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“reason to believe”

ReassessmentSection 147Section 1474,202 judgments

The decision most relied on for reason to believe is CIT v. Kelvinator of India Ltd. (320 ITR 561), cited in 1,673 judgments on BharatTax.

Leading authorities on reason to believe

CIT v. Kelvinator of India Ltd.
320 ITR 561 · 2010 · Supreme Court
1,673
citing judgments

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

CIT v. Durga Prasad More
82 ITR 540 · 1971 · Supreme Court
1,579
citing judgments

Tax authorities must judge evidence using the test of human probabilities and consider the apparent as real until there are reasons to believe it is not. They can rely on circumstantial evidence and the preponderance of probabilities to determine the genuineness of transactions.

ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.
291 ITR 500 · 2007 · Supreme Court
1,030
citing judgments

For initiating reassessment proceedings under Section 147, the Assessing Officer needs only prima facie material providing a reason to believe that income has escaped assessment. Conclusive proof or the sufficiency/correctness of the material is not required at the stage of issuing the notice under Section 148.

Raymond Woollen Mills Ltd. v. ITO
236 ITR 34 · 1999 · Supreme Court
862
citing judgments

For reassessment proceedings under Section 148, the Assessing Officer only needs prima facie material to have a reason to believe income has escaped assessment. Conclusive proof or evaluation of the sufficiency and correctness of such material is not required at the stage of issuing the notice.

ITO v. Lakhmani Mewal Das
103 ITR 437 · 1976 · Supreme Court
721
citing judgments

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.

CIT v. Jet Airways (I) Ltd.
331 ITR 236 · 2011 · High Court
694
citing judgments

The Assessing Officer loses jurisdiction and the entire reassessment becomes invalid if no addition is made in respect of the income that formed the basis of the reopening. Explanation 3 to Section 147 does not permit assessing other escaped income unless an addition is made for the original income forming the reason to believe.

PCIT v. Meenakshi Overseas Pvt. Ltd.
395 ITR 677 · 2017 · High Court
471
citing judgments

Reassessment proceedings initiated solely based on an investigation wing/appraisal report, without the Assessing Officer's independent application of mind to form a 'reason to believe' that income has escaped assessment, are beyond jurisdiction, bad in law, and void ab initio.

CIT v. Kelvinator of India Ltd.
256 ITR 1 · 2002 · High Court
439
citing judgments

An Assessing Officer cannot reopen an assessment under Section 147 based on a mere change of opinion regarding the same material available during the original assessment. Reopening requires fresh, tangible material or information that leads to a reason to believe income has escaped assessment.

Judgments citing reason to believe

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

ITA 2845/MUM/2024[2012-13]Status: DisposedITAT Mumbai21 Nov 2025AY 2012-13
For Respondent: Shri Farooq Irani
Section 115JSection 143(3)Section 147Section 148

Year 2010-2011, 2012-2013 to 2019-2020 8 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

ITA 2841/MUM/2024[2014-15]Status: DisposedITAT Mumbai21 Nov 2025AY 2014-15
Section 115JSection 143(3)Section 147Section 148

Year 2010-2011, 2012-2013 to 2019-2020 9 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. Income escaping assessment.—If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

ITA 2836/MUM/2024[2015-16]Status: DisposedITAT Mumbai21 Nov 2025AY 2015-16
Section 115JSection 143(3)Section 147Section 148

Year 2010-2011, 2012-2013 to 2019-2020 8 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. Income escaping assessment.—If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

Year Objection No

ITA 2834/MUM/2024[2016-17]Status: DisposedITAT Mumbai21 Nov 2025AY 2016-17
For Appellant: Shri Faroog IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Assessment Year 2010-2011, 2012-2013 to 2019-2020 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2830/MUM/2024[2018-19]Status: DisposedITAT Mumbai21 Nov 2025AY 2018-19

Bench: SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Assessment Year 2010-2011, 2012-2013 to 2019-2020 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

ITA 2827/MUM/2024[2017-18]Status: DisposedITAT Mumbai21 Nov 2025AY 2017-18
For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Year 2010-2011, 2012-2013 to 2019-2020 8 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. Income escaping assessment.—If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections

DCIT 3.2.1, Mumbai vs. The New India Assurance Co Limited, Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2823/MUM/2024[2019-20]Status: DisposedITAT Mumbai21 Nov 2025AY 2019-20

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Assessment Year 2010-2011, 2012-2013 to 2019-2020 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

The New India Assurance Co. Ltd, Mumbai vs. Assistant Commissioner of Income Tax, Income Tax Officer, NFAC, Mumbai

Accordingly, in terms of the aforesaid, Ground No. 3 to\n7 raised by the Assessee pertaining to merits of such\nadditions/disallowances are dismissed as having been rendered\ninfructuous

