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 367,518 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

Shri Sunil Kumar Saraswat, Mathura vs. ITO 1(3)(4), Mathura

In the result, the appeal is allowed

ITA 109/AGR/2017[2008-09]Status: DisposedITAT Agra26 Sept 2017AY 2008-09

Bench: Shri A. D. Jain

Section 131(1)Section 147Section 148Section 68

…nt; and that there has to be some kind of cause and effect relationship between the reasons recorded and the income I.T.A No. 109/Agra/2017 9 escaping assessment. The observations of the Hon’ble Supreme Court in the case of ITO v. Lakhmani Mewal Das [1976] 103 ITR 437 (SC), were reproduced, 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 then; has been…

ACIT - 19(1), Mumbai vs. Ganesh J. Modi, Mumbai

In the result, the appeal for the AY 2010-11 of the assessee and the revenue are allowed for statistical purposes

ITA 2770/MUM/2016[2008-09]Status: DisposedITAT Mumbai08 Sept 2017AY 2008-09

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Ganesh J Modi Acit Circle 19(1), 115/28 J.K. Building, Dr. M Vs. Room No. 203, 2Nd G Mahimtura Marg, Floor, Matru Mandir, 3Rdkumbharwada, Tardeo, Mumbai-400004 Mumbai-400007 Pan No. Aacpm0690C (Appellant) (Respondent) Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Acit Circle 19(1), Ganesh J Modi Room No. 203, 2Nd Vs. 115/28 J.K. Building, Dr. M Floor, Matru Mandir, G Mahimtura Marg, 3Rd Tardeo, Kumbharwada, Mumbai-400007 Mumbai-400004 Pan No. Aacpm0690C (Appellant) (Respondent) Assessee By : Shri Sanjiv M. Shah, Ar Revenue By: Shri Saurabh Kumar Rai, Dr Date Of Hearing : 13/06/2017 Date Of Pronouncement: 08/09/2017

For Appellant: Shri Sanjiv M. Shah, ARFor Respondent: Shri Saurabh Kumar Rai, DR
Section 133(6)Section 143Section 143(3)

…raming of reassessment order on merits. 11.1 In this regard the Ld. counsel relied on the decision in CIT vs. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC), Siemens Information System Ltd. vs. ACIT (2007) 295 ITR 333 (Bom), ITO vs. Lakhmani Mewaldas (1976) 103 ITR 437 (SC), Pr. CIT vs. Tupperware India Pvt. Ltd. (ITA No. 415/2015) by Delhi High Court, CIT vs. M/s Trend Electronics (ITA No. 1867 of 2013) by Bombay High Court. 11.2 The Ld. counsel further submits that on merits the addition is not sustainable because of the following reasons: i. purchases are supported by clinching evidences (a) bills and challa…

Ganesh J Modi, Mumbai vs. Asst CIT Cir 19(1), Mumbai

In the result, the appeal for the AY 2010-11 of the assessee and the revenue are allowed for statistical purposes

ITA 1967/MUM/2016[2008-09]Status: DisposedITAT Mumbai08 Sept 2017AY 2008-09

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Ganesh J Modi Acit Circle 19(1), 115/28 J.K. Building, Dr. M Vs. Room No. 203, 2Nd G Mahimtura Marg, Floor, Matru Mandir, 3Rdkumbharwada, Tardeo, Mumbai-400004 Mumbai-400007 Pan No. Aacpm0690C (Appellant) (Respondent) Assessment Year: 2008-09 & Assessment Year: 2009-10 & Assessment Year: 2010-11 Acit Circle 19(1), Ganesh J Modi Room No. 203, 2Nd Vs. 115/28 J.K. Building, Dr. M Floor, Matru Mandir, G Mahimtura Marg, 3Rd Tardeo, Kumbharwada, Mumbai-400007 Mumbai-400004 Pan No. Aacpm0690C (Appellant) (Respondent) Assessee By : Shri Sanjiv M. Shah, Ar Revenue By: Shri Saurabh Kumar Rai, Dr Date Of Hearing : 13/06/2017 Date Of Pronouncement: 08/09/2017

For Appellant: Shri Sanjiv M. Shah, ARFor Respondent: Shri Saurabh Kumar Rai, DR
Section 133(6)Section 143Section 143(3)

