What is ITO v. Lakhmani Mewal Das authority for?

For reassessment proceedings, the 'reason to believe' that income has escaped assessment must be based on some material and not mere suspicion, establishing a live link between the information and the belief. Furthermore, for reassessment beyond four years, there must be a specific finding of the assessee's failure to disclose fully and truly all material facts.

How many judgments cite ITO v. Lakhmani Mewal Das?

721 judgments on BharatTax cite ITO v. Lakhmani Mewal Das (103 ITR 437), spanning 2001 to 2026.

Which sections of the Income Tax Act does ITO v. Lakhmani Mewal Das come up under?

It is most often cited in judgments turning on Section 147, Section 148, Section 143(3), Section 151, Section 142(1), Section 68.

ITO v. Lakhmani Mewal Das (103 ITR 437)

Assistant Commissioner of Income Tax - 4(1), Indore vs. Prataap Snacks Limited, Indore

In the result revenue’s appeal is dismissed and assessee’s cross-objection is allowed

ITA 370/IND/2023[2012-13]Status: DisposedITAT Indore17 Oct 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 143(3)Section 147Section 148Section 80I

…y all material facts necessary for purpose of assessment. k) In support of this contention he has relied upon the decision of Supreme Court in the case of Gangasaran & Sons Pvt. Ltd. Vs ITO reported in 130 ITR as well as ITO vs. Lakhmani Mewaldas reported in 103 ITR 437 and submitted that the Page 9 of 57 Prataap Snacks Limited ITA Nos.370 to 374 & C.O No.6 & 7 Hon’ble Supreme Court has held that there should be sufficient and adequate material to justify the formation of belief that income assessable to tax is escaped assessment. He has also referred to the following decisions:- (i) Gujarat High Court in the…

Krishnan Vidya Shankar, Chennai vs. ITO, NFAC, New Delhi

In the result, appeal filed by the assessee is allowed

ITA 1001/CHNY/2022[2014-2015]Status: DisposedITAT Chennai09 Oct 2024AY 2014-2015

Bench: Shri Aby T. Varkey & Shri Manoj Kumar Aggarwal**

Section 143(1)Section 148Section 151

…ecision [refer State of Punjab v. Bhag Singh 2004(1) SCC 547]. **12.** Tested on the touch stone of the aforesaid judicial precedents given supra as well as the decision of the Hon'ble Supreme Court in the case of ITO v. Lakhmani Mewal Das reported in [1976] 103 ITR 437 (SC), arising from Ravish Lakhmani, Kolkata v. Pr.CIT reported in 99 ITR 296 (Calcutta) in which the principles of re-opening of assessment as well as *:: 11 ::* the importance of granting sanction to issue notices have been explained. It has to be borne in mind that as per law in force for the relevant Assessment Year, two conditions had to be…

Quadeye Securities Pvt. Ltd., Kolkata vs. DCIT, Cir. 11(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 792/KOL/2024[2011-12]Status: DisposedITAT Kolkata07 Oct 2024AY 2011-12

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. No.792/Kol/2024 Assessment Year: 2011-12 Quadeye Securities Pvt. Ltd..………...........………………....Appellant 184, Harish Mukherjee Road, 1St Floor, Kolkata-700026. [Pan: Aabce7790H] Vs. Dcit, Circle-11(1), Kolkata….………….…............................…..…..... Respondent Appearances By: Shri A. K. Tibrewal, Fca, Appeared On Behalf Of The Assessee. Shri Vineet Kumar, Addl. Cit- Sr. Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : July 08, 2024 Date Of Pronouncing The Order : October 07, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 29.02.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Is Aggrieved By The Action Of The Ld. Cit(A) In Confirming The Addition Made By The Assessing Officer On Account Of Disallowance Of Loss Of Rs.2,47,48,393/- Incurred By The Assessee In Commodities Dealing In National Multi Commodity Exchange Of India Limited (‘Nmce’) Platform & Further Making Addition Of Rs.4,92,263/- U/S 69C Of The Act On Account Of Alleged Commission That Might Have Been Paid By The Assessee In Booking The Aforesaid Bogus Loss In Commodity Trading.