ITA 2623/MUM/2024[2019-20]Status: DisposedITAT Mumbai21 Nov 2025AY 2019-20

Bench: "CLEAN_TEXT": "IN THE INCOME TAX APPELLATE TRIBUNAL\n\"I\" BENCH, MUMBAI\n\nSHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER\nSHRI RAHUL CHAUDHARY (Judicial Member)

Section 115JSection 143(3)Section 147Section 148

view of all the above, for the A.Y. 2010-11 I have reason\nto believe that income assessable to tax amounting to more than\nrupees fifty thousand has escaped assessment and hence notice\nu/s 148 is to be issued.” (Emphasis Supplied)\n\n10.\nThe contention advanced on behalf ... First Proviso to Section 147 of\nthe Act, reproduced hereunder, was applicable.\n\n“147. Income escaping assessment.—If the Assessing\nOfficer has reason to believe that any income\nchargeable to tax has escaped assessment for any\n assessment year, he may, subject to the provisions\nof sections

The New India Assurance Co Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle 3(2)(2), Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2622/MUM/2024[2018-19]Status: DisposedITAT Mumbai21 Nov 2025AY 2018-19

Bench: SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Assessment Year 2010-2011, 2012-2013 to 2019-2020 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle-3(2)(2), Mumbai

ITA 2621/MUM/2024[2017-18]Status: DisposedITAT Mumbai21 Nov 2025AY 2017-18
Section 115JSection 143(3)Section 147Section 148

Year 2010-2011, 2012-2013 to 2019-2020 8 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle-3(2)(2), Mumbai

Year Objection No

ITA 2620/MUM/2024[2016-17]Status: DisposedITAT Mumbai21 Nov 2025AY 2016-17
For Appellant: Shri Faroog IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Assessment Year 2010-2011, 2012-2013 to 2019-2020 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle-3(2)(2), Mumbai

Year Objection No

ITA 2619/MUM/2024[2015-16]Status: DisposedITAT Mumbai21 Nov 2025AY 2015-16
For Appellant: Shri Faroog IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Assessment Year 2010-2011, 2012-2013 to 2019-2020 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle -3(2)(2), Mumbai

ITA 2618/MUM/2024[2013-14]Status: DisposedITAT Mumbai21 Nov 2025AY 2013-14
Section 115JSection 143(3)Section 147Section 148

Year 2010-2011, 2012-2013 to 2019-2020 8 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. "147. Income escaping assessment.—If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle -3(2)(2), Mumbai

ITA 2617/MUM/2024[2010-11]Status: DisposedITAT Mumbai21 Nov 2025AY 2010-11
Section 115JSection 143(3)Section 147Section 148

Year 2010-2011, 2012-2013 to 2019-2020 9 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. Income escaping assessment.—If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections

The New India Assurance Co. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Circle 3(2)(2), Mumbai

Accordingly, Ground No.1 to 4 raised by the Assessee are allowed

ITA 2616/MUM/2024[2012-13]Status: DisposedITAT Mumbai21 Nov 2025AY 2012-13

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Farooq IraniFor Respondent: Shri Satya Pal Kumar&
Section 115JSection 143(3)Section 147Section 148

Assessment Year 2010-2011, 2012-2013 to 2019-2020 37. In view of all the above, for the A.Y. 2010-11 I have reason to believe that income assessable to tax amounting to more than rupees fifty thousand has escaped assessment and hence notice u/s 148 is to be issued ... relevant assessment year, First Proviso to Section 147 of the Act, reproduced hereunder, was applicable. “147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess

Assistant Commissioner of Income-Tax, Delhi vs. Logic Control Pvt. Ltd., Delhi

In the result, appeal of Revenue in ITA No

ITA 3974/DEL/2025[2011-12]Status: DisposedITAT Delhi21 Nov 2025AY 2011-12

Bench: Shri Anubhav Sharma & Shri Naveen Chandra

For Appellant: Shri Salil Aggarwal, Sr. AdvFor Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 158B

contained in sub-section (2) of section 143 of the Act is mandatory and the Legislature in its wisdom by using the word reason to believe' had cast a duly on the Assessing Officer to apply mind to the material on record and after being satisfied with regard to escaped