…raming of reassessment order on merits. 11.1 In this regard the Ld. counsel relied on the decision in CIT vs. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC), Siemens Information System Ltd. vs. ACIT (2007) 295 ITR 333 (Bom), ITO vs. Lakhmani Mewaldas (1976) 103 ITR 437 (SC), Pr. CIT vs. Tupperware India Pvt. Ltd. (ITA No. 415/2015) by Delhi High Court, CIT vs. M/s Trend Electronics (ITA No. 1867 of 2013) by Bombay High Court. 11.2 The Ld. counsel further submits that on merits the addition is not sustainable because of the following reasons: i. purchases are supported by clinching evidences (a) bills and challa…

Lalita Anup Anand, Mumbai vs. ITO WD 21(2)(2), Mumbai

The appeal of the assessee is allowed

ITA 7415/MUM/2016[2012-13]Status: DisposedITAT Mumbai01 May 2017AY 2012-13

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2012-13 Smt. Lalita Anup Anand, Income Tax Officer 337, Ashish Indl. Estate, Ward-21(2)(2), बनाम/ Gokhale Road, Room No.111, 1St Floor, Vs. Dadar (West), Piramal Chambers, Parel, Mumbai-400028 Mumbai-400012 Pan No.Aadpa1527B (राज"व /Revenue) ("नधा"रती /Assessee)

…e AO can assume jurisdiction for reassessment proceedings provided he has reasons to believe but the same cannot be taken recourse to on the basis of reasons to suspect. 13 Lalita anup Anand 5. In ITO & Ors. vs. Lakhmani Mewal Das 1976 CTR (SC) 220 : (1976) 103 ITR 437 (SC), the Hon’ble Supreme Court while interpreting the provisions of s. 147 of the Act held as under : ".....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…

Reliance Corporation, Mumbai vs. ITO WD 32(3)(2), Mumbai

In the result, the appeals of the assessee are partly allowed and that of revenue stands dismissed

ITA 1071/MUM/2017[2010-11]Status: DisposedITAT Mumbai12 Apr 2017AY 2010-11

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

For Appellant: Dr.P.DanielFor Respondent: Shri Purushottam Kumnar
Section 132Section 133(6)Section 143(1)Section 143(3)Section 147Section 148Section 68Section 69C

…ation received from the DGIT(Inv) Mumbai that the creditors were engaged in issuing accommodation entries. In support of his contention, the ld.AR relied on the decision of the Hon’ble Supreme Court in the case of ITO V/s Lakhmani Mewal Das reported in (1976) 103 ITR 437 (SC), the decision of the Hon’ble Delhi High Court in the case of CIT V/s Gangeshwari Metal (P) Ltd reported in (2013) 96 DTR 299, wherein it has been held that there was a clear lack of enquiry on the part of the AO. Once the assessee had furnished all the material including PAN, loan confirmations and bank statements, in such an eventuality, no…

Reliance Corporation, Mumbai vs. ITO WD 32(3)(2), Mumbai

In the result, the appeals of the assessee are partly allowed and that of revenue stands dismissed

ITA 1070/MUM/2017[2009-10]Status: DisposedITAT Mumbai12 Apr 2017AY 2009-10

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

For Appellant: Dr.P.DanielFor Respondent: Shri Purushottam Kumnar
Section 132Section 133(6)Section 143(1)Section 143(3)Section 147Section 148Section 68Section 69C

…ation received from the DGIT(Inv) Mumbai that the creditors were engaged in issuing accommodation entries. In support of his contention, the ld.AR relied on the decision of the Hon’ble Supreme Court in the case of ITO V/s Lakhmani Mewal Das reported in (1976) 103 ITR 437 (SC), the decision of the Hon’ble Delhi High Court in the case of CIT V/s Gangeshwari Metal (P) Ltd reported in (2013) 96 DTR 299, wherein it has been held that there was a clear lack of enquiry on the part of the AO. Once the assessee had furnished all the material including PAN, loan confirmations and bank statements, in such an eventuality, no…

Reliance Corporation, Mumbai vs. ITO WD 32(3)(2), Mumbai

In the result, the appeals of the assessee are partly allowed and that of revenue stands dismissed

