“ tangible material ”

ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.

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.

291 ITR 500 · 2007 · Supreme Court

1,030

CIT v. Kelvinator of India Ltd.

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.

256 ITR 1 · 2002 · High Court

439

354 ITR 536 · 2013 · High Court

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.

366

222 Taxman 15 (Gujarat)(MAG.), Principal Commissioner of Income-tax-4 v. G & G Pharma India Ltd.

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.

384 ITR 147 · 2016 · High Court

274

PCIT v. RMG Polyvinyl (I) Ltd.

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.

396 ITR 5 · 2017 · High Court

272

264 ITR 566 · 2003 · Supreme Court

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

253

Haryana Acrylic Manufacturing Company v. CIT

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.

308 ITR 38 · 2009 · High Court

248

ITA 442/JPR/2025[2016-17]Status: DisposedITAT Jaipur13 Oct 2025AY 2016-17

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

Silver & Art Palace, Jaipur vs. ACIT, Jaipur

In the result, the appeals of the assessee are partly allowed

Bench: Dr. S. Seethalakshmi & Shri Gagan Goyal

For Appellant: Mr. Vinod Gupta, CA. Ld. ARFor Respondent: Mrs. Alka Gautam, CIT, Ld. DR

Section 153ASection 250

unaccounted cash payment made to creditors by the assessee. The onus was on the revenue to prove the content, however we find that no tangible material, other than the statement, has been brought to support that the entries appearing in the seized page are unaccounted cash payment made to creditors

Rms Karamchari Bachat and Sakh Sahakari Samiti Limited Jaipur, Jaipur vs. ITO Ward-1(2), Jaipur

In the result, the appeals of the assessee are allowed

ITA 246/JPR/2025[2016-17]Status: DisposedITAT Jaipur13 Oct 2025AY 2016-17

For Appellant: Shri Deepak Sharma, C.AFor Respondent: Smt. Anita Rinesh, JCIT

ITA 245/JPR/2025[2015-16]Status: DisposedITAT Jaipur13 Oct 2025AY 2015-16

reassessment proceedings initiated in the present case are fundamentally flawed, as they are vitiated by an incorrect assumption of facts and absence of any tangible material at the stage of recording of reasons. It is a well-settled principle of law that the formation of belief u/s 147 must rest ... inflated, incorrect, or unrelated to the additions ultimately made. 2.5 Accordingly, the reassessment proceedings have not been initiated on the strength of correct and tangible material, but merely on assumptions, presumptions, and erroneous figures. The belief that income had escaped assessment was therefore based on wrong facts, and the jurisdiction

Rms Karamchari Bachat and Sakh Sahakari Samiti Limited Jaipur, Jaipur vs. ITO Ward-1(2), Jaipur

In the result, the appeals of the assessee are allowed

For Appellant: Shri Deepak Sharma, C.AFor Respondent: Smt. Anita Rinesh, JCIT

ITA 244/JPR/2025[2014-15]Status: DisposedITAT Jaipur13 Oct 2025AY 2014-15

Rms Karamchari Bachat and Sakh Sahakari Samiti Limited Jaipur, Jaipur vs. ITO, Ward-1(2), Jaipur

In the result, the appeals of the assessee are allowed

For Appellant: Shri Deepak Sharma, C.AFor Respondent: Smt. Anita Rinesh, JCIT

ITA 243/JPR/2025[2013-14]Status: DisposedITAT Jaipur13 Oct 2025AY 2013-14

Rms Karamchari Bachat and Sakh Sahakari Samiti Limited Jaipur, Jaipur vs. ITO Ward-1(2), Jaipur

In the result, the appeals of the assessee are allowed

For Appellant: Shri Deepak Sharma, C.AFor Respondent: Smt. Anita Rinesh, JCIT

ITA 2261/MUM/2025[2012-13]Status: DisposedITAT Mumbai13 Oct 2025AY 2012-13

Balajee Infratech & Constructions Private Limited, Mumbai vs. DCIT Circle 4(1)(1), Mumbai

