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

M/S. G.H. Vijapura, Mumbai vs. The Dy.CIT, Sabarkantha Circle, Himatnagar

In the result, appeal of the assessee is dismissed

ITA 2699/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad04 Dec 2019AY 2009-10

Bench: Shri Rajpal Yadav & Shri Amarjit Singhआयकर अपील सं./ Ita No.2699/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2009-10 1St M/S.G.H. Vijapura, Vs. Dcit, Sabarkantha Circle Floor, Aml Centre Himatnagar. Mahakali Caves Road Andher, Mumbai 93. Pan : Aabfg 3656 M

For Appellant: Shri K.C. Thakker, ARFor Respondent: Shri Mudit Nagpal, Sr.DR
Section 143(3)Section 147Section 148

…ent. In support of his contentions, he took us through written submissions filed before the ld.CIT(A) which has been reproduced on page no.3 to 8 of the impugned. He also relied upon the judgment of the Hon’ble Supreme Court in the case of Lakhmani Mewal Das, 103 ITR 437. He further relied upon the Hon’ble Allahabad High Court in the case of Hindustan metal Works, 202 ITR 978 (All); and Hon’ble Bombay High Court in the case of Raja Bahadur Motilal P.Ltd., 183 ITR 80 (Bom). 6. On the other hand, the ld.DR supported orders of the Revenue authorities. 7. We have considered rival submissions and gone through the re…

M/S. Mono Orion Food India Pvt. Ltd., Kolkata vs. DCIT, Circle - 8(1), Kolkata

In the result, the appeals of the assessee for both the assessment years are allowed

ITA 2001/KOL/2018[2010-11]Status: DisposedITAT Kolkata04 Dec 2019AY 2010-11

Bench: Shri J. Sudhakar Reddy & Shri S.S. Godara]

Section 147Section 148Section 250Section 68

…vidence. The Hon’ble Courts have laid down that a rational and intelligible nexus is to be found between the material and the reason recorded for the purpose of re-opening of assessment. The Supreme Court in the cases of ITO vs. Lakhmani Mewal Das reported in 103 ITR 437 (SC) and Ganga Saran & Sons vs. ITO 130 ITR 1 (SC) held as follows: “a) Income Tax-officer vs. Lakhmani Mewal Das 103 ITR 437 (SC): “As stated earlier, the reasons for the formation of the belief must have a rational connection with or relevant bearing on the formation of the belief Rational connection postulates that there must be a direct nexu…

M/S. Mono Orion Food India Pvt. Ltd., Kolkata vs. DCIT, Circle - 8(1), Kolkata

In the result, the appeals of the assessee for both the assessment years are allowed

ITA 2000/KOL/2018[2009-10]Status: DisposedITAT Kolkata04 Dec 2019AY 2009-10

Bench: Shri J. Sudhakar Reddy & Shri S.S. Godara]

Section 147Section 148Section 250Section 68

…vidence. The Hon’ble Courts have laid down that a rational and intelligible nexus is to be found between the material and the reason recorded for the purpose of re-opening of assessment. The Supreme Court in the cases of ITO vs. Lakhmani Mewal Das reported in 103 ITR 437 (SC) and Ganga Saran & Sons vs. ITO 130 ITR 1 (SC) held as follows: “a) Income Tax-officer vs. Lakhmani Mewal Das 103 ITR 437 (SC): “As stated earlier, the reasons for the formation of the belief must have a rational connection with or relevant bearing on the formation of the belief Rational connection postulates that there must be a direct nexu…

Oleofine Organics (India) P.Ltd, Mumbai vs. DCIT Cir 10(2), Mumbai

In the result, the appeal of the assessee with regard to limited purpose of Ground No

ITA 5831/MUM/2014[2006-07]Status: DisposedITAT Mumbai16 Oct 2019AY 2006-07

Bench: Shri Mahavir Singh, Jm & Shri M.Balaganesh, Am M/S. Oleofine Organics Vs. The Deputy Commissioner (India) Pvt.Ltd. Of Income Tax, Circle-10(2) 101/B, Fine House Aayakar Bhavan Anandji Lane New Marine Lines Off. M.G. Road Mumbai – 400 020 Ghatkopar (E) Mumbai – 400 077 Pan/Gir No. Aaaco1352Q (Appellant) .. (Respondent)