ITA 1069/MUM/2017[2008-09]Status: DisposedITAT Mumbai12 Apr 2017AY 2008-09

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

For Appellant: Dr.P.DanielFor Respondent: Shri Purushottam Kumnar
Section 132Section 133(6)Section 143(1)Section 143(3)Section 147Section 148Section 68Section 69C

…ation received from the DGIT(Inv) Mumbai that the creditors were engaged in issuing accommodation entries. In support of his contention, the ld.AR relied on the decision of the Hon’ble Supreme Court in the case of ITO V/s Lakhmani Mewal Das reported in (1976) 103 ITR 437 (SC), the decision of the Hon’ble Delhi High Court in the case of CIT V/s Gangeshwari Metal (P) Ltd reported in (2013) 96 DTR 299, wherein it has been held that there was a clear lack of enquiry on the part of the AO. Once the assessee had furnished all the material including PAN, loan confirmations and bank statements, in such an eventuality, no…

ACIT 32(3), Mumbai vs. Reliance Corporation, Mumbai

In the result, the appeals of the assessee are partly allowed and that of revenue stands dismissed

ITA 4946/MUM/2016[2012-13]Status: DisposedITAT Mumbai12 Apr 2017AY 2012-13

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

For Appellant: Dr.P.DanielFor Respondent: Shri Purushottam Kumnar
Section 132Section 133(6)Section 143(1)Section 143(3)Section 147Section 148Section 68Section 69C

…ation received from the DGIT(Inv) Mumbai that the creditors were engaged in issuing accommodation entries. In support of his contention, the ld.AR relied on the decision of the Hon’ble Supreme Court in the case of ITO V/s Lakhmani Mewal Das reported in (1976) 103 ITR 437 (SC), the decision of the Hon’ble Delhi High Court in the case of CIT V/s Gangeshwari Metal (P) Ltd reported in (2013) 96 DTR 299, wherein it has been held that there was a clear lack of enquiry on the part of the AO. Once the assessee had furnished all the material including PAN, loan confirmations and bank statements, in such an eventuality, no…

Sh. Vikas Kapoor, Delhi vs. ACIT, New Delhi

In the result, the appeal of the Assessee is allowed

ITA 5936/DEL/2016[2008-09]Status: DisposedITAT Delhi28 Mar 2017AY 2008-09

Bench: Shri H.S. Sidhuassessment Year: 2008-09

For Appellant: SH. V.K.SABHARWAL, ADV. &For Respondent: MS. BEDOBINA CHAUDHURI, SR. DR
Section 139(1)Section 142(1)Section 143Section 143(1)Section 143(3)Section 147Section 148

…47: CIT, West Bengal II v. Hindustan Housing & Land Development Trust Limited, (1986) 161 ITR 524 (SC). 48. New Friends Co-operative House Building Society Ltd. v. CIT & Anr., (2010) 327 ITR 39 (P&H) 49.ITO, Calcutta & Ors. v. Lakhmani Mewal Das, (1972) 103 ITR 437 (SC) 50. Chanchal Kumar Chatterjee v. Income Tax Officer, "B" Ward, Central Salaries Circle, Calcutta & Ors., (1972) 93 ITR 130 (CAL). 51. Govinda Choudhury & Sons v. Income Tax Officer, Ward-A" 52. Berhampur & Ors., (1975) 109 ITR 370 (ORI) Details of judgments relied upon on Mechanical Approval uls 151 of the Income Tax Act, 1961: Pro CI…

Reghuveer Singh Tanwar, Jaipur vs. DCIT, Jaipur

In the result, the appeal of the assessee is allowed for statistical

ITA 357/JPR/2015[2009-10]Status: DisposedITAT Jaipur10 Mar 2017AY 2009-10
For Appellant: Shri Mahendra Gargia (CA)For Respondent: Shri R.A. Verma (Addl. CIT)
Section 143(3)Section 147Section 148Section 234ASection 244ASection 50CSection 54FSection 80C

…e word “believe” has to be understood in contradistinction of suspicion or opinion. Belief indicates something concrete or reliable. Kindly refer Gangasharan & Sons Pvt. Ltd. v/s ITO & Ors. (1981) 130 ITR 1/22 CTR 112(SC) and ITO v/s Lakhmani Mewal Das (1976) 103 ITR 437 (SC). 1.2. Further, the belief must be of an honest and reasonable person baed upon reasonable grounds. The officer may act on direct or circumstantial evidence, but his/her belief must not be based on mere suspicion, gossip or rumour. The ld. AO would be acting without jurisdiction if the reason for his/here belief that the conditions are satis…