In the result, the appeal of the assessee stands allowed

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 133(6)Section 133ASection 143(3)Section 147Section 37(1)

after due verification, had accepted the genuineness of the payment. The reopening, it was urged, was a mere change of opinion without any fresh tangible material. In support, the assessee furnished a comprehensive set of documents demonstrating the legality and genuineness of the transaction. The relevant documents included- (i) Copy ... reopening, therefore, rests merely on a legal inference drawn from identical facts that were already examined during the original assessment. There is neither any tangible material brought on record to indicate that the expenditure was bogus nor any new information to justify the reopening. The Assessing Officer has simply

Pankaj Kumar Gupta, Azamgarh vs. ITO Ward3(1), Income Tax Office Azamgarh

In the result, both the appeals of the assessee stand allowed for statistical purposes

ITA 126/VNS/2023[2012-13]Status: DisposedITAT Varanasi10 Oct 2025AY 2012-13

Bench: Shri. Sudhanshu Srivastava

For Appellant: S/Shri Piyush Kumar Kamal and Abhishek Kumar Gupta, AdvocatesFor Respondent: Smt Amandeep Kaur, D.R

Section 144Section 147Section 148Section 151Section 271(1)(c)

quashed as such. 1.1 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 ITA Nos.125/VNS/2023 & ITA Nos.126/VNS/2023 Page 4 of 9 believe" that income of the appellant had escaped assessment

Pankaj Kumar Gupta, Azamgarh vs. Income Tax Officer

In the result, both the appeals of the assessee stand allowed for statistical purposes

ITA 125/VNS/2023[2012-13]Status: DisposedITAT Varanasi10 Oct 2025AY 2012-13

Bench: Shri. Sudhanshu Srivastava

For Appellant: S/Shri Piyush Kumar Kamal and Abhishek Kumar Gupta, AdvocatesFor Respondent: Smt Amandeep Kaur, D.R

Section 144Section 147Section 148Section 151Section 271(1)(c)

Satish Khanna, Chennai vs. ITO, Ncw-5(1), Chennai

In the result, appeal filed by the assessee is allowed

ITA 415/CHNY/2025[2015-16]Status: DisposedITAT Chennai10 Oct 2025AY 2015-16

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunathaआयकर अपील सं./Ita No.:415/Chny/2025 िनधा#रण वष# / Assessment Year: 2015-16

For Appellant: Shri. D. Anand, AdvocateFor Respondent: Shri. C. Sivakumar, Addl. C.I.T

Section 144Section 147Section 148Section 250Section 251Section 251(1)(a)Section 69

notice issued u/s.148 of the Act is contingent on the Learned Assessing Officer forming a cogent “reason to believe” based on credible and tangible material, and initiating proceedings based on unverified information renders the notice invalid and the entire reassessment proceedings void. 5. Without Prejudice, the Learned CIT(A) erred

Shri Inamul Haq, Saharanpur vs. ITO, Saharanpur

In the result, the appeal of the assessee is allowed

ITA 3300/DEL/2016[2009-10]Status: DisposedITAT Delhi10 Oct 2025AY 2009-10

Bench: Shri M Balaganesh & Shri Vimal Kumarassessment Year: 2009-10 Shri Inamul Haq S/O Sh. Mohd. Vs. Income Tax Officer, Yamin, Vill.Megh Chhappar, Ward-2. Ambalaa Road, Saharanpur (U.P) Saharanpur Pan: Aaiph2840K (Appellant) (Respondent)

For Appellant: Shri Ankit Gupta, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR

Section 139(4)Section 143(2)Section 147Section 148Section 151Section 250(6)Section 50CSection 54Section 54FSection 54F(4)

jurisdiction. 3. That, no application of mind by the assessing officer while recording the alleged satisfaction and failed to establish the live nexus between tangible material and income escaped assessment, which is vague, incorrect and baseless, hence, the proceedings initiated is illegal, bad in law and without jurisdiction

