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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

Kalindee Estates Private Limited, Jaipur vs. Income Tax Officer, Jaipur

ITA 770/JPR/2024[2010-2011]Status: DisposedITAT Jaipur21 Oct 2024AY 2010-2011
For Appellant: Sh. Tarun Mittal, CAFor Respondent: Sh. Anup Singh, Addl. CIT
Section 143(3)Section 147Section 68

that assessee was beneficiary of accommodation entries but no further inquiry was undertaken by Assessing Officer, said information could not be said to be tangible material per se and, thus, reassessment on said basis was not justified In case of PCIT vs. Meenakshi Overseas (P.) Ltd. [2017] 82 taxmann.com ... information from DIT(Investigation) that assessee had received accommodation entry but and there was no independent application of mind by Assessing Officer to tangible material and reasons failed to demonstrate link between tangible material and formation of reason to believe that income had escaped assessment, reassessment was not justified

Income Tax Officer, Thane vs. Sachin Laxman Jangid, Thane

In the result, the appeal by the Revenue is dismissed

ITA 2205/MUM/2024[2011-12]Status: DisposedITAT Mumbai21 Oct 2024AY 2011-12

Bench: Shri Amarjit Singhshri Sandeep Singh Karhailincome Tax Officer, Room No.4, 6Th Floor, Ashar It Park, Wagle Estate, Thane (W) ……………. Appellant Maharashtra - 400604

For Appellant: Shri Sanjiv Brahme a/w Shri Jayant BhattFor Respondent: Shri BhangepatilPushkaraj Ramesh, Sr.DR
Section 142(1)Section 143(1)Section 143(3)Section 147Section 148Section 250Section 254

indicating that the assessee has availed accommodation entries by way of bogus purchase bills. Therefore, in our considered opinion, the Assessing Officer had sufficient tangible material available before him to form the belief that income chargeable to tax has escaped assessment. That being the case, the reopening of assessment under

ACIT, Central Crcle-18, New Delhi vs. Shimmer Developers P.Ltd, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 1497/DEL/2018[2011-12]Status: DisposedITAT Delhi21 Oct 2024AY 2011-12

Bench: Pradip Kumar Kedia & Shri Anubhav Sharma

Section 132Section 143(3)Section 147Section 150Section 68

reasons but the conclusions of the AO one after the other. There is no independent application of mind by the AO to the tangible material which forms the basis of the reasons to believe that income has escaped assessment. The conclusions of the AO are at best a reproduction ... conclusion in the investigation report. Indeed it is a borrowed satisfaction. The reasons fail to demonstrate the link between the tangible material and the formation of the reason to believe that income has escaped assessment. 37. For the aforementioned reasons, the Court is satisfied that in the facts and circumstances

Bridham Deal Trade Pvt. Ltd., Kolkata vs. I.T.O., Ward - 1(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 1353/KOL/2024[2013-2014]Status: DisposedITAT Kolkata18 Oct 2024AY 2013-2014

Bench: Sri Sanjay Garg & Sri Rakesh Mishra

Section 142(1)Section 147Section 250

reopened the assessment and made the impugned addition. The ld. Counsel for the assessee in this respect, has submitted that there was no tangible material available with the ld. AO to form the belief that the assessee has received the alleged accommodation entry from M/s. Panghat Vincom Pvt. Ltd. That

ITO, Ward- 4, Rohtak vs. Stratagem Stock Broker Pvt. Ltd., Rohtak

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

ITA 7482/DEL/2017[2009-10]Status: DisposedITAT Delhi18 Oct 2024AY 2009-10

Bench: Shri S. Rifaur Rahman & Shri Sudhir Pareek, Judicialmember Ito, Ward 4, Vs. M/S. Stratagem Stock Broker Pvt. Ltd., Rohtak. H.No.122/8, Shivaji Colony, Rohtak (Haryana). (Pan: Aakcs2610R) (Appellant) (Respondent) Assessee By : Shri Gautam Jain, Advocate Shri Lalit Mohan, Ca Shri Parth Singhal, Advocate Revenue By : Shri Vivek K. Upadhyay, Sr. Dr. Date Of Hearing : 29.08.2024 Date Of Order : 18.10.2024 O R D E R Per S. Rifaur Rahman, Am : 1. This Appeal Is Filed By The Revenue Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), Rohtak [Hereinafter Referred To As ‘Ld. Cit (A)] Dated 10.10.2017 For The Assessment Year 2009-10. 2. Brief Facts Of The Case Are, Assessee Filed Its Original Return Of Income On 18.08.2009 Declaring An Income Of Rs.1,17,770/-. The Return Was Processed

