ITO v. Lakhmani Mewal Das

103 ITR 437Supreme Court of India1976#70 most cited

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.

721

judgments rely on this decision, according to BharatTax’s citation analysis of 367,735 Indian tax judgments — from 2001 to 2026.

Also referred to as

ITO v. Lakhmani Mewal Das · Section 147 · Section 148 · reason to believe · reassessment · escaped income · failure to disclose material facts · live link · beyond four years · material facts · bogus claim

Also reported as

2 SCC 302153 Taxmann 282

Sections most often in play

Section 147Section 148Section 143(3)Section 151Section 142(1)Section 68Section 250Section 132
Read the full judgment

Issues it is cited on

undisclosed foreign income and assetssection 149(1)(c)section 4(2)section 201(3)section 147(a)section 158basection 150true and full disclosurelive linkunexplained jewellerysection 148(2)beyond four years

Judgments citing ITO v. Lakhmani Mewal Das

Khed Economic Infrastructure Pvt Ltd, Pune vs. Income Tax Officer, Ward-14(2), Pune

Appeals are allowed in above terms

ITA 925/PUN/2023[2013-14]Status: DisposedITAT Pune23 Oct 2023AY 2013-14

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkunde
Section 142(1)Section 143(3)Section 147Section 148

…AO has come to the conclusion that income has escaped assessment 'on the perusal of the records'. Consequently, there is no question of any failure to disclose any material fact necessary for assessment as held in the case of ITO v. Lakhmani Mewal Das 119761 103 ITR 437 (SC). The impugned notice by the respondent no. 1 is clearly a case of change of opinion as held by this Court in the case of Aroni Commercials Ltd. v. DCIT [20141 44 taxmann.com 304/224 Taxman 13 (Mag.)/362 ITR 9 I.T..A.Nos.923, 924 & 925/PUN./2023 403. Furthermore, AO's the reason to believe must be based on some new tangible material which wa…

Khed Economic Infrastructure Pvt Ltd, Pune vs. Income Tax Officer, Ward-14(1), Pune

Appeals are allowed in above terms

ITA 924/PUN/2023[2012-13]Status: DisposedITAT Pune23 Oct 2023AY 2012-13

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Ramnath P. Murkunde
Section 142(1)Section 143(3)Section 147Section 148

…AO has come to the conclusion that income has escaped assessment 'on the perusal of the records'. Consequently, there is no question of any failure to disclose any material fact necessary for assessment as held in the case of ITO v. Lakhmani Mewal Das 119761 103 ITR 437 (SC). The impugned notice by the respondent no. 1 is clearly a case of change of opinion as held by this Court in the case of Aroni Commercials Ltd. v. DCIT [20141 44 taxmann.com 304/224 Taxman 13 (Mag.)/362 ITR 9 I.T..A.Nos.923, 924 & 925/PUN./2023 403. Furthermore, AO's the reason to believe must be based on some new tangible material which wa…

Deputy Commissioner of Income Tax (Central-1), Raipur vs. M/S Sunil Sponge Pvt. Ltd., Raipur

In the result, the appeal of the revenue is dismissed in terms of our aforesaid observations

ITA 73/RPR/2022[2007-08]Status: DisposedITAT Raipur12 Oct 2023AY 2007-08

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.73/Rpr/2022 "नधा"रण वष" / Assessment Year : 2007-08 The Deputy Commissioner Of Income Tax, (Central Circle)-1, Raipur (C.G.) .......अपीलाथ" / Appellant बनाम / V/S. M/S. Sunil Sponge Pvt. Ltd. H. No.11, Jalvihar Colony, Raipur (C.G.)-492 001 (C.G.) Pan : Aahcs7999A ……""यथ" / Respondent

For Appellant: S/shri, Sakshi Gopal Agrawal &For Respondent: Shri Choudhary N.C. Roy, Sr. DR
Section 143(3)Section 147Section 148Section 40A(2)(b)

