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“live link”

Judicial DoctrinesReopening / 147Reopening / 1471,109 judgments

The decision most relied on for live link is ITO v. Lakhmani Mewal Das (103 ITR 437), cited in 721 judgments on BharatTax.

Leading authorities on live link

ITO v. Lakhmani Mewal Das
103 ITR 437 · 1976 · Supreme Court
721
citing judgments

For reassessment proceedings, the 'reason to believe' that income has escaped assessment must be based on some material and not mere suspicion, establishing a live link between the information and the belief. Furthermore, for reassessment beyond four years, there must be a specific finding of the assessee's failure to disclose fully and truly all material facts.

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.

ITO v. Selected Dalurband Coal Co. (P.) Ltd.
217 ITR 597 · 1996 · Supreme Court
180
citing judgments

The Assessing Officer's belief that income has escaped assessment, leading to the reopening of an assessment, is a matter of subjective satisfaction. The materials available at the time of forming this belief do not need to conclusively prove the escapement of income.

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.

Kalyanji Mavji & Co. v. CIT
102 ITR 287 · 1976 · Supreme Court
137
citing judgments

The Supreme Court broadly defined 'information' for reassessment under Section 147 to include new facts, external sources, material already on record, or a correct understanding of law from judicial decisions. This definition enables reopening assessments based on subsequent information or mistakes.

Judgments citing live link

Jayantilal Rajmal Seth, Mumbai vs. DCIT-CC-4(3), Mumbai

ITA 3260/MUM/2025[2018-19]Status: DisposedITAT Mumbai22 Sept 2025AY 2018-19

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2018-19 Jayantilal Rajmal Seth, Dcit-Cc-4(3), A-3, Saibaba Shopping Centre, Bkc, Mumbai-400051. Mumbai Central, Vs. Mumbai-400008. Pan No. Agepj 0499 E Appellant Respondent

For Appellant: Mr. Vivek Perampurna, CIT-DRFor Respondent: Mr. Jayant Bhat
Section 139(5)Section 148Section 263

notices u/s.148 and that too without authority to issue the notices u/s.148 and that too without conducting any enquiries and without establishing the live link conducting any enquiries and without establishing the live link conducting any enquiries and without establishing the live link and nexus of information with the income

Goodluck Metal Corporation, Mumbai vs. Assessing Officer, Mumbai

In the result, the appeal of the assessee is dismissed

ITA 1771/MUM/2025[2009-10]Status: DisposedITAT Mumbai22 Sept 2025AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2009-10 Goodluck Metal Corporation, Assessing Officer Circle 19(1), 98, Khetwadi Main Road, Piramal Chamber, Mumbai-400 004. Vs. Mumbai-400012. Pan No. Aaafg 1441 R Appellant Respondent

For Respondent: Mr. Sanjiv Shah, Adv
Section 132Section 143(1)Section 147Section 153A

tangible material to reopen the assessment no tangible material to reopen the assessment and there was no tangible material to reopen the assessment no live link of the material the material and the reasons recorded. Further, he and the reasons recorded. Further, he submitted that basis on which reasons ... course of search and the statement the course of search and the statement of Shri Bhawarlal Jain of Shri Bhawarlal Jain are having live link with the reasons having live link with the reasons recorded. Further, as far as recorded. Further, as far as retraction is concerned same

Shri Nityanand Pandey, Hooghly vs. I.T.O., Ward - 23(1), Hooghly

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

ITA 2067/KOL/2024[2013-2014]Status: DisposedITAT Kolkata18 Sept 2025AY 2013-2014

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 144Section 148Section 148(2)Section 250

that the reopening of assessment u/s. 148 of the I.T. Act based of reason to suspect unsustainable as A.O. failed to demonstrate live link between tangible material and formation of reason to believe that income had escaped assessment, hence the reassessment is bad-in-law. 7. For that

Agni Steels Pvt. Ltd., Erode vs. DCIT, Circle-1, Erode

In the result, appeal filed by the assessee is allowed

ITA 1285/CHNY/2025[2014-15]Status: DisposedITAT Chennai18 Sept 2025AY 2014-15

Bench: Shri Aby T. Varkey & Shri S.R.Raghunatha

Section 801A

open, 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 of the belief. Our view gets support from the changes made to Section 147 of the Act, as quoted hereinabove. Under

ACIT -7(1)(1), Mumbai vs. Mazagon Dock Shipbuilders Ltd., Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6574/MUM/2024[2005-06]Status: DisposedITAT Mumbai18 Sept 2025AY 2005-06

