“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

M/S Rajasthan State Road Development & Construction Corporation Ltd., Setu Bhawan, Jhalana Doongri, Jaipur vs. DCIT, Circle-6, Jaipur

In the result, appeal of the assessee is allowed

ITA 150/JPR/2023[2010-11]Status: DisposedITAT Jaipur28 Jun 2023AY 2010-11

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. P. C. Parwal (CA)For Respondent: Sh. A. S. Nehara (Addl. CIT)

Section 143(3)Section 147Section 80Section 801ASection 801A(4)Section 80I

escaped assessment for such AY by reason of the failure on part of the assessee to disclose fully and truly all material facts necessary for assessment for that AY. 3. In the present case, the assessee filed the return along with audit report in Form No.10CCB for claiming deduction

M/S Wf Asian Smaller Companies Fund Limited, Mumbai vs. The Assistant Commissioner of Income Tax International Taxation Circle 4(3)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 459/MUM/2023[2013-2014]Status: DisposedITAT Mumbai23 Jun 2023AY 2013-2014

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.459/Mum/2023 (निर्धारण वर्ा / Assessment Years: 2013-14) M/S. Wf Asian Smaller बिधम/ Acit, Circle-4(3)(2) Companies Fund Ltd Room No. 1611, 16Th Vs. C/O Ankul Goyal, Azb & Floor, Air India Building, Partners A8, Sector-4, Nariman Point, Mumbai- Noida 201301. 400021. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacw5648R (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Deepak Chopra/Ankul Goyal Revenue By: Shri Soumedu Kumar Dash (Sr. Dr) सुनवाई की तारीख / Date Of Hearing: 28/03/2023 घोषणा की तारीख /Date Of Pronouncement: 23/06/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Passed By The Ao Dated 19.01.2023 U/S 147 R.W.S 144C(13) Of The Income Tax Act, 1961 (Hereinafter “The Act”) Pursuant To The Direction Issued By The Ld. Dispute Resolution Panel (Drp) For Ay. 2013-14. 2. The Assessee Has Raised The Legal Issue Challenging The Action Of The Ao To Have Reopened The Original-Scrutiny-Assessment U/S 143(3) Of The Act, After Four (4) Years [From The End Of The Relevant Assessment Year] Without Satisfying The Additional Condition Precedent As Prescribed In The Proviso To Section 147(1) Of The Act. Since The Assessee Has Raised The Legal Issue Assailing The Jurisdiction Of Ao To Have Issued Notice U/S 148 Of The Act, Proposing Re-Opening Of The Original Assessment [Framed Under Scrutiny Under Section 143(3) Of The Act], We Will Adjudicate It First. For Appreciating The Legal Issue, Let Us

For Appellant: Shri Deepak Chopra/Ankul GoyalFor Respondent: Shri Soumedu Kumar Dash (Sr

Section 133CSection 139Section 142Section 143Section 143(3)Section 147Section 147(1)Section 148Section 92E

return under Section 139; failure to respond to notice under Section 142(1) or 148; or failure to disclose fully and truly material facts necessary for assessment, must be satisfied. First Explanation states that mere production of account books or other evidence before the Assessing Officer from which material evidence ... under Section 139, (ii) to respond to notice under Section 142(1) or 148 and (iii) failure to disclose fully and truly material facts necessary for assessment for that year. Emphasis on the third part of proviso is on the assessee's failure to fully and truly disclose all material

ACIT, Circle- 20(2), New Delhi vs. Rps Infrastructure Ltd., New Delhi

In the result, C.O No. 70/Del/2021 filed by the assessee is allowed

ITA 6300/DEL/2018[2009-10]Status: DisposedITAT Delhi22 Jun 2023AY 2009-10

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

Section 143(1)Section 143(3)Section 147Section 148Section 14ASection 68

that the income has escaped assessment on account of failure on part of the assessee to disclose fully and truly all material facts necessary for assessment. 6. On the facts and circumstances of the case, the CIT(A) has erred both on facts and in law, in rejecting the contention ... that the income has escaped assessment on account of failure on part of the assessee to disclose fully and truly all material facts necessary for assessment. Therefore submitted that the assessment order passed u/s 147/143(3) of the Act is liable to be quashed. 9. On the other hand

Jaquar and Company Private Limited, New Delhi vs. DCIT, Central Circle-19, Delhi

In the result, the appeal of the assessee in ITA No

ITA 1984/DEL/2022[2014-15]Status: DisposedITAT Delhi09 Jun 2023AY 2014-15

Bench: Shri N.K. Billaiya & Shri Anubhav Sharma

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri Bhopal Singh, Sr. DR

Section 147Section 148Section 37(1)

assessee had failed to disclose which was necessary for the assessment in the original round of assessment. Failure to disclose all material facts necessary for assessment is a condition precedent for reopening of an assessment beyond the period of four years from the date of assessment. This