M/S Bajrang Lal Jindal, Kanpur vs. Astt. Commissioner of Income Tax-I, Kanpur

In the result, the appeal of the assessee is allowed

ITA 373/LKW/2017[2008-09]Status: DisposedITAT Lucknow20 Nov 2025AY 2008-09

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2008-09 M/S Bajrang Lal Jindal, 140, Vs. Asstt. Commissioner Of Income Anandpuri, Kanpur, U.P. Tax-I, Kanpur Pan: Aanpj5660J (Appellant) (Respondent) Assessee By: Sh. P.K. Kapoor, C.A. Revenue By: Sh. Amit Kumar, Dr Date Of Hearing: 27.08.2025 Date Of Pronouncement: 20.11.2025 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Orders Of The Ld. Cit(A)- Kanpur, Confirming The Addition Of Rs. 1,46,11,400/- Made To The Returned Income Of The Assessee As Unexplained Cash Credits By The Assessing Officer In His Order Dated 31.03.2016 For The Assessment Year 2008-09. The Grounds Of Appeal Are As Under: - “1. That The Ld. Cit (A) I, Kanpur Has Erred In Confirming Addition Of Rs. 14611400.00 To The Returned Income Of The Assessee As Unexplained Cash Credits. 2. That The Reasons Recorded For Initiation Of Proceedings U/S 147 By Issue Of Notice U/S 148 Were Based On Improper Premise & Accordingly No Legal & Factual Lengs To Stand & Acordingly All Subsequent Proceedings Are Bad In Law. 3. That The Observation Of The Ld. Cit (A) I, Kanpur Confirming View Of Ld. A O That M/S. Maa Devasar Commodity Is Inexistant Is Factually Incorrect. 4. That Ld. Cit (A) I, Kanpur Has Erred In Not Appreciating The Fact That When The Beneficiary Of The Funds Are Not The Assessee, There Could Be No Addition In His Hands.

For Appellant: Sh. P.K. Kapoor, C.AFor Respondent: Sh. Amit Kumar, DR
Section 147Section 148Section 68

bank statement and marked C/o Sh. B.L. Jindal. On this account, the Assessing Officer 3 M/s Bajrang Lal Jindal A.Y. 2008-09 had reason to believe that the deposits in the above mentioned four accounts maintained at ICICI Bank, were nothing but the assessee’s own money which was being ... notice, the ld. AR pointed out that the mere fact of deposits in a bank account did not give rise in themselves for reasons to believe and something more was required to be brought on record 9 M/s Bajrang Lal Jindal A.Y. 2008-09 so that there could

M/S. Muse Advertising and Media Pvt. Ltd., Kolkata vs. I.T.O., Ward - 10(3), Kolkata

In the result, the appeal of the assessee is allowed

ITA 2202/KOL/2024[2011-2012]Status: DisposedITAT Kolkata20 Nov 2025AY 2011-2012

Bench: SHRI RAJESH KUMAR, ACCOUNTANT MEMBER SHRI PRADIP KUMAR CHOUBEY (Judicial Member)

Section 143(3)Section 147Section 148Section 250

into their regular books of accounts through circuitous transactions. In view of the above, the undersigned has reason to believe that the income chargeable to tax of at least Rs. 3,97,80.000 has escaped assessment.” 3. According to the recorded reasons, M/s Realtime Consultants Private Limited (‘RCPL’) had made ... record and observe that the AO has re-opened the assessment u/s 147 read with section 148 of the Act after recording reasons to believe that the investment received from RCPL of Rs.3,97,80,000/- had escaped assessment. We further note that the AO was convinced after examining

Aroma Chemicals, Moradabad vs. ACIT, Circle-1, Moradabad

In the result, appeal filed by the assessee is allowed

ITA 2465/DEL/2025[2015-16]Status: DisposedITAT Delhi20 Nov 2025AY 2015-16

Bench: Yogesh Kumar U.S. & Shri Brajesh Kumar Singh

Section 144Section 147Section 148Section 68

reassessment proceedings initiated u/s 147 culminating into assessment order u/s 147/144 are without jurisdiction is emphatically denied. The Assessing Officer had recorded detailed reasons to believe, based on tangible material on record, that income chargeable to tax had escaped assessment. The reopening was done strictly in accordance with the provisions ... being put up or explained by the assessee but have been artificially generated out of own unaccounted money. 6. Basis of forming reason to believe and details of escapement of income : On the basis of information uploaded by the I&CI Wing and material available as discussed above

Ashok Rudraraju, Visakhapatnam vs. Income-Tax Officer, Ward-2(5), Visakhapatnam

In the result, the appeal filed by the assessee is allowed in terms of our aforesaid observations

ITA 439/VIZ/2025[2016-17]Status: DisposedITAT Visakhapatnam19 Nov 2025AY 2016-17

Bench: Shri Manjunatha G. & Shri Ravish Soodआ.अपी.सं /Ita No. 439/Viz/2025 (निर्धारण वर्ा/Assessment Year: 2016-17) Ashok Rudraraju, Vs. Income Tax Officer, Visakhapatnam. Ward-2(5), Visakhapatnam. Pan: Aqvpr4058L

For Appellant: Shri I. Kama Sastry, CAFor Respondent: Dr. Aparna Villuri, Sr. AR
Section 147Section 148Section 148ASection 149(1)(b)Section 151Section 151(1)Section 151ASection 251(1)(a)Section 69A

reasons, the same gave rise to numerous litigations and the reopening were challenged inter alia, on the grounds such as (1) no valid “reason to believe” (2) no tangible/reliable material /information in possession of the assessing officer leading to formation of belief that income has escaped assessment, (3) no enquiry