…section 147 of the Act are "reason to believe" and "failure to disclose fully and truly all material facts necessary for assessment". These two expressions were examined and interpreted in great detail by Hon'ble Supreme Court in ITO vs. Lalchmani Mewal Das, 103 ITR 437 (SC). Hon'ble Court in the said judgment has considered validity of notice u/s 148 of the Act in respect of an assessment beyond the period of four years but within a period of eight years (now six years) from the end of the relevant year, which is also a fact of the instant case. Hon'ble Court observed that in such a case, where notice was issue…

Bhavin Arunbhai Patel, Valsad vs. Income Tax Officer, Ward-1, Vapi

In the result, the appeal is allowed in the terms indicated above

ITA 456/SRT/2023[2011-12]Status: DisposedITAT Surat12 Oct 2023AY 2011-12

Bench: Shri Dr. A. L. Sainiआयकर अपील सं./Ita No.456/Srt/2023 Assessment Year: (2011-12) (Physical Hearing) Bhavin Arunbhai Patel, Vs. The Ito, Parvassa Road, Mota Waghchhipa, Ward – 1, Kila Pardi, Valsad – 396001, Vapi Gujarat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Arypp2459F (Appellant) (Respondent)

Section 144Section 147Section 148Section 250Section 69A

…a live link with the formation of the belief. This is supported by Circular No.549 dated 31.10.1989 which clarified that the words “reason to believe” did not mean a change of opinion. The Hon’ble Supreme Court in the case of ITO vs. Lakhmani Mewal Das [1976] 103 ITR 437 has lucidly explained the power of assessing officer to bring to tax income escaping assessment u/s.147 of the Act. The Hon’ble Court first held that the section ITA.456/SRT/2023/AY.2011-12 Bhavin Arunbhai Patel provides that there must exist “reasons to believe” and not “reasons to suspect”. The following were the relevant observations: “The fa…

Aruna Garg, Ghaziabad vs. ACIT Circle-1, Ghaziabad

In the result, the appeal of the assessee is allowed

ITA 1622/DEL/2020[2009-10]Status: DisposedITAT Delhi06 Oct 2023AY 2009-10

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kedia

For Appellant: Shri Deepanshu Agarwal, CAFor Respondent: Shri Kanv Bali, Sr.DR
Section 143(1)Section 143(3)Section 147Section 148Section 148(2)

…arbitrary and unsustainable in law. 9. The belief towards escapement in the instant case is only pretense and a mere doubt and suspicion towards probable escapement though worded as ‘reason to believe’. The Hon’ble Supreme Court in Lakhmani Mewal Das (1976) 103 ITR 437 (SC) has underscored that the word of the statute ‘reason to believe’ are not ‘reason to suspect’. The vague feeling or suspicion of the Assessing Officer towards possible escapement would not permit to reopen a completed assessment in defiance of statutory requirement of substantial nature. The notice issued under Section 148(1) is thus ultra vi…

The Commissioner of Income Tax (International Taxation)-1, Delhi vs. M/S Bio-Rad Laboratories (Singapore) Pte Ltd

ITA/564/2023HC Delhi03 Oct 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…n a further period of 30 days envisaged in Regulation 7(b), process and decide the case on merits, with the further qualification that in such an event, the matter would 46 AIR 1963 SC 1295 47 (2004) 2 SCC 510 48 (2023) 3 SCC 502 49 (1969) 2 SCC 166 50 (1984) 2 SCC 302 Digitally Signed By:CHANDRASHEKHAR AN HARI SHANKAR Signing Date:22.04.2024 22:29 Signature Not Verified Digitally Signed By:AJIT KUMAR Signing Date:22.04.2024 22:30 Signature Not Verified WP(C) 12983/2022 & other batch matters Page 98 of 177 not be deferred any further on account of non-receipt of comments or recommendations from the State Govern…

Assistant Commissioner of Income Tax (Central), Bilaspur vs. M/S Jagannathdas Harichandmal Jewellers Pvt. Ltd, Raigarh

In the result appeal of revenue is partly allowed in terms of our observations herein above