JCIT Cent. Cir. - 1(4), Mumbai vs. Grasim Industries Ltd, Mumbai

In the result, the appeals of the Revenue are dismissed

ITA 1557/MUM/2018[2008-09]Status: DisposedITAT Mumbai31 May 2023AY 2008-09

Bench: Shri Om Prakash Kant () & Shri Pavan Kumar Gadale ()

For Appellant: Mr. Yogesh Thar/ Ms. AyushiFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 148Section 153C

company to disclose all material facts necessary for assessee company to disclose all material facts necessary for assessee company to disclose all material facts necessary for assessment fully and assessment fully and truly. The assessee company contended that truly. The assessee company contended that proviso to section 147 is applicable

Grasim Industries Ltd, Mumbai vs. DCIT Cent. Cir. - 1(4), Mumbai

In the result, the appeals of the Revenue are dismissed

ITA 1054/MUM/2018[2009-10]Status: DisposedITAT Mumbai31 May 2023AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Pavan Kumar Gadale ()

For Appellant: Mr. Yogesh Thar/ Ms. AyushiFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 148Section 153C

Grasim Industries Ltd, Mumbai vs. DCIT Cent. Cir. - 1(4), Mumbai

In the result, the appeals of the Revenue are dismissed

ITA 1053/MUM/2018[2008-09]Status: DisposedITAT Mumbai31 May 2023AY 2008-09

Bench: Shri Om Prakash Kant () & Shri Pavan Kumar Gadale ()

For Appellant: Mr. Yogesh Thar/ Ms. AyushiFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 148Section 153C

DCIT Central Circle-2(3), Mumbai vs. M/S Asian Star Company Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 2778/MUM/2022[2012-13]Status: DisposedITAT Mumbai23 May 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm M/S Asian Star Company Ltd. Dcit, Central Circle-2(3) Room No.803, 8Th Floor, 114-C, Mitta Court, Pratishtha Bhavan, Vs. M.K. Road, Churchgate, Nariman Point, Mumbai-400 020 Mumbai-400 021 (Appellant) (Respondent) Pan No. Aaaca4856B Assessee By : Shri Suchek Anchaliya, Ms. Vaishali More, Ars Revenue By : Smt. Shailja Rai, Cit Dr Date Of Hearing: 28.02.2023 Date Of Pronouncement : 23.05.2023

For Appellant: Shri Suchek AnchaliyaFor Respondent: Smt. Shailja Rai, CIT DR

Section 133ASection 143Section 148

escaped assessment for assessment year 2012 – 13 on account of the failure of the assessee to disclose full and true material facts necessary for assessment of its income for the assessment year under consideration. 06. In response to the notice under section 148, the assessee filed its return of income

Milan Tanvir Chokshi, Mum vs. CIT (A)-51, Mum

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

ITA 22/MUM/2023[2014-15]Status: DisposedITAT Mumbai12 May 2023AY 2014-15

Bench: Shri Aby T. Varkey, Jm आयकरअपीलसं/I.T.A. No.22/Mum/2023 (निर्धारणवर्ा / Assessment Year: 2014-15) बिधम / Cit(A)-51. Milan Tanvir Chokshi Ee 5011/12/13, Vs. 6Th Floor, Aaykar Bhavan, Bharat Diamond Bourse, Maharishi Karve Road, Bandra Kurla Complex, Churchgate, Bandra (East) Mumbai-400 020 Mumbai- 400 051 स्थधयीलेखधसं/.जीआइआरसं/.Pan/Gir No. : Aaapc4709L (अपीलार्थी / Appellant) .. (प्रत्यर्थी / Respondent)

For Appellant: Shri Reepal G. TralshawalaFor Respondent: Shri Anil Gupta

Section 143(1)Section 147Section 148Section 2(14)Section 80C

formed the reasons to believe escapement on the alleged failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment of income, which is per-se erroneous because in the return of income, assessee had claimed long time capital loss

Girdhari Finlease Pvt. Ltd., New Delhi vs. ITO, Ward-12(4), New Delhi

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

ITA 2770/DEL/2019[2010-11]Status: DisposedITAT Delhi08 May 2023AY 2010-11

Bench: Shri C.M. Garg & Dr. B. R. R. Kumargirdhari Finlease Pvt. Ltd, Vs. Ito, C/O. Kapil Goel, Adv, Ward-12(4), F-26/124, Sector-7, Rohini, New Delhi Delhi-110085 (Appellant) (Respondent) Pan: Aaacg4842M Assessee By : Sh. Ruchesh Sinha, Adv Revenue By: Sh. Anuj Garg, Sr. Dr Date Of Hearing 15/02/2023 Date Of Pronouncement 08/05/2023

