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“tangible material”

ReassessmentSection 147Section 1472,812 judgments

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

Leading authorities on tangible material

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.

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.

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.

CIT v. Orient Craft Ltd.
354 ITR 536 · 2013 · High Court
366
citing judgments

Reassessment of income, especially after a summary assessment under Section 143(1), requires the Assessing Officer to possess fresh, tangible material to form a reason to believe that income has escaped assessment; a mere reappraisal of existing records or a change of opinion without new material is not permissible.

222 Taxman 15 (Gujarat)(MAG.), Principal Commissioner of Income-tax-4 v. G & G Pharma India Ltd.
384 ITR 147 · 2016 · High Court
274
citing judgments

An assessment can be reopened if there is tangible material indicating escapement of income, demonstrating a live link between the material and the reasons recorded for reopening. The Assessing Officer must apply their mind to the material facts, and the sanction under section 151 should not be based on borrowed satisfaction.

PCIT v. RMG Polyvinyl (I) Ltd.
396 ITR 5 · 2017 · High Court
272
citing judgments

Reassessment based solely on information from the Investigation Wing, without the Assessing Officer conducting further inquiry or demonstrating an independent application of mind, is unjustified and invalid.

CIT v. Foramer France
264 ITR 566 · 2003 · Supreme Court
253
citing judgments

Reassessment proceedings initiated under Section 147 beyond four years from the end of the relevant assessment year are invalid unless the assessee failed to disclose fully and truly all material facts necessary for assessment. Without such failure, the notice issued under Section 148 is time-barred and without jurisdiction.

Haryana Acrylic Manufacturing Company v. CIT
308 ITR 38 · 2009 · High Court
248
citing judgments

Reassessment proceedings are invalid if the reasons recorded for initiating action under section 148 are not served on the assessee within the limitation period prescribed by section 149. Furthermore, reassessment cannot be based on a mere change of opinion without tangible material, particularly when the assessee has made a full and true disclosure of material facts.

Judgments citing tangible material

Deepak Valji Karia, Mumbai vs. ITO - 28(1)(3), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 259/MUM/2021[2015-16]Status: DisposedITAT Mumbai10 Mar 2022AY 2015-16

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Bleshri Deepak Valji Karia V. Income Tax Officer – 28(1)(3) Flat No. 2501, B Wing Room No. 327 Maroj Palm Paradise Tower No. 6, 3Rd Floor Palm Beach Road, Sector 17 Vashi Railway Station Building Complex Vashi, Navi Mumbai-400703 Sanpada, Navi Mumbai 400705 Pan: Ahfpk2679F (Appellant) (Respondent) Assessee By : Ms. Dinkle Hariya Department By Shri Sanjeev Kashyp

For Appellant: Ms. Dinkle Hariya
Section 10(38)Section 131Section 143(2)Section 143(3)

entities. In any case, neither any statement of Mr. Vipul Bhatt was brought on record wherein Assessee's name was even mentioned nor any tangible material was produced in support of the allegation.  Thirdly, no evidence or even allegation of any cash exchanged between the Assessee and Mr. Vipul Vidur

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 465/BANG/2020[2014-15]Status: DisposedITAT Bangalore07 Mar 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 147Section 148

built test to check the abuse of power by the AO. Hence after 1st April, 1989, AO has power to reopen, provided there is “tangible material” to come to the conclusion that there is escapement of income from assessment. 9. The judgment of Full Bench of Karnataka High Court ... test to check abuse of power by the assessing officer. Hence, after 1-4-1989, assessing officer has power to reopen, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 464/BANG/2020[2013-14]Status: DisposedITAT Bangalore07 Mar 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 147Section 148

built test to check the abuse of power by the AO. Hence after 1st April, 1989, AO has power to reopen, provided there is “tangible material” to come to the conclusion that there is escapement of income from assessment. 9. The judgment of Full Bench of Karnataka High Court ... test to check abuse of power by the assessing officer. Hence, after 1-4-1989, assessing officer has power to reopen, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation

Mrs. Deepal N Mehta, Mumbai vs. The Income Tax Officer-19(1)(4), Mumbai

In the result, impugned order is set-aside and appeal of the assessee is allowed

ITA 5295/MUM/2019[2009-10]Status: DisposedITAT Mumbai28 Feb 2022AY 2009-10
For Appellant: Sh. S. VenkatramanFor Respondent: Sh. Sanjay J. Sethi and Sh. T. Shankar, DR
Section 143(1)Section 148Section 68

believe should be of the AO and not based on any borrowed information. In the instant case there is no reference of any tangible material available with AO that could become basis for reason to believe that the income has escaped assessment. It was merely on the documents forwarded