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

…ered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso.” In this regard, we find that the Hon’ble Supreme Court had considered this explanation in the case of ITO vs. Lakhmani Mewal Das reported in 103 ITR 437 (SC) at page 445 and held as under:- The grounds or reasons which lead to the formation of the belief contemplated by section 147(a) of the Act must have a material bearing on the question of escapement of income of the assessee from assessment M/s. Oleofine Organics (India) Pvt. Ltd. because of his failure or omission to disclose fully and trul…

Income Tax Officer, Ward 2(5), Katra vs. Sh. Chain Singh, Katra

In the result, the appeal filed by the Revenue Department stands dismissed

ITA 635/ASR/2017[2010-11]Status: DisposedITAT Amritsar09 Oct 2019AY 2010-11

Bench: Sh. B.R. Baskaran & Sh. N.K.Choudhryassessment Year:2010-11

For Appellant: Sh. Amar Pal Meena (Ld. DR)For Respondent: Sh. Joginder Singh (Ld. CA)
Section 147Section 148Section 250(6)

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. B.R. BASKARAN, ACCOUNTANT MEMBER AND SH. N.K.CHOUDHRY, JUDICIAL MEMBER Assessment Year:2010-11 Income Tax Officer, Vs. Sh. Chain Singh Ward-2(5), Katra Ward No.3, Nangal Road Katra [PAN:AILPS 9489E] (Appellant) (Respondent) Appellant by : Sh. Amar Pal Meena (Ld. DR) Respondent by: Sh. Joginder Singh (Ld. CA) Date of hearing: 28.08.2019 Date of pronouncement: 09.10.2019 ORDER PER N.K. CHOUDHRY, JM: The instant appeal has been preferred by the Revenue Department against the order dated 28/06/2017 impugned herein passed by the Ld.…

M/S. Raghvi Finance Ltd., New Delhi vs. ITO, New Delhi

The appeal of the assessee stands allowed

ITA 4565/DEL/2014[2005-06]Status: DisposedITAT Delhi27 Sept 2019AY 2005-06

Bench: Shri T.S. Kapoor & Shri Sudhanshu Srivastavaasstt. Year: 2005-06 Raghvi Finance Ltd. Vs. Ito 10, Community Centre-Ii, Ward-15(1) Ashok Vihar, Phase-Ii, New Delhi. New Delhi 110 063 Pan Aaacr5879F (Appellant) (Respondent)

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Shri Surender Pal, Sr. DR
Section 143(1)Section 147Section 148Section 69C

…effect relationship between the reasons recorded and the income escaping assessment. While dealing with this aspect of the matter, it is useful to bear in mind the observations made by the Hon'ble Supreme Court in the case of ITO Vs Lakhmani Mewal Das [(1976) 103 ITR 437] that, "......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 i…

Mansukhbhai Dayalbhai Patel, Surat vs. The Dy. Commissioner of Income Tax, Cen. Circle-2, Surat

In the result, the appeal of the assessee is partly allowed

ITA 1780/AHD/2016[2011-12]Status: DisposedITAT Surat27 Aug 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri O. P. Meenaआ.अ.सं./I.T.A No.1780/Ahd/2016 िनधा"रण वष"/Assessment Year: 2011-12 Shri Mansukhbhai Dayalbhai V. Assistant Commissioner Of Patel,(Sheta), Income Tax, Central 10 Shantiniketan Row House, Circle-2, Surat Anand Mahal Road Adajan, Surat. [Pan: Abcpp 1275 F] अपीलाथ" Appellant ""यथ"/Respondent िनधा"रती क" ओर से Assessee By Shri Rasesh Shah, Ca राज"व क" ओर से Revenue By Shri Sriniwas T. Bidari, Cit(Dr) सुनवाई क" तारीख Date Of Hearing 26.07.2019 उ"ोषणा क" तारीख Date Of 27.08.2019 Pronouncement