ITA 106/RPR/2022[2012-13]Status: DisposedITAT Raipur22 Sept 2023AY 2012-13

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.106/Rpr/2022 िनधा"रण वष" /Assessment Year: 2012-13 The Assistant Commissioner Of Vs M/S. Jagannathdas Harichandmal Income Tax (Central), Bilaspur Jewellers Pvt. Ltd. Sadar Bazar, Raigarh (C.G.) Pan: Aaccj2840G (अपीलाथ" /Appellant) (""यथ" / Respondent) .. िनधा"रती क" ओर से /Assessee By : Shri Sunil Kumar Agrawal, Ca राज"व क" ओर से /Revenue By : Shri Choudhary N.C. Roy, Sr. Dr सुनवाई क" तार"ख / Date Of Hearing : 14/07/2023 घोषणा क" तार"ख/Date Of Pronouncement : 22/09/2023 आदेश / O R D E R Per Arun Khodpia, Am : The Captioned Appeal Is Filed By The Revenue Against The Order Passed By The Ld. Commissioner Of Income Tax (Appeals)-3, Bhopal, Dated 16.03.2022 Which In Turn Arises From The Order By Ld. Assessing Officer U/S 143(3) R.W.S. 147 Dated 30.12.2018 For A.Y.2012-13. The Grounds Of The Appeal Raised By The Revenue Are As Under: “ 1. Whether On The Fact & In The Circumstances Of The Case In Law, While Holding Assessment Passed U/S 147 R.W.S. 143(3) Of Act As Invalid & Void-Ab-Initio, The Ld. Cit(A) Completely Ignored The Fact That During The Course Of Survey, The Assessee Failed To Discharge Its Burden In Establishing 'The Identity, Creditworthiness & Genuineness Of The Transactions As Required U/S 68 Of The Income Tac Act. Ld. Cit(A) Erred In Ignoring That Reassessment Proceeding Are Based On Fresh Facts/Information Rather Than Change Of Opinion. 2. Whether On The Fact & In The Circumstances Of The Case In Law, The Ld.Cit(A) Erred In Ignoring That Confirmation Of Concealment Of Income/Disclosure Made In Statement Recorded During Survey U/S 133A Of Act Is An Information, Though Not Conclusive, Which May Be Used In Regular Assessment Or Reassessment Proceedings.

For Appellant: Shri Sunil Kumar Agrawal, CAFor Respondent: Shri Choudhary N.C. Roy, Sr. DR
Section 133ASection 143(3)Section 147Section 148Section 68

…n section 147 of the Act are "reason to believe" and "failure to disclose fully and truly all material facts necessary for assessment". These two expressions were examined and interpreted in great detail by Hon'ble Supreme Court in ITO vs. Lakhmani Mewal Das, 103 ITR 437 (SC). Hon'ble Court in the said judgment has considered validity of notice u/s 148 of the Act in respect of an assessment beyond the period of four years but within a period of eight years (now six years) from the end of the relevant year, which is also a fact of the instant case. Hon'ble Court observed that in such a case, where notice was issue…

Captive Commerce Pvt. Ltd., New Delhi vs. ACIT, Central Circle-26, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2698/DEL/2018[2010-11]Status: DisposedITAT Delhi09 Aug 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Ashu Goel, CAFor Respondent: Shri Vivek Kumar Upadhyay, Sr.DR
Section 143(3)Section 147Section 148Section 148(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.2698/DEL/2018 Assessment Year 2010-11 Captive Commerce Pvt. Ltd., ACIT 4735/11, 22 Ansari Road, Darya Vs. Central Circle-26 Ganj, New Delhi. New Delhi. TAN/PAN: AABCC0820A (Appellant) (Respondent) Appellant by: Shri Ashu Goel, CA Respondent by: Shri Vivek Kumar Upadhyay, Sr.DR Date of hearing: 31 07 2023 Date of pronouncement: 09 08 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the assessee against the order of t…

Pr. Commissioner of Income Tax-7, Delhi vs. Meera Gupta

ITA/406/2023HC Delhi27 Jul 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

…ed ignoring the basic principles of procedural law as laid down in the CPC, the technicalities of CPC cannot prevent the Court from securing the ends of justice. It is well settled that procedural safeguards, meant 13 2017 SCC OnLine Del 8934 14 (2008) 2 SCC 302 Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date:24.12.2024 16:01:54 Signature Not Verified Digitally Signed By:AJIT KUMAR Signing Date:24.12.2024 16:03:54 Signature Not Verified OMP (I) (COMM.) 401/2023 and other conn…