Section 147Section 250Section 69C

…of law. The entire law as to what would constitute "reason to believe" has been summed up by the hon’ble Supreme Court in the case of “Income Tax Officer v Lakhmani I.T.A. No.792/Kol/2024 Assessment Year: 2011-12 Quadeye Securities Pvt. Ltd Mewaldas” (1976) 103 ITR 437. Reliance in this respect can also be placed on the decision of the Hon'ble Punjab & Haryana High Court in the case of 'CIT vs Paramjit Kaur' (2008) 311 ITR 38 (P&H), wherein, making identical observations, the Hon'ble High Court has held that in the absence of sufficient material to form satisfaction of the Assessing Officer that income of the a…

Bhartiya Samruddhi Investments and Consulting Services Limited, Delhi vs. ACIT, Circle 4(2), Delhi

In the result, the Assessee’s appeal is allowed

ITA 1637/DEL/2023[2012-13]Status: DisposedITAT Delhi04 Oct 2024AY 2012-13

Bench: Shri Shamim Yahya & Ms. Madhumita Roya.Yr. : 2012-13 Bhartiya Samruddhi Vs. Acit, Circle 4(2), Investments & Consulting New Delhi Services Limited, F-5, Ground Floor, Greater Kailash, Kailash Colony, Part-I, New Delhi – 110 048 (Pan: Aaacb5336R) (Appellant) (Respondent)

For Appellant: Shri Arvind Kumar, AdvFor Respondent: Shri Raghunath, Sr. DR

Section 142(1)Section 143(3)Section 147Section 148Section 151Section 37

…Appliances Pvt. Ltd. & Another vs. DC IT (2017) 399 ITR 323(Delhi) Donald Son India Filters System Pvt. Ltd. v. CIT (2015) 371 ITR 87 Madhukar Khosla vs. ACIT (2014)367 ITR 165 (Delhi) CIT vs. Kelvinator of India 320 ITR 561 ITO vs. Lakhmani Mewal Das (1976) 103 ITR 437 (SC) In view of the above submission, legally as well as factually, 148 action of the AO deserve to be cancelled and filed, as there is no jurisdiction for taking action u/s. 148/147 as explained above. The reasons recorded are not germane to the reassessment proceedings and does not assist the AO in drawing any adverse inference for invoking 147…

International Hospital Limited vs. DCIT Circle 12 (2)

ITA/116/2023HC Delhi26 Sept 2024

Bench: HON'BLE MR. JUSTICE RAVINDER DUDEJA,HON'BLE MR. JUSTICE YASHWANT VARMA

…d on behalf of the transferee company (holding company) with all attendant consequences. It is equally relevant to notice that the courts have not only sanctioned the scheme in this case but have 22 (1997) 2 SCC 302 Digitally Signed By:KAMLESH KUMAR Signing Date:26.09.2024 19:44:08 Signature Not Verified ITA 116/2023 & other connected matters Page 36 of 52 also not specified any other date as the date of transfer/amalgamation. In such a situation, it would not be reasonable to say that the scheme of amalgamation ta…

Prasant Desai, Kolkata vs. DCIT, Cir. 61, Kolkata

In the result, the appeal of the assessee stands allowed

ITA 735/KOL/2024[2013-14]Status: DisposedITAT Kolkata25 Sept 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. No.735/Kol/2024 Assessment Year: 2013-14 Prasant Desai……..……………….………...........………………....Appellant C/O Subash Agarwal & Associates, Advocate, Siddha Gibson, 1, Gibson Lane, Suite – 213, 2Nd Floor, Kolkata – 700069. [Pan: Acypd1511B] Vs. Dcit, Circle-61, Kolkata.……………….…............................…..…..... Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Assessee. Shri Arup Chatterjee, Addl. Cit- Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : July 02, 2024 Date Of Pronouncing The Order : September 25, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 26.02.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Agitated Against The Confirmation Of Addition Of Rs.75,00,000/- Made By The Assessing Officer On Account Of Unsecured Loans Received From M/S Festive Deal Trade Pvt. Ltd. Treating The Same As Bogus.

