“material facts necessary for assessment”

ReassessmentSection 147Section 147564 judgments

The decision most relied on for material facts necessary for assessment is Calcutta Discount Co. Ltd. v. ITO (41 ITR 191), cited in 384 judgments on BharatTax.

Leading authorities on material facts necessary for assessment

Calcutta Discount Co. Ltd. v. ITO

41 ITR 191 · 1961 · Supreme Court

384

citing judgments

The assessee's duty is limited to disclosing all primary, material facts necessary for assessment, including entries, documents, and other evidence. It is for the Assessing Officer to draw inferences of fact and law, and the assessee is not obligated to offer such inferences.

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.

153 (Gujarat) 8 Shakti Karnawat v. ITO

296 ITR 90 · 2008 · High Court

171

citing judgments

A live link of third-party information can form the basis for reopening an assessment under Section 148, provided it contains material facts necessary for assessment. The Assessing Officer must demonstrate a "reason to believe" that income has escaped assessment, which can be satisfied by such information even if it pertains to other assessees or relates to accommodation entries.

Sound Casting (P) Ltd. v. Dy. CIT

250 CTR 119 · 2012 · High Court

citing judgments

An assessment cannot be reopened beyond four years from the end of the relevant assessment year unless the assessee failed to make a full and true disclosure of all material facts necessary for assessment.

ACIT v. CEAT Ltd.

449 ITR 171 · 2022 · Supreme Court

citing judgments

Reopening of an assessment beyond four years from the end of the relevant assessment year is invalid if it is based on a mere change of opinion or borrowed satisfaction, or if the reasons recorded do not explicitly allege the assessee's failure to truly and fully disclose all material facts necessary for assessment.

CIT v. Foramer Finance

251 ITR 416 · 2001 · High Court

citing judgments

Reopening assessments is permissible after four years if there was an escapement of income due to the assessee's failure to disclose material facts necessary for assessment, even if the initial assessment involved a change of opinion.

Dalmia P. Ltd. v. CIT

348 ITR 469 · 2012 · High Court

citing judgments

Reassessment proceedings are valid when there is a failure to disclose fully and truly all material facts necessary for assessment.

R 603 Mad. (14) Well Intertrade P. Ltd vs. CIT, 308 ITR 22 (Del) (15) Sitara Diamond P. Ltd. v. DCIT

343 ITR 183 · 2012 · High Court

citing judgments

Reopening assessment beyond four years under Section 147 is permissible only if the assessee failed to disclose fully and truly the material facts necessary for assessment. Mere change of opinion is not a valid ground for reopening.

Judgments citing material facts necessary for assessment

Income Tax Officer, Jaipur vs. Kedia Builders and Colonizers Private Limited, Jaipur

In the result, all appeals of the revenue are stands dismissed

ITA 875/JPR/2024[2016-17]Status: DisposedITAT Jaipur11 Mar 2025AY 2016-17

For Appellant: Sh. Sidharth RankaFor Respondent: Mrs. Anita Rinesh, JCIT-DR

Section 143(3)Section 147

first proviso to section 147, the AO had to establish failure on the part of appellant to disclose fully and truly all material fact necessary for assessment which is a pre-requisite for issue of notice u/s 148 14 ITA No. 872 & others/JP/2024 Kedia Builders and Colonizers Pvt. Ltd., Jaipur ... find that the AO had failed to establish any failure on the part of appellant to disclose fully and truly all material fact necessary for assessment. It is seen that this fact was brought to the notice of the AO through objections filed during the reassessment proceedings, the AO vide

Income Tax Officer, Jaipur vs. Kedia Builders and Colonizers Private Limited, Jaipur

ITA 873/JPR/2024[2013-14]Status: DisposedITAT Jaipur11 Mar 2025AY 2013-14

For Appellant: Sh. Sidharth RankaFor Respondent: Mrs. Anita Rinesh, JCIT-DR

Section 143(3)Section 147

first proviso to section 147, the AO had to establish failure on the part of appellant to disclose fully and truly all material fact necessary for assessment which is a pre-requisite for issue of notice u/s 148 beyond 4 years. In the instant case, I find that ... failed to establish any failure on the part of appellant to disclose fully and truly all material fact necessary for assessment. It is seen that this fact was brought to the notice of the AO through objections filed during the reassessment proceedings, the AO vide order dt. 25.11.2019 disposing

Income Tax Officer, Jaipur vs. Kedia Builders and Colonizers Private Limited, Jaipur

