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

Suresh Kumar Aggarwal, New Delhi vs. ACIT, Central Circle-25, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 8703/DEL/2019[2011-12]Status: DisposedITAT Delhi29 Jun 2020AY 2011-12

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishia Y 2011-12 Appellant Respondent Shri Suresh Kumar Agarwal The Assistant Commissioner Of 154, Deepali Enclave Vs. Income Tax Pitampura Central Circle -25 New Delhi New Delhi Pan :- Abvpk1318H ( Appellant ) ( Respondent ) Date Of Hearing 17-06-2020 Date Of Order 29.06.2020 Present For Assessee Shri Gautam Jain , Advocate Present For Income Tax Department :- Shri Saras Kumar Senior Departmental Representative O R D E R

Section 143Section 148Section 68

…INCOME TAX APPELLATE TRIBUNAL [G BENCH] New Delhi BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER A Y 2011-12 Appellant Respondent Shri Suresh Kumar Agarwal The Assistant Commissioner of 154, Deepali Enclave Vs. Income Tax Pitampura Central Circle -25 New Delhi New Delhi PAN :- ABVPK1318H ( Appellant ) ( Respondent ) Date of Hearing 17-06-2020 Date of Order 29.06.2020 Present for Assessee Shri Gautam Jain , Advocate Present for Income Tax Department :- Shri Saras Kumar Senior Departmental representative O R D E R PER PRASHANT MAHARISHI, A.M.: 01. ITA number 8703…

Smt. Rupal Dhupelia, Kolkata vs. DCIT, Central Circle - III, Kolkata

In the result, both the appeals are allowed

ITA 675/KOL/2011[2002-03]Status: DisposedITAT Kolkata15 Jun 2020AY 2002-03

Bench: Shri P.M.Jagtap, Vice- & Shri S.S.Godara

Section 147Section 148Section 69

…unassessable by reasons of an assessee’s failure in disclosing all material facts fully and truly must not be based on mere suspicious but on relevant information / material only. Their lordships next judgment Income Tax Officer vs. Lakmani Mewal Das, (1976) 103 ITR 437 (SC) also concluded that their must be some direct nexus or live link between the relevant material coming to an Assessing Officer’s notice whilst forming belief of escapement of taxable income from being assessed. Their lordships were further of the view that although it is correct that a court could not go into sufficiency or adequacy of the ma…

Shri Manoj Kumar Dhupelia, Kolkata vs. DCIT, Central Circle - III, Kolkata

In the result, both the appeals are allowed

ITA 674/KOL/2011[2002-03]Status: DisposedITAT Kolkata15 Jun 2020AY 2002-03

Bench: Shri P.M.Jagtap, Vice- & Shri S.S.Godara

Section 147Section 148Section 69

…unassessable by reasons of an assessee’s failure in disclosing all material facts fully and truly must not be based on mere suspicious but on relevant information / material only. Their lordships next judgment Income Tax Officer vs. Lakmani Mewal Das, (1976) 103 ITR 437 (SC) also concluded that their must be some direct nexus or live link between the relevant material coming to an Assessing Officer’s notice whilst forming belief of escapement of taxable income from being assessed. Their lordships were further of the view that although it is correct that a court could not go into sufficiency or adequacy of the ma…

ACIT (OSD), Ward - 12(3), Kolkata vs. M/S. Amrabathi Investra Pvt. Ltd., Kolkata

In the result, the appeal of the assessee is allowed and the appeal of the revenue is dismissed

ITA 365/KOL/2018[2009-10]Status: DisposedITAT Kolkata12 Jun 2020AY 2009-10

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.231/Kol/2018 ("नधा"रणवष" / Assessment Year:2009-10)

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri Ram Bilash Meena, CIT
Section 131Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 68

…iency or correctness of material not to be considered at this stage. vii) Reasonable grounds for ITO to the believe, sufficient to give jurisdiction, whether grounds are adequate or nor is not for H.C. RAYMOND WODLLENS : 207 ITR 929 (BOM) LAKHMANI MEVAL DAS : 103 ITR 437, 445, 446(SC) viii) Subsequent information of concealment definite, specific, sufficient reasons not for court to decide, Reassessment notice valid. PHOOLDCHAND BAJRANGLAL : 203 ITR 456 (SC) MIDLAND FRUIT &VEG : 208 ITR 266 (DELHI) ix) New Amendment merges the provision of 147(a), 147(b). Only condition now is that the Assessing Officer should ha…