Asstt. CIT -3(1)(1), Mumbai vs. M/S. Roche Diagnostic India Pvt. Ltd, Mumbai

In the result, the appeals filed by the revenue are hereby dismissed

ITA 908/MUM/2021[2013-14]Status: DisposedITAT Mumbai25 Feb 2022AY 2013-14

Bench: Shri S. Rifaur Rahman, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. Nos. 908 & 909/Mum/2021 (निर्धारण वर्ा / Assessment Years: 2013-14 & 2012-13) बिधम/ Acit Circle-3(1)(1) M/S. Rideema Toll Pvt. Ltd. Room No.607, 6Th Floor, M/S. Roche Diagnostic India Pvt. Vs. Aayakar Bhavan, M. K. Ltd. 501-B, 5Th Floor, Silver Utopia Road, Mumbai-400020. Cardinal Gracious Road, Chakala Andheri (E), Mumbai-400069. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaca0266H (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri T. Shankar (Sr. Ar) Assessee By: Shri Nitesh Joshi सुनवाई की तारीख / Date Of Hearing: 07/02/2022 घोषणा की तारीख /Date Of Pronouncement: 25/02/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Above Mentioned Appeals Against The Different Order Passed By The Commissioner Of Income Tax (Appeals) -18, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Ys.2013-14 & 2012-13. Ita. No.909/Mum/2021 2. The Revenue Has Filed The Present Appeal Against The Order Dated 18.02.2020 Passed By The Cit(A)-18, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2012-13. 3. The Revenue Has Raised The Following Grounds: - "1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Was Right In Deleting The Addition Made On

For Appellant: Shri Nitesh JoshiFor Respondent: Shri T. Shankar (Sr. AR)
Section 143(1)Section 195Section 40

Hoffmann La Roche AG itzerland, the appellant could not produce any documentary evidence /third party supporting documents. Accordingly, in the absence of tangible material on record, the Ac has rightly held the payment to F Hoffmann La Roche AG towards license cost to be the nature

Mr.M J Aravind, Bangalore vs. Assistant Commissioner of Income Tax Circle-2(3)(1), Bangalore

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

ITA 222/BANG/2019[2011-12]Status: DisposedITAT Bangalore25 Feb 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2011-12

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 147Section 148Section 14ASection 48Section 57

built test to check the abuse of power by the AO. Hence after 1st April, 1989, AO has power to reopen, provided there is “tangible material” to come to the conclusion that there is escapement of income from assessment. However, before us, the ld. DR strongly relied on the judgment ... test to check abuse of power by the assessing officer. Hence, after 1-4-1989, assessing officer has power to reopen, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation

Galleria Condominium Association, Gurgaon vs. Income Tax Officer, Ward-1(3), Gurgaon

In the result, all the appeals filed by the assessee are remanded back to the file of the Assessing Officer for fresh assessment

ITA 1053/DEL/2021[2011-2012]Status: DisposedITAT Delhi21 Feb 2022AY 2011-2012

Bench: Shri Amit Shuklaas S.M.C. (Through Video Conferencing)

For Appellant: N o n eFor Respondent: Shri Sanjay Kumar, Sr.DR
Section 147Section 250Section 4(5)

That the reasons recorded u/s 147 of the I.T. Act,1961 by the Ld. A.O. were merely based on the suspicion and without any tangible material so as to suggest any escapement of income. Hence the reassessment proceedings are liable to be quashed. 3. Whether the Ld. AO justified

Galleria Condominium Association, Gurgaon vs. Income Tax Officer, Ward-1(3), Gurgaon

In the result, all the appeals filed by the assessee are remanded back to the file of the Assessing Officer for fresh assessment

ITA 1052/DEL/2021[2010-11]Status: DisposedITAT Delhi21 Feb 2022AY 2010-11

Bench: Shri Amit Shuklaas S.M.C. (Through Video Conferencing)

For Appellant: N o n eFor Respondent: Shri Sanjay Kumar, Sr.DR
Section 147Section 250Section 4(5)

That the reasons recorded u/s 147 of the I.T. Act,1961 by the Ld. A.O. were merely based on the suspicion and without any tangible material so as to suggest any escapement of income. Hence the reassessment proceedings are liable to be quashed. 3. Whether the Ld. AO justified

Galleria Condominium Association, Gurgaon vs. Income Tax Officer, Ward-1(5), Gurgaon, Gurugram

In the result, all the appeals filed by the assessee are remanded back to the file of the Assessing Officer for fresh assessment

ITA 1038/DEL/2021[2009-10]Status: DisposedITAT Delhi21 Feb 2022AY 2009-10

Bench: Shri Amit Shuklaas S.M.C. (Through Video Conferencing)

For Appellant: N o n eFor Respondent: Shri Sanjay Kumar, Sr.DR
Section 147Section 250Section 4(5)