Section 143(3)Section 148Section 153A

…0/AHD/2016/A.Y.2011-12 Page 12 of 21 reopening of assessment is not valid in the eyes of law, for which the learned Counsel has placed reliance in the case of Ganga Saran & Sons Pvt. Ltd. v. ITO [1981]130 ITR 1 (SC) and ITO & Ors v. Lakhmani Mewal Das [1976] 103 ITR 437 (SC) ITO & Ors v. Lakhmani Mewal Das [1976] 103 ITR 437 (SC) wherein it was held that the powers of ITO to reopen the assessment, though wide, are not plenary. The words of statute are “reason to believe” and not “reason to suspect”. The learned Counsel further submitted that there was no tangible material available on record with the AO to form…

Arihant Constructions, Visakhapatnam vs. The Assistant Commissioner of Income Tax, Circle-4(1), Visakhapatnam

In the result, appeals of the assessee for the A

ITA 324/VIZ/2019[2014-15]Status: DisposedITAT Visakhapatnam23 Aug 2019AY 2014-15

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.321-325/Viz/2019 (ननधधारण वर्ा/Assessment Year : 2011-12 To 2015-16) M/S Arihant Constructions Vs. Asst.Commissioner Of Income Tax M/S B.V.Rao & Co Llp Circle-4(1) Chartered Accountants Visakhapatnam Ff-1, Satya Lakshmi Vinayaka Towers, Madhuranagar Visakhapatnam [Pan : Aarfa0600P] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri B.V.Rao, Ar प्रत्यधथी की ओर से / Respondent By : Shri D.V.Subba Rao, Dr सुनवधई की तधरीख / Date Of Hearing : 05.08.2019 घोर्णध की तधरीख/Date Of Pronouncement : 23 .08.2019

For Appellant: Shri B.V.Rao, ARFor Respondent: Shri D.V.Subba Rao, DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…taken the support of the following case laws: (i) Skylight Hospitality LLP Vs. ACIT (2018) 405 ITR 296 (Delhi) (ii) Rakesh Gupta Vs. CIT & Another (2018) 405 ITR 213 (P&H) (iii) Decisions of Hon’ble Supreme Court in the case of (a) ITO Vs. Lakshmani Mewal Das 103 ITR 437 (SC) (b) Raymond Woollen Mills Vs. ITO & Anr. 236 ITR 34 (SC) (c) Phoolchand Bhajranglal & Anr. Vs. ITO 203 ITR 456 (SC) 3.1. The Ld.CIT(A) also relied on the decision of Hon’ble Supreme Court in the case of ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt Ltd. [2007] 291 ITR 5 I.T.A. No.321-325/Viz/2019, A.Y.2011-12 to 2015-16 M/s Arihant Construction…

Arihant Constructions, Visakhapatnam vs. The Assistant Commissioner of Income Tax, Circle-4(1), Visakhapatnam

In the result, appeals of the assessee for the A

ITA 323/VIZ/2019[2013-14]Status: DisposedITAT Visakhapatnam23 Aug 2019AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.321-325/Viz/2019 (ननधधारण वर्ा/Assessment Year : 2011-12 To 2015-16) M/S Arihant Constructions Vs. Asst.Commissioner Of Income Tax M/S B.V.Rao & Co Llp Circle-4(1) Chartered Accountants Visakhapatnam Ff-1, Satya Lakshmi Vinayaka Towers, Madhuranagar Visakhapatnam [Pan : Aarfa0600P] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri B.V.Rao, Ar प्रत्यधथी की ओर से / Respondent By : Shri D.V.Subba Rao, Dr सुनवधई की तधरीख / Date Of Hearing : 05.08.2019 घोर्णध की तधरीख/Date Of Pronouncement : 23 .08.2019

For Appellant: Shri B.V.Rao, ARFor Respondent: Shri D.V.Subba Rao, DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…taken the support of the following case laws: (i) Skylight Hospitality LLP Vs. ACIT (2018) 405 ITR 296 (Delhi) (ii) Rakesh Gupta Vs. CIT & Another (2018) 405 ITR 213 (P&H) (iii) Decisions of Hon’ble Supreme Court in the case of (a) ITO Vs. Lakshmani Mewal Das 103 ITR 437 (SC) (b) Raymond Woollen Mills Vs. ITO & Anr. 236 ITR 34 (SC) (c) Phoolchand Bhajranglal & Anr. Vs. ITO 203 ITR 456 (SC) 3.1. The Ld.CIT(A) also relied on the decision of Hon’ble Supreme Court in the case of ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt Ltd. [2007] 291 ITR 5 I.T.A. No.321-325/Viz/2019, A.Y.2011-12 to 2015-16 M/s Arihant Construction…

