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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

Income Tax Officer, Chennai vs. Macmillan Education India Private Limited, Chennai

In the result, the appeal filed by the revenue and cross objection filed by the assessee are dismissed

ITA 2036/CHNY/2024[2013-14]Status: DisposedITAT Chennai30 Jan 2025AY 2013-14

Bench: Shri Aby T Varkey, Hon’Ble & Shri S.R.Raghunatha, Hon’Bleआयकर अपीलसं./Ita No.: 2036/Chny/2024 & Co No.: 66/Chny/2024 िनधा"रणवष" / Assessment Year: 2013-14 Income Tax Officer, Macmillan Education India Corporate Ward -4(1), V. Private Limited, Chennai – 600 034. No.21, Patullos Road, Chennai – 600 002. [Pan:Aafcm-5564-R] (अपीलाथ"/Appellant) (Respondent/Cross Objector) Assessee By : Mr. S.P. Chidambaram, Advocate : Ms. R. Anita, Addl.Cit Department By सुनवाई क" तार"ख/Date Of Hearing : 22.11.2024 घोषणा क" तार"ख/Date Of Pronouncement : 30.01.2025 आदेश /O R D E R

For Appellant: Mr. S.P. Chidambaram, Advocate
Section 143(2)Section 147

years from the end of the relevant year has expired in this case, the requirements to initiate proceeding u/s.147 of the Act are reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the assessee to disclose fully and truly ... material facts necessary for the assessment for the assessment year under consideration. It is pertinent to mention here that reasons to believe that income has escaped assessment for the year under consideration have been recorded above. I have carefullyconsidered the assessment records containing the submissions made bythe assessee in response

Akshay Kumar Saxena, Mumbai vs. ITO-4(2)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 946/MUM/2024[2013-14]Status: DisposedITAT Mumbai30 Jan 2025AY 2013-14

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh () Assessment Year: 2013-14 Akshay Kumar Saxena, Ito-4(2)(1), A-1604 Rushi Heights, Riddhi Room No. 1702, 17Th Floor, Vs. Gardens Filmcity Road, Malad (E), Air India Building, Nariman Point, Mumbai-400097. Mumbai-400021. Pan No. Axsps 3020 R Appellant Respondent

For Appellant: Mr. Krishna Kumar, Sr. DRFor Respondent: Mr. Bimlendu Bhushan
Section 143(1)Section 148Section 148ASection 69A

paid on and above the agreement was paid on and above the agreement value. Accordingly, the As value. Accordingly, the Assessing Officer recorded reason to believe recorded reason to believe that income escaped assessment and that income escaped assessment and issued notice u/s 148 of the issued notice

Danco Enterprises India Private Limited, Mumbai vs. ITO, Ward 9(3)(1), Mumbai

In the result, both the appeals of the assessee are allowed for In the result, both the appeals of the assessee are allowed for In the result, both the appeals of the assessee are allowed for stati...

ITA 5022/MUM/2024[2016-17]Status: DisposedITAT Mumbai30 Jan 2025AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Appellant: Mr. Suchek AnchaliyaFor Respondent: 17/12/2024
Section 147Section 69C

assessment year under consideration. Accordingly, the Assessing assessment year under consideration. Accordingly, the Assessing assessment year under consideration. Accordingly, the Assessing Officer recorded reasons to believe that income escaped assessment Officer recorded reasons to believe that income escaped assessment Officer recorded reasons to believe that income escaped assessment and issued ... purchases and bogus sales. purchases and bogus sales. Danco Enterprises India Pvt. Ltd. Danco Enterprises India Pvt. Ltd. ITA Nos. 5022 & 5023/MUM/2024 Hence, reason to believe that this amount of Rs.9,37, Hence, reason to believe that this amount of Rs.9,37, Hence, reason to believe that this amount

Income Tax Officer, Kautaliya Bhavan, Bkc vs. Rajnish Bharti HUF, Darukhana

In the result, both the appeals of the assessee are dismissed

ITA 4378/MUM/2023[2009-10]Status: DisposedITAT Mumbai30 Jan 2025AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Appellant: Mr. C.V. JainFor Respondent: Mrs. Sanyogita Nagpal, CIT-DR
Section 142(1)Section 143(3)Section 148

that the reassessment proceedings were null and void as the Ld. A.O. had invoked the provisions of sec 147 without there being any reason to believe that the income had escaped assessment. 3. Without prejudice, the Ld. CITA has failed to appreciate that the reassessment proceedings were ... appearing and source of deposits those could not be explained by the assessee. In view of the information received, the Assessing Officer recorded reasons to believe in terms of section 147 of the Act that income escaped assessment and accordingly, he issued notice

