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“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
51
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
44
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
41
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
41
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
40
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

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

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 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

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 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

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

Gold Ancher Exim Private Limited, Khar West - Mumbai vs. Income Tax Officer Ward 12(2)(1), Aaykar Bhavan

In the result, appeal of the assessee is allowed

ITA 5464/MUM/2024[2013-14]Status: DisposedITAT Mumbai23 Jan 2025AY 2013-14

Bench: Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Ms. Ritu Panjabi, A/RFor Respondent: Shri Bhangepatil Pushkaraj Ramesh, Sr. D/R
Section 143(2)Section 143(3)Section 147Section 148Section 69C

aforesaid details stated above, I have reasons to believe that the assessee has failed to disclose fully and truly all material facts necessary for assessment. Therefore, I have reason to believe that income chargeable to tax exceeding Rs. 1 lakhs has under assessed and escaped assessment within the meaning

Sejal Jignesh Shah, Mumbai vs. The Income Tax Officer-19(3)(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 444/MUM/2023[2012-13]Status: DisposedITAT Mumbai20 Jan 2025AY 2012-13

Bench: Sunil Kumar Singh, Hon’Ble

For Appellant: Shri Fenil Bhatt, AdvocateFor Respondent: Shri Bhangepatil Pushkaraj Ramesh, Sr. DR
Section 10(38)Section 143(1)Section 147Section 148Section 68

wrong to conclude that, in the case of assessee there is failure on part of assessee to disclose truly and fully all material facts necessary for assessment for AY 2012-13 resulting in escapement of income of Rs.8,01,06,478/-. 7. In this case, return of income was filed

Murali Krishna Yenugula, Chennai vs. ITO, Ncw-22(1), Tambaram

In the result, appeal filed by the assessee is allowed

ITA 2347/CHNY/2024[2015-16]Status: DisposedITAT Chennai15 Jan 2025AY 2015-16

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

Section 143Section 143(1)Section 143(2)Section 143(3)Section 148Section 54Section 54F

year was as a result of the failure on the part of the assessee to disclose truly and fully and truly all material facts necessary for assessment. He submitted that from the recorded reasons itself such satisfaction should have been discernible. Drawing attention to the reasons recorded which has been ... original assessment. Therefore, the bald statement in Para No.3 of the reasons recorded that assessee failed to disclose fully & truly all material facts necessary for assessment is baseless, and is per-se contradicting with contents of Para No.2 of his own reasons recorded and therefore, the impugned ‘reasons recorded

Minal Shroff, Rs Puram Tamilnadu vs. ITO, Non Corp Ward -2(3), Coimbatore

ITA 2424/CHNY/2024[2014-15]Status: DisposedITAT Chennai10 Jan 2025AY 2014-15
For Appellant: Mr.S.K.Tulsiyan, AdvocateFor Respondent: Ms.T.M.Suganthamala
Section 143(2)Section 143(3)Section 147Section 148Section 2(40)

assessment if the escapement is not due to the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment for the assessment year. 3. That the assessee having furnished all details relating to both income chargeable to tax and income claimed exempt ... relevant assessment year was as a result of the failure on the part of the assessee to disclose truly and fully, all material facts necessary for assessment. He submitted that from the recorded reasons itself such satisfaction should have been discernible. Drawing attention to the reasons recorded (supra) and copy

Assistant Commissioner of Income Tax Circle- 3(4) Mumbai, Mumbai vs. The Shipping Corporation of India Limited, Mumbai

In the result, appeal of the assesse is allowed and that of the

ITA 1970/MUM/2024[2016-2017]Status: DisposedITAT Mumbai09 Jan 2025AY 2016-2017

Bench: Sunil Kumar Singh, Hon'Ble

For Appellant: Shri Nitesh Joshi & Neha Vikam, A/RsFor Respondent: Shri Dr. Kishor Dhule, CIT D/R
Section 115JSection 139(1)Section 143(3)Section 148

APPELLATE TRIBUNAL I.T.A. No. 1752/Mum/2024 I.T.A. No. 1970/Mum/2024 C. Assessee's duty does not extend beyond fully and truly disclosing all material facts necessary for assessment It is submitted that while it is duty of every assessee to disclose fully and truly all material facts necessary for his assessment ... assessee's plea that there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment of AY 2016-17 and hence reassessment is invalid, on merits, the assessee would like to submit as under: D.1. Treatment of Foreign currency transaction

The Shipping Corporation of India, Mumbai vs. DCIT-3(4), Mumbai

In the result, appeal of the assesse is allowed and that of the

ITA 1752/MUM/2024[2016-17]Status: DisposedITAT Mumbai09 Jan 2025AY 2016-17

Bench: Sunil Kumar Singh, Hon'Ble

For Appellant: Shri Nitesh Joshi & Neha Vikam, A/RsFor Respondent: Shri Dr. Kishor Dhule, CIT D/R
Section 115JSection 139(1)Section 143(3)Section 148

reassessment proceedings cannot be invoked. C. Assessee's duty does not extend beyond fully and truly disclosing all material facts necessary for assessment It is submitted that while it is duty of every assessee to disclose fully and truly all material facts necessary for his assessment, his duty does ... assessee's plea that there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment of AY 2016-17 and hence reassessment is invalid, on merits, the assessee would like to submit as under: D. 1. Treatment of Foreign currency