Arihant Constructions, Visakhapatnam vs. The Assistant Commissioner of Income Tax, Circle-4(1), Visakhapatnam

In the result, appeals of the assessee for the A

ITA 322/VIZ/2019[2012-13]Status: DisposedITAT Visakhapatnam23 Aug 2019AY 2012-13

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.321-325/Viz/2019 (ननधधारण वर्ा/Assessment Year : 2011-12 To 2015-16) M/S Arihant Constructions Vs. Asst.Commissioner Of Income Tax M/S B.V.Rao & Co Llp Circle-4(1) Chartered Accountants Visakhapatnam Ff-1, Satya Lakshmi Vinayaka Towers, Madhuranagar Visakhapatnam [Pan : Aarfa0600P] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri B.V.Rao, Ar प्रत्यधथी की ओर से / Respondent By : Shri D.V.Subba Rao, Dr सुनवधई की तधरीख / Date Of Hearing : 05.08.2019 घोर्णध की तधरीख/Date Of Pronouncement : 23 .08.2019

For Appellant: Shri B.V.Rao, ARFor Respondent: Shri D.V.Subba Rao, DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…taken the support of the following case laws: (i) Skylight Hospitality LLP Vs. ACIT (2018) 405 ITR 296 (Delhi) (ii) Rakesh Gupta Vs. CIT & Another (2018) 405 ITR 213 (P&H) (iii) Decisions of Hon’ble Supreme Court in the case of (a) ITO Vs. Lakshmani Mewal Das 103 ITR 437 (SC) (b) Raymond Woollen Mills Vs. ITO & Anr. 236 ITR 34 (SC) (c) Phoolchand Bhajranglal & Anr. Vs. ITO 203 ITR 456 (SC) 3.1. The Ld.CIT(A) also relied on the decision of Hon’ble Supreme Court in the case of ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt Ltd. [2007] 291 ITR 5 I.T.A. No.321-325/Viz/2019, A.Y.2011-12 to 2015-16 M/s Arihant Construction…

Arihant Constructions, Visakhapatnam vs. The Assistant Commissioner of Income Tax, Circle-4(1), Visakhapatnam

In the result, appeals of the assessee for the A

ITA 321/VIZ/2019[2011-12]Status: DisposedITAT Visakhapatnam23 Aug 2019AY 2011-12

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.321-325/Viz/2019 (ननधधारण वर्ा/Assessment Year : 2011-12 To 2015-16) M/S Arihant Constructions Vs. Asst.Commissioner Of Income Tax M/S B.V.Rao & Co Llp Circle-4(1) Chartered Accountants Visakhapatnam Ff-1, Satya Lakshmi Vinayaka Towers, Madhuranagar Visakhapatnam [Pan : Aarfa0600P] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri B.V.Rao, Ar प्रत्यधथी की ओर से / Respondent By : Shri D.V.Subba Rao, Dr सुनवधई की तधरीख / Date Of Hearing : 05.08.2019 घोर्णध की तधरीख/Date Of Pronouncement : 23 .08.2019

For Appellant: Shri B.V.Rao, ARFor Respondent: Shri D.V.Subba Rao, DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

…taken the support of the following case laws: (i) Skylight Hospitality LLP Vs. ACIT (2018) 405 ITR 296 (Delhi) (ii) Rakesh Gupta Vs. CIT & Another (2018) 405 ITR 213 (P&H) (iii) Decisions of Hon’ble Supreme Court in the case of (a) ITO Vs. Lakshmani Mewal Das 103 ITR 437 (SC) (b) Raymond Woollen Mills Vs. ITO & Anr. 236 ITR 34 (SC) (c) Phoolchand Bhajranglal & Anr. Vs. ITO 203 ITR 456 (SC) 3.1. The Ld.CIT(A) also relied on the decision of Hon’ble Supreme Court in the case of ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt Ltd. [2007] 291 ITR 5 I.T.A. No.321-325/Viz/2019, A.Y.2011-12 to 2015-16 M/s Arihant Construction…