Shrimati Amarjit Kaur W/O Bugar Singh, Mansa vs. Income Tax Officer Ward 1(4), Mansa

In the result, the appeal of the assessee is dismissed

ITA 1/ASR/2018[2009-10]Status: DisposedITAT Amritsar26 Jul 2023AY 2009-10

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: NoneFor Respondent: Sh. S. M. Surendranath, Sr. DR
Section 147Section 148Section 251(2)Section 49

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 1/Asr/2018 Assessment Year: 2009-10 Smt. Amarjit Kaur Vs. Income Tax Officer, W/o Sh. Bugar Singh, Ward 1(4), Mansa Diwana Kothe, VPO Bhikhi Distt. Mansa [PAN: BWJPK 1258A] (Appellant) (Respondent) Appellant by : None Respondent by: Sh. S. M. Surendranath, Sr. DR Date of Hearing: 18.07.2023 Date of Pronouncement: 26.07.2023 ORDER Per Dr. M. L. Meena, AM: This appeal has been filed by the assessee against the order of the Ld. Commissioner of In…

Standard Tele Towers Pvt. Ltd., New Delhi vs. DCIT, Circle-24(2), New Delhi

ITA 9761/DEL/2019[2010-11]Status: DisposedITAT Delhi19 Jul 2023AY 2010-11

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharma

Section 132(4)Section 143(3)Section 147Section 148

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘G’ : NEW DELHI) BEFORE SH. N.K.BILLAIYA, ACCOUNTANT MEMBER AND SH.ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 9761/Del/2019, A.Y. 2010-11 M/s. Standard Tele Towers Pvt. Vs. DCIT, Ltd. , C-37, Ground Floor, Circle 24(2), East of Kailash, New Delhi New Delhi PAN : AAJCS9262N Appellant Respondent Appellant by Dr. Rakesh Gupta, Adv. Shri Somil Agarwal, Adv. & Sh. Deepesh Garg, Adv. Respondent by Ms. Kajal Singh, Sr. DR Date of hearing: 20.06.2023 Date of Pronouncement: 19.07.2023 ORDER Per Anubhav Sharma, JM : The appeal has been preferred by the Assessee against th…

Commissioner of Income Tax vs. Spirit Global Construction Pvt Ltd

The appeal is disposed of in the aforesaid terms

ITA/191/2018HC Delhi18 Jul 2023

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 132Section 143(1)Section 147

…n was not met by the AO before entering the realm of reassessment/assessment proceedings. [See Chuggamal Rajpal v S.P. Chaliha and Ors. (1971) 1 SCC 453, Synfonia Tradelinks Pvt. Ltd. v Income Tax Officer 2021 SCC Online Del 2692, ITO v Lakhmani Mewal Das 103 ITR 437]. 26.1 Since this is a consistent view that the courts have taken, we are not inclined to rule otherwise and interdict the decision of the Tribunal. Conclusion: 27. Given the foregoing discussion, the questions of law as framed are answered in favour of the respondent/assessee and against the appellant/revenue. 28. The appeal is d…

Kala Ramesh Parmar, Mumbai vs. ITO Ward- 23(2)(6), Mumbai

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

ITA 581/MUM/2023[2012-13]Status: DisposedITAT Mumbai05 Jul 2023AY 2012-13

Bench: Shri Pavan Kumar Gadalekala Ramesh Parmar Ito Ward – 23(2)(6), 2/21,Kishorebuilding, Room No.303, बनाम/ Opp Edward Cinema, 3Rd Floor, Vs. 2Nd Floor, 521, Earnest House, Kalbadevi Road, Nariman Point, Mumbai- 400002. Mumbai- 400021. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadpp6229M (""थ" / Respondent) (अपीलाथ" /Appellant)

For Appellant: Shri.Jitendra Singh.ARFor Respondent: Shri.Abhishek Kumar Singh, DR
Section 143(1)Section 143(3)Section 148Section 234BSection 250Section 68