Allied Blenders and Distillers P.Ltd, Mumbai vs. DCIT 5(3)

In the result, the appeal of the assessee stands allowed and that of revenue are dismissed

ITA 2574/MUM/2015[2011-12]Status: DisposedITAT Mumbai21 Feb 2017AY 2011-12

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri K P DewanFor Respondent: Shri H M Wanare
Section 133(6)Section 143(1)Section 143(2)Section 234B

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ “जी” म ुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI श्री सी. एन.प्रसाद, न्याययक सदस्य एवं श्री राजेश कुमार, ऱेखा सदस्य के समक्ष BEFORE SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM ITA NO.2447 and 2446/Mum/2015 (ननधधायण वषा / Assessment Year: 2010-11 & 2011-12) Dy. Commissioner of Income Tax M/s Allied Blenders and 5(3)(1), Distillers Pvt Ltd,, फनधभ/ Room No.573, 5th floor, 394/C/Ground floor, Aayakar Bhavan, Lamington Chambers, Vs. M K Road, Lamington road, Opera house, Mumbai-400020 Mumbai-400004 ITA NO.2573 & 2574/Mum/2015 (ननधधायण वषा / Assessment Year: 201…

Allied Blenders and Distillers P.Ltd, Mumbai vs. DCIT 5(3)

In the result, the appeal of the assessee stands allowed and that of revenue are dismissed

ITA 2573/MUM/2015[2010-11]Status: DisposedITAT Mumbai21 Feb 2017AY 2010-11

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri K P DewanFor Respondent: Shri H M Wanare
Section 133(6)Section 143(1)Section 143(2)Section 234B

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ “जी” म ुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI श्री सी. एन.प्रसाद, न्याययक सदस्य एवं श्री राजेश कुमार, ऱेखा सदस्य के समक्ष BEFORE SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM ITA NO.2447 and 2446/Mum/2015 (ननधधायण वषा / Assessment Year: 2010-11 & 2011-12) Dy. Commissioner of Income Tax M/s Allied Blenders and 5(3)(1), Distillers Pvt Ltd,, फनधभ/ Room No.573, 5th floor, 394/C/Ground floor, Aayakar Bhavan, Lamington Chambers, Vs. M K Road, Lamington road, Opera house, Mumbai-400020 Mumbai-400004 ITA NO.2573 & 2574/Mum/2015 (ननधधायण वषा / Assessment Year: 201…

DCIT 5(3)(1), Mumbai vs. Allied Blenders & Distillers P.Ltd, Mumbai

In the result, the appeal of the assessee stands allowed and that of revenue are dismissed

ITA 2447/MUM/2015[2010-11]Status: DisposedITAT Mumbai21 Feb 2017AY 2010-11

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri K P DewanFor Respondent: Shri H M Wanare
Section 133(6)Section 143(1)Section 143(2)Section 234B

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ “जी” म ुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI श्री सी. एन.प्रसाद, न्याययक सदस्य एवं श्री राजेश कुमार, ऱेखा सदस्य के समक्ष BEFORE SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM ITA NO.2447 and 2446/Mum/2015 (ननधधायण वषा / Assessment Year: 2010-11 & 2011-12) Dy. Commissioner of Income Tax M/s Allied Blenders and 5(3)(1), Distillers Pvt Ltd,, फनधभ/ Room No.573, 5th floor, 394/C/Ground floor, Aayakar Bhavan, Lamington Chambers, Vs. M K Road, Lamington road, Opera house, Mumbai-400020 Mumbai-400004 ITA NO.2573 & 2574/Mum/2015 (ननधधायण वषा / Assessment Year: 201…

DCIT 5(3)(1), Mumbai vs. Allied Blenders & Distillers P.Ltd, Mumbai

In the result, the appeal of the assessee stands allowed and that of revenue are dismissed

ITA 2446/MUM/2015[2011-12]Status: DisposedITAT Mumbai21 Feb 2017AY 2011-12

Bench: Shri C.N. Prasad, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri K P DewanFor Respondent: Shri H M Wanare
Section 133(6)Section 143(1)Section 143(2)Section 234B

