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

Principal Commissioner of Income Tax-5, Kolkata vs. Sajjadbhai Nuruddin Nandarbarwal

ITAT/129/2021HC Calcutta14 Jun 2022

Bench: :

…IN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION ORIGINAL SIDE BEFORE : THE HON’BLE JUSTICE SOUMEN SEN And THE HON’BLE JUSTICE SIDDHARTHA ROY CHOWDHURY APO 128 of 2021 IA. No. GA 1 of 2021 with CS. No. 50 of 2019 TATA CHEMICALS LIMITED VS. M/S. KSHITISH BARDHAN CHUNILAL NATH & Ors. APO. No. 129 of 2021 IA. No. GA 1 of 2021 with CS. No. 51 of 2019 TATA CHEMICALS LIMITED VS. ASHOK KUMAR SAHA & ANR. For the appellants : Mr. Ratnanko Banerjee, Sr. Adv. Mr. Shaunak Mitra, Adv. Mr. Joydeb Ghorai, Adv., Mr. Suman Chatterjee, Adv., Mr…

Principal Commissioner of Income Tax-5, Kolkata vs. Suman Kumar

ITAT/128/2021HC Calcutta14 Jun 2022

Bench: :

…IN THE HIGH COURT AT CALCUTTA CIVIL APPELLATE JURISDICTION ORIGINAL SIDE BEFORE : THE HON’BLE JUSTICE SOUMEN SEN And THE HON’BLE JUSTICE SIDDHARTHA ROY CHOWDHURY APO 128 of 2021 IA. No. GA 1 of 2021 with CS. No. 50 of 2019 TATA CHEMICALS LIMITED VS. M/S. KSHITISH BARDHAN CHUNILAL NATH & Ors. APO. No. 129 of 2021 IA. No. GA 1 of 2021 with CS. No. 51 of 2019 TATA CHEMICALS LIMITED VS. ASHOK KUMAR SAHA & ANR. For the appellants : Mr. Ratnanko Banerjee, Sr. Adv. Mr. Shaunak Mitra, Adv. Mr. Joydeb Ghorai, Adv., Mr. Suman Chatterjee, Adv., Mr…

Shri Ashutosh Chandrakant Patel, U.T. of Dadra & Nagar Haveli vs. The ACIT., Vapi Circle, Vapi

In the result, the appeal of the assessee is allowed

ITA 3502/AHD/2014[2007-08]Status: DisposedITAT Surat06 Jun 2022AY 2007-08

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Hearing In Virtual Court) Ashutosh Chandrakant Patel, The Assistant “Ashutosh” Commissioner Of Income Vs Near Power House, Zanda Chowk, Tax, Vapi Circle, Vapi. Silvassa, U.T. Of D. & N.H, Pan : Agmpp 3734 C Assessee / Appellant Revenue /Respondent

Section 143Section 143(3)Section 147Section 148Section 254(1)Section 80ASection 80I

…ns must have 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 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 provides that there must exist “reasons to believe“ and not “reasons to suspect”. The following were the relevant observations: “The fact that the words "definite information" which wer…

Sukhdeo Nivrutti Navale, Solapur vs. Deputy Commissioner of Income-Tax, Central Circle - 2 (2), Pune

Appeals are allowed in above terms

ITA 454/PUN/2019[2012-13]Status: DisposedITAT Pune31 May 2022AY 2012-13

Bench: Shri S.S.Godara

Section 132Section 148

…fect 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 Lakhmani Mewal 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 formation of this belief that there has been escapement of the income of…

Sukhdeo Nivrutti Navale, Solapur vs. Deputy Commissioner of Income-Tax, Central Circle -2 (2), Pune

Appeals are allowed in above terms

ITA 453/PUN/2019[2010-11]Status: DisposedITAT Pune31 May 2022AY 2010-11

Bench: Shri S.S.Godara

Section 132Section 148

…fect 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 Lakhmani Mewal 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 formation of this belief that there has been escapement of the income of…

Sanjay Sadashiv Navale, Solapur vs. Deputy Commissioner of Income-Tax, Central Circle -2 (2), Pune

Appeals are allowed in above terms

ITA 452/PUN/2019[2012-13]Status: DisposedITAT Pune31 May 2022AY 2012-13

Bench: Shri S.S.Godara

Section 132Section 148

…fect 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 Lakhmani Mewal 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 formation of this belief that there has been escapement of the income of…

Deputy Commissioner of Income Tax 3(2)(2), Mumbai vs. Phulchand Exports Private Limited, Mumbai

In the result, appeal filed by the revenue and cross objection filed by the assessee are dismissed