Income Tax Officer 41(3)(3), Bkc vs. Rajnish Bharti HUF, Darukhana

In the result, both the appeals of the assessee are dismissed

ITA 4377/MUM/2023[2010-11]Status: DisposedITAT Mumbai30 Jan 2025AY 2010-11

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Appellant: Mr. C.V. JainFor Respondent: Mrs. Sanyogita Nagpal, CIT-DR
Section 142(1)Section 143(3)Section 148

that the reassessment proceedings were null and void as the Ld. A.O. had invoked the provisions of sec 147 without there being any reason to believe that the income had escaped assessment. 3. Without prejudice, the Ld. CITA has failed to appreciate that the reassessment proceedings were ... appearing and source of deposits those could not be explained by the assessee. In view of the information received, the Assessing Officer recorded reasons to believe in terms of section 147 of the Act that income escaped assessment and accordingly, he issued notice

Rajnish Bharti HUF, Mumbai vs. The Income Tax Officer 20(3)(1), Mumbai, Lalbaug

In the result, both the appeals of the In the result, both the appeals of the assessee are dismissed assessee are dismissed whereas appeals of the Revenue are allowed

ITA 3941/MUM/2023[2010-11]Status: DisposedITAT Mumbai30 Jan 2025AY 2010-11

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Appellant: Mrs. Sanyogita Nagpal, CIT-DRFor Respondent: Mr. C.V. Jain
Section 143(3)Section 148

assessee. In view of the be explained by the assessee. In view of the information information received, the Assessing Officer recorded reasons to believe in terms of section the Assessing Officer recorded reasons to believe in terms of section the Assessing Officer recorded reasons to believe in terms of section ... ground that there has challenged reassessment proceedings on the ground that there has challenged reassessment proceedings on the ground that there are no reasons to believe to believe. In ground No. 3, the assessee has ground No. 3, the assessee has challenged reassessment for not nged reassessment for not disposing

Rajnish Bharti HUF, Mumbai vs. The Income Tax Officer 20(3)(1), Mumbai, Lalbaug

In the result, both the appeals of the In the result, both the appeals of the assessee are dismissed assessee are dismissed whereas appeals of the Revenue are allowed

ITA 3912/MUM/2023[2009-10]Status: DisposedITAT Mumbai30 Jan 2025AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Appellant: Mrs. Sanyogita Nagpal, CIT-DRFor Respondent: Mr. C.V. Jain
Section 143(3)Section 148

assessee. In view of the be explained by the assessee. In view of the information information received, the Assessing Officer recorded reasons to believe in terms of section the Assessing Officer recorded reasons to believe in terms of section the Assessing Officer recorded reasons to believe in terms of section ... ground that there has challenged reassessment proceedings on the ground that there has challenged reassessment proceedings on the ground that there are no reasons to believe to believe. In ground No. 3, the assessee has ground No. 3, the assessee has challenged reassessment for not nged reassessment for not disposing

Chandra Prakash Goplani, Bengaluru vs. ITO 2(1)(1), Agra

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

ITA 166/AGR/2023[2012-13]Status: DisposedITAT Agra29 Jan 2025AY 2012-13

Bench: : Shri Ramit Kocharassessment Year: 2012-13

Section 143(2)Section 144Section 147Section 148Section 253(3)

notice issued u/s 148 is invalid, wrong, illegal, arbitrary, against the law and facts of the case, without proper reason to believe and bad in law. 2- BECAUSE in any view, the proceedings initiated u/s 147 and the notice issued u/s 148 is without any jurisdiction and appellant denies ... Notice dated 30.03.2019 said to be issued u/s 148. 3- Because there was no valid reason assigned by the 'AO' in the purported 'reasons to believe' and the reasons recorded by the 'AO' are no Reasons in the eyes of law as the same do not show any application

Amar Kasera (HUF), Patna vs. ACIT Central Circle-1, Patna

In the result, all the captioned appeals of the assessee stand allowed

ITA 183/PAT/2023[2015-16]Status: DisposedITAT Patna29 Jan 2025AY 2015-16

Bench: Sri Sanjay Garg & Shri Sanjay Awasthi

Section 133ASection 143(3)Section 148Section 153ASection 250

contend that reopening of the assessment merely on the basis of change of opinion is not permissible in law. That to form reason of believe that income has escaped assessment, the Assessing Officer must come into possession some fresh information/or tangible material and that reopening on the basis of reappreciation ... sale of above mentioned scripts to the respective members of Kasera Group in the relevant financial year. Under the above circumstances, I have reason to believe that Shri Amar Kasera HUF has misused the syndicates to arrange accommodation entry of bogus Long Term Capital Gain of Rs.10