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ “जी” म ुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI श्री सी. एन.प्रसाद, न्याययक सदस्य एवं श्री राजेश कुमार, ऱेखा सदस्य के समक्ष BEFORE SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM ITA NO.2447 and 2446/Mum/2015 (ननधधायण वषा / Assessment Year: 2010-11 & 2011-12) Dy. Commissioner of Income Tax M/s Allied Blenders and 5(3)(1), Distillers Pvt Ltd,, फनधभ/ Room No.573, 5th floor, 394/C/Ground floor, Aayakar Bhavan, Lamington Chambers, Vs. M K Road, Lamington road, Opera house, Mumbai-400020 Mumbai-400004 ITA NO.2573 & 2574/Mum/2015 (ननधधायण वषा / Assessment Year: 201…

Janno, Jaipur vs. ITO, Alwar

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 776/JPR/2016[2011-12]Status: DisposedITAT Jaipur15 Feb 2017AY 2011-12
For Appellant: Shri P.C. Parwal , CAFor Respondent: Smt. Poonam Rai, DCIT- DR
Section 147Section 148Section 54B

…t in the case of Raymond Woollen Mills Ltd. vs. ITO (1999) 236 ITR 34 (SC), Great Arts (P) Ltd. vs. ITO (2002) 257 ITR 639 (Del.). The assessee cannot challenge 3 Smt. Janno vs. ITO, Ward- 1(2), Alwar sufficiency to belief – ITO vs. Lakhmani Mewal Das (1976) 103 ITR 437 (SC) 4.7 Hon'ble Supreme Court has laid down in the case of Kelvinator India 320 ITR 561 that AO has power to reassess, only if there is a tangible material and the procedure laid down in the case of GKN Drivershaft has been followed by the AO. The AO has discharged the duty which lay upon him before initiating the reassessment proceedings. 4.8…

Speco Tech Roofing and Celling System Pvt. Ltd., Haryana vs. DCIT, Faridabad

In the result, the appeal of the assessee is allowed

ITA 1418/DEL/2016[2007-08]Status: DisposedITAT Delhi14 Feb 2017AY 2007-08

Bench: Sh. N. K. Sainiita No. 1418/Del/2016 : Asstt. Year : 2007-08 Speco Tech Roofing & Celling Vs Dcit, System Pvt. Ltd., C/O Bhati Central Circle-Ii, Wadhwa & Co., Cas, 5N/1A, First Faridabad Floor, Near Mcf Mayor Office, B.K. Chowk, Nit Faridabad, Haryana-121001 (Appellant) (Respondent) Pan No. Aajcs7152F Assessee By : Sh. K. C. Singhal, Ar Revenue By : Sh. S. K. Jain, Dr Date Of Hearing : 17.11.2016 Date Of Pronouncement : 14.02.2017 Order This Is An Appeal By The Assessee Against The Order Dated 08.01.2016 Of Ld. Cit(A), Faridabad.

For Appellant: Sh. K. C. Singhal, ARFor Respondent: Sh. S. K. Jain, DR
Section 143(1)Section 147Section 148Section 151Section 68

…" Aksar Wire Products (P) Ltd. Vs ACIT in ITA No. 1167/Del/2015 order dated 11.12.2015 " Signature Hotels (P) Ltd. Vs ITO 338 ITR 51 (Del.) " CIT Vs Atul Jain 299 ITR 383 (Del.) " CIT Vs Insecticides (India) Ltd. 357 ITR 330 (Del.) " ITO Vs Lakhmani Mewal Das 103 ITR 437 (SC) " CIT Vs Orissa Corp. (P) Ltd. 159 ITR 78 (SC) " Kishinchand Chellaram Vs CIT 125 ITR 713 (SC) 10. In his rival submissions the ld. DR strongly supported the orders of the authorities below and further submitted that the assessee was given numerous opportunity to produce Principal Officer/ relevant person of the investor companies but the on…

