee By Shri Harsh Choukse & Shri Kunal Agrawal, Ars Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 23.03.2026 Date Of Pronouncement 27.03.2026

Section 194Section 200ASection 201Section 234ESection 253(5)

HASMUKHBHAI JAYANTIBHAI PATEL,AHMEDABAD vs. ITO WARD 2(1)(2), AHMEDABAD, GUJARAT

In the result, the appeal of the assessee is allowed

ITA 410/AHD/2026[2015-16]Status: DisposedITAT Ahmedabad27 Mar 2026AY 2015-16

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Chirag Shah, ARFor Respondent: Shri Girish Parihar, Sr. DR

Section 194Section 194ISection 201Section 201(1)Section 250

INCOME TAX OFFICER (TDS-3), AHMEDABAD, AHMEDABAD vs. TARUN SANTRAMDAS VARMA, AHMEDABAD

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

ITA 2549/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad26 Mar 2026AY 2015-16

Bench: Dr. B.R.R. Kumar, Vice-Ms Suchitra Kmble

For Appellant: Shri Abhijit, Sr.DRFor Respondent: Shri Tushar Hemani, Sr. Advocate

Section 143(3)Section 194Section 201Section 250Section 46A

GLEN MORGAN D COSTA ,MUMBAI vs. ITO INT TAX WARD 2(1)(1), MUMBAI

The appeal are dismissed

ITA 6573/MUM/2025[2022-23]Status: DisposedITAT Mumbai30 Jan 2026AY 2022-23

Bench: The Learned Cit(A), The Assessee Submitted That He, Along With His Wife, Owned A Property, Each Having 50% Ownership. The Said Property Was Sold During The Relevant Financial Year For A Total Consideration Of Rs. 1 Crore & The Amount Was Credited By The Purchaser In The Joint Bank Account Of The Assessee With His Wife. The Assessee Submitted That The Tds Amounting To Rs.22,88,000/- Was Deducted By The Purchaser Under Section 194-Ia Of The Act On The Pan Of The Assessee. However, Both The Assessee & His Wife Computed Their Respective Capital Gains Tax At A 50% Share Of The Sale

Section 143(1)Section 154Section 194Section 195

MAHENDRA MANSHI NAGDA,MUMBAI vs. CIT (APPEAL), DELHI

In the result, the appeal of the assessee is allowed

ITA 7336/MUM/2025[2018-19]Status: DisposedITAT Mumbai23 Jan 2026AY 2018-19

Bench: Shri Vikram Singh Yadav & Ms. Kavitha Rajagopalassessment Year : 2018-19 Mahendra Manshi Nagda, Income Tax Officer, 202, Kanan Building, Ward-20(1)(1), Seth Motishaw Lane, Vs. Piramal Chamber, Mumbai-400010. Mumbai-400012. Pan : Aahpn5436C (Appellant) (Respondent) For Assessee : Shri Sameer Dalal For Revenue : Shri Annavaran Kosuri Date Of Hearing : 20-01-2026 Date Of Pronouncement : 23-01-2026 O R D E R Per Vikram Singh Yadav, A.M :

For Appellant: Shri Sameer DalalFor Respondent: Shri Annavaran Kosuri

Section 143(3)Section 194Section 56(2)(x)

ASSERTIVE INFRASTRUCTURE PVT. LTD.,DELHI vs. ITO WARD 3(3), NEW DELHI

ITA 4200/DEL/2025[2014-15]Status: DisposedITAT Delhi21 Jan 2026AY 2014-15

Bench: Shri Mahavir Singh & Shri Manish Agarwal

Section 250

SIMMI GUPTA,CHANDIGARH vs. DCIT/ACIT TDS, CHANDIGARH

In the result, appeal of the assessee is allowed

ITA 212/CHANDI/2025[2017-18]Status: DisposedITAT Chandigarh22 Dec 2025AY 2017-18

Bench: Shri Laliet Kumar & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 212/Chd/2025 "नधा"रण वष" / Assessment Year: 2017-18 Simmi Gupta, The Dcit/Acit (Tds), 1076, Sector 37-B, Vs Chandigarh. Chandigarh. "थायी लेखा सं./Pan No: Afwpg4983R अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Parikshit Aggarwal, Ca Revenue By : Dr. Ranjit Kaur, Addl. Cit, Sr.Dr Date Of Hearing : 10.12.2025 Date Of Pronouncement : 22.12.2025

For Appellant: Shri Parikshit Aggarwal, CAFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr.DR

Section 132Section 133(6)Section 148Section 194Section 201

KRISHNAVENI KOKKULA,HYDERABAD vs. ITO., WARD-9(1), HYDERABAD

In the result, the appeal filed by the assessee is allowed in terms of our aforesaid observations

ITA 558/HYD/2025[2016-17]Status: DisposedITAT Hyderabad17 Dec 2025AY 2016-17

Bench: Us:

Section 147Section 69A

RAKESH GUPTA,KHANNA vs. DCIT/ACIT-TDS, CHANDIGARH

In the result, appeal is allowed

ITA 640/CHANDI/2025[2018-19]Status: DisposedITAT Chandigarh12 Nov 2025AY 2018-19

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 640/Chd/2025 "नधा"रण वष" / Assessment Year: 2018-19 Shri Rakesh Gupta, Vs The Dcit/Acit-Tds, House No. 64, Chandigarh. New Bank Colony, Khanna. "थायी लेखा सं./Pan No: Agnpk8978Q अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : None (Written Submission) Revenue By : Dr. Ranjit Kaur, Addl. Cit, Sr.Dr Date Of Hearing : 06.10.2025 Date Of Pronouncement : 12.11.2025 Physical Hearing