Amrabathi Investra Pvt. Ltd., Kolkata vs. ITO, Ward - 12(3), Kolkata

In the result, the appeal of the assessee is allowed and the appeal of the revenue is dismissed

ITA 231/KOL/2018[2009-10]Status: DisposedITAT Kolkata12 Jun 2020AY 2009-10

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.231/Kol/2018 ("नधा"रणवष" / Assessment Year:2009-10)

For Appellant: Shri Subash Agarwal, AdvocateFor Respondent: Shri Ram Bilash Meena, CIT
Section 131Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 68

…iency or correctness of material not to be considered at this stage. vii) Reasonable grounds for ITO to the believe, sufficient to give jurisdiction, whether grounds are adequate or nor is not for H.C. RAYMOND WODLLENS : 207 ITR 929 (BOM) LAKHMANI MEVAL DAS : 103 ITR 437, 445, 446(SC) viii) Subsequent information of concealment definite, specific, sufficient reasons not for court to decide, Reassessment notice valid. PHOOLDCHAND BAJRANGLAL : 203 ITR 456 (SC) MIDLAND FRUIT &VEG : 208 ITR 266 (DELHI) ix) New Amendment merges the provision of 147(a), 147(b). Only condition now is that the Assessing Officer should ha…

M/S Bandanthamma Mathu Kalamma Trust, Mysore vs. Income Tax Officer Ward-1(4), Mysore

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

ITA 1764/BANG/2018[2011-12]Status: DisposedITAT Bangalore26 Feb 2020AY 2011-12

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

For Appellant: Sri. Narendra Sharma, AdvocateFor Respondent: Sri.Manjeet Singh, Addl.CIT-DR
Section 12ASection 143Section 143(3)Section 147Section 148Section 2

…essment for any assessment year. Unless the requirements of clause (a) or clause (b) of section 147 are satisfied, the Income-tax Officer has no jurisdiction to issue a notice under section 148". [vii] The Hon'ble Supreme Court in ITO V. Lakshmani Mewal Das [103 ITR 437] wherein it was a case arising 17 ITA Nos.1761-1766/Bang/2018 M/s.Bandanthamma Mathu Kalamma Trust. under section 147[a]. The Hon'ble Supreme Court reiterated that the reasons for the formation of the belief by the ITO, must have a rational connection or relevant bearing on the formation of the belief. It was further explained that this aspect…

M/S Bandanthamma Mathu Kalamma Trust, Mysore vs. Income Tax Officer Ward-1(4), Mysore

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

ITA 1763/BANG/2018[2010-11]Status: DisposedITAT Bangalore26 Feb 2020AY 2010-11

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

For Appellant: Sri. Narendra Sharma, AdvocateFor Respondent: Sri.Manjeet Singh, Addl.CIT-DR
Section 12ASection 143Section 143(3)Section 147Section 148Section 2

…essment for any assessment year. Unless the requirements of clause (a) or clause (b) of section 147 are satisfied, the Income-tax Officer has no jurisdiction to issue a notice under section 148". [vii] The Hon'ble Supreme Court in ITO V. Lakshmani Mewal Das [103 ITR 437] wherein it was a case arising 17 ITA Nos.1761-1766/Bang/2018 M/s.Bandanthamma Mathu Kalamma Trust. under section 147[a]. The Hon'ble Supreme Court reiterated that the reasons for the formation of the belief by the ITO, must have a rational connection or relevant bearing on the formation of the belief. It was further explained that this aspect…

M/S Bandanthamma Mathu Kalamma Trust, Mysore vs. Income Tax Officer Ward-1(4), Mysore

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

ITA 1762/BANG/2018[2009-10]Status: DisposedITAT Bangalore26 Feb 2020AY 2009-10

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

For Appellant: Sri. Narendra Sharma, AdvocateFor Respondent: Sri.Manjeet Singh, Addl.CIT-DR
Section 12ASection 143Section 143(3)Section 147Section 148Section 2