…f the same by passing a speaking order. 32. Reverting back to the two expressions as noticed above, we may mention that these two expressions were examined and interpreted in great detail by the Supreme Court in Income-tax Officer v. Lakhmani Mewal Das [1976] 103 ITR 437. That was also a case where notice under section 148 of the Act was put to challenge. Though provisions of section 147 of the Act as it existed then have since been reconstructed and have undergone change, the two key expressions continue to retain their relevance in so far section 147 of the Act is concerned. It may further be noticed that in La…

Tara Raju Patel, Valsad vs. Income Tax Officer, International Taxation, Surat

In the result, the appeal of assessee is allowed

ITA 195/SRT/2023[2012-13]Status: DisposedITAT Surat26 Jun 2023AY 2012-13

Bench: Shri Pawan Singh(Virtual Hearing) Raju Maganlal Patel, I.T.O. C/O-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. Pan No. Auspp 1436 F Appellant/ Assessee Respondent/ Revenue Tara Raju Patel, I.T.O. C/O-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. Pan No. Avdpp 6714 G Appellant/ Assessee Respondent/ Revenue

Section 133(6)Section 144Section 147Section 148Section 254(1)Section 69

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH (SMC), SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER (Virtual hearing) Raju Maganlal Patel, I.T.O. C/o-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. PAN No. AUSPP 1436 F Appellant/ assessee Respondent/ revenue Tara Raju Patel, I.T.O. C/o-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. PAN No. AVDPP 6714 G Appellant/ assessee Respondent/ revenue Assessee represented by Shri Rajesh Upadhayay, A.R. Department represented by Shri Vinod Kumar, Sr. DR Date of Institution of App…

Shri Raju Maganlal Patel, Valsad vs. Income Tax Officer, Int. Taxation, Surat

In the result, the appeal of assessee is allowed

ITA 188/SRT/2023[2011-12]Status: DisposedITAT Surat26 Jun 2023AY 2011-12

Bench: Shri Pawan Singh(Virtual Hearing) Raju Maganlal Patel, I.T.O. C/O-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. Pan No. Auspp 1436 F Appellant/ Assessee Respondent/ Revenue Tara Raju Patel, I.T.O. C/O-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. Pan No. Avdpp 6714 G Appellant/ Assessee Respondent/ Revenue

Section 133(6)Section 144Section 147Section 148Section 254(1)Section 69

…IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH (SMC), SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER (Virtual hearing) Raju Maganlal Patel, I.T.O. C/o-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. PAN No. AUSPP 1436 F Appellant/ assessee Respondent/ revenue Tara Raju Patel, I.T.O. C/o-Dinkarbhai T. Patel, Shankar (International Taxation), Vs. Talao, Via-Dungri, Valsad. Surat. PAN No. AVDPP 6714 G Appellant/ assessee Respondent/ revenue Assessee represented by Shri Rajesh Upadhayay, A.R. Department represented by Shri Vinod Kumar, Sr. DR Date of Institution of App…

Eci Engineering & Construction Company Ltd., Hyd, Hyderabad vs. ACIT, Circle-2(2), Hyd, Hyderabad