ITA 7214/MUM/2017[2008-09]Status: DisposedITAT Mumbai12 May 2022AY 2008-09

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Shankarlal JainFor Respondent: Shri Sandeep Raj
Section 147

…of the assessment. CIT(A) had relied on the following judicial pronouncements. a). Phoolchand Bajranglal Vs ITO 203ITR 456,477 b). ALA Firm Vs CIT 189 ITR 285,298 c). Indian and Eastern Newspaper Society Vs CIT 119 ITR 996, 1004 d). ITO Vs Lakhmani Mewal Das 103 ITR 437 ,445 3.4 However while dealing on account of ‘under invoicing’ of goods exported CIT(A) deleted the addition without appreciating that said addition is made as per the comparable export price which is as determined by Hon’ble Justice M.B.Shah Commission on illegal Mining. 4. During the earlier hearings before your honour for the A.Y.2008-09 , the…

Deputy Commissioner of Income Tax 3(2)(2), Mumbai vs. Phulchand Exports Private Limited, Mumbai

In the result, appeal filed by the revenue and cross objection filed by the assessee are dismissed

ITA 7213/MUM/2017[2011-12]Status: DisposedITAT Mumbai12 May 2022AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Shankarlal JainFor Respondent: Shri Sandeep Raj
Section 147

…of the assessment. CIT(A) had relied on the following judicial pronouncements. a). Phoolchand Bajranglal Vs ITO 203ITR 456,477 b). ALA Firm Vs CIT 189 ITR 285,298 c). Indian and Eastern Newspaper Society Vs CIT 119 ITR 996, 1004 d). ITO Vs Lakhmani Mewal Das 103 ITR 437 ,445 3.4 However while dealing on account of ‘under invoicing’ of goods exported CIT(A) deleted the addition without appreciating that said addition is made as per the comparable export price which is as determined by Hon’ble Justice M.B.Shah Commission on illegal Mining. 4. During the earlier hearings before your honour for the A.Y.2008-09 , the…

Deputy Commissioner of Income Tax 3(2)(2), Mumbai vs. Phulchand Exports Private Limited, Mumbai

In the result, appeal filed by the revenue and cross objection filed by the assessee are dismissed

ITA 7212/MUM/2017[2010-11]Status: DisposedITAT Mumbai12 May 2022AY 2010-11

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Shankarlal JainFor Respondent: Shri Sandeep Raj
Section 147

…of the assessment. CIT(A) had relied on the following judicial pronouncements. a). Phoolchand Bajranglal Vs ITO 203ITR 456,477 b). ALA Firm Vs CIT 189 ITR 285,298 c). Indian and Eastern Newspaper Society Vs CIT 119 ITR 996, 1004 d). ITO Vs Lakhmani Mewal Das 103 ITR 437 ,445 3.4 However while dealing on account of ‘under invoicing’ of goods exported CIT(A) deleted the addition without appreciating that said addition is made as per the comparable export price which is as determined by Hon’ble Justice M.B.Shah Commission on illegal Mining. 4. During the earlier hearings before your honour for the A.Y.2008-09 , the…

M/S. Titan Company Ltd., Krishnagiri vs. DCIT, Ltu-2, Chennai

The appeal stand partly allowed in terms of our above order

ITA 2756/CHNY/2019[2008-09]Status: DisposedITAT Chennai05 May 2022AY 2008-09

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Ms. Tanmayee Rajkumar (Advocate) – Ld. ARFor Respondent: Shri ARV Sreenivasan Addl.CIT) – Ld. Sr. DR
Section 143(3)Section 147Section 148

…original assessment proceedings, no such information was available with Ld. AO and there was no question of formation of any belief on the issue. Therefore, this plea is also to be rejected. The decision of Hon’ble Supreme Court in ITO Vs Lakhmani Mewal Das (103 ITR 437) has been referred by Ld. AR to submit that the reasons for formation of belief for reopening of assessment must have rational connection with or relevant bearing on formation of belief and rational connection postulates that there must be direct nexus or live link between material coming to AO’s notice and formation of his belief that there has…

The DCIT, Central Circle-1(2), Ahmedabad vs. M/S. Sthapatya Shilp Construction, Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 907/AHD/2019[2010-11]Status: DisposedITAT Ahmedabad27 Apr 2022AY 2010-11

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 907/Ahd/2019 With C.O.No.170/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2010-2011 D.C.I.T., M/S. Sthapatya Shilp Construction, Central Circle-1(2), Vs. 2, Abhiraj Complex, Ahmedabad. 68-B, Swastic Society, Ahmedabad. Pan: Abffs2922P