Mrs. Renu Sehgal, Jaipur vs. Deputy Commissioner of Income Tax, Central Circle-3, Jaipur

In the result, the appeals of the assessee is allowed and that of the

ITA 708/JPR/2018[2012-13]Status: DisposedITAT Jaipur19 Aug 2019AY 2012-13

Bench: : Shri Vijay Pal Rao, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 837/Jp/2018 Fu/Kzkj.K O"Kz@Assessment Year : 2012-13 Cuke The Acit Smt. Renu Sehgal Vs. Central Circle-3 27, Onkar Nagar, Civil Lines Jaipur Jaipur Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Aepps 3048 M Vihykfkhz@Appellant Izr;Fkhz@Respondent Vk;Dj Vihy La-@Ita No. 708 & 709 Jp/2018 Fu/Kzkj.K O"Kz@Assessment Year : 2012-13 & 2015-16 Cuke Mrs. Renu Sehgal The Dcit Vs. 227-278, Nemisagar Colony Central Circle-3, Vaishali Nagar, Jaipur Jaipur Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Aepps 3048 M Vihykfkhz@Appellant Izr;Fkhz@Respondent Jktlo Dh Vksj Ls@ Revenue By : Shri Varinder Mehta, Cit-Dr Fu/Kzkfjrh Dh Vksj Ls@ Assessee By : Shri P.C. Parwal, Ca Lquokbz Dh Rkjh[K@ Date Of Hearing : 06/08/2019 ?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 19/08/2019 Vkns'K@ Order Per Vijay Pal Rao, Jm There Are Cross Appeals For The Assessment Year 2012-13 Directed Against The Order Dated 09-04-2013 Of The Ld. Cit(A)-4, Jaipur. The 2 Smt. Renu Sehgal Vs Dcit, Central Circle-3, Jaipur

For Appellant: Shri P.C. Parwal, CAFor Respondent: Shri Varinder Mehta, CIT-DR fu/kZkfjrh dh vksj ls@
Section 143Section 143(3)Section 153Section 153ASection 51Section 68

…e can be given to his statement to hold the sale agreement as bogus or sham. 8.2 Here it is useful to refer to two judgments of Hon,ble Supreme Court in the cases of Chhugamal Rajpal v. S.P. Chaliha [1971] 79 ITR 603 (SC) and ITO v. Lakhmani Mewal Das [1976] 103 ITR 437 (SC). In Chhugamal Rajpal s case (supra) the ITO had initiated reassessment proceedings on the basis of a 'circular' issued from the office of the Commissioner, Bihar & Orissa, which stated that three persons named in that circular, were merely name-lenders and their transactions were bogus and proper investigation regarding the loans from such p…

M/S Manish Finlease (P) Ltd, Patna vs. ITO, Ward-2(1), Patna

ITA 25/PAT/2019[2010-11]Status: DisposedITAT Patna09 Aug 2019AY 2010-11

Bench: Shri Chandra Mohan Garg & Laxmi Prasad Sahuassessment Year : 2010-2011 Manish Finlease Pvt Ltd., Vs. Ito, Ward 2(1), Patna Chandi House Exhibition Road, Patna Pan/Gir No.Aaccm 6252 B (Appellant) .. ( Respondent) Assessee By : Shri A.K.Rastogi & Rakesh Kumar, Ars Revenue By : Shri Indrajeet Singh, Dr Date Of Hearing : 20/06/ 2019 Date Of Pronouncement : 09/08/ 2019 O R D E R Per Bench This Is An Appeal Filed By The Assessee Against The Order Of The Cit(A)-1, Patna Dated 27.9.2018 For The Assessment Year 2010-2011. 2. The Appeal Filed By The Assessee Is Delayed By 51 Days. The Assessee Has Filed Application For Condonation Of Delay Stating The Reasons For Not Filing The Appeal In Time Before The Tribunal. After Hearing The Submissions Of The Parties, We Are Satisfied That The Assessee Had A Bonafide Reason For Not Filing The Appeal In Time. Therefore, We Condone The Delay & Proceed To Decide The Appeal Of The Assessee On Merits.