In the result, the appeal of the assessee is allowed

ITA 968/HYD/2016[2006-07]Status: DisposedITAT Hyderabad15 May 2023AY 2006-07

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2006-07 The Asst. Commissioner Of Vs. M/S. Eci Engineering & Income Tax, Construction Co., Ltd., Circle 17(1), Hyderabad. Hyderabad. Pan : Aaace74411G (Appellant) (Respondent) Ita 968/Hyd/2016 Assessment Year 2006-07 M/S. Eci Engineering & Vs. The Asst. Commissioner Of Construction Co., Ltd., Income Tax, Hyderabad. Circle 2(2), Hyderabad. Pan : Aaace74411G (Appellant) (Respondent) Assessee By: Shri K.C. Devdas Revenue By: Shri K.P.R.R. Murthy. Date Of Hearing: 27.03.2023 Date Of Pronouncement: 15.05.2023 O R D E R Per Laliet Kumar, J.M. These Two Appeals Filed By The Assessee & The Revenue, Respectively, Are Directed Against The Order Of Commissioner Of Income Tax (Appeals) – 5, Hyderabad Dated 30.03.2016 For The Assessment Year 2006-07. 2. The Abridged Grounds Raised By The Assessee In Ita No.968/Hyd/2016 Read As Under : “1. The Order Of Ld.Cit(A) - 5 Is Erroneous In Law In Facts & In Law. 2. The Ld.Cit(A) Erred In Upholding The Decision Of The Ld.Ao In Treating Sale Of Partly Paid Up Shares As Fully Paid & Confirming The Addition Of Rs.50,14,625/- As Long Term Capital Gain. 3. The Ld.Cit(A) Erred In Confirming The Addition Of Rs.27,69,422/- Towards Difference In Interest. 4. Further, The Ld.Cit(A) Failed To Observe That The Notes To Financial Statements Clearly Mentioned The Interest Income Which Pertained To The Previous Year & Accordingly Erred In Upholding The Action Of The Ld.Ao In Assessing The Difference In Interest Of Rs.27,69,422/-. 5. The Ld.Cit(A) Erred In Confirming The Addition Of Difference Of Prior Period Income Of Rs.1,26,71,371/-.”

For Appellant: Shri K.C. DevdasFor Respondent: Shri K.P.R.R. Murthy
Section 143(1)Section 143(3)Section 148Section 40

…343 (Del.) xiii. Sita Wrold Travel (India) Ltd. v.CIT(274 ITR 186)(Del.HC) 15. Referring to the following decisions, he submitted that in absence of formation of belief that income has escaped assessment, reopening is bad in law. i. ITO v. Lakhmani Mewal Das (103 ITR 437) (SC) ii.Dass Friends Builders(P.) Ltd. vs.DCIT (153 taxmann 282) (Alh.HC) iii.TTK Prestige Ltd. v. DCIT (97 taxmann.com 112) (Kar.HC) ITA 183/Hyd/2020 iv. Known Agro Foods(P.) Ltd. vs. ACIT 375 ITR 460 (Del.HC) 16. So far as, the merit of case is concerned, the ld. Counsel for the assessee submitted that even on merit also the amount has to be a…

DCIT, Circle-17(1), Hyd, Hyderabad vs. Eci Engineering & Construction Co. Ltd., Hyd, Hyderabad

In the result, the appeal of the assessee is allowed

ITA 930/HYD/2016[2006-07]Status: DisposedITAT Hyderabad15 May 2023AY 2006-07

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2006-07 The Asst. Commissioner Of Vs. M/S. Eci Engineering & Income Tax, Construction Co., Ltd., Circle 17(1), Hyderabad. Hyderabad. Pan : Aaace74411G (Appellant) (Respondent) Ita 968/Hyd/2016 Assessment Year 2006-07 M/S. Eci Engineering & Vs. The Asst. Commissioner Of Construction Co., Ltd., Income Tax, Hyderabad. Circle 2(2), Hyderabad. Pan : Aaace74411G (Appellant) (Respondent) Assessee By: Shri K.C. Devdas Revenue By: Shri K.P.R.R. Murthy. Date Of Hearing: 27.03.2023 Date Of Pronouncement: 15.05.2023 O R D E R Per Laliet Kumar, J.M. These Two Appeals Filed By The Assessee & The Revenue, Respectively, Are Directed Against The Order Of Commissioner Of Income Tax (Appeals) – 5, Hyderabad Dated 30.03.2016 For The Assessment Year 2006-07. 2. The Abridged Grounds Raised By The Assessee In Ita No.968/Hyd/2016 Read As Under : “1. The Order Of Ld.Cit(A) - 5 Is Erroneous In Law In Facts & In Law. 2. The Ld.Cit(A) Erred In Upholding The Decision Of The Ld.Ao In Treating Sale Of Partly Paid Up Shares As Fully Paid & Confirming The Addition Of Rs.50,14,625/- As Long Term Capital Gain. 3. The Ld.Cit(A) Erred In Confirming The Addition Of Rs.27,69,422/- Towards Difference In Interest. 4. Further, The Ld.Cit(A) Failed To Observe That The Notes To Financial Statements Clearly Mentioned The Interest Income Which Pertained To The Previous Year & Accordingly Erred In Upholding The Action Of The Ld.Ao In Assessing The Difference In Interest Of Rs.27,69,422/-. 5. The Ld.Cit(A) Erred In Confirming The Addition Of Difference Of Prior Period Income Of Rs.1,26,71,371/-.”