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Shri Vivek K. Upadhyay, Sr. DR
Section 143Section 143(2)Section 143(3)Section 148

give the AO 6 prima facie belief that income has escaped assessment. The AO is required to form prima facie opinion based on tangible material which provides the nexus or the link having reason to believe that income has escaped assessment. The AO was also required to examine whether ... reason to believe that income chargeable to tax has escaped assessment. The power is not akin to a review. The existence of tangible material is necessary to ensure against an arbitrary exercise of power. Hon'ble ITAT Delhi, in Banke Bihar Properties Pvt. Ltd. v. ITO (Delhi)(Trib); observed that

Assisstant Commissioner of Income Tax - 4(1), Indore vs. Prataap Snacks Limited, Indore

In the result revenue’s appeal is dismissed and assessee’s cross-objection is allowed

ITA 374/IND/2023[2018-19]Status: DisposedITAT Indore17 Oct 2024AY 2018-19

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 143(3)Section 147Section 148Section 80I

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 ... based on change of opinion. The Hon’ble Supreme Court has held that the A.O has power to open assessment provided there is “tangible material” to come to the conclusion that there was escapement of income from assessment. The reason must have link with the formation of brief

Assisstant Commissioner of Income Tax - 4(1), Indore vs. Prataap Snacks Limited, Indore

In the result revenue’s appeal is dismissed and assessee’s cross-objection is allowed

ITA 373/IND/2023[2020-21]Status: DisposedITAT Indore17 Oct 2024AY 2020-21

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 143(3)Section 147Section 148Section 80I

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 ... based on change of opinion. The Hon’ble Supreme Court has held that the A.O has power to open assessment provided there is “tangible material” to come to the conclusion that there was escapement of income from assessment. The reason must have link with the formation of brief

Assisstant Commissioner of Income Tax - 4(1), Indore vs. Prataap Snacks Limited, Indore

In the result revenue’s appeal is dismissed and assessee’s cross-objection is allowed

ITA 372/IND/2023[2017-18]Status: DisposedITAT Indore17 Oct 2024AY 2017-18

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 143(3)Section 147Section 148Section 80I

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 ... based on change of opinion. The Hon’ble Supreme Court has held that the A.O has power to open assessment provided there is “tangible material” to come to the conclusion that there was escapement of income from assessment. The reason must have link with the formation of brief

Assistant Commissioner of Income Tax - 4(1), Indore vs. Prataap Snacks Limited, Indore

In the result revenue’s appeal is dismissed and assessee’s cross-objection is allowed

ITA 371/IND/2023[2013-14]Status: DisposedITAT Indore17 Oct 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 143(3)Section 147Section 148Section 80I

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 ... based on change of opinion. The Hon’ble Supreme Court has held that the A.O has power to open assessment provided there is “tangible material” to come to the conclusion that there was escapement of income from assessment. The reason must have link with the formation of brief

Assistant Commissioner of Income Tax - 4(1), Indore vs. Prataap Snacks Limited, Indore

In the result revenue’s appeal is dismissed and assessee’s cross-objection is allowed

ITA 370/IND/2023[2012-13]Status: DisposedITAT Indore17 Oct 2024AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 143(3)Section 147Section 148Section 80I

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 ... based on change of opinion. The Hon’ble Supreme Court has held that the A.O has power to open assessment provided there is “tangible material” to come to the conclusion that there was escapement of income from assessment. The reason must have link with the formation of brief

Shree Dandhavya Chhasath Prajapati Samaj, Kalol vs. The Commissioner of Income Tax (Exemption), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 505/AHD/2022[2022-23]Status: DisposedITAT Ahmedabad16 Oct 2024AY 2022-23

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.505/Ahd/2022 िनधा"रण वष" /Assessment Year : 2022-23 Shree Dandhavya Chhasath The Commissioner Of Income बनाम/ Prajapati Samaj Tax (Exemption) V/S. Sejal Briks Ahmedabad – 380 015 Nr. Ambica Nagar Stand Gandhinagar Kalol 382 721 (Gujarat) "थायी लेखा सं./Pan: Aamts 5972 R अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) ….. Assessee By : Shri Biren Shah, Ar Revenue By : Shri Sudhendu Das, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 14/10/2024 घोषणा की तारीख /Date Of Pronouncement: 16/10/2024 आदेश/O R D E R Per Makarand V. Mahadeokar, Am:

For Appellant: Shri Biren Shah, ARFor Respondent: Shri Sudhendu Das, CIT-DR
Section 11Section 12ASection 13(1)(b)

activities of the trust. 2. The CIT (Exemption) has eared in law, in over looking and in summarily rejecting and not considered, the tangible material submitted during the proceeding u/s 12AB of Income Tax Act. 1961. 3. Your appellant crave, leave to add, alter, & or to emend modify substitute

Nscb Aviation Pvt. Ltd. (Amalgamated Company) Gajanand Barter Pvt. Ltd. (Amalgamating Company), Kolkata vs. I.T.O., Ward - 7(1), Kolkata

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

ITA 1122/KOL/2024[2012-2013]Status: DisposedITAT Kolkata16 Oct 2024AY 2012-2013

Bench: Sri Rajesh Kumar & Pradip Kumar Choubey

Section 143(2)Section 143(3)Section 147Section 148Section 250

assessee challenges the impugned order thereby submitting that the reasons recorded by the ld. AO do not demonstrate the live link between the tangible material and formation of belief that income had escaped assessment. According to him, the reasons recorded are vague, arbitrary mere pretense and rumor that is liable

M/S Madras Race Club, Chennai vs. DCIT, Cenral Circle-1(2), Chennai

In the result the appeal of the assessee stands allowed

ITA 688/CHNY/2024[2007-08]Status: DisposedITAT Chennai16 Oct 2024AY 2007-08

Bench: Hon’Bleshri Manu Kumar Giriand Hon’Ble Shri S.R. Raghunathaआयकर अपील सं./Ita No.688/Chny/2024 िनधा"रण वष"/Assessment Year:2007-2008 M/S.Madras Race Club, The Deputy Commissioner Of Race Course Road, Vs. Income Tax, Guindy Industrial Estate S.O., Central Circle 1(2) Guindy, Chennai Chennai 600 032. Pan: Aaacm 7640R (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ"क"ओरसे/Appellant By : Shri. R. Vijayaraghavan, Advocate ""यथ"क"ओरसे/Respondent By : Shri. V. Nandakumar, Irs, Cit.

For Appellant: Shri. R. Vijayaraghavan, AdvocateFor Respondent: Shri. V. Nandakumar, IRS, CIT
Section 143(1)Section 143(3)Section 147Section 148

High Court further held at para 11 as under: - "11. The phrase "reason to believe in section 147 relates to such other new or tangible material as may have come to the knowledge of the assessing officer pursuant to the original proceedings for assessment. The Supreme Court ... check abuse of power by the Assessing Officer. Hence, after 1st April, 1989, the 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 link with the formation of the belief." This

Kokan Mercantile Co-Op Bank Ltd., Mumbai vs. ACIT, Circle 20(2), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 1731/MUM/2024[2013-14]Status: DisposedITAT Mumbai16 Oct 2024AY 2013-14

Bench: Shri Pavan Kumar Gadale & Smt Renu Jauhri

For Appellant: Shri Tanzil PadvekarFor Respondent: Shri P. D. Chougule
Section 143(3)Section 147Section 148Section 250Section 36(1)(viia)Section 36(1)(viii)

original assessment. 3. On the facts and in law, there is no valid assumption of jurisdiction by the Ld. Assessing Officer as no new "tangible material" has come into possession of the Ld. Assessing Officer which is the basic legal requirement for the formation of the bonafide belief as contemplated ... original assessment. 3. On the facts and in law, there is no valid assumption of jurisdiction by the Ld. Assessing Officer as no new "tangible material" has come into possession of the Ld. Assessing Officer which is the basic legal requirement for the formation of the bonafide belief as contemplated

Kokan Mercantile Co-Op Bank Ltd., Mumbai vs. ACIT, Circle 20(2), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 1730/MUM/2024[2012-13]Status: DisposedITAT Mumbai16 Oct 2024AY 2012-13

