“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

Kuldip Kumar Goel, Delhi vs. ACIT(1)(1), Delhi

In the result, the appeal of the assessee is partly allowed in above

ITA 3285/DEL/2025[2012-13]Status: DisposedITAT Delhi06 Feb 2026AY 2012-13

Bench: Shri Raj Kumar Chauhanand

Section 143(3)Section 144Section 147Section 148Section 149(1)Section 250

reopening beyond four years there must be an omission or failure on part of assessee to disclose fully and truly all material facts necessary for assessment, I hold that appellant failed in revealing all facts before Ld. JAO. To quote — “Thus, the question of full and true disclosure of primary

DCIT, Vikash Bhawan Delhi vs. Rajan Kumar, Laxmi Nagar, Delhi

In the result, the appeal of the Revenue appeal is dismissed and the cross objection filed by the assessee is allowed in the aforesaid manner

ITA 130/DEL/2025[2012-13]Status: DisposedITAT Delhi06 Feb 2026AY 2012-13

Bench: Shri Sudhir Kumar & Smt. Renu Jauhridcit Vs Rajan Kumar Room No. 218-D Block, 31,Vijay Block Laxmi Vikash Bhawan, Nagar Delhi-110092 Delhi- 110 002 Pan: Caapk8381E

Section 132Section 142(1)Section 143(1)Section 147Section 148Section 69A

earlier been concluded under section 143(3) by order dated 30-03-2015 and assessee had fully and truly disclosed all material facts necessary for assessment, the pre-condonation for invoking the proviso to section 147 of the Act had not been satisfied. Thus the reassessment order is liable

Southern Enterprises, Chennai vs. ACIT Non Corporate Ward 22, Chennai

In the result, appeal filed by the assessee is allowed

ITA 2941/CHNY/2017[2009-10]Status: DisposedITAT Chennai04 Feb 2026AY 2009-10

Bench: Shri Aby T. Varkey & Ms. Padmavathy. S

For Appellant: Ms. S. Sanchitha for Mr. R. SivaramanFor Respondent: Mr. Praveen. S, JCIT

Section 10BSection 142(1)Section 143(2)Section 143(3)Section 147Section 148

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. He submitted that a bare reading of the reasons shows that reopening is sought to be effected only on the basis ... reference, Expln. 8 would have certainly operated. However, on the question whether the assessee had failed to disclose fully and truly all material facts necessary for assessment, it is obvious that when the assessee had filed its return in 1983 it could not have assumed that such a legislative amendment

Bijay Kumar Saraf, Daldali Bazar, Muzaffarpur vs. Dc/Ac Circle 1, Muzffarpur, It-Office, Police Line, Sikanderpur Muzzaffarpur

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

ITA 205/PAT/2025[2014-15]Status: DisposedITAT Patna30 Jan 2026AY 2014-15

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 142(1)Section 143(3)Section 147Section 148Section 194(7)Section 194C(6)Section 250

reasons recorded that escapement of income was because of failure on the part of the appellant to disclose fully and truly all material facts necessary for assessment. 8. For that the learned commissioner of income tax (Appeals) had failed to appreciate the audit report duly concluded by the auditor

Komal Enterprises, Dombivali vs. ITO, Ward 3(3), Kalyan

In the result, the appeal of the assessee bearing ITA Nos

ITA 4421/MUM/2025[2012-13]Status: DisposedITAT Mumbai30 Jan 2026AY 2012-13

Bench: Shri Anikesh Banerjee & Shri Makarand Vasant Mahadeokarita No.4421/Mum/2025 (Assessment Year: 2012-13)

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Shri Hemanshu Joshi (CIT DR)

Section 143(2)Section 143(3)Section 147Section 148Section 250Section 80Section 801B(10)Section 80I

opening could not be without any omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment which being not the case, the re-opening of assessment u/s 147 is bad-in-law and the asst. order flowing therefrom is required

Komal Enterprises, Dombivali vs. ITO, Ward 3(3), Kalyan

In the result, the appeal of the assessee bearing ITA Nos

ITA 4420/MUM/2025[2011-12]Status: DisposedITAT Mumbai30 Jan 2026AY 2011-12

Bench: Shri Anikesh Banerjee & Shri Makarand Vasant Mahadeokarita No.4421/Mum/2025 (Assessment Year: 2012-13)

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Shri Hemanshu Joshi (CIT DR)

Section 143(2)Section 143(3)Section 147Section 148Section 250Section 80Section 801B(10)Section 80I