For Appellant: Shri A.K.Rastogi & Rakesh Kumar, ARsFor Respondent: Shri Indrajeet Singh, DR
Section 133(6)Section 143(2)Section 143(3)Section 147Section 148(1)Section 68

…ostulates that there must be a direct nexus between the material coming to the notice of the AO and the formation of the belief that there has been escapement of income of the assessee from the assessment as held in the case of ITO v. LakhmaniMewal Das [1976] 103 ITR 437(SC) and Jai GopalMehrav. ITO [1969] 74 ITR 594 (Punj.&Har.). 2.12 The jurisdictional High Court in the case ofBhimrajPannaLal v. CIT [1957] 32JTR £89 (Pat.) held that the words 'reason to believe' do not mean 'reason to suspect'. Section 147 does not give unfettered discretion to the income-tax authorities. The belief entertained by the authoriti…

Shri Ravindrasinh N.Gohil, Bhavnagar vs. Income Tax Office, Ward-1(1), Bhavnagar

Appeal is allowed

ITA 3344/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad07 Aug 2019AY 2008-09

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

For Appellant: Shri Tushar Hemani, A.RFor Respondent: Ms. Richa Rastogi, Sr. D.R
Section 143(3)Section 147Section 148Section 271(1)(c)

…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 v. 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 th…

Shri Ravindrasinh N.Gohil, Bhavnagar vs. Income Tax Office, Ward-1(1), Bhavnagar

Appeal is allowed

ITA 3343/AHD/2015[2010-11]Status: DisposedITAT Ahmedabad07 Aug 2019AY 2010-11

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

For Appellant: Shri Tushar Hemani, A.RFor Respondent: Ms. Richa Rastogi, Sr. D.R
Section 143(3)Section 147Section 148Section 271(1)(c)

…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 v. 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 th…

Smt. Warsha Bagaria, Ranchi vs. ITO, Ward-3(3), Ranchi

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

ITA 235/RAN/2018[2012-13]Status: DisposedITAT Ranchi26 Jul 2019AY 2012-13
For Appellant: Shri Devesh Poddar, AdvocateFor Respondent: Shri P.K.Mondal, ACIT(DR)
Section 139Section 143(2)Section 147Section 148Section 234A

…etween tangible material and formation of reason to believe that income had escaped assessment, therefore, the reassessment was not justified. Ld. AR also contended that as per decision of Hon’ble Supreme Court in the case of ITO Vs. Lakhmani Mewal Das [1976] 103 ITR 437 (SC), ‘ the 6 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 Income-tax Officer and the formation of his belief that there has been escapeme…

Pelican Credits & Scurities P. Ltd, Mumbai vs. DCIT 5(2)(1), Mumbai

In the result, the appeal of assessee is allowed on jurisdictional issue

ITA 2413/MUM/2017[2007-08]Status: DisposedITAT Mumbai12 Jul 2019AY 2007-08

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri Bhupendra Shah, ARFor Respondent: Shri Abirama Karthikeyan, DR
Section 133(6)Section 143(1)Section 143(3)Section 147Section 148

…आयकर अपीलीय अधिकरण “C” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI श्री महावीर स िंह, न्याययक दस्य एविं श्री मनोज कुमार अग्रवाल के मक्ष । BEFORE SRI MAHAVIR SINGH, JM AND SRI MANOJ KUMAR AGGARWAL, AM Aayakr ApIla saM./ ITA No. 2413/Mum/2017 (inaQa-arNa baYa- / Assessment Year 2007-08) Pelican Credits & Securities Dy. Commissioner of Private Limited Income Tax 5(2)(1) 601, 9, JVPD, 10th road, JVPD Vs. 5th Floor, Room No. 571, Scheme, Vile Parle, Aayakar Bhavan, M.K. Mumbai-400 049 Road, Mumbai-400 020 .. (p`%yaqaaI- / Respondent) (ApIlaaqaI- / Appellant) स्थायी लेखा िं./PAN No. AA…

M/S Rajasthan Rajya Vidyut Prasaran Nigam Ltd., Jaipur vs. Assistant Commissioner of Income Tax, Jaipur