For Appellant: None (Written Submission)For Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr.DR

Section 194Section 201Section 201(1)

JANTA LAND PROMOTERS PVT LTD,MOHALI vs. THE PRINICIPAL COMMISSIONER OF INCOME TAX ,CHANDIGARH-1, CHANDIGARH

In the result, appeal of the Assessee is allowed

ITA 618/CHANDI/2025[2020-2021]Status: DisposedITAT Chandigarh29 Oct 2025AY 2020-2021

For Appellant: Shri Pankaj Bhalla, C.AFor Respondent: Shri Manav Bansal, CIT, DR

Section 143(3)Section 194Section 263Section 68

ACHALA PUNJA,TEYNAMPET vs. DEPUTY COMMISSIONER OF INCOME TAX NON CORPORATE CIRCLE 3(1), CHENNAI

In the result, the appeal of the assessee is partly allowed

ITA 1483/CHNY/2025[2014-15]Status: DisposedITAT Chennai09 Oct 2025AY 2014-15

Bench: Shri Aby T Varkey & Shri S. R. Raghunatha

For Appellant: Shri. R. M. Narayanan, C.AFor Respondent: Shri. R. Raghupathy, Addl. C.I.T

Section 139(1)Section 147Section 148Section 54

PRAHLAD DAS GOYAL,BHOPAL vs. DCIT - 1(1) BHOPAL, BHOPAL

Appeal is partly allowed

ITA 5/IND/2025[2016-17]Status: DisposedITAT Indore04 Aug 2025AY 2016-17

Bench: Shri B.M. Biyani & Shri Paresh M. Joshiassessment Year:2016-17 Prahlad Das Goyal, Dcit/Acit 1(1) 18, Shyamla Hills, Bhopal बनाम/ Bhopal Vs. (Assessee/Appellant) (Revenue/Respondent) Pan: Abbpg3494L Assessee By Shri S.S. Deshpande, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 31.07.2025 Date Of Pronouncement 04.08.2025

Section 143(2)Section 143(3)Section 194Section 40

NARESH KUMAR JAIN,DELHI vs. DCIT, CIRCLE INTL. TAX-2(1)(2), DELHI

In the result, the appeal of the assessee in ITA No

ITA 281/DEL/2025[2024-25]Status: DisposedITAT Delhi30 Jul 2025AY 2024-25

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Deepak Jain, CAFor Respondent: Shri Vikram Singh Sharma, Sr DR

Section 143(1)Section 194Section 199Section 250Section 64

STYLAM INDUSTRIES LIMITED,CHANDIGARH vs. DCIT, TDS, CHANDIGARH, CHANDIGARH

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

ITA 1152/CHANDI/2024[2015-16]Status: DisposedITAT Chandigarh28 Jul 2025AY 2015-16

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwal

For Appellant: Shri Ravinder Krishan, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr.DR

Section 194Section 201Section 201(1)Section 234E

BINITABEN SANDIPKUMAR PATEL,VADODARA vs. THE PR.CIT, VADODARA-1, VADODARA

The appeal of the assessee is allowed

ITA 702/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad28 Jul 2025AY 2018-19

Bench: Ms.Suchitra R. Kamble & Shri Makarand V.Mahadeokarasstt.Year : 2018-19 Sejalben Patel The Pr.Cit-1 1049, Kantvalue Faliyu Vs. Vadodara. At & Po-Karkhadi Tal. Padra, Dist. Vadodara. Pan : Drhpp 9550 D Asstt.Year : 2018-19 Binitaben Sandipkumar Patel The Pr.Cit-1 Javla, Chotra Pase Vs. Vadodara. Savli, Dist. Vadodara. Pan : Cwopp 4609 Q (Applicant) (Responent)

For Appellant: Ms.Urvashi Sodhan, AR

Section 139(1)Section 144BSection 147Section 148Section 194Section 263Section 31Section 54

SEJALBEN PATEL,VADODARA vs. THE PR.CIT, VADODARA-1, VADODARA

The appeal of the assessee is allowed

ITA 701/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad28 Jul 2025AY 2018-19

For Appellant: Ms.Urvashi Sodhan, AR

Section 139(1)Section 144BSection 147Section 148Section 194Section 263Section 31Section 54

WWICS ESTATES PRIVATE LIMITED,MOHALI vs. THE DCIT/ACIT, TDS, CHANDIGARH

The appeal stands partly allowed

ITA 654/CHANDI/2022[2015-16]Status: DisposedITAT Chandigarh23 Jul 2025AY 2015-16

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./ Ita No.654/Chandi/2022 (िनधा"रण वष" / Assessment Year: 2015-16) M/S Wwics Estates Private Limited Dcit / Acit Tds बनाम/ Vs. A-12, Industrial Area, Phase-6 Sector 17 Mohali. Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Tan No. Aaacw-3524-A / Ptlw-10174-D (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Shri Tejmohan Singh (Advocate) – Ld. Ar ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 15-07-2025 घोषणाकीतारीख /Date Of Pronouncement : 23-07-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2015- 16 Arises Out Of The Order Of Learned Commissioner Of Income Tax (Appeals) National Faceless Appeal Centre (Nfac), Delhi [Cit(A)] Dated 03-10-2022 In The Matter Of An Order Passed By Ld. Ao U/S 201(1) & (Ia) On 23-03-2022 Raising Certain Demand Against The Assessee. Having Heard Rival Submissions & Upon Perusal Of Case Records, The Appeal Is Disposed-Off As Under.

For Appellant: Shri Tejmohan Singh (Advocate) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR

Section 133ASection 194Section 194CSection 194JSection 201(1)Section 44A