For Appellant: Ms Nupur Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT,D.R
Section 147Section 148Section 68

…information or material pertaining to different assessment year may give rise to suspicion but not the reason to believe. In this regard we find support and guidance from the judgment of Hon’ble Supreme court in case of ITO vs. Lakhmani Mewal Das reposted in 103 ITR 437, where the Hon’ble court held as under: "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 formation of this belief that there h…

DCIT, Central Circle-(1)(2), Ahmedabad vs. Shreyasi Dharmen Sutaria, Ahmedabad

In the result appeal of the Revenue is dismissed

ITA 797/AHD/2019[2010-11]Status: DisposedITAT Ahmedabad27 Apr 2022AY 2010-11

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 797/Ahd/2019 With C.O.No.173/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2010-2011 D.C.I.T., Shreyasi Dharmen Sutaria, Central Circle-1(2), Vs. 16-B, Jadav Chamber, Ahmedabad. Ashram Road, Ahmedabad-380009. 2Nd Address: 8, Amrashagun Bunglows, Nr. Hathisingh Park, Satellite, Ahmedabad-380015. Pan: Awops1881R

For Appellant: Ms Nupur Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT,D.R
Section 143Section 147Section 148

…information or material pertaining to different assessment year may give rise to suspicion but not the reason to believe. In this regard we find support and guidance from the judgment of Hon’ble Supreme court in case of ITO vs. Lakhmani Mewal Das reposted in 103 ITR 437, where the Hon’ble court held as under: "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 formation of this belief that there…

The DCIT, Central Ciircle-1(2), Ahmedabad vs. Shrena S Sutaria, Ahmedabad

In the result appeal of the Revenue is dismissed

ITA 796/AHD/2019[2010-11]Status: DisposedITAT Ahmedabad27 Apr 2022AY 2010-11

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 796/Ahd/2019 With C.O.No.172/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2010-2011 D.C.I.T., Shrena S. Sutaria, Central Circle-1(2), Vs. 8, Amrashagun Bunglows, Ahmedabad. Nr. Hathisingh Park, Satellite, Ahmedabad-380015. Pan: Asqps7606E

For Appellant: Ms Nupur Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT,D.R
Section 143(3)Section 147Section 148Section 68

…information or material pertaining to different assessment year may give rise to suspicion but not the reason to believe. In this regard we find support and guidance from the judgment of Hon’ble Supreme court in case of ITO vs. Lakhmani Mewal Das reported in 103 ITR 437, where the Hon’ble court held as under: "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 formation of this belief that there h…

DCIT, Central Circle-1(2), Ahmedabad vs. Dharmenbhai Mahendrabhai Sutaria -HUF, Ahmedabad

In the result appeal of the Revenue is dismissed

ITA 795/AHD/2019[2010-11]Status: DisposedITAT Ahmedabad27 Apr 2022AY 2010-11

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 795/Ahd/2019 With C.O.No.169/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2010-2011 D.C.I.T., Dharmenbhai M. Sutaria, Huf Central Circle-1(2), Vs. 16-B, Jadav Chamber, Ahmedabad. Ashram Road, Ahmedabad-380009. Pan: Aafhd1653K

For Appellant: Ms Nupur Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT,D.R
Section 147Section 148Section 68

…information or material pertaining to different assessment year may give rise to suspicion but not the reason to believe. In this regard we find support and guidance from the judgment of Hon’ble Supreme court in case of ITO vs. Lakhmani Mewal Das reposted in 103 ITR 437, where the Hon’ble court held as under: "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 formation of this belief that there…

DCIT, Central Circle-1(2), Ahmedabad vs. M/S.Dharmen Marble & Stone, Ahmedabad

In the result appeal of the Revenue is dismissed

ITA 794/AHD/2019[2010-11]Status: DisposedITAT Ahmedabad27 Apr 2022AY 2010-11

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 794/Ahd/2019 With C.O.No.171/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2010-2011 D.C.I.T., M/S. Dharmen Marble & Stone, Central Circle-1(2), Vs. 16-B, Jadav Chamber, Ahmedabad. Ashram Road, Ahmedabad-380009. Pan: Aabfd5172B

For Appellant: Ms Nupur Shah, A.RFor Respondent: Shri Vijaykumar Jaiswal, CIT, D.R
Section 143(3)Section 147Section 148Section 68

…information or material pertaining to different assessment year may give rise to suspicion but not the reason to believe. In this regard we find support and guidance from the judgment of Hon’ble Supreme court in case of ITO vs. Lakhmani Mewal Das reposted in 103 ITR 437, where the Hon’ble court held as under: "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 formation of this belief that there h…