Nandi Sahakari Sakkare Karkhane Niyamit, Vijayapur vs. Income Tax Officer Appeal, Vijayapur

In the result, appeal filed by the assessee is allowed

ITA 447/BANG/2024[2013-14]Status: DisposedITAT Bangalore06 Jan 2025AY 2013-14

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2013-14

For Appellant: Sri. Chetan V Chougale & Sri Praveen P Ghali, CAFor Respondent: Sri. A. Sreenivasa Rao, CIT - DR
Section 115JSection 132ASection 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 250

initiating proceedings under 147 of the Act is invalid as per the first proviso of Sec. 147 of the Act as all material facts necessary for assessment of income were before him during the 143(3) proceedings. We are of the opinion that the “material facts” contemplated in the Proviso

Cosmic Informatics Pvt. Ltd., New Delhi vs. ACIT Central Circle - 2, New Delhi

In the result, appeal of the Revenue in appeal No

ITA 2444/DEL/2024[2017-18]Status: DisposedITAT Delhi02 Jan 2025AY 2017-18

Bench: Shri Sudhir Kumar & Shri Manish Agarwalita No.2442 To 2445/Del/2023 (Assessment Years 2013-14 To 2016-17) Dcit, Lotus Herbals Pvt. Ltd., Cc-20, Delhi. Room No.269A, 2 Nd Floor, Ara Vs. Centre, E-2, Jhandewalan, New Delhi-110055. Pan-Aaacl0198F (Appellant) (Respondent) Assessee By Shri Rohit Jain, Adv. & Shri Shivam Gupta, Ca Department By Sh. Mukesh Jha, Cit Dr & Ms. Pooja Swroop, Cit-Dr 29.09.2025 Date Of Hearing Date Of Pronouncement 23.12.2025 O R D E R Per Manish Agarwal, Am: These Are Five Appeals Filed By The Revenue Against The Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-27, New Delhi. All Are Dated 12.06.2023 For Assessment Years As Tabulated As Under:

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

additional condition that 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 proviso to the section places fetters on the powers of the assessing officer to initiate reassessment proceedings beyond the period of four ... 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" In the present case, during the course of original assessment proceedings, specific queries were raised by the assessing officer regarding the AMP expenses incurred

Cosmic Informatics Pvt. Ltd., New Delhi vs. ACIT Central Circle - 2, New Delhi

In the result, appeal of the Revenue in appeal No

ITA 2443/DEL/2024[2013-14]Status: DisposedITAT Delhi02 Jan 2025AY 2013-14

Bench: Shri Sudhir Kumar & Shri Manish Agarwalita No.2442 To 2445/Del/2023 (Assessment Years 2013-14 To 2016-17) Dcit, Lotus Herbals Pvt. Ltd., Cc-20, Delhi. Room No.269A, 2 Nd Floor, Ara Vs. Centre, E-2, Jhandewalan, New Delhi-110055. Pan-Aaacl0198F (Appellant) (Respondent) Assessee By Shri Rohit Jain, Adv. & Shri Shivam Gupta, Ca Department By Sh. Mukesh Jha, Cit Dr & Ms. Pooja Swroop, Cit-Dr 29.09.2025 Date Of Hearing Date Of Pronouncement 23.12.2025 O R D E R Per Manish Agarwal, Am: These Are Five Appeals Filed By The Revenue Against The Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-27, New Delhi. All Are Dated 12.06.2023 For Assessment Years As Tabulated As Under:

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

additional condition that 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 proviso to the section places fetters on the powers of the assessing officer to initiate reassessment proceedings beyond the period of four ... 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" In the present case, during the course of original assessment proceedings, specific queries were raised by the assessing officer regarding the AMP expenses incurred

Best Realtrech India P.Ltd, New Delhi vs. ITO, Ward-4(3), New Delhi

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

ITA 390/DEL/2020[2011-12]Status: DisposedITAT Delhi27 Dec 2024AY 2011-12

Bench: Shri Mahavir Singh & Shri S. Rifaur Rahmanm/S Best Realtrech Income Tax Officer, (India) Pvt. Ltd., Ward-4(3), New Delhi H-8, First Floor, Vs. Best Plaza, Netaji Subhash Place, Pitampura, Delhi-110034 Pan:Aadcb1848D (Appellant) (Respondent)

Section 132Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 153CSection 68

reassessment proceedings. "Yet at the same time if the proviso applies and the assessee has fully and truly disclosed all the material facts necessary for assessment for that assessment year, reassessment proceedings cannot be initiated." In the present case, however, the mere disclosure of the identity of the investor