In the result, all appeals of the revenue are stands dismissed

ITA 872/JPR/2024[2012-13]Status: DisposedITAT Jaipur11 Mar 2025AY 2012-13

For Appellant: Sh. Sidharth RankaFor Respondent: Mrs. Anita Rinesh, JCIT-DR

Section 143(3)Section 147

first proviso to section 147, the AO had to establish failure on the part of appellant to disclose fully and truly all material fact necessary for assessment which is a pre-requisite for issue of notice u/s 148 15 ITA No. 872 & others/JP/2024 Kedia Builders and Colonizers Pvt. Ltd., Jaipur ... find that the AO had failed to establish any failure on the part of appellant to disclose fully and truly all material fact necessary for assessment. It is seen that this fact was brought to the notice of the AO through objections filed during the reassessment proceedings, the AO vide

Assistant Commissioner of Income Tax Circle-1, Bareilly vs. Wave Distilleries and Breweries Limited, Bareilly

Appeals of the Department stand dismissed

ITA 153/LKW/2023[2013-14]Status: DisposedITAT Lucknow28 Feb 2025AY 2013-14

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudhary

For Appellant: S/Shri Salil Kapoor, Vibhu Jain and Sumit Lalchandani, AdvocatesFor Respondent: Smt. Richa Rastogi, CIT (DR)

Section 115JSection 148

there was omission and failure on part of the assessee with regard to this transaction to disclose fully and truly all necessary material facts necessary for assessment. Accordingly, after considering the facts mentioned as discussed above and in view of the material available on record, I have reasons to believe ... unless the income has escaped assessment by reason of the failure of the assessee to disclose fully and truly all material facts necessary for assessment. The Ld. A.R. submitted that the Hon’ble Courts have consistently held that where there was no case of any failure on the part

Winsome Textile Industries Limited, Chandigarh vs. Asstt. Commissioner of Income Tax, Circle-4(1), Chandigarh

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

ITA 528/CHANDI/2024[2011-12]Status: DisposedITAT Chandigarh27 Feb 2025AY 2011-12

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Tejmohan Singh, AdvocateFor Respondent: Shri Ved Parkash Kalia Sr. DR

Section 115JSection 143(1)Section 143(3)Section 147Section 148

meaning of Section 147 of the Income Tax Act. 6. FINDINGS OF THE AO ON TRUE AND FULL DISCLOSURE OF THE MATERIAL FACTS NECESSARY FOR ASSESSMENT UNDER PROVISO TO SECTION 147: As the assessee had not disclosed full and truly all material facts necessary for his assessment and the facts ... balance sheet along with return of income where various information/ material were disclosed. However, the requisite full and true disclosure of all material facts necessary for assessment has not been made as noted above. It is pertinent to mention here that even though the assessee has produced books of accounts

Ashok Vijaykumar Kotecha, Jalgaon vs. ACIT, Circle 1, Jalgaon

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

ITA 1453/PUN/2023[2011-12]Status: DisposedITAT Pune24 Feb 2025AY 2011-12

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2011-12

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Uma Shankar Prasad

Section 143(3)Section 147Section 148Section 153A

balance sheet alongwith return of income where various information /material were disclosed. However, the requisite full and true disclosure of all material facts necessary for assessment has not been made as noted above. It is pertinent to mention here that even though the assessee has produced computation of income

Shree Hari Agro Industries Limited, Alwar vs. ACIT, Central Circle, Alwar

In the result, appeal of the assessee is partly allowed

ITA 1038/JPR/2024[2016-17]Status: DisposedITAT Jaipur21 Feb 2025AY 2016-17

Bench: Shri Gagan Goyal & Shri Narinder Kumar

For Appellant: Mr. P.C. Parwal, CA, Ld. ARFor Respondent: Mr. Manoj Kumar, JCIT, Ld. DR

Section 143(3)Section 147Section 148Section 250Section 68

much as there is no failure on the part of assessee to disclose fully and truly all material facts necessary for assessment, there is no independent application of mind by the AO while recording the reason to believe more so when it is third round of assessment and consequently upholding

Shree Hari Agro Industries Limited, Alwar vs. ACIT, Central Circle, Alwar

In the result, appeal of the assessee is partly allowed

ITA 1037/JPR/2024[2012-13]Status: DisposedITAT Jaipur21 Feb 2025AY 2012-13

Bench: Shri Gagan Goyal & Shri Narinder Kumar

For Appellant: Mr. P.C. Parwal, CA, Ld. ARFor Respondent: Mr. Manoj Kumar, JCIT, Ld. DR

Section 143(3)Section 147Section 148Section 250Section 68

DCIT CC 4 2 Mumbai, Mumbai vs. Red Chillies Entertainments Pvt. Ltd., Mumbai

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

ITA 5831/MUM/2024[2012-13]Status: DisposedITAT Mumbai21 Feb 2025AY 2012-13

Bench: SHRI AMIT SHUKLA (Judicial Member), MS. PADMAVATHY S (Accountant Member)