DCIT - 14(3)(1), Mumbai vs. M/S Rupa Infotech & Infrastructure P. Ltd, Mumbai

In the result, appeals filed by the revenue are dismissed

ITA 3597/MUM/2019[2013-14]Status: DisposedITAT Mumbai27 Apr 2022AY 2013-14

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Ble

For Appellant: Shri Shankarlal JainFor Respondent: Shri T. Shankar
Section 143(1)Section 143(3)Section 147Section 148Section 68

…lant, hence it is a. general statement having no evidential value as judicially held. 4.1.1 Shaf Broadcast Pvt. Ltd vs. ACIT ITAT No. 1819/Mum/2012 dtd 17.4.13(mum) also held that ………. 4.1.2. the Hon'ble Supreme Court in the case of ITo vs. Lakhmani Meval Das 103 ITR 437 (SC) had an occasion to consider……….. 4.1.3 In the case of P.S. Veerappa Vs. CIT 127 ITR 247 (Mad) also held that ………….. 4.1.4 S.P Agarwalla V. Income Tax Officer 140 ITR 1010 (Cal.) the court held………. 4.2 No evidence to be rejected without verification 4.2.1 CIT v. Genesis Commet (P.) Ltd., 163 Taxman 0482 (Delhi), the court held: ………. 4.2.2 CIT…

DCIT 14(3)(1), Mumbai vs. M/S Rupa Properties & Securities P. Ltd, Mumbai

In the result, appeals filed by the revenue are dismissed

ITA 3596/MUM/2019[2009-10]Status: DisposedITAT Mumbai27 Apr 2022AY 2009-10

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Ble

For Appellant: Shri Shankarlal JainFor Respondent: Shri T. Shankar
Section 143(1)Section 143(3)Section 147Section 148Section 68

…lant, hence it is a. general statement having no evidential value as judicially held. 4.1.1 Shaf Broadcast Pvt. Ltd vs. ACIT ITAT No. 1819/Mum/2012 dtd 17.4.13(mum) also held that ………. 4.1.2. the Hon'ble Supreme Court in the case of ITo vs. Lakhmani Meval Das 103 ITR 437 (SC) had an occasion to consider……….. 4.1.3 In the case of P.S. Veerappa Vs. CIT 127 ITR 247 (Mad) also held that ………….. 4.1.4 S.P Agarwalla V. Income Tax Officer 140 ITR 1010 (Cal.) the court held………. 4.2 No evidence to be rejected without verification 4.2.1 CIT v. Genesis Commet (P.) Ltd., 163 Taxman 0482 (Delhi), the court held: ………. 4.2.2 CIT…

M/S. Nitesh Estates Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 5(1)(2), Bangalore

In the result appeal filed by assessee stands allowed on legal issue raised in ground no

ITA 1486/BANG/2019[2009-10]Status: DisposedITAT Bangalore20 Apr 2022AY 2009-10

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2009-10 M/S. Nitesh Estates The Deputy Ltd., Commissioner Of Nitesh Time Square, Income Tax, 7Th Floor, #8, M.G. Road, Circle – 5 [1][2], Bangalore – 560 001. Vs. Bangalore. Pan: Aabcn9267C Appellant Respondent Assessee By : Shri V. Srinivasan, Advocate : Shri Sankar Ganesh K, Jcit Revenue By (Dr) Date Of Hearing : 04-02-2022 Date Of Pronouncement : 20-04-2022 Order Per Beena Pillaipresent Appeal Has Been Filed By Assessee Against Order Dated 28/03/2019 Passed By The Ld. Cit(A)-5, Bangalore For Assessment Year 2009-10 On Following Grounds Of Appeal: “1. The Orders Of The Authorities Below In So Far As They Are Against The Appellant Are Opposed To Law, Equity, Weight Of Evidence, Probabilities, Facts & Circumstances Of The Case. 2. The Order Of Re-Assessment Is Bad In Law & Void-Ab- Initio For Want Of Requisite Jurisdiction Especially, The Mandatory Requirements To Assume Jurisdiction U/S 148 Of The Act Did Not Exist & Have Not Been Complied With & Consequently, The Re-Assessment Requires To Be Cancelled. 3. The Learned Cit[A] Ought To Have Appreciated That There Was No Fresh Material To Show That Income Had Escaped Assessment Especially When There Was A Scrutiny

For Appellant: Shri V. Srinivasan, Advocate
Section 143Section 143(3)Section 147Section 148Section 234