Amar Kasera (HUF), Patna vs. ACIT Central Circle-1, Patna

In the result, all the captioned appeals of the assessee stand allowed

ITA 182/PAT/2023[2015-16]Status: DisposedITAT Patna29 Jan 2025AY 2015-16

Bench: Sri Sanjay Garg & Shri Sanjay Awasthi

Section 133ASection 143(3)Section 148Section 153ASection 250

contend that reopening of the assessment merely on the basis of change of opinion is not permissible in law. That to form reason of believe that income has escaped assessment, the Assessing Officer must come into possession some fresh information/or tangible material and that reopening on the basis of reappreciation ... sale of above mentioned scripts to the respective members of Kasera Group in the relevant financial year. Under the above circumstances, I have reason to believe that Shri Amar Kasera HUF has misused the syndicates to arrange accommodation entry of bogus Long Term Capital Gain of Rs.10

Amar Kasera (HUF), Patna vs. ACIT Central Circle-1, Patna

In the result, all the captioned appeals of the assessee stand allowed

ITA 181/PAT/2023[2014-15]Status: DisposedITAT Patna29 Jan 2025AY 2014-15

Bench: Sri Sanjay Garg & Shri Sanjay Awasthi

Section 133ASection 143(3)Section 148Section 153ASection 250

contend that reopening of the assessment merely on the basis of change of opinion is not permissible in law. That to form reason of believe that income has escaped assessment, the Assessing Officer must come into possession some fresh information/or tangible material and that reopening on the basis of reappreciation ... sale of above mentioned scripts to the respective members of Kasera Group in the relevant financial year. Under the above circumstances, I have reason to believe that Shri Amar Kasera HUF has misused the syndicates to arrange accommodation entry of bogus Long Term Capital Gain of Rs.10

Amar Kasera (HUF), Patna vs. ACIT Central Circle-1, Patna

In the result, all the captioned appeals of the assessee stand allowed

ITA 180/PAT/2023[2013-14]Status: DisposedITAT Patna29 Jan 2025AY 2013-14

Bench: Sri Sanjay Garg & Shri Sanjay Awasthi

Section 133ASection 143(3)Section 148Section 153ASection 250

contend that reopening of the assessment merely on the basis of change of opinion is not permissible in law. That to form reason of believe that income has escaped assessment, the Assessing Officer must come into possession some fresh information/or tangible material and that reopening on the basis of reappreciation ... sale of above mentioned scripts to the respective members of Kasera Group in the relevant financial year. Under the above circumstances, I have reason to believe that Shri Amar Kasera HUF has misused the syndicates to arrange accommodation entry of bogus Long Term Capital Gain of Rs.10

Amar Kasera (HUF), Patna vs. ACIT Central Circle-1, Patna

In the result, all the captioned appeals of the assessee stand allowed

ITA 179/PAT/2023[2011-12]Status: DisposedITAT Patna29 Jan 2025AY 2011-12

Bench: Sri Sanjay Garg & Shri Sanjay Awasthi

Section 133ASection 143(3)Section 148Section 153ASection 250

contend that reopening of the assessment merely on the basis of change of opinion is not permissible in law. That to form reason of believe that income has escaped assessment, the Assessing Officer must come into possession some fresh information/or tangible material and that reopening on the basis of reappreciation ... sale of above mentioned scripts to the respective members of Kasera Group in the relevant financial year. Under the above circumstances, I have reason to believe that Shri Amar Kasera HUF has misused the syndicates to arrange accommodation entry of bogus Long Term Capital Gain of Rs.10

Dattu Sampat Vankhede, Nagpur vs. PCIT-2, Nagpur

In the result, appeal filed by the assessee is dismissed

ITA 581/NAG/2024[2014-15]Status: DisposedITAT Nagpur29 Jan 2025AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Dilip LohiyaFor Respondent: Shri Sandipkumar Salunke
Section 143(3)Section 147Section 148Section 263

Whether the revision order U/s 263 of the Income Tax Act, 1961 allowed after issuance of a notice U/s 148 initially formed a reason to believe that an income had escaped assessment, reassessment order passed U/s 143(3) rws 147 of the Income Tax Act, 1961 after accepting the contention ... Agriculture land exempted transaction were discussed and considered at the time of reassessment u/S 147 on the basis of initially formed the reason to believe and the assessing officer has accepted the contentions of the assessee without finding of any new income as a escaped income, therefore, again on same

Pankaj Bhaurao Chude, Amravati vs. Income Tax Officer Ward 1, Amravati

In the result, appeal of the assessee is allowed

ITA 436/NAG/2024[2017-18]Status: DisposedITAT Nagpur29 Jan 2025AY 2017-18

Bench: Shri V. Durga Rao

For Appellant: -None-For Respondent: Shri Abhay Y. Marathe, Sr. DR
Section 142(1)Section 144Section 147Section 148Section 69A

ITA.No.436/NAG./2024 in his Bank account maintained with Aditya Anagha Multi State Credit Co-op. Society Ltd., Therefore, the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment. He accordingly reopened the assessment u/sec.147 of the Act by taking necessary approval from the competent