Harmeet Singh, Delhi vs. ITO, New Delhi

In the result, the Assessee’s Appeal stands allowed

ITA 1939/DEL/2016[2008-09]Status: DisposedITAT Delhi10 Feb 2017AY 2008-09

Bench: Shri H.S. Sidhuassessment Year: 2008-09 Harmeet Singh Vs. Ito, Ward-36(1), C/O Kapil Goel, Adv. New Delhi F-26/124, Sector-7, Rohini, Delhi – 110 085 (Pan: Bhrpa6630P) (Appellant) (Respondent)

For Appellant: Sh. Kapil Goel, AdvFor Respondent: Sh. Amrit Lal, Sr. DR
Section 143(3)Section 144Section 147Section 148Section 68

…income has escaped assessment; and that there has to be some kind of cause and effect of relationship between the reasons recorded and the income escaping assessment. The observations of the Hon'ble Supreme Court in the case of 'ITO vs. Lakhmani Mewal Das', 103 ITR 437 (SC), were reproduced. 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 has be…

Shri Zahid Hassan, Muzaffarnagar vs. ITO, Muzaffarnagar

In the result the appeal by the assessee is allowed

ITA 3873/DEL/2016[2009-10]Status: DisposedITAT Delhi23 Jan 2017AY 2009-10

Bench: The Income Tax Appellate Tribunal Delhi Bench ‘Smc-3’, New Delhi Before Shri J. Sudhakar Reddya.Y 2009-10

For Appellant: Sh. Gautam Jain, CAFor Respondent: Sh. B. Ramanjaneyulu, Sr. DR
Section 144Section 147Section 148Section 151(2)Section 69

…e income has escaped assessment; and that there has to be some kind of cause and effect of relationship between the reasons recorded and the income escaping assessment. The observations of the Hon'ble Supreme Court in the case of 'ITO vs. Lakhmani Mewal Das', 103 ITR 437 (SC), were reproduced. 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 has been…

Debottor Trust Estate of Rammohan Mullick, Kolkata vs. ITO, Ward - 43(4), Kolkata

In the result, assessee’s appeal is allowed

ITA 217/KOL/2016[2003-2004]Status: DisposedITAT Kolkata11 Jan 2017AY 2003-2004

Bench: Shri A.T.Varkey & Shri Waseem Ahmed

Section 11Section 12ASection 143(3)Section 147Section 57

…nd effect relationship between reasons recorded and the income escaping assessment. 6.1 While dealing with this aspect of the matter, it is useful to bear in mind the observations made by 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…

M/S. Khatri Projects Pvt. Ltd., Delhi vs. ITO, Delhi

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

ITA 4353/DEL/2016[2007-08]Status: DisposedITAT Delhi16 Dec 2016AY 2007-08

Bench: Sh. N. K. Sainiita No. 4353/Del/2016 : Asstt. Year : 2007-08 M/S Khatri Projects Pvt. Ltd., Vs Income Tax Officer, A-2/106, Sector-16, Rohini, Ward-5(2), Delhi-110085 Delhi (Appellant) (Respondent) Pan No. Aacck7376A Assessee By : Sh. Vivek Bansal, Adv. Revenue By : Sh. Rajesh Kumar, Sr. Dr Date Of Hearing : 19.10.2016 Date Of Pronouncement : 16.12.2016 Order This Is An Appeal By The Assessee Against The Order Dated 30.05.2016 Of Ld. Cit(A)-36, New Delhi.

For Appellant: Sh. Vivek Bansal, AdvFor Respondent: Sh. Rajesh Kumar, Sr. DR
Section 139(1)Section 148Section 68

…ssessment, therefore, the reopening itself was bad-in-law. The reliance was placed on the following case laws: " Prashant S Joshi Vs ITO 230 CTR 232 " Hindustan Lever Ltd. Vs R.B Wadkar 268 ITR 332 (Bom.) 30 Khatri Projects Pvt. Ltd. " ITO Vs Laxmi Mewal Das 103 ITR 437 (SC) " Bhageria Finance and Investment Ltd. Vs DCIT 43 CCH 40 (Del.) " Signature Hotels Pvt. Ltd. Vs ITO 338 ITR 51 (Del.) " G & G Pharma India Ltd. Vs ITO 43 CCH 18 (Del. Trib.) " CIT Vs Atul Jain 299 ITR 383 (Del.) " ACIT Vs Dhariya Construction Company 328 ITR 515 (SC) 12. On merits the ld. Counsel for the assessee submitted that it was not de…