Section 143(3)Section 147Section 148Section 151Section 40

terms of proviso to section 147, there has to be failure ascribed on part of the assessee to disclose truly and all material facts necessary for assessment. Apart from that, if the Ld. AO takes a different view subsequently from the same record which was there on record and examined

Manoj Madanlal Chhajed, Pune vs. The Assistant Commissioner of Income Tax, Central Circle-1(1), Pune

In the result, both the appeals filed by the assessee are allowed

ITA 2017/PUN/2024[2011-12]Status: DisposedITAT Pune19 Feb 2025AY 2011-12

Bench: Shri R. K. Panda & Shri Vinay Bhamore

For Appellant: Shri Suhas P Bora, H G Sharma

Section 132Section 132(1)Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

assessment was made u/s 143(3) of the Act is concerned, he submitted that the mandatory requirement is the 'non- disclosure of material facts necessary for assessment by the assessee'. He submitted that in the instant case the assessee did not disclose the true nature of unsecured loan transactions taken ... escaped assessment, had to show that there was failure on the part of the petitioner to disclose fully and truly all material facts necessary for assessment during the original assessment proceedings. 12. A reference to the reasons recorded would clearly show that not a whisper has been made

Shri Manoj Madanlal Chhajed, Pune vs. The Assistant Commissioner of Income Tax, Central Circle-1(1), Pune

ITA 1178/PUN/2023[2011-12]Status: DisposedITAT Pune19 Feb 2025AY 2011-12

Bench: Shri R. K. Panda & Shri Vinay Bhamore

Section 132Section 132(1)Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148

Sunita Jajoo, Surat vs. ITO Ward 2(2)(4), Surat

In the result, assessee’s appeal is allowed

ITA 882/SRT/2024[2011-12]Status: DisposedITAT Surat10 Feb 2025AY 2011-12

Bench: Shri Pawan Singh & Shri Bijayananda Prusethआयकर अपील सं./Ita No. 552/Srt/2024 (Ay 2011-12) (Physical Court Hearing) Rambilash Rajaram Jajoo Income Tax Officer, Ward- 429-432, Golden Point, Falsawadi, 2(2)(4), Aaykar Bhawan, Majura बनाम Ring Road, Surat City, Gate, Opp. New Civil Hospital, Vs Surat-395 002 Surat-395 001 [Pan : Aampj 0040 K] अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 147Section 148Section 254(1)Section 68Section 69C

account of non-filing of the return by the assessee or failure on his part to disclose fully and truly all material facts necessary for assessment would not be conclusive. Nor, absence of any such statement would be fatal, if on the basis of reasons recorded, it can be culled

Saraswati Mukund Education Society, Mumbai vs. Income Tax Officer Exemption, Thane, Mumbai

ITA 3316/MUM/2024[2014-15]Status: DisposedITAT Mumbai10 Feb 2025AY 2014-15

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Bhuvanesh KankaniFor Respondent: Shri Kiran Unavekar

Section 11Section 13Section 13(1)(c)Section 13(3)Section 144BSection 147Section 250

income has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. It was urged that, in the present case, an affidavit-in-reply has been filed on behalf of the department which clearly indicates that ... that income has escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. In the present case, the affidavit and the reasons disclosed indicate that the department has purported to reopen the assessment only

Hsbc Securities and Capital Markets (India) Private Limited, Mumbai vs. Principal Commissioner of Income-Tax, Mumbai-4, Mumbai

In the result, the appeal filed by the Assessee stands allowed

ITA 2586/MUM/2024[2014-15]Status: DisposedITAT Mumbai10 Feb 2025AY 2014-15

Bench: Shri Narender Kumar Choudhry & Shri Girish Agrawalassessment Year: 2014-15

For Appellant: Ms. Krupa Gandhi, Ld. A.RFor Respondent: Shri Biswanath Das, Ld. D.R

Section 115JSection 143(3)Section 147Section 14ASection 154Section 263

Income Tax Act owing to failure on part of the assessee to disclose fully and truly all material facts necessary for assessment. So, the case of the assessee for A.Y. 2013-14 is being re-opened /s147 of the I.T. Act to bring to tax the income escaping assessment ... positive income even after giving appeal effect dated 05.10.2018) and inter alia alleged that we have not fully and truly disclosed all material facts necessary for assessment. 8.2. Further, we submit that on perusal of the Annexure forming part of the copy of the approval obtained

The DCIT (Int.Taxa.), Vadodara vs. Shri Ajoy Kanaiyalal Khandheria, Vadodara

In the result, the appeal of the assessee is treated as partly allowed for statistical purposes