DCIT Circle 1 Nashik, Nashik vs. Shree Sai Properties, Nashik

In the result, appeal of the Revenue is dismissed

ITA 987/PUN/2025[2014-15]Status: DisposedITAT Pune27 Jan 2026AY 2014-15

Bench: Dr. Manish Borad & Shri Vinay Bhamore

For Appellant: Shri Subodh Ratnaparkhi, CAFor Respondent: Shri Amit Bobde, CIT

Section 132Section 143(2)Section 143(3)Section 147Section 148Section 250

considering the fact that by not disclosing details of cash transactions, assessee had failed to disclose fully and truly all material facts necessary for assessment and therefore the case of assessee came under the ambit of provisions of Section 147 of the Income Tax Act, 1961.” 3. Brief facts ... legal issue has been raised stating that reopening proceedings u/s.147 is justified as the assessee failed to disclose fully and truly all material facts necessary for assessment. 7. Ld. Departmental Representative made multifold contentions giving reference to the following written submissions : 8 ITA.No.987/PUN./2025 (M/s. Shree Sai Properties

Gupta Builder and Developers, Mumbai vs. ACIT Central Circle 4(3), Mumbai

In the result, ground no. 3 of the assessee‟s appeal is allowed

ITA 70/MUM/2025[2017-18]Status: DisposedITAT Mumbai23 Jan 2026AY 2017-18

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm M/S. Gupta Builders & Developers Asst. Commissioner Of Income 1201 & 1202, Bhumiraj Costarica, Tax, Central Circle 4(3), Mumbai Plot No. 1 & 2, Near Moraj Circle, Vs. Sector 18, Sanpada, Navi Mumbai – 400705. Pan/Gir No. Aajfg3066H (Appellant) : (Respondent)

For Respondent: Shri Asif Karmali SR DR

Section 143(3)Section 148Section 148ASection 151Section 250

corroboratic. or application of mind and preliminary enquiries. 10. BECAUSE, there is no failure on the part of the Appellant to disclose material facts necessary for assessment. 11. BECAUSE, the AO failed to deal with the specific objections raised by the Appellant against the "reasons recorded" while disposing

Vimal Alloys Private Limited, Mandi Gobindgarh, Punjab vs. Jao the Deputy Commissioner of Income Tax Circle, Patiala, Punjab

ITA 890/CHANDI/2025[2016-2017]Status: DisposedITAT Chandigarh21 Jan 2026AY 2016-2017

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Sudhir Sehgal, Advocate and Shri Vipen Sethi, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR

Section 143(1)Section 147Section 148Section 151Section 69A

that the Assessing Officer would have come to the conclusion that whether there was a failure to disclose truly and fully all material facts necessary for assessment. The relevant text of the section if being produced hereunder: - “Provided that where an assessment under sub-section (3) of section

D.A.V. Educational Trust, Chennai vs. ITO, Exemption Ward-2, Chennai

In the result, the appeal of the assessee for AY 2017-18 is allowed

ITA 1670/CHNY/2024[2018-19]Status: DisposedITAT Chennai21 Jan 2026AY 2018-19

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. Nos.1667, 1668, 1669 & 1670/Chny/2024 िनधा"रण वष"/Assessment Years: 2014-15, 2015-16, 2017-18 & 2018-19 D.A.V. Educational Trust, Vs. The Income Tax Officer, 5, S V Illam, Mohanapuri Lake View Exemption Ward 4, Street, Adambakkam, Chennai. Chennai 600 088. [Pan: Aaatc5967A] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri G. Baskar, Advocate & Shri A. Satyaseelan, Advocate ""थ" की ओर से/Respondent By : Ms. Gouthami Manivasagam, Jcit सुनवाई की तारीख/ Date Of Hearing : 28.10.2025 घोषणा की तारीख /Date Of Pronouncement : 21.01.2026 आदेश /O R D E R Per S.S. Viswanethra Ravi: These Four Appeals Filed By The Assessee Are Directed Against The Orders All Dated 05.04.2024 Passed By The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi For The Assessment Years 2014-15, 2015-16, 2017-18 & 2018-19. 2. Since, The Issues Raised In These Appeals Are Similar Based On The Same Identical Facts, With The Consent Of Both The Parties, We Proceed To 2

For Appellant: Shri G. Baskar, Advocate &For Respondent: Ms. Gouthami Manivasagam, JCIT

Section 11Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 2(15)

completed the assessment by accepting the returned income without making any addition. He argued that the assessee disclosed fully and truly all material facts necessary for assessment for the said assessment year vide submissions dated 20.06.2016 in response to the notice under section 142(1) of the Act dated ... argued that since all the material facts necessary for assessment have been disclosed during the original assessment proceedings and the reopening on the same set of fact is barred by limitation in terms of first proviso to section 147 of the Act. 7. The ld. AR secondly submits that