Section 147Section 148Section 250

…t and thereby in starting proceedings u/s 147 is open to challenge in a court of law. The entire law as to what would constitute "reason to believe" has been summed up by the hon’ble Supreme Court in the case of “Income Tax Officer v Lakhmani Mewaldas” (1976) 103 ITR 437. Reliance in this respect can also be placed on the decision of the Hon'ble Punjab & Haryana High Court in the case of 'CIT vs Paramjit Kaur' (2008) 311 ITR 38 (P&H), wherein, making identical observations, the Hon'ble High Court has held that in the absence of sufficient material to form satisfaction of the Assessing Officer that income of the a…

M/S Flora Exports, Kolkata vs. ITO, Ward 31(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 502/KOL/2024[2014-15]Status: DisposedITAT Kolkata25 Sept 2024AY 2014-15

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. No.502/Kol/2024 Assessment Year: 2014-15 M/S Flora Exports……………….………...........………………....Appellant 17/2/H/13, Smith Lane, Taltala, Kolkata – 700013. [Pan: Aabff1684J] Vs. Ito, Ward-31(1), Kolkata.……………….…............................…..…..... Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Assessee. Shri Arup Chatterjee, Addl. Cit- Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : July 01, 2024 Date Of Pronouncing The Order : September 25, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 14.12.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Taken The Following Revised Grounds Of Appeal:

Section 139Section 143(1)Section 147Section 151Section 250

…t and thereby in starting proceedings u/s 147 is open to challenge in a court of law. The entire law as to what would constitute "reason to believe" has been summed up by the hon’ble Supreme Court in the case of “Income Tax Officer v Lakhmani Mewaldas” (1976) 103 ITR 437. Since in the case in hand, the Assessing Officer, without consulting the assessment records and correlating the information with the accounts of the assessee, simply proceeded to reopen the assessment on the basis of borrowed satisfaction from the information of Investigation Wing, hence, such an action of Assessing Officer would fall short of t…

Aadhunik Infrastructure Development Private Limited, Jalgaon vs. The Deputy Commissioner of Income Tax, Circle-1, Jalgaon

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

ITA 439/PUN/2023[2012-13]Status: DisposedITAT Pune18 Sept 2024AY 2012-13

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2012-13

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Ramnath P Murkunde

Section 143(3)Section 14ASection 271(1)(c)Section 68

…ition as observed by the Supreme Court in S. Narayanappa v/s. CIT 63 ITR 219, that it is open to examine whether the reason to believe has rational connection with the formation of the belief. To the same effect, the Apex Court in ITO v/s. Lakhmani Merwal Das 103 ITR 437 had laid down that the reasons to believe must have rational connection with or relevant bearing on the formation of belief i.e. there must be a live link between material coming the notice of the Assessing Officer and the formation of belief regarding escapement of income. If the aforesaid requirement are not met, the Assessee is entitled to cha…

Jaiprakash Jindal, Mumbai vs. The ITO, Ward 20(2)(1), Mumbai

In the result, appeals of the assessee bearing ITA Nos

ITA 3280/MUM/2024[2010-11]Status: DisposedITAT Mumbai12 Sept 2024AY 2010-11

Bench: Shri Anikesh Banerjee () & Shri Gagan Goyal () - 2010-11 - 2009-10

Section 143(2)Section 143(3)Section 147Section 148Section 250

…assessee promptly raised the issue before the ld.CIT(A), but the ld.CIT(A) without considering the same in an unjustified manner passed the impugned appeal order. We relied on the order of Hon’ble Supreme Court in the case of ITO v. Lakhmani Mewal Das [1976] 103 ITR 437 (SC). “The powers of the Income-tax Officer to reopen assessment, though wide, are not plenary. The words of the statute are "reason to believe" and not "reason to suspect". The reopening of the assessment after the lapse of many years is a serious matter. The Act, no doubt, contemplates the reopening of the assessment if grounds exist for believ…