That the reasons recorded u/s 147 of the I.T. Act,1961 by the Ld. A.O. were merely based on the suspicion and without any tangible material so as to suggest any escapement of income. Hence the reassessment proceedings are liable to be quashed. 3. Whether the Ld. AO justified

Indian Clothing League(P) Ltd., Noida vs. ITO, Ward-26(2), New Delhi

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

ITA 505/DEL/2020[2011-12]Status: DisposedITAT Delhi21 Feb 2022AY 2011-12

Bench: Shri R.K. Pandaassessment Year: 2011-12 Indian Clothing League (P) Ltd., Vs. Ito, Rupinder Kumar Aggarwal, Ward-26(2), Advocate, B-1A/22H, New Delhi. Sector-51, Noida. Pan: Aaccv3439R (Appellant) (Respondent) Assessee By : Shri Lalit Mohan, Ca Revenue By : Shri Om Parkash, Sr. Dr Date Of Hearing : 01.02.2022 Date Of Pronouncement : 21.02.2022 Order

For Appellant: Shri Lalit Mohan, CAFor Respondent: Shri Om Parkash, Sr. DR
Section 142(1)Section 143(2)Section 143(3)Section 147Section 148

misplaced, and unsustainable. 3.3 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that there was no specific relevant, reliable and tangible material on record to form a “reason to believe” that income of the appellant had escaped assessment and in view thereof the proceedings initiated

Mr. Anoop Harikishin Tejwani, Thane vs. ITO Ward 2(1), Kalyan

In the result, this appeal by the assessee stands allowed

ITA 27/MUM/2019[2010-11]Status: DisposedITAT Mumbai16 Feb 2022AY 2010-11

Bench: Shri Shamim Yahya

Section 143(3)Section 144Section 147Section 148Section 68

case of Kelvinator of India Limited (2010) 2 SCC 723 applies on all force. The reopening was not done on the basis of any tangible material received. The entire issue was gone through by the AO earlier. This is simply a review and change of opinion

Triveni Filling Systems, Mumbai vs. ITO - 25(1)(5), Mumbai

In the result, this appeal by the assessee stands allowed for statistical purpose

ITA 348/MUM/2021[2010-11]Status: DisposedITAT Mumbai14 Feb 2022AY 2010-11

Bench: Shri Shamim Yahya

Section 133(6)

change of opinion is bad in law. There is no valid reason recorded for re-opening of the assessment. And there is no' tangible material for re-opening of the assessment. Ground No.2 On the facts and circumstance of the case and in law the learned CIT appeal erred

M/S. Sharda Lab P. Ltd., Mumbai vs. ITO-8(2)(1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 1680/MUM/2020[2012-13]Status: DisposedITAT Mumbai10 Feb 2022AY 2012-13

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Akash KumarFor Respondent: Shri S.N. Kabra
Section 143(2)Section 147Section 148Section 68

nexus could have been established between the material and the escapement of income. The reasons fail to demonstrate the link between the alleged tangible material and formation of the reason to believe that income has escaped assessment. 11. Considering the above discussion, it is clear that there is a total

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

ITA 6303/DEL/2017[2011-12]Status: DisposedITAT Delhi03 Feb 2022AY 2011-12

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR
Section 144C(13)Section 147Section 148

there has been escapement of income of the company from assessment in a particular year. Therefore, for every Assessment Year, there should be some tangible material evidence to form such a belief which we find absent in the reasons recorded mentioned elsewhere for the years under appeal. 19. We find ... after considering the specific objections raised by the assessee, we are of the considered view that for the Assessment Years under challenge, no new tangible material has been brought by the Assessing Officer to justify the reopening and as mentioned elsewhere, the reason why reopening was upheld by this Tribunal

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

ITA 6302/DEL/2017[2010-11]Status: DisposedITAT Delhi03 Feb 2022AY 2010-11

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR
Section 144C(13)Section 147Section 148

there has been escapement of income of the company from assessment in a particular year. Therefore, for every Assessment Year, there should be some tangible material evidence to form such a belief which we find absent in the reasons recorded mentioned elsewhere for the years under appeal. 19. We find ... after considering the specific objections raised by the assessee, we are of the considered view that for the Assessment Years under challenge, no new tangible material has been brought by the Assessing Officer to justify the reopening and as mentioned elsewhere, the reason why reopening was upheld by this Tribunal

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

ITA 6301/DEL/2017[2009-10]Status: DisposedITAT Delhi03 Feb 2022AY 2009-10

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR
Section 144C(13)Section 147Section 148

there has been escapement of income of the company from assessment in a particular year. Therefore, for every Assessment Year, there should be some tangible material evidence to form such a belief which we find absent in the reasons recorded mentioned elsewhere for the years under appeal. 19. We find ... after considering the specific objections raised by the assessee, we are of the considered view that for the Assessment Years under challenge, no new tangible material has been brought by the Assessing Officer to justify the reopening and as mentioned elsewhere, the reason why reopening was upheld by this Tribunal