…iated. He placed reliance on the following decision in support of this contention: 1. M/s. Calcutta Discount Co., reported in 41 ITR 191 [SC] 2. Gangasaran reported in 130 ITR 1 3. Chuharmal Rajpal reported in 79 ITR 603 [SC] 4. Lakhmani Mewal Das reported in 103 ITR 437 [SC] 5. Navodaya Grama Vikas Charitable Trust vs. ACIT in ITA Nos. 552 & 553/Bang/2018 by order dt. 16.10.2020. Page 7 of 17 10. On the other hand, Ld.CIT.DR submitted that, the authority below was justified in reopening the assessment as assessee had incurred a loss of ₹ 1,02,42,949/- on surrender of land to KIADB. He supported the observations…

Khemchand Kangumal Tharwani, Na

In the result, appeal of the assessee is allowed

ITA 3135/AHD/2016[2012-13]Status: DisposedITAT Surat05 Apr 2022AY 2012-13

Bench: Shri Pawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.2867-2869/Ahd/2016 (िनधा"रणवष" / Assessment Years: (2008-09 To 2010-11) (Virtual Court Hearing) Assistant Commissioner Of Income Shri Rajesh Khemchand Tharwani, Tax, Navsari Circle, Room L/H Lt. Shri Khemchandbhai Vs. No./302, Aaykar Bhavan, Nr. Kungmal Tharwani, Prop. Of K.K. Biscuit Bakery, 154-155, Gidc, Charpool Police Chowki, Kabilpore, Navsari-396445 Lunsikui, Navsari-396445 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aalpt 1806 G (Assessee ) (Respondent) आयकरअपीलसं./Ita Nos.3135/Ahd/2016 (िनधा"रणवष" / Assessment Year: (2012-13) Shri Khemchand Kangumal Assistant Commissioner Of Income Tharwani, By L/R Rajesh Tax, Navsari Circle, Room No./302, Vs. Khemchand Tharwani, Prop. Of M/S Aaykar Bhavan, Nr. Charpool K.K. Biscuit Bakery, 154-155, Police Chowki, Lunsikui, Gidc, Kabilpore, Navsari-396445 Navsari-396445 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aalpt 1806 G (Assessee ) (Respondent)

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Abhishek Gautam – S. DR
Section 133ASection 143(3)Section 148

…regard is silent. 16. From the above details, it seems that the assessing officer is referring to certain material without describing them and quantifying the amounts contained therein. The Hon'ble Supreme Court in the case of ITO V/s Lakhmani Mewaldas (1976) 103 ITR 437 summarized as to what constitutes "reason to believe" for the purpose of section 147 of the Act, as follows: “(a) The powers of the Assessing Officer 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 reopening of an assessment after the lapse of many ye…

The Asstt. Commissioner of Income Tax, Na vs. Ari Circle, Navsari

In the result, appeal of the assessee is allowed

ITA 2869/AHD/2016[2010-11]Status: DisposedITAT Surat05 Apr 2022AY 2010-11

Bench: Shri Pawan Singh, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita Nos.2867-2869/Ahd/2016 (िनधा"रणवष" / Assessment Years: (2008-09 To 2010-11) (Virtual Court Hearing) Assistant Commissioner Of Income Shri Rajesh Khemchand Tharwani, Tax, Navsari Circle, Room L/H Lt. Shri Khemchandbhai Vs. No./302, Aaykar Bhavan, Nr. Kungmal Tharwani, Prop. Of K.K. Biscuit Bakery, 154-155, Gidc, Charpool Police Chowki, Kabilpore, Navsari-396445 Lunsikui, Navsari-396445 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aalpt 1806 G (Assessee ) (Respondent) आयकरअपीलसं./Ita Nos.3135/Ahd/2016 (िनधा"रणवष" / Assessment Year: (2012-13) Shri Khemchand Kangumal Assistant Commissioner Of Income Tharwani, By L/R Rajesh Tax, Navsari Circle, Room No./302, Vs. Khemchand Tharwani, Prop. Of M/S Aaykar Bhavan, Nr. Charpool K.K. Biscuit Bakery, 154-155, Police Chowki, Lunsikui, Gidc, Kabilpore, Navsari-396445 Navsari-396445 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aalpt 1806 G (Assessee ) (Respondent)

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Abhishek Gautam – S. DR
Section 133ASection 143(3)Section 148

…regard is silent. 16. From the above details, it seems that the assessing officer is referring to certain material without describing them and quantifying the amounts contained therein. The Hon'ble Supreme Court in the case of ITO V/s Lakhmani Mewaldas (1976) 103 ITR 437 summarized as to what constitutes "reason to believe" for the purpose of section 147 of the Act, as follows: “(a) The powers of the Assessing Officer 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 reopening of an assessment after the lapse of many ye…