Amit Khatri, Sonipat vs. ITO, Ward 1, Sonipat

In the result, appeal of the assessee is partly allowed as

ITA 2430/DEL/2023[2012-13]Status: DisposedITAT Delhi18 Dec 2024AY 2012-13

Bench: Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.2430/Del/2023 िनधा"रणवष"/Assessment Year: 2012-13 बनाम Amit Khatri Income Tax Officer Ward No.30, Garhi Bhraman, Vs. Ward-1, Sonipat, Haryana. Sonipat, Haryana. Pan No. Bdspk3438G अपीलाथ" Appellant ""यथ"/Respondent

Section 147Section 148Section 151

also satisfied that on account of failure on the part of the assessee to I disclose truly and fully all the material facts necessary for assessment for the j above assessment year, the income chargeable to tax to the tune of Rs.193.00 Lakh as escaped assessment with the meaning

Golden Vats Pvt. Ltd., Chennai vs. ACIT, CC-3(2), Chennai

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

ITA 1534/CHNY/2024[2013-14]Status: DisposedITAT Chennai11 Dec 2024AY 2013-14

Bench: Shri Manu Kumar Giri & Shri Jagadishआयकर अपील सं./Ita No.1534/Chny/2024 िनधा9रण वष9 /Assessment Year: 2013-14

For Respondent: Shri N.S. Phanidharan, JCIT
Section 143(2)Section 143(3)Section 144Section 147Section 148Section 151Section 250Section 37

chargeable to tax has escaped assessment for the failure on the part of the assessee to disclose fully and truly of all material facts necessary for assessment as required by the first proviso to section 147 of the Act. The Ld. AR has also argued that this is a case ... even cared to allege any kind of failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. From the reasons recorded, it is not known, what material facts were not brought on record by the assessee in the course of original assessment

Sunny Trexim Private Ltd., Kolkata vs. DCIT, Circle - 5(1), Kolkata

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

ITA 644/KOL/2024[2013-14]Status: DisposedITAT Kolkata09 Dec 2024AY 2013-14

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 143(3)Section 147Section 148Section 148(2)Section 92C

discussion in the reasons recorded that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment.” 2. We note that by virtue of the above additional ground , the assessee moved an additional ground challenging the reopening of assessment

Sunny Trexim Privat Ltd., Kolkata vs. DCIT, Circle - 5(1), Kolkata

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

ITA 643/KOL/2024[2010-11]Status: DisposedITAT Kolkata09 Dec 2024AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 143(3)Section 147Section 148Section 148(2)Section 92C

discussion in the reasons recorded that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment.” 2. We note that by virtue of the above additional ground , the assessee moved an additional ground challenging the reopening of assessment

Kay Power and Paper Limited, Satara vs. Income Tax Officer, Ward-2, Satara

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

ITA 1437/PUN/2024[2016-17]Status: DisposedITAT Pune06 Dec 2024AY 2016-17

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

For Appellant: Shri Ashwani KumarFor Respondent: Shri Ramnath P Murkunde
Section 139Section 139(1)Section 143(1)Section 148Section 148A

escaped assessment, already stands credited to the Profit and Loss Account; (ii) there is no failure to disclose fully and truly all material facts necessary for assessment of income for the relevant assessment year nor has the Ld. Assessing Officer brought any material on record to prove such failure ... escaped assessment and since there is no failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment of income for the relevant assessment year and since the Assessing Officer has not brought any material on record to prove such failure, therefore

Kay Power and Paper Limited, Satara vs. Income Tax Officer, Ward-2, Satara

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

ITA 1436/PUN/2024[2015-16]Status: DisposedITAT Pune06 Dec 2024AY 2015-16

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

For Appellant: Shri Ashwani KumarFor Respondent: Shri Ramnath P Murkunde
Section 139Section 139(1)Section 143(1)Section 148Section 148A

escaped assessment, already stands credited to the Profit and Loss Account; (ii) there is no failure to disclose fully and truly all material facts necessary for assessment of income for the relevant assessment year nor has the Ld. Assessing Officer brought any material on record to prove such failure ... escaped assessment and since there is no failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment of income for the relevant assessment year and since the Assessing Officer has not brought any material on record to prove such failure, therefore

Ashok Sharma, Kota vs. Dy. Commissioner of Income Tax Circle-2 - Kota, Kota

ITA 359/JPR/2024[2014-2015]Status: DisposedITAT Jaipur29 Nov 2024AY 2014-2015
For Appellant: Shri Priyank Kabra (C.A.) (V.C.)For Respondent: Shri Anup Singh (Addl.CIT)
Section 143(3)Section 147Section 40A(3)

आयकर अपीलीय अधिकरण, जयपुर न्यायपीठ, जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B” JAIPUR डा० एस. सीतालक्ष्मी, न्यायिक