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)

Usha Polychem India Pvt. Ltd., Kolkata vs. PCIT-2, Kolkata

In the result, the appeal of the assessee is allowed

ITA 115/KOL/2021[2012-13]Status: DisposedITAT Kolkata25 Aug 2021AY 2012-13

Bench: Shri A. T. Varkey & Dr. M. L. Meena]

Section 143(3)Section 147Section 148Section 263

…ment. There has to be some kind of cause & effect between reasons recorded and the income escaping assessment. While dealing with this subject it is useful to bear in mind the following observation of Hon’ble Supreme Court in ITO vs. Lakhmani Mewal Das [1976] 103 ITR 437 wherein was held as follows: “The reasons for the formation of the belief must have a rational connection with or relevant bearing of 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 his belief that there has been…

M/S Reliance Chemotex Industries Ltd., Kolkata vs. D.C.I.T., Circle-10(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 58/KOL/2020[2011-12]Status: DisposedITAT Kolkata25 Aug 2021AY 2011-12

Bench: Shri A. T. Varkey, Hon’Ble & Dr. M. L. Meena, Hon’Ble]

Section 147

…ment. There has to be some kind of cause & effect between reasons recorded and the income escaping assessment. While dealing with this subject it is useful to bear in mind the following observation of Hon’ble Supreme Court in ITO vs. Lakhmani Mewal Das [1976] 103 ITR 437 wherein was held as follows: “The reasons for the formation of the belief must have a rational connection with or relevant bearing of 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 his belief that there has been…

Mesers Supertech Forgings(India) Pvt.Ltd., Jalandhar vs. Deputy Commissioner of Income Tax, Circle IV, Jalandhar

In the result, the appeal of the Assessee is allowed

ITA 563/ASR/2018[2010-11]Status: DisposedITAT Amritsar02 Aug 2021AY 2010-11

Section 143(3)Section 147

…y no stretch of imagination, it can be assumed that purchases made from him were bogus.In this regard, reliance is being placed upon the following case law and other case law enclosed separately in Paper book 2 at page no.178-202 of case law paper book [1976] 103 ITR 437 (SC) SUPREME COURT OF INDIAIncome-tax Officer v. LakhmaniMewal Das [Refer Page no. 178-186 of case law paper book] Section 147 of the Income-tax Act, 1961 [Corresponding to section 34(1) of Indian Income-tax Act, 1922] - Income escaping assessment - Illustrations - Assessment year 1958-59 - Whether reasons for formation of belief contemplated by…

ACIT, New Delhi vs. M/S. Sahyog Infrastructure Pvt. Ltd., New Delhi

In the result, the Cross Objection of the assessee is allowed and the appeal of the Assessing Officer is dismissed

ITA 5025/DEL/2015[2009-10]Status: DisposedITAT Delhi30 Jul 2021AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing) Acit, Vs. Sahyog Infrastructure Pvt. Ltd, Circle-22(1), C/O. Kapil Goel, Advocate, F- New Delhi 26/124, Sector-7, Rohini New Delhi Pan: Aaics1124J (Appellant) (Respondent)

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Shri Ajay Kumar, Sr. D.R

Section 143(2)Section 143(3)Section 148Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “A”: NEW DELHI ] BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER (Through Video Conferencing) ACIT, Vs. Sahyog Infrastructure Pvt. Ltd, Circle-22(1), C/o. Kapil Goel, Advocate, F- New Delhi 26/124, Sector-7, Rohini New Delhi PAN: AAICS1124J (Appellant) (Respondent) CO No. 149/Del/2018 (In ITA No. 5025/Del/2015) (Assessment Year: 2009-10) Sahyog Infrastructure Pvt. Ltd, Vs. ACIT, C/o. Kapil Goel, Advocate, F- Circle-22(1), 26/124, Sector-7, Rohini New Delhi New Delhi PAN: AAICS1124J (Appellant) (Respondent) Assessee by :…

Gurdish Kaur Khular, Jalandhar vs. ACIT( International Taxation), Circle, Chandigarh