D.A.V. Educational Trust, Chennai vs. ITO, Exemption Ward-2, Chennai

In the result, the appeals filed by the assessee for AY 2014-15,

ITA 1669/CHNY/2024[2017-18]Status: DisposedITAT Chennai21 Jan 2026AY 2017-18

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadish

Section 11Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 2(15)

D.A.V. Educational Trust, Chennai vs. ITO, Exemption Ward-4, Chennai

ITA 1667/CHNY/2024[2014-15]Status: DisposedITAT Chennai21 Jan 2026AY 2014-15

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. Nos.1667, 1668, 1669 & 1670/Chny/2024 निर्धारण वर्ष/Assessment Years: 2014-15, 2015-16, 2017-18 & 2018-19 D.A.V. Educational Trust, 5, S V Illam, Mohanapuri Lake View Street, Adambakkam, Chennai 600 088. [Pan: Aaatc5967A] (अपीलार्थी/Appellant) अपीलार्थी की ओर से / Appellant By Vs. The Income Tax Officer, Exemption Ward 4, Chennai. (प्रत्यर्थी/Respondent) Shri G. Baskar, Advocate & Shri A. Satyaseelan, Advocate Ms. Gouthami Manivasagam, Jcit 28.10.2025 21.01.2026 : प्रत्यर्थी की ओर से/Respondent By : सुनवाई की तारीख / Date Of Hearing : घोषणा की तारीख / Date Of Pronouncement : आदेश/Order Per S.S. Viswanethra Ravi: These Four Appeals Filed By The Assessee Are Directed Against The Orders All Dated 05.04.2024 Passed By The Id. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi For The

Section 11Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 2(15)

M/S. Jagmag Mercantiles Private Limited, Kolkata vs. ITO, Ward 12(1), Kolkata

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

ITA 709/KOL/2025[2014-15]Status: DisposedITAT Kolkata14 Jan 2026AY 2014-15

Bench: Shri Rajesh Kumar, Am & Shripradip Kumar Choubey, Jm

For Appellant: Shri Abhishek Bansal, ARFor Respondent: Shri Prabhakar Prakash Ranjan

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

held that when there was no failure on part of petitioner to make return or to disclose fully and truly all material facts necessary for assessment, proviso to new section, which bars issue of notice under section 148 after expiry of four years from end of relevant assessment year, squarely

M/S. Jagmag Mercantiles Private Limited., Kolkata vs. ITO, Ward 12(1), Kolkata

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

ITA 708/KOL/2025[2013-14]Status: DisposedITAT Kolkata14 Jan 2026AY 2013-14

Bench: Shri Rajesh Kumar, Am & Shripradip Kumar Choubey, Jm

For Appellant: Shri Abhishek Bansal, ARFor Respondent: Shri Prabhakar Prakash Ranjan

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

Kaishar Interiors Private Limtied, Mumbai vs. Deputy Commissioner of Income Tax Circle 4(2)(2), Mumbai

Accordingly Ground No.16 raised by the Assessee is allowed

ITA 5665/MUM/2025[2010-11]Status: DisposedITAT Mumbai07 Jan 2026AY 2010-11

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI PRABHASH SHANKAR (Accountant Member)

For Appellant: Shri Dinesh Kukreja &For Respondent: Shri Hemanshu Joshi

Section 143(3)Section 147Section 148Section 14A

view of the facts mentioned above, I have reasons to believe that the assessee has failed to disclose fully and truly all material facts necessary for assessment. Thus, I have reason to believe that the income chargeable to tax of the assessee company M/s Kaishar Interiors Pvt. Ltd., PAN:AAACK1477A

Maithan Ceramic Ltd., Kolkata vs. ACIT, Circle 7(1), Kolkata

ITA 1944/KOL/2025[2011-2012]Status: DisposedITAT Kolkata01 Jan 2026AY 2011-2012

For Appellant: Shri P.K.Himmatsinghka, ARFor Respondent: Shri Sandeep Lakra, Sr. DR

Section 142(1)Section 269S

Assessing Officer has not mentioned any failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, therefore, the reopening of the assessment is liable to be treated as invalid. It was also submitted that the assessee having already provided all the details