Sarita Shantilal Begani, Surat vs. DCIT, Circle-1(1)(1), Surat

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

ITA 334/SRT/2025[2010-11]Status: HeardITAT Surat09 Oct 2025AY 2010-11

Bench: Shri Sandeep Gosain & Shri Om Prakash Kant

Section 148Section 250

assessment, the copy of the investigation report or any other documents have not been supplied to the assessee and there was no new tangible material before the AO to reopen the assessment. 3. After having heard the counsels for both the parties and on going through the records, we noticed

Nitaben Girishbhai Patel, Ahmedabad vs. The ITO, Ward-3(3)(2), Ahmedabad

In the result, while upholding the validity of reopening, we set aside the ex parte order of the CIT(A) on merits and restore the matter to his file for fresh adjudication in accordance with law

ITA 1560/AHD/2025[2017-18]Status: DisposedITAT Ahmedabad09 Oct 2025AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Makarand V.Mahadeokarasstt.Year : 2017-18 Nitaben Girishbhai Patel The Ito, Ward-3(3)(2) 33/B, Swi Park, Private Plot Vejalpur Madhuvrund Society Ahmedabad. Ghatlodiya, Ahmedabad. Pan : Aappp 5738 F (Applicant) (Responent) : Shri Parimalsinh B. Parmar, Ar Assessee By : Shri B.P. Srivastava, Sr.Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 06/10/2025 घोषणा क" तारीख /Date Of Pronouncement: 09/10/2025 आदेश आदेश/O R D E R आदेश आदेश

For Appellant: Shri B.P. Srivastava, Sr.DR

Section 144BSection 147Section 148Section 271ASection 69A

proposition that at the stage of reopening, the Assessing Officer is only required to form a prima facie belief, on the 8 basis of tangible material, that income chargeable to tax has escaped assessment. The existence of such material is sufficient to clothe the Assessing Officer with jurisdiction; the sufficiency ... Wing, when read in conjunction with the assessee’s own disclosure of capital gains from sale of shares of M/s Kushal Ltd., clearly constituted tangible material warranting further inquiry. It is also pertinent to note that capital gain is an outcome of purchase and sale transactions, and, by its very

Income Tax Officer, Ward-2(1), Guntur vs. Shivani Cotton Industries Private Limited, Guntur

In the result, appeals ITA

ITA 460/VIZ/2024[2016-17]Status: DisposedITAT Visakhapatnam08 Oct 2025AY 2016-17

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

ITA 368/VIZ/2024[2016-17]Status: DisposedITAT Visakhapatnam08 Oct 2025AY 2016-17

protective assessment because, before reopening of assessment, the Assessing Officer must record ‘reasonable belief of escapement’ which should have a live link between the ‘tangible material’ and the ‘formation of the reason’ to believe that, income had escaped assessment. In the present case, the Assessing Officer has reopened the case ... because, the reasons recorded for reopening of the assessment does not show any nexus between the reasonable belief of escapement of income and tangible material which suggests escapement of income, which is clearly evident from the assessment order passed by the Assessing Officer, where the Assessing Officer has made protective

Income Tax Officer, Ward- 1(1), Guntur vs. Potti Kumara Naga Venkata Sai Chakravarthy, Guntur

In the result, appeals ITA

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

ITA 367/VIZ/2024[2016-17]Status: DisposedITAT Visakhapatnam08 Oct 2025AY 2016-17

Income Tax Officer, Guntur vs. Madhusushana Venkata Subba Rao Potti, Guntur

In the result, appeals ITA

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

ITA 359/VIZ/2024[2016-17]Status: DisposedITAT Visakhapatnam08 Oct 2025AY 2016-17

Assistant Commissioner of Income Tax, Guntur vs. Ms.Vijayasai Lakshmi Srinivasa Cotton Mills, Guntur

In the result, appeals ITA

Bench: Shri Vijay Pal Rao & Shri Manjunatha G