In the result, appeal of the assessee is allowed

ITA 121/CHANDI/2020[2011-12]Status: DisposedITAT Chandigarh22 Jul 2021AY 2011-12

For Appellant: Shri Ashray Sarna, CAFor Respondent: Smt. Meenakshi Vohra, Addl. CIT

Section 144Section 147Section 148Section 271Section 69

…enanced, nor sustainable in law. " 9.4 Similarly the Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Smt. Paramjit Kaur (supra) while relying the judgment of the Hon'ble Apex Court in the case of ITO & Ors Vs. Lakhmani Mewal Das (1976) reported in 103 ITR 437 (SC) held as under: “ that the Assessing Officer had not examined the information received from the survey circle before recording his own satisfaction of escaped income and initiated reassessment proceedings. The Assessing Officer had thus acted only on the basis of suspicion and it could not be said that it was based on belief that the income…

ACIT, New Delhi vs. M/S. Bbn Transportation Pvt. Ltd., New Delhi

Appeals are dismissed in favour of the

ITA 6176/DEL/2013[2008-09]Status: DisposedITAT Delhi15 Jul 2021AY 2008-09

Section 147Section 148Section 68

…on, the assessees and the alleged escaped income, the absence of which, as per the settled law, renders the entire reassessment proceedings to be a nullity. The established case laws of Calcutta Discount 1961 41 ITR 191(SC) and ITO v. Lakmani Mewal Das, 1976 103 ITR 437 (SC) were cited in support, amongst others. 6.1 Per the Ld. A.R., the ‘reasons recorded’ in the present cases cannot be the basis on which any such ‘reason to believe’ could be arrived at which would even prima facie show that the share capital or share premium received by the assessees for the AYs under appeal was not genuine. Per the Ld. A…

ACIT, New Delhi vs. M/S. Sur Buildcon Pvt. Ltd., New Delhi

Appeals are dismissed in favour of the

ITA 6174/DEL/2013[2009-10]Status: DisposedITAT Delhi15 Jul 2021AY 2009-10

Section 147Section 148Section 68

…on, the assessees and the alleged escaped income, the absence of which, as per the settled law, renders the entire reassessment proceedings to be a nullity. The established case laws of Calcutta Discount 1961 41 ITR 191(SC) and ITO v. Lakmani Mewal Das, 1976 103 ITR 437 (SC) were cited in support, amongst others. 6.1 Per the Ld. A.R., the ‘reasons recorded’ in the present cases cannot be the basis on which any such ‘reason to believe’ could be arrived at which would even prima facie show that the share capital or share premium received by the assessees for the AYs under appeal was not genuine. Per the Ld. A…

Shri. Jitendra Virwani, Bangalore vs. Assistant Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result, both the appeals by the assessee are allowed

ITA 47/BANG/2021[2003-04]Status: DisposedITAT Bangalore23 Jun 2021AY 2003-04

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT), Bengaluru

Section 147Section 234DSection 69

…of the power and no roving enquiry on vague-hunches or indeterminate and impertinent consideration is envisaged.” 21. The entire law as to what would constitute "reason to believe" was summed up by the Hon’ble Supreme Court in ITO v Lakhmani Mewal Das [1976] 103 ITR 437. The following principles were laid down:- (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 years is a serious matter. Since the finality of a judicial or quasi…

Shri. Jitendra Virwani, Bangalore vs. Assistant Commissioner of Income Tax, Central Circle-1(3), Bangalore

In the result, both the appeals by the assessee are allowed

ITA 46/BANG/2021[2002-03]Status: DisposedITAT Bangalore23 Jun 2021AY 2002-03

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT), Bengaluru

Section 147Section 234DSection 69

…of the power and no roving enquiry on vague-hunches or indeterminate and impertinent consideration is envisaged.” 21. The entire law as to what would constitute "reason to believe" was summed up by the Hon’ble Supreme Court in ITO v Lakhmani Mewal Das [1976] 103 ITR 437. The following principles were laid down:- (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 years is a serious matter. Since the finality of a judicial or quasi…