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

ITA 6300/DEL/2017[2008-09]Status: DisposedITAT Delhi03 Feb 2022AY 2008-09

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR
Section 144C(13)Section 147Section 148

there has been escapement of income of the company from assessment in a particular year. Therefore, for every Assessment Year, there should be some tangible material evidence to form such a belief which we find absent in the reasons recorded mentioned elsewhere for the years under appeal. 19. We find ... after considering the specific objections raised by the assessee, we are of the considered view that for the Assessment Years under challenge, no new tangible material has been brought by the Assessing Officer to justify the reopening and as mentioned elsewhere, the reason why reopening was upheld by this Tribunal

M/S. Centum Electronics Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle - 2(1)(1), Bangalore

In the result appeal filed by assessee stands allowed on the legal issue raised

ITA 946/BANG/2019[2008-09]Status: DisposedITAT Bangalore31 Jan 2022AY 2008-09

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2008-09 M/S. Centum Electronics Ltd. #44, Ground Floor, Deputy Commissioner Of Khb Industrial Area Vs. Income-Tax Yelahanka New Town Circle-2(1)(1) Bengaluru 560 106 Bengaluru Pan No : Aakcs7429L Appellant Respondent Appellant By : Shri S. Ramasubrammaniam, A.R. Respondent By : Shri Srinath Sadanala, D.R. Date Of Hearing : 13.12.2021 Date Of Pronouncement : 31.01.2022 O R D E R Per Beena Pillai: This Appeal Filed By The Assessee Is Directed Against The Order Of The Cit(A) Bengaluru-2 Dated 28.2.2019 For The Assessment Year 2008-09. The Grounds Of Appeal Raised By The Assessee In This Appeal Are Reproduced As Follows:- That The Order Of The Learned Commissioner Of Income-Tax (Appeals) In 1. So Far It Is Prejudicial To The Interests Of The Appellant Is Bad & Erroneous In Law & Against The Facts & Circumstances Of The Case. That The Learned Commissioner Of Income Tax (Appeals) Erred In Law & 2. On Facts In Justifying The Action Of The Assessing Officer In Passing An Order Against M/S. Solectron Ems India Ltd Even Though The Said Entity Does Not Exist On The Date Of The Passing The Order. That The Learned Commissioner Of Income Tax (Appeals) Erred In Law & 3. On Facts In Upholding The Action Of The Assessing Officer In Passing An Assessment Order Against A Non-Existing Person. 4. That The Order U/S 147 Is Without Jurisdiction.

For Appellant: Shri S. Ramasubrammaniam, A.RFor Respondent: Shri Srinath Sadanala, D.R
Section 10BSection 147Section 40

facts in not adjudicating the ground on forming a belief that income of Solectron EMS India Ltd has escaped assessment without any tangible material and the formation of such a belief is a mere change of opinion which is not permissible in law. That the learned Commissioner of Income

Assistant Commissioner of Income Tax 17(2)), Mumbai vs. Navjbai Ratan Tata Trust, Mumbai

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

ITA 1317/MUM/2018[2008-09]Status: DisposedITAT Mumbai24 Jan 2022AY 2008-09
Section 10(34)Section 11Section 11(1)Section 11(1)(a)Section 11(5)Section 11(5)(xii)Section 13(1)(d)Section 143(3)Section 147Section 148

claim of exemption made by the assessee. In either way, the ld. AO in the reasons recorded had not referred to any tangible material for taking a divergent stand in respect of this issue and make addition thereon. It only clearly reflects the change of opinion in the mind ... recorded by the ld. AO that absolutely no finding has been given by the ld. AO as to on what basis and on what tangible material, he had arrived at the conclusion that assessee had claimed excess allowance of accumulation of Rs.6,49,31,667/- u/s.11

ACIT, Jammu vs. Sh Vikramaditya Singh, Jammu

In the result, all the fours appeals filed by the Revenue are dismissed and the three Cross Objections as well as the ground as per Rule 27 are allowed

ITA 269/ASR/2007[1998-99]Status: DisposedITAT Delhi24 Jan 2022AY 1998-99

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastava

For Appellant: Shri C.S. Aggarwal, SrFor Respondent: Shri S.D. Kapila, Spl
Section 139(9)Section 147Section 148

initiated after a period of four years from the end of the relevant assessment year without surfacing of any fresh tangible material and merely on the basis of the assessment made in the case of Shri M.K. Ajatshatru Singh. He submitted that assessment made in the case of Shri