…essment for any assessment year. Unless the requirements of clause (a) or clause (b) of section 147 are satisfied, the Income-tax Officer has no jurisdiction to issue a notice under section 148". [vii] The Hon'ble Supreme Court in ITO V. Lakshmani Mewal Das [103 ITR 437] wherein it was a case arising 17 ITA Nos.1761-1766/Bang/2018 M/s.Bandanthamma Mathu Kalamma Trust. under section 147[a]. The Hon'ble Supreme Court reiterated that the reasons for the formation of the belief by the ITO, must have a rational connection or relevant bearing on the formation of the belief. It was further explained that this aspect…

M/S Bandanthamma Mathu Kalamma Trust, Mysore vs. Income Tax Officer Ward-1(4), Mysore

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

ITA 1766/BANG/2018[2013-14]Status: DisposedITAT Bangalore26 Feb 2020AY 2013-14

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

For Appellant: Sri. Narendra Sharma, AdvocateFor Respondent: Sri.Manjeet Singh, Addl.CIT-DR
Section 12ASection 143Section 143(3)Section 147Section 148Section 2

…essment for any assessment year. Unless the requirements of clause (a) or clause (b) of section 147 are satisfied, the Income-tax Officer has no jurisdiction to issue a notice under section 148". [vii] The Hon'ble Supreme Court in ITO V. Lakshmani Mewal Das [103 ITR 437] wherein it was a case arising 17 ITA Nos.1761-1766/Bang/2018 M/s.Bandanthamma Mathu Kalamma Trust. under section 147[a]. The Hon'ble Supreme Court reiterated that the reasons for the formation of the belief by the ITO, must have a rational connection or relevant bearing on the formation of the belief. It was further explained that this aspect…

M/S Bandanthamma Mathu Kalamma Trust, Mysore vs. Income Tax Officer Ward-1(4), Mysore

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

ITA 1765/BANG/2018[2012-13]Status: DisposedITAT Bangalore26 Feb 2020AY 2012-13

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

For Appellant: Sri. Narendra Sharma, AdvocateFor Respondent: Sri.Manjeet Singh, Addl.CIT-DR
Section 12ASection 143Section 143(3)Section 147Section 148Section 2

…essment for any assessment year. Unless the requirements of clause (a) or clause (b) of section 147 are satisfied, the Income-tax Officer has no jurisdiction to issue a notice under section 148". [vii] The Hon'ble Supreme Court in ITO V. Lakshmani Mewal Das [103 ITR 437] wherein it was a case arising 17 ITA Nos.1761-1766/Bang/2018 M/s.Bandanthamma Mathu Kalamma Trust. under section 147[a]. The Hon'ble Supreme Court reiterated that the reasons for the formation of the belief by the ITO, must have a rational connection or relevant bearing on the formation of the belief. It was further explained that this aspect…

M/S Bandanthamma Mathu Kalamma Trust, Mysore vs. Income Tax Officer Ward-1(4), Mysore

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

ITA 1761/BANG/2018[2008-09]Status: DisposedITAT Bangalore26 Feb 2020AY 2008-09

Bench: Shri Chandra Poojari, Am & Smt.Beena Pillai, Jm

For Appellant: Sri. Narendra Sharma, AdvocateFor Respondent: Sri.Manjeet Singh, Addl.CIT-DR
Section 12ASection 143Section 143(3)Section 147Section 148Section 2

…essment for any assessment year. Unless the requirements of clause (a) or clause (b) of section 147 are satisfied, the Income-tax Officer has no jurisdiction to issue a notice under section 148". [vii] The Hon'ble Supreme Court in ITO V. Lakshmani Mewal Das [103 ITR 437] wherein it was a case arising 17 ITA Nos.1761-1766/Bang/2018 M/s.Bandanthamma Mathu Kalamma Trust. under section 147[a]. The Hon'ble Supreme Court reiterated that the reasons for the formation of the belief by the ITO, must have a rational connection or relevant bearing on the formation of the belief. It was further explained that this aspect…

Shrimati Neetima Goyal, Ferozpur Cantt vs. Income Tax Officer, 3(2), Ferozpur

In the result, appeal of the assessee is allowed on legal ground

ITA 184/ASR/2018[2011-12]Status: DisposedITAT Amritsar03 Feb 2020AY 2011-12

Bench: Shri L.P. Sahu, Am & Shri Ravish Sood, Jm आयकर अऩीऱ सं./Ita No.184/Asr/2018 (ननधाारण वषा / Assessment Year :2011-2012) Neetima Goyal, Vs. Ito, Ward-3(2), Ferozepur Prop. Raghav Sales, G.T.Road, Ferozepur Cantt., Pin-152001 स्थायी ऱेखा सं./ Panno. : Aicpg 3586 H (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee By : Shri I.P.Bansal, Advocate राजस्व की ओर से /Revenue By : Shri Charan Dass, Dr