Textron India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-5(1)(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 1342/BANG/2017[2008-09]Status: DisposedITAT Bangalore23 Jun 2021AY 2008-09

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2008-09

For Appellant: Shri Sumeet Khurana, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru

Section 10ASection 143(3)Section 148Section 271(1)(c)Section 40

…ion 148 after the expiry of four years from the end of the relevant assessment year. Since the same had not been done the impugned notices were wholly without jurisdiction.” 19. The relevant observations of the Supreme Court in the case of Lakhmani Mewal Das, 103 ITR 437 are as under:- “The reasons for the formation of belief must have a rational connection or relevant bearing on the formation of the belief. Formation of belief postulates that there must be a direct nexus or live link between the material coming to the notice of the income tax offices and the formation of his belief that there has been an escape…

Sh. Valmik Thapar, New Delhi vs. ACIT, New Delhi

Appeals are disposed of by this common order as indicated above

ITA 5767/DEL/2015[2007-08]Status: DisposedITAT Delhi11 Jun 2021AY 2007-08

Bench: Hon’Ble Justice P.P. Bhatt & Shri Prashant Maharishi(Through Video Conferencing) Shri Valmik Thapar, Vs. Acit, 19, Kautilya Marg, Circle-53(1), New Delhi New Delhi (Appellant) (Respondent) Shri Valmik Thapar, Vs. Dcit, M/S. R. N. Khanna & Company, Ca, Circle-32(1), 14-15F, Shivam House, Connaught New Delhi Place, New Delhi Pan: Aacpt7098K (Appellant) (Respondent) Acit, Vs. Shri Valmik Thapar, Circle-53(1), 19, Kautilya Marg, New Delhi New Delhi Pan: Aacpt7098K (Appellant) (Respondent) Assessee By : Shri Salil Agarwal, Senior Advocate Along With Shri Shailesh Gupta, Shri Mahur Agarwal, Advocates Revenue By: Shri H. K. Choudhary, Cit Dr Date Of Hearing 11/06/2021 (Last Hearing) Date Of Pronouncement 11/06/2021. O R D E R Per Prashant Maharishi, A. M. 1. These Are Three Appeals For Two Assessment Years Pertaining To One Assessee, Mr. Valmik Thapar, A Resident, Individual [Assessee]. Assessee Filed Ita Number

For Appellant: Shri Salil AgarwalFor Respondent: Shri H. K. Choudhary, CIT DR

Section 143Section 147Section 54Section 54E

…The Court relied upon the earlier decisions of the Supreme Court in A.N. Lakshman Shenoy v. ITO [1958] 34 ITR 275 (SC), S. Narayanappa v. CIT(1967) 63 ITR 219 (SC), Sheo Nath Singh v. Appellate Asstt. CIT[1971] 82 ITR 147 (SC), ITO v. Lakhmani Mewal Das[1976] 103 ITR 437 (SC). The Court has also discussed the decision of the Supreme Court in CIT v. Kelvinator of India Ltd. (supra). It must be noted at this stage that the Kelvinator of India Ltd. (supra) was a case one where the initial return was picked up for scrutiny and an assessment order passed under Section 143 (3) of the Act. 26.4 The conclusion in Orient…