Vikas Jain, Kanpur vs. ACIT-CC 2(1)(1), Kanpur

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

ITA 434/LKW/2024[2015-16]Status: DisposedITAT Lucknow31 Dec 2025AY 2015-16

Bench: Sh. Kul Bharat & Sh. Nikhil Choudharya.Y. 2015-16 Vikas Jain, Vs. The Acit, H-2/1, Kidwai Nagar, Kanpur- Circle 2(1)(1), Kanpur 208001 208006 Pan: Abqpj8049R (Appellant) (Respondent) Assessee By: Sh. Rakesh Garg, Adv Revenue By: Sh. Amit Kumar, Dr Date Of Hearing: 07.10.2025 Date Of Pronouncement: 31.12.2025 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Orders Of The Ld. Cit(A), Nfac On 17.05.2024 Wherein The Ld. Cit(A) Has Dismissed The Appeal Of The Assessee Against The Order Passed By The Ld. Assessing Officer Under Section 147 R.W.S. 143(3) For The A.Y. 2015-16 On 27.12.2018. The Grounds Of Appeal Are As Under:- “01. Because There Being No Reason To Believe, Far From There Being Any Material To Form Reasons To Believe, The Proceedings Initiated Right From Issue Of Notice U/S. 148 & The Re-Assessment Framed Thereof Are All Without Jurisdiction Bad In Law, The Order Passed Be Quashed. 02. Because The So-Called Reasons Having Been Recorded Applying Explanation 2(A) To Section 147, Of The Act Which Not Being Applicable, The Very Reason To Believe Being Contrary To The Mandate Of The Section, The Proceedings- Initiated U/S 148, The Reassessment Framed Are All Contrary To The Provisions Of Law, Be Quashed. 03. Because The Approval Given By The Competent Authority U/S 151, Being Mechanical In Nature Without Verification Of Facts, The Notice Issued U/S 148 & The Reassessment Framed Thereafter Be Quashed.

For Appellant: Sh. Rakesh Garg, AdvFor Respondent: Sh. Amit Kumar, DR

Section 143(1)Section 147Section 148Section 151Section 156Section 48Section 50C

escaped income and because the ld. AO had reason to believe that the assessee had not disclosed fully and truly all the material facts necessary for assessment, 10 Vikas Jain A.Y. 2015-16 there had been an escapement of income in the case of the assessee. It was submitted that

Shree Krishna Gyanodaya Flour Mills Pvt. Ltd., Kolkata vs. ACIT, Central Circle 4(3), Kolkata

In the result, the appeal of the assessee is allowed

ITA 2179/KOL/2025[2011-2012]Status: DisposedITAT Kolkata31 Dec 2025AY 2011-2012

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm Shree Krishna Gyanodaya Acit, Central Circle 4(3) Flour Mills Pvt. Ltd. Aaykar Bhawan Poorva 15Th Floor, 46C, Chowringhee 110, Kolkata-700107, Vs. Road, Everest House, Kolkata- West Bengal 700071, West Bengal (Appellant) (Respondent) Pan No. Aahcs8774P Assessee By : Shri S.K. Tulsiyan, Ar Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 01.12.2025 Date Of Pronouncement: 31.12.2025

For Appellant: Shri S.K. Tulsiyan, ARFor Respondent: Shri Sanat Kumar Raha, DR

Section 139(1)Section 143(2)Section 143(3)Section 144Section 147Section 148Section 151(1)Section 153ASection 68

will draw nexus between the findings and reason to believe. g. Findings of the AO on true and full disclosure of the material facts necessary for assessment under proviso to section 147 of the Act:- The Ld. AO is required to give details and instances along with corroborative material

Shri Vipul Bansal, Mumbai vs. Income Tax Officer Ward 7(1)(2), Mumbai

The appeal of the assessee is partly allowed for statistical purposes

ITA 5628/MUM/2025[2010-11]Status: DisposedITAT Mumbai30 Dec 2025AY 2010-11

Bench: Shri Sandeep Singh Karhail & Shri Makarand Vasant Mahadeokar

Section 131Section 143(3)Section 147Section 148Section 250Section 271(1)(c)Section 37(1)Section 69C

lies heavily on the Assessing Officer to demonstrate a failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. 28. It was contended that a bare perusal of the recorded reasons for reopening clearly shows that the Assessing Officer has not alleged ... that the Assessing Officer failed to demonstrate any failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. 31. It is an undisputed fact that the original assessment for the year under consideration was completed under section 143(3) and that

Hardayal Milk Products Private Limited, Shikohabad vs. DCIT, Circle-2(2)(1), Firozabad

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

ITA 344/AGR/2025[2013-14]Status: DisposedITAT Agra29 Dec 2025AY 2013-14

Bench: : Shri S. Rifaur Rahman & Shri Sunil Kumar Singh

Section 143(3)Section 145(3)Section 147Section 148Section 151Section 250Section 68

must be failure on the part of the assessee to file the return of income and to disclose fully and truly all material facts necessary for assessment; and (ii) that the income must have escaped assessment due to such failure. 2.1 While testing the facts of the present case ... circumstances, it can hardly be concluded in the reopening proceedings that the appellant failed to make full and true disclosure of all material facts necessary for assessment and thus, there has been no failure on the part of the assessee to disclose any information which could have led to presume