For Appellant: Shri K.C. DevdasFor Respondent: Shri K.P.R.R. Murthy
Section 143(1)Section 143(3)Section 148Section 40

…343 (Del.) xiii. Sita Wrold Travel (India) Ltd. v.CIT(274 ITR 186)(Del.HC) 15. Referring to the following decisions, he submitted that in absence of formation of belief that income has escaped assessment, reopening is bad in law. i. ITO v. Lakhmani Mewal Das (103 ITR 437) (SC) ii.Dass Friends Builders(P.) Ltd. vs.DCIT (153 taxmann 282) (Alh.HC) iii.TTK Prestige Ltd. v. DCIT (97 taxmann.com 112) (Kar.HC) ITA 183/Hyd/2020 iv. Known Agro Foods(P.) Ltd. vs. ACIT 375 ITR 460 (Del.HC) 16. So far as, the merit of case is concerned, the ld. Counsel for the assessee submitted that even on merit also the amount has to be a…

Ballu Singh, Gurgaon vs. ITO Ward -65(5), New Delhi

In the result, the appeal of the assessee is allowed

ITA 800/DEL/2020[2009-10]Status: DisposedITAT Delhi15 May 2023AY 2009-10

Bench: Shri Kul Bharat

Section 133(6)Section 143(2)Section 143(3)Section 144Section 147Section 148Section 44ASection 69A

…ffect relationship between reasons recorded and the income escaping assessment. While dealing with this aspect of the matter, it is useful to bear in mind the following observations made by Hon'ble Supreme Court in the case of ITO Vs LakhmaniMewal Das [(1976) 103 ITR 437], " the reasons for the formation of the belief must have rational connection with or relevant bearing on the formation of the belief. Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the ITO and the I.T.A. No.: 3814/Del/l1 Assessment year: 2008-09 formation of this belief…

Ballu Singh, Gurgaon vs. ITO Ward -65(5), New Delhi

In the result, the appeal of the assessee is allowed

ITA 799/DEL/2020[2008-09]Status: DisposedITAT Delhi15 May 2023AY 2008-09

Bench: Shri Kul Bharat

Section 133(6)Section 143(2)Section 143(3)Section 144Section 147Section 148Section 44ASection 69A

…ffect relationship between reasons recorded and the income escaping assessment. While dealing with this aspect of the matter, it is useful to bear in mind the following observations made by Hon'ble Supreme Court in the case of ITO Vs LakhmaniMewal Das [(1976) 103 ITR 437], " the reasons for the formation of the belief must have rational connection with or relevant bearing on the formation of the belief. Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the ITO and the I.T.A. No.: 3814/Del/l1 Assessment year: 2008-09 formation of this belief…

ITO, Ward- 27(4), New Delhi vs. Yamuna Builders Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 5212/DEL/2019[2009-10]Status: DisposedITAT Delhi27 Apr 2023AY 2009-10
For Appellant: Shri Sushil Maheshwari, CAFor Respondent: Shri Gurpreet Singh, Sr. DR
Section 143Section 143(1)Section 147Section 148

…ed his belief for recording the reasons and reopening the assessment proceedings on the basis of the wrong premise. 4.1 It has to mention here that Hon’ble Supreme Court has already laid down the following principles in the case of ITO VS. Lakhmani Mewal Das 103 ITR 437 for constituting the 'reason to believe' for the purpose of initiation of reassessment proceedings, which are to be strictly followed by AO being a quasi-judicial authority:- a) The powers of the AO to reopen an assessment though wide, are not plenary. b) The words of the statute are 'reason to believe' and not 'reason to suspect'. c) The reop…