ACIT, New Delhi vs. Sh. Valmik Thapar, New Delhi

Appeals are disposed of by this common order as indicated above

ITA 6726/DEL/2014[2010-11]Status: DisposedITAT Delhi11 Jun 2021AY 2010-11

Bench: Hon’Ble Justice P.P. Bhatt & Shri Prashant Maharishi(Through Video Conferencing) Shri Valmik Thapar, Vs. Acit, 19, Kautilya Marg, Circle-53(1), New Delhi New Delhi (Appellant) (Respondent) Shri Valmik Thapar, Vs. Dcit, M/S. R. N. Khanna & Company, Ca, Circle-32(1), 14-15F, Shivam House, Connaught New Delhi Place, New Delhi Pan: Aacpt7098K (Appellant) (Respondent) Acit, Vs. Shri Valmik Thapar, Circle-53(1), 19, Kautilya Marg, New Delhi New Delhi Pan: Aacpt7098K (Appellant) (Respondent) Assessee By : Shri Salil Agarwal, Senior Advocate Along With Shri Shailesh Gupta, Shri Mahur Agarwal, Advocates Revenue By: Shri H. K. Choudhary, Cit Dr Date Of Hearing 11/06/2021 (Last Hearing) Date Of Pronouncement 11/06/2021. O R D E R Per Prashant Maharishi, A. M. 1. These Are Three Appeals For Two Assessment Years Pertaining To One Assessee, Mr. Valmik Thapar, A Resident, Individual [Assessee]. Assessee Filed Ita Number

For Appellant: Shri Salil AgarwalFor Respondent: Shri H. K. Choudhary, CIT DR

Section 143Section 147Section 54Section 54E

…The Court relied upon the earlier decisions of the Supreme Court in A.N. Lakshman Shenoy v. ITO [1958] 34 ITR 275 (SC), S. Narayanappa v. CIT(1967) 63 ITR 219 (SC), Sheo Nath Singh v. Appellate Asstt. CIT[1971] 82 ITR 147 (SC), ITO v. Lakhmani Mewal Das[1976] 103 ITR 437 (SC). The Court has also discussed the decision of the Supreme Court in CIT v. Kelvinator of India Ltd. (supra). It must be noted at this stage that the Kelvinator of India Ltd. (supra) was a case one where the initial return was picked up for scrutiny and an assessment order passed under Section 143 (3) of the Act. 26.4 The conclusion in Orient…

Shri Valmik Thapar, New Delhi vs. DCIT, New Delhi

Appeals are disposed of by this common order as indicated above

ITA 6346/DEL/2014[2010-11]Status: DisposedITAT Delhi11 Jun 2021AY 2010-11

Bench: Hon’Ble Justice P.P. Bhatt & Shri Prashant Maharishi(Through Video Conferencing) Shri Valmik Thapar, Vs. Acit, 19, Kautilya Marg, Circle-53(1), New Delhi New Delhi (Appellant) (Respondent) Shri Valmik Thapar, Vs. Dcit, M/S. R. N. Khanna & Company, Ca, Circle-32(1), 14-15F, Shivam House, Connaught New Delhi Place, New Delhi Pan: Aacpt7098K (Appellant) (Respondent) Acit, Vs. Shri Valmik Thapar, Circle-53(1), 19, Kautilya Marg, New Delhi New Delhi Pan: Aacpt7098K (Appellant) (Respondent) Assessee By : Shri Salil Agarwal, Senior Advocate Along With Shri Shailesh Gupta, Shri Mahur Agarwal, Advocates Revenue By: Shri H. K. Choudhary, Cit Dr Date Of Hearing 11/06/2021 (Last Hearing) Date Of Pronouncement 11/06/2021. O R D E R Per Prashant Maharishi, A. M. 1. These Are Three Appeals For Two Assessment Years Pertaining To One Assessee, Mr. Valmik Thapar, A Resident, Individual [Assessee]. Assessee Filed Ita Number

For Appellant: Shri Salil AgarwalFor Respondent: Shri H. K. Choudhary, CIT DR

Section 143Section 147Section 54Section 54E

…The Court relied upon the earlier decisions of the Supreme Court in A.N. Lakshman Shenoy v. ITO [1958] 34 ITR 275 (SC), S. Narayanappa v. CIT(1967) 63 ITR 219 (SC), Sheo Nath Singh v. Appellate Asstt. CIT[1971] 82 ITR 147 (SC), ITO v. Lakhmani Mewal Das[1976] 103 ITR 437 (SC). The Court has also discussed the decision of the Supreme Court in CIT v. Kelvinator of India Ltd. (supra). It must be noted at this stage that the Kelvinator of India Ltd. (supra) was a case one where the initial return was picked up for scrutiny and an assessment order passed under Section 143 (3) of the Act. 26.4 The conclusion in Orient…