For Appellant: Sh. Ruchesh Sinha, AdvFor Respondent: Sh. Anuj Garg, Sr. DR

Section 147Section 148

took the specific plea that in the absence of any allegation that the petitioner had failed to disclose fully and truly all material facts necessary for assessment, the Assessing Officer had no jurisdiction to issue the notice under section 148 and initiate action under section 147 after four years from

Rathi Cermics Pvt. Ltd., New Delhi vs. ITO, New Delhi

ITA 6136/DEL/2016[2006-07]Status: DisposedITAT Delhi08 May 2023AY 2006-07

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharma

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

whisper that the income has escaped due to the failure on part of the assessee to disclose fully and truly all material facts necessary for assessment, as the same has been reopened after a period of four years from the end of relevant assessment year and the assessment has already

Sai Prerna Co-Op. Credit Society Ltd, Mumbai vs. ITO WD 17(3) (2), Mumbai

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

ITA 216/MUM/2023[2012-13]Status: DisposedITAT Mumbai28 Apr 2023AY 2012-13

Bench: Shri Kuldip Singh () & Shri Om Prakash Kant () Assessment Year: 2012-13 Sai Prerana Co-Op Society Ltd., Ito-7(3)(2), 317, Puran Aasha Bldg. Gr. Fl. Room No. 126, 1St Floor, Narashi Natha Street, Katha Vs. Kautilya Bhavan, C-41 To C- Bazar Musjid Bunder (W), 43 Block, Bandra Kurla Mumbai-400 009. Complex, Bandra (East) Mumbai-400051. Pan No. Aadts 5638 M Appellant Respondent Assessee By : Ms. Ruby Srivastava & Mr. Bharat Kumar, Ca Revenue By : Mr. Milind S. Chavan, Dr Date Of Hearing : 27/04/2023 : Date Of Pronouncement 28/04/2023 Order

For Appellant: Ms. Ruby Srivastava &For Respondent: Mr. Milind S. Chavan, DR

Section 139(1)Section 14Section 143(3)Section 147Section 148Section 80P

that the Petitioner had failed to disclose fully and to establish that the Petitioner had failed to disclose fully and truly all material facts necessary for assessment during the truly all material facts necessary for assessment during the truly all material facts necessary for assessment during the relevant assessment proceedings ... material facts petitioner to disclose fully and truly all the material facts petitioner to disclose fully and truly all the material facts necessary for assessment. The essent necessary for assessment. The essential requirement to ial requirement to enable the Assessing Officer to reopen the assessment and enable the Assessing Officer

Polta vs. Ky- Tps Power Services Ltd., New Delhi

In the result, the appeal of the Assessee is allowed

ITA 5081/DEL/2019[2009-10]Status: DisposedITAT Delhi27 Apr 2023AY 2009-10

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Ms. Sangeeta Singh, CAFor Respondent: Shri Anil Kumar Sharma, Sr.DR

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

also satisfied that on account of failure on the part of the assessee to disclose truly and fully all the material facts necessary for assessment for the above assessment year, the income chargeable to tax to the tune of Rs. 6,86,09,000/- has escaped assessment with the meaning

DCIT, New Delhi vs. M/S Mahanagar Telephone Nigam Ltd., New Delhi

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

ITA 4817/DEL/2016[2007-08]Status: DisposedITAT Delhi27 Apr 2023AY 2007-08

Bench: Shri N.K. Billaiya & Shri Anubhav Sharmaआ.अ.सं/.I.T.A No.4817/Del/2016 िनधा"रणवष"/Assessment Year:2007-08 बनाम Dcit Mahanagar Telephone Nigam Circle-1, Ltu, Nbcc Plaza, Vs. Ltd., 5Th Floor, 9, Cgo Complex, Pushap Vihar, New Delhi. Lodhi Road, New Delhi. Pan No. Aaacm0828R अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.4349/Del/2016 िनधा"रणवष"/Assessment Year:2007-08 बनाम Mahanagar Telephone Dcit Nigam Ltd., Vs. Circle-1, Ltu, Nbcc Plaza, 5Th Floor, 9, Pushap Vihar, New Delhi. Cgo Complex, Lodhi Road, New Delhi. Pan No. Aaacm0828R अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 147Section 148

petitioner, there is no whisper, what to speak of any allegation, that the petitioner had failed to disclose fully and truly all material facts necessary for assessment and that because of this failure there has been an escapement of income chargeable to tax. Merely having a reason to believe that