Bench: Shri Pavan Kumar Gadale & Smt Renu Jauhri

For Appellant: Shri Tanzil PadvekarFor Respondent: Shri P. D. Chougule
Section 143(3)Section 147Section 148Section 250Section 36(1)(viia)Section 36(1)(viii)

original assessment. 3. On the facts and in law, there is no valid assumption of jurisdiction by the Ld. Assessing Officer as no new "tangible material" has come into possession of the Ld. Assessing Officer which is the basic legal requirement for the formation of the bonafide belief as contemplated ... original assessment. 3. On the facts and in law, there is no valid assumption of jurisdiction by the Ld. Assessing Officer as no new "tangible material" has come into possession of the Ld. Assessing Officer which is the basic legal requirement for the formation of the bonafide belief as contemplated

Sonal Snehal Shah, Mumbai vs. ITO 19(3)(1), Mumbai

ITA 1653/MUM/2024[2012-13]Status: DisposedITAT Mumbai16 Oct 2024AY 2012-13

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

Section 10(38)Section 143Section 147Section 148Section 68

Page 1 ITA No.1653/M/2024 AY: 2012-13 Sonal Snehal Shah Versus ITO, Mumbai IN THE INCOME TAX APPELLATE TRIBUNAL “G

Pankaj Dhandharia, Mumbai vs. ACIT-22(1), Mumbai

Appeal is dismissed

ITA 741/MUM/2024[2017-18]Status: DisposedITAT Mumbai15 Oct 2024AY 2017-18

Bench: Shri Prashant Maharishi, Am & Shrisunil Kumar Singh, Jm

Section 142ASection 144BSection 147Section 148Section 250Section 50(2)(vi)Section 500Section 56(2)(vii)

linkage of the information relied upon by the learned assessing officer and the reopening has been made without appreciating that there is not new tangible material coming into the possession of the assessing officer as the learned assessing officer did not specify the nature of information which is that that ... vehemently supported the order of the learned lower authorities. It was submitted that the reopening is valid for the reason that there is a tangible material coming into the information of the learned assessing officer pursuant to the order passed which shows that the property purchased by the assessee

Team Global Logistics Pvt. Ltd., Mumbai vs. DCIT-11(3)(1), Mumbai

In the result the appeal is allowed

ITA 4453/MUM/2023[2012-13]Status: DisposedITAT Mumbai15 Oct 2024AY 2012-13

Bench: SHRI BR BASKARAN (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)

Section 143(2)Section 143(3)Section 147Section 148Section 151(1)Section 250Section 68

appeal shall be governed by the old regime. “Reason to believe” requires schematic interpretation. The assessing officer has power to reopen provided therein a tangible material to come to the conclusion that there is escapement of income from assessment, reason must have a link with the formation of the belief ... situation even though proviso to Section 147 of the Act would not apply, and the Assessing Officer has to only make out availability of tangible material, it is settled law that if the re- opening is based on mere change of opinion, the notice issued under Section

Assistant Commissioner of Income Tax, Circle-6(1)(2), Mumbai vs. Futura Travels Ltd., Mumbai

In the result, appeal of the revenue is dismissed

ITA 723/MUM/2024[2011-12]Status: DisposedITAT Mumbai14 Oct 2024AY 2011-12

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2011-12

For Appellant: Shri Vijay Mehta, CAFor Respondent: Shri Ankush Kapoor, CIT, DR
Section 143(3)Section 147Section 148Section 151

objections on the following aspects: a. It is a case of change of opinion 3 Futura Travels Ltd., AY 2011-12 b. No new tangible material has been brought on record to initiate the impugned reassessment proceedings c. The reasons recorded are based on suspicion alone and the reo- pening ... claim of deduction towards prior period expenses. Assessee claims that doubt raised by the Ld. Assessing Officer is not based on any fresh tangible material but merely an attempt to probe the matter further. On the first issue relating to claim of deduction towards prior period interest cost

Dy. Commissioner of Income Tax, Mumbai vs. Ashok Jasraj Jain, Mumbai

In the result, appeal of the Revenue is dismissed and Cross Objection filed by the assessee is allowed

ITA 3839/MUM/2024[2011-12]Status: DisposedITAT Mumbai14 Oct 2024AY 2011-12

Bench: IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHRI (Accountant Member)

Section 132Section 143(1)Section 143(3)Section 147Section 148

done for the current market value of Rs.3,44,27,000/-. Thus, the entire reason to believe is based on certain presumption without any tangible material to prove that the investment made by the assessee was from undisclosed sources of the company which has given loan. There is nothing ... including the source of investments made and after examining these documents, the assessment was completed and no adverse inference was drawn. There is no tangible material coming on record post completion of assessment that investment has been made by the assessee from some undisclosed sources or the sources were