ITA 451/AHD/2019[2014-15]Status: HeardITAT Ahmedabad10 Feb 2025AY 2014-15

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.451/Ahd/2024 िनधा"रण वष" /Assessment Year : 2012-13 Ranjitsinh Narsinh Vaghela The Income Tax Officer बनाम/ 3337, Nr. Palaiya Mahakali Ward-3 V/S. Mandir Gandhinagar Pethapur, Gandhinagar Gandhinagar – 382 610 "थायी लेखा सं./Pan: Afepv 3269 D (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri Hardik Vora, Advocate Revenue By : Shri R.N. Dsouza, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 10/01/2025 घोषणा की तारीख /Date Of Pronouncement: 15/01/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: This Appeal Has Been Preferred By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As “Cit(A)”], Dated 19/01/2024, For The Assessment Year (Ay) 2012-13, Which Upheld The Order Of The Assessing Officer [Hereinafter Referred To As “Ao”] Dated 30/12/2019, Passed Under Section 144 R.W.S. 147 Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"]. Ranjitsinh Narsinh Vaghela Vs. Ito Asst. Year : 2012-13

For Appellant: Shri Hardik Vora, AdvocateFor Respondent: Shri R.N. Dsouza, CIT-DR

Section 10(37)Section 144Section 147Section 148

from the end of the relevant assessment year, it must be demonstrated that the assessee failed to disclose fully and truly all material facts necessary for assessment. As per the settled principles of law, the reassessment must be based on the reasons recorded for reopening, but Ranjitsinh Narsinh Vaghela ... based on credible information from the investigation. We find that the failure to file a return amount to non-disclosure of material facts necessary for assessment. As per settled law, even if the AO obtains information from external sources, the reassessment proceedings remain valid if they are based

M/S Suncity Niketan Pvt.Ltd., Kolkata vs. Income Tax Officer, 5(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 2101/KOL/2024[2013-14]Status: DisposedITAT Kolkata07 Feb 2025AY 2013-14

Bench: Shri Sanjay Garg & Shri Sanjay Awasthii.T.A. No.2101/Kol/2024 Assessment Year: 2013-14 M/S Suncity Niketan Pvt. Ltd………………....….......…....………....Appellant 5, Clive Row, Kolkata -1. [Pan: Aapcs4157E] Vs. Ito, Ward-5(1), Kolkata......................................................…..…..... Respondent Appearances By: Shri Manoj Kataruka, Advocate, Appeared On Behalf Of The Appellant. Shri Subhendu Datta, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 12, 2024 Date Of Pronouncing The Order : February 07, 2025 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 06.12.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Is Aggrieved By The Action Of The Ld. Cit(A) In Confirming The Addition Of Rs.17,99,28,555/- Made By The Assessing Officer By Treating Credits In The Account Of The Assessee As Income Of The Assessee From Unexplained Sources. The Assessee Apart From Challenging The Validity Of The Additions Made/Confirmed By The Lower Authorities On Merits, Has Also Contested The Very Validity Of The Reopening Of The Assessment Order As Well As The Validity Of The Assessment Order For Want Of Issue Of Notice U/S 143(2) Of The Act.

Section 143(2)Section 147Section 250

escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment and in the light of the clarificatory provisions of Explanation 1 of the said Proviso, the above income is required to be re-assessed

M/S. Shroff Properties Pvt. Ltd., Kolkata vs. I.T.O., Ward - 1(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1951/KOL/2024[2010-2011]Status: DisposedITAT Kolkata04 Feb 2025AY 2010-2011

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.1951/Kol/2024 Assessment Year : 2010-11

For Appellant: Shri Abhishek Bansal, ARFor Respondent: Shri Kapil Mondal, Addl. CIT

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

likely that the Assessing Officer would have come to the conclusion that there was no failure to disclose truly and fully all material facts necessary for assessment. Thus, hit by the proviso to section 147 of the Act. However, the Assessing Officer has not applied his mind to the information

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

2036/Chny/2024 & CO No: 66/Chny/2024 established that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. For the year under consideration, the original assessment was passed on 15.12.2016. Post this passing of order, for AY 2011-12, on assessee ... came to a conclusion that there was complete failure on the part of the assessee to disclose fully and truly all material facts necessary for assessments and made the reopening with the following reasons. "Based on the information available on record, it is seen that the assessee has claimed provisions

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

consideration as there is no allegation of any failure on the part of the assessee to fully and truly disclose all the material facts necessary for assessment for the assessment year under consideration. Admittedly, as noted above, the earlier assessment in this case was carried out u/s. 153A/143

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