Minakshi Satish Nimodia, Nagpur vs. Income Tax Officer Ward 1(4), Nagpur

In the result, appeal of the assessee is allowed

ITA 233/NAG/2024[AY 2010-11]Status: DisposedITAT Nagpur29 Jan 2025

Bench: Shri V. Durga Rao

For Appellant: Shri Milind Bhusari, AdvocateFor Respondent: Shri Abhay Y. Marathe, Sr. DR
Section 143(3)Section 147Section 148Section 50CSection 69ASection 80C

account and invested in various immovable properties, the case of the assessee has been reopened u/sec.147 of the Act as there was a reason to believe that the income chargeable to tax has escaped assessment and statutory notice u/sec.148 of the Act dated 20.03.2015 was issued and served upon

Buildcube Constructions Pvt Ltd, Mumbai vs. ITO, Ward 1(1), Thane

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

ITA 5015/MUM/2024[2011-12]Status: DisposedITAT Mumbai29 Jan 2025AY 2011-12

Bench: Shri Saktijit Dey & Shri B.R. Baskaranassessment Year : 2011-12 Buildcube Constructions Pvt. Income Taxofficer, Ltd., Ward-1(1), Office No. G-01, Vs. B-Wing, 6Th Floor, Ground Floor,Mirani Nagar, Ahsar It Park Road No.16Z, Kopri Colony Road, Wagle Ind. Estate, Near Union Bank Of India, Thane, Thane (E), Maharashtra Maharashtra Pan : Aaccb3253H (Appellant) (Respondent) For Assessee : Shri Subodh Ratnaparkhi For Revenue : Shri Kailash C. Kanojiya, Cit-Dr Date Of Hearing : 27-01-2025 Date Of Pronouncement : 29-01-2025

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Shri Kailash C. Kanojiya, CIT-DR
Section 143(1)Section 143(3)Section 147Section 2(40)

scrutiny assessment u/s 143(3) of the Act was made. Accordingly, in this case, the only requirement to initiate proceeding u/s 147 is reason to believe which has been recorded above. 5. It is pertinent to mention here that in this case the assessee has filed return of income ... case where income chargeable to tax has escaped assessment. 3 6. In view of the above facts of the case, I have reason to believe that income of more than Rs.1 lakh has escaped assessment as per the provisions of section

Sameer Manohar Fulari, Mapusa vs. Assessing Officer, NFAC, Delhi

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

ITA 201/PAN/2023[2018-19]Status: DisposedITAT Panaji28 Jan 2025AY 2018-19

Bench: Shri Pavan Kumar Gadale & Shri G D Padmahshalii T A. Nos. 201/Pan/2023 (A.Y. 2018-19 ) Sameer Manohar Fulari, Vs National Faceless Near Bank Of India,Keni Assessment . Waddo,Mapusa Bardez, Centre,Nfac,Delhi. Noth Goa-403507 . Goa. Pan .No. Aaopf3440P (अपीलाथ"/Appellant) (""यथ"/Respondent)

Section 144Section 249(4)(b)

No.201/PAN/2023 Sameer Manohar Fulari... account and the assesse has not filed the return of income and the Assessing Officer (A.O) has reason to believe that income has escaped and issued the notice u/sec148 of the Act and the assessee has submitted income computation declaring the profit @8% of Gross receipts

Mohd Zubair Asharafi, Nagpur vs. The Income Tax Officer, Ward - 4(1), Nagpur

In the result, appeal filed by the assessee is allowed

ITA 438/NAG/2024[2014-2015]Status: DisposedITAT Nagpur28 Jan 2025AY 2014-2015

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member**

For Appellant: Shri Bhavesh MoryaniFor Respondent: Shri Abhay Y. Marathe
Section 142(1)Section 148Section 271(1)(b)

sale of goods, raw material, finished goods, purchases, etc in the relevant columns of ITR. In view of the above, there was reason to believe that the income of Rs.46,90,385/- has escaped assessment in the hands of Sh. Mohd. Zubair Asharafi for A.Y.2014-15.*" - 6. The addition has already

Income Tax Officer Ward-2, Chandrapur vs. Janardan Shyam Bihari Singh, Chandrapur

In the result, appeal of the Revenue dismissed

ITA 41/NAG/2024[2015]Status: DisposedITAT Nagpur28 Jan 2025

Bench: Shri V. Durga Rao

For Appellant: Shri Mahavir Atal, C.AFor Respondent: Shri Abhay Y. Marathe, Sr. DR
Section 144Section 147Section 148Section 44A

income for the impugned assessment year and not get his books of account audited u/sec.44AB of the Act. Since the Assessing Officer has reason to believe that the income chargeable to tax has escaped assessment, the Assessing Officer reopened the case of the assessee u/sec.147 of the Act by taking