Mahanagar Telephone Nigam Ltd., New Delhi vs. DCIT (Ltu), New Delhi

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

ITA 4349/DEL/2016[2007-08]Status: DisposedITAT Delhi27 Apr 2023AY 2007-08

Section 143(3)Section 147Section 148

Vidhyawati Khanna Trust, New Delhi vs. ACIT, Circle-29(1), New Delhi

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

ITA 7884/DEL/2019[2010-11]Status: DisposedITAT Delhi25 Apr 2023AY 2010-11

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.7884/Del/2019 िनधा"रणवष"/Assessment Year:2010-11 बनाम Vidhyawati Khanna Trust, Acit S-101, Pachshila Park, Vs. Circle 29(1) New Delhi. New Delhi. Pan No. Aaatv9898B अपीलाथ" Appellant ""यथ"/Respondent

Section 147Section 148Section 161(1)Section 166Section 26

therefore, the Assessing Officer has reasoned to believe that the assessee has not disclosed fully and truly material facts necessary for assessment and there has been escapement of income to the tune of Rs.48,55,536/-. In response to notice u/s 148 of the Act, the assessee filed return

Income Tax Officer-10(2)(1), Mumbai vs. Janitor Infrastructure Private Limited, Mumbai

In the result additions as made by the Assessing Officer on this score are directed to be deleted

ITA 3040/MUM/2022[2012-13]Status: DisposedITAT Mumbai21 Apr 2023AY 2012-13

Section 137Section 143(1)Section 143(3)Section 147Section 148

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 Annual report Audited

M/S. J S Realty Pvt. Ltd., Mumbai vs. ITO, Ward-12(3)(1), Mumbai

Accordingly, Ground No. 4 to 9 pertaining to the merits of the matter are dismissed as being infructuous

ITA 2097/MUM/2022[2012-13]Status: DisposedITAT Mumbai21 Apr 2023AY 2012-13

For Appellant: Shri S L JainFor Respondent: Ms. Vranda U Matkarni

Section 133(6)Section 143(3)Section 147Section 148Section 151Section 68

original proceeding fact of receiving share subscription from two parties was duly disclosed, confirmation along with other evidences were produced, hence all material facts necessary for assessment were disclosed and now the 'belief is just based on suspicion of 'accommodation entries' without there being any material to prove that appellant ... escapement of income has taken place on account of failure on the part of an assessee to disclose fully and truly all material facts necessary for assessment of income. In the present case, the Assessing Officer has failed to record that escapement of income had arisen on account

Beyondkey Systems P Ltd, Indore vs. The Dy CIT 1(1), Indore

ITA 209/IND/2022[2011-12]Status: DisposedITAT Indore18 Apr 2023AY 2011-12

Bench: Ms. Suchitra Kamble & Shri B.M. Biyani(Conducted Through Virtual Court) Assessment Year: 2011-12 Beyondkey Systems Pvt. Dcit 1(1) Ltd. Indore 901A & B, बनाम/ Nrk Business Park, Block B1, Pu4, Vs. Scheme No.54, Vijay Nagar Square, Indore (Appellant / Assessee) (Respondent / Revenue) Pan: Aaccb 7622 G Assessee By Shri Manish Dafaria, Ca & Ar Revenue By Shri P.K. Mishra, Cit-Dr Date Of Hearing 08.12.2022 / 16.03.2023 Date Of Pronouncement 18.04.2023

Section 10ASection 139Section 142Section 143Section 143(3)Section 147Section 148

assessment for the same year had already been under section 143(3) wherein assessee had disclosed truly and fully all the material facts necessary for assessment and as such in terms of first proviso of sec. 147, the assessment could not have been reopened after expiry of 4 years

The ACIT, Circle-1, Surat vs. M/S. Micro Polyester Pvt. Ltd., Surat

In the result, the grounds of appeal raised by the revenue are dismissed

ITA 2678/AHD/2014[2005-06]Status: DisposedITAT Surat12 Apr 2023AY 2005-06

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Physical Hearing) A.C.I.T., M/S Micro Polyster Pvt. Ltd., Circle-1, 2025, Jash Textile Market, Ring Vs. Surat. Road, Surat-395002. Pan No. Aabcm 6127 E Appellant/ Revenue Respondent/ Assessee

Section 143(3)Section 145ASection 147Section 148Section 254(1)Section 43B

failure on the part of assessee in not 5 ACIT Vs M/s Micro Polyster P Ltd. disclosing fully and truly all material facts necessary for assessment. The assessee further contended that on perusal of reasons recorded, it is clearly emerges that the assessment was reopened on perusal of breakup ... some information of tangible material that the income of assessee has escaped assessment. The assessee has disclosed fully and truly all material facts necessary for assessment either at the time of filing of return of income or during the 9 ACIT Vs M/s Micro Polyster P Ltd. original assessment proceedings