In the result, appeal of the assessee is allowed

ITA 25/JPR/2019[2005-06]Status: DisposedITAT Jaipur02 Jul 2019AY 2005-06
For Appellant: Shri PC Parwal (CA)For Respondent: Shri Varinder Mehta (CIT)
Section 143(3)Section 147Section 148

…nt to the purpose of the section. To this limited extent, the action of the Income-tax Officer in starting proceedings under section 34 of the Act is open to challenge in a court of law.' (Emphasis Supplied) 8. In the matter of ITO v. Lakhmani Mewal Das[1976] 103 ITR 437, the Hon'ble Supreme Court has observed as under : "Production before the Income-tax Officer of the account books or other evidence from which material evidence could with due diligence amount to disclosure contemplated by law. The duty of the assessee in any case does not extend beyond making a true and full disclosure of primary facts. Once he…

Time Media & Entertainment LLP (Earlier Time Media & Entertainment Private Limited), Mumbai vs. Income Tax Officer 16(1)(5), Mumbai

In the result, the appeal of the assessee in ITA no

ITA 6534/MUM/2017[2010-11]Status: DisposedITAT Mumbai18 Jun 2019AY 2010-11

Bench: Shri Sandeep Gosain & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6534/Mum/2017 (नििाारण वर्ा / Assessment Year: 2010-11) बिाम/ Time Media & Income Tax Officer- Entertainment Llp (Earlier 16(1)(5) Time Media & R.No. 439, 4 Th Floor, V. Entertainment Private Aayakar Bhavan, Ltd.) M.K Marg, 104, Rachna, V.P Road, Mumbai-400020 Vile Parle (W), Mumbai-400056 स्थायी ऱेखा सं./ Pan: Aaact1581C (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri. Reepal G. Tralshawala Revenue By: Shri. D.G. Pansari (Dr) सुनवाई की तारीख /Date Of Hearing : 28.03.2019 घोषणा की तारीख /Date Of Pronouncement : 18.06.2019 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Assessee, Being Ita No. 6534/Mum/2017, Is Directed Against Appellate Order Dated 31.07.2017, Passed By Learned Commissioner Of Income Tax (Appeals)-4, Mumbai (Hereinafter Called “The Cit(A)”) In Appeal No. Cit(A)-4/It-89/Ito-16(1)(5)/2016-17, For Assessment Year 2010-11, The Appellate Proceedings Had Arisen Before Learned Cit(A) From The Assessment Order Dated 30.03.2016 Passed By Learned Assessing Officer (Hereinafter Called “The Ao”) U/S 143(3) R.W.S. 147 Of The Income-Tax Act, 1961 (Hereinafter Called “The Act”) For Ay 2010-11. I.T.A. No.6534/Mum/2017

For Appellant: Shri. Reepal G. TralshawalaFor Respondent: Shri. D.G. Pansari (DR)
Section 143(1)Section 143(2)Section 143(3)

…g made a basis to determine the profit percentage for the assessment year 1995-96 without there being any material for the relevant assessment year. 34. Mrs. Suri relied upon the following observations of the Supreme Court in ITO v. Lakhmani Mewal Das, [1976] 103 ITR 437 (SC): "11. As stated earlier, the reasons for the formation of the belief must have a 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 Income-tax Officer and the formation of his belief that th…

DCIT, Central Circle -1(1), Ahmedabad vs. Shri Deepak Budharmal Vaswani, Ahmedabad

In the result, the appeal of the assessee is allowed in the terms indicated above, and the appeal of the Assessing Officer is dismissed as infructuous

ITA 667/AHD/2018[2007-08]Status: DisposedITAT Ahmedabad17 Jun 2019AY 2007-08
Section 143(1)Section 143(3)Section 147

…. He also submitted that he has nothing to do with plot no. 33A referred to in the reasons and the same belongs to Parth Bopal Cooperative Housing Society Ltd and not him. Referring to Hon’ble Supreme Court’s judgment in the case of ITO Vs Lakhmani Mewal Das (103 ITR 437), the assessee highlighted the need for live link between material and belief so as to justify the reopening and the fact that an application was also filed seeking relevant information under the Right to Information Act, 2005. The assessee thus vehemently objected to the reasons recorded for reopening the assessment. Vide order dated 10th June 2…