For Appellant: Shri I.P.Bansal, AdvocateFor Respondent: Shri Charan Dass, DR
Section 143(2)Section 143(3)Section 147Section 148Section 151Section 151(2)Section 44A

…to verify the said aspect the AO issued notice of reassessment proceedings which is equivalent to ‘reason to suspect’ and for his purpose the assessee is placing reliance on the decision of Hon’ble Supreme Court in the case of ITO Vs Lakhmani Mewal Das [1976] 103 ITR 437 (SC)( page 8 to 16) of the case law compendium. Reference is made to last para at page 15 and 16 of the case law compendium. 7. The reassessment proceedings is also invalid on the ground that satisfaction recorded by JCIT (page 66 as ‘yes satisfied’) Hon’ble Court have interpreted that the satisfaction to be recorded u/s 151 should not be in a ri…

Manju Devi Agarwal, Howrah vs. ITO, Ward - 46(1), Kolkata

In the result, all the appeals of assessee are allowed

ITA 1773/KOL/2019[2010-11]Status: DisposedITAT Kolkata17 Jan 2020AY 2010-11

Bench: Shri A. T. Varkey, Jm] I.T.A. No. 1771/Kol/2019 Assessment Year: 2010-11 Gopal Prasad Agarwal Vs Income-Tax Officer, Wd-46(1), Kolkata (Pan: Aczpa8061E) Appellant Respondent

Section 147

…as to be some kind of cause and effect relations between reasons recorded and the income escaping assessment. While dealing with this matters, 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 (SC): “the reasons for the formation of the belief must have rational connection with or relevant bearing on the formation of belief. Rational connection postulates that 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 the ass…

Payal Agarwal, Howrah vs. ITO, Ward - 46(1), Kolkata

In the result, all the appeals of assessee are allowed

ITA 1772/KOL/2019[2010-11]Status: DisposedITAT Kolkata17 Jan 2020AY 2010-11

Bench: Shri A. T. Varkey, Jm] I.T.A. No. 1771/Kol/2019 Assessment Year: 2010-11 Gopal Prasad Agarwal Vs Income-Tax Officer, Wd-46(1), Kolkata (Pan: Aczpa8061E) Appellant Respondent

Section 147

…as to be some kind of cause and effect relations between reasons recorded and the income escaping assessment. While dealing with this matters, 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 (SC): “the reasons for the formation of the belief must have rational connection with or relevant bearing on the formation of belief. Rational connection postulates that 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 the ass…

Gopal Prasad Agarwal, Howrah vs. ITO, Ward - 46(1), Kolkata

In the result, all the appeals of assessee are allowed

ITA 1771/KOL/2019[2010-11]Status: DisposedITAT Kolkata17 Jan 2020AY 2010-11

Bench: Shri A. T. Varkey, Jm] I.T.A. No. 1771/Kol/2019 Assessment Year: 2010-11 Gopal Prasad Agarwal Vs Income-Tax Officer, Wd-46(1), Kolkata (Pan: Aczpa8061E) Appellant Respondent

Section 147

…as to be some kind of cause and effect relations between reasons recorded and the income escaping assessment. While dealing with this matters, 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 (SC): “the reasons for the formation of the belief must have rational connection with or relevant bearing on the formation of belief. Rational connection postulates that 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 the ass…

Smt. Swaroopma Tripathi, Faizabad vs. Income Tax Officer-II, Faizabad

In the result, the appeal is allowed

ITA 593/LKW/2019[2010-11]Status: DisposedITAT Lucknow15 Jan 2020AY 2010-11

Bench: Shri. A. D. Jainassessment Year: 2010-11 Smt. Swaroopma Tripathi V. Ito-Ii 820, Awas Vikas Colony Faizabad Amaniganj Faizabad Tan/Pan:Aglpt9805D (Appellant) (Respondent) Appellant By: Shri P. K. Kapoor, C.A. Respondent By: Shri Ajay Kumar, D.R. Date Of Hearing: 15 01 2020 Date Of Pronouncement: 15 01 2020 O R D E R This Is Assessee’S Appeal Against The Order Of The Ld. Cit(A)-1, Lucknow, Dated 22/8/2019 For Assessment Year 2010- 11, Taking The Following Grounds:

For Appellant: Shri P. K. Kapoor, C.AFor Respondent: Shri Ajay Kumar, D.r
Section 143(2)Section 143(3)Section 147Section 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], ITA No.593/LKW/2019 Page 6 of 10 “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…

Shri Jasbir Singh, Jalandhar vs. Income Tax Officer, Ward-I (2), Jalandhar

In the result, the appeal of the assessee is allowed

ITA 426/ASR/2018[2011-12]Status: DisposedITAT Amritsar15 Jan 2020AY 2011-12

Bench: Shri N.K. Choudhry, Jm & Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.426/Asr/2018 ("नधा"रणवष" / Assessment Year: 2011-12)

For Appellant: Sh. Surinder Mahajan, CAFor Respondent: Sh. Charan Dass, DR
Section 143(1)Section 147Section 148Section 50C

…bserved by the Supreme Court in S. Narayanappa v. CIT [1967] 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. Lakhmani Merwal Das [1976] 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 requirements are not met, the Assessee is entitled to ch…

Budhiya Agencies Pvt. Ltd., Kolkata vs. DCIT, Circle-2, Kolkata

In the result, the appeal of the assessee is allowed

ITA 1231/KOL/2017[2008-09]Status: DisposedITAT Kolkata10 Jan 2020AY 2008-09

Bench: Shri A.T. Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1231/Kol/2017 (िनधा"रणवष"S / Assessment Year: 2008-09) Budhiya Agencies Pvt. Ltd. Vs. Dcit, Circle-2, Kolkata

For Appellant: Shri S. M. Surana, AdvocateFor Respondent: Shri Supriyo Pal, JCIT, Sr. DR
Section 142(1)Section 143(1)Section 143(3)Section 147Section 148Section 68

…bserved by the Supreme Court in S. Narayanappa v. CIT [1967] 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. Lakhmani Merwal Das [1976] 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…

M/S Dalmia Power Ltd vs. The Assistant Commissioner of Income Tax

Appeals are allowed

C.A. No.-009496-009499 - 2019Supreme Court18 Dec 2019

Bench: HON'BLE MS. JUSTICE INDU MALHOTRA

Section 139Section 139(5)

…does not prescribe any specific date but merely sanctions the scheme 2 Pr. Commissioner of Income Tax, New Delhi v. Maruti Suzuki India Limited, Civil Appeal No 5409 of 2019, decided on 25.07.2019 3 Marshall Sons & Co. (India) Ltd. v. ITO (1997) 2 SCC 302 19 presented, it would follow that the date of amalgamation/date of transfer is the date specified in the scheme as “the transfer date”. It was held that: “14. Every scheme of amalgamation has to necessarily provide a date with effect from which the amalgamation/transfer shall take place. The scheme concerned here…

M/S Blue Coast Infrastructure Development P. Ltd., Solan vs. DCIT, Parwanoo

In the result the appeal of the assessee is, hereby allowed and

ITA 652/CHANDI/2017[2008-09]Status: DisposedITAT Chandigarh11 Dec 2019AY 2008-09

Bench: Shri N.K. Saini & Shri Sanjay Gargआयकरअपीलसं./Ita No. 652/Chd/2017 "नधा"रणवष" / Assessment Year : 2008-09 M/S Blue Coast Infrastructure Vs. Dy. Commissioner Of Development P. Ltd., 7, Income Tax, Circle, बनाम Shopping Complex, Sector-1, Parwanoo Parwanoo, Distt. Solan, H.P.

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Chandrajit Singh, CIT-DR
Section 2(14)Section 2(14)(iii)

…H.P. 18 though the declaration or sufficiency of the reasons for the belief cannot be investigated by the court. The entire law as to what would constitute "reason to believe" had summed up by Supreme Court in Income Tax Officer v Lakhmani Mewaldas (1976) 103 ITR 437. In the case in hand, although, the assessing officer had information coming into his possession that the assessee had sold the property in question but had not returned / paid the capital gains tax, however, he was also aware that the necessary enquiries were made in this respect not only by his office but also by the Investigation Wing that t…