Bench: Shri Sandeep Gosain & Shri Girish Agrawalassessment Year: 2005-06 Assistant Commissioner Of Mazagon Dock Shipbuilders Income Tax-7(1)(1), Ltd. Mumbai Mazdock House, Dockyard Vs. Road, Mazagon, Mumbai – 400010 (Pan: Aaacm8029) (Appellant) (Respondent)

For Appellant: Shri. Prateek Goyal, AdvocateFor Respondent: Shri. Umashankar Prasad, CIT DR
Section 143(3)Section 147Section 148Section 50C

surmises and conjectures and is an attempt to make fishing and roving enquiries without any new tangible material brought on record to draw the live link and nexus on the reasons to believe arrived at and charge the assessee for escapement of income from assessment. 8.1. With adequate disclosure made ... power to reopen provided there is “tangible material” to come to conclusion that there is escapement of income from assessment, the reasons must have live link with formation of belief. 10 Mazagon Dock Shipbuilders Ltd. AY 2005-06 8.5. We also draw force from the decision of Hon’ble Supreme

ITO, Kolkata vs. Ajit Kumar Minda, Kolkata

ITA 2668/KOL/2024[2015-16]Status: DisposedITAT Kolkata17 Sept 2025AY 2015-16

Bench: Shri Manunatha G & Shri Sonjoy Sarmaι.Τ.Α. No.2668/Kol/2024

Section 10(38)Section 142(1)Section 143(3)Section 147Section 148Section 250Section 68Section 69C

आयकर अपीलीय अधिकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Before Shri Manunatha G, Accountant

Dodhia Synthetics Limited, Bhiwandi vs. DCIT-CC-3, Thane

The appeal of the assessee is Allowed on the

ITA 2190/MUM/2025[2013-14]Status: DisposedITAT Mumbai17 Sept 2025AY 2013-14
Section 143(3)Section 147Section 250Section 68

well settled law that in order to prove that the assessee had undertaken 'unaccounted cash transactions or made any cash payments, a live link or a cash trail corroborating the alleged incriminating document as conclusive evidence should have been established. In absence of the same, noting /jottings cannot be considered

DCIT, Central Circle -3, Thane vs. Dodhia Synthetics Limited, Bhiwandi

The appeal of the assessee is Allowed on the

ITA 2105/MUM/2025[2014-15]Status: DisposedITAT Mumbai17 Sept 2025AY 2014-15
Section 143(3)Section 147Section 250Section 68

well settled law that in order to prove that the assessee had undertaken unaccounted cash transactions or made any cash payments, a live link or a cash trail corroborating the alleged incriminating document as conclusive evidence should have been established. In absence of the same, noting /jottings cannot be considered

Rng Construction Co, Mandideep vs. Addl., Jt., Dy., Asstt.ITO, Bhopal

ITA 230/IND/2024[2015-16]Status: DisposedITAT Indore12 Sept 2025AY 2015-16

Bench: Shri B.M. Biyani & Shri Paresh M. Joshi

Section 139Section 143(3)Section 147Section 148Section 36(1)(va)Section 40Section 43B

open, 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 of the belief. Our view gets support from the changes made to Section 147 of the Act, as quoted hereinabove. Under

Mahesh Chand Garg, Ghaziabad vs. Income Tax Officer, Ghaziabad

In the result, the Assessee’s Appeal stands allowed

ITA 3376/DEL/2025[2012-13]Status: DisposedITAT Delhi12 Sept 2025AY 2012-13

Bench: Shri Mahavir Singhassessment Year: 2012-13 Mahesh Chand Garg, Vs. Ito, Ward-1(4), B-209, Lohia Nagar, Cgo Complex, Ghaziabad-201001 Ghaziabad-201001 Uttar Pradesh (Pan: Aarpg8728N) (Appellant) (Respondent)

For Appellant: Sh. Neelesh Kumar Jain, CAFor Respondent: Sh. Manoj Kumar, Sr. DR
Section 148Section 271(1)(c)

have rational connection with or relevant bearing on the formation of the belief. Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the ITO and the formation of this belief that there has been escapement of the income

Shashi Infra Construction Pvt. Ltd., Lucknow vs. ITO, Lucknow

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

ITA 353/LKW/2023[2016-17]Status: DisposedITAT Lucknow11 Sept 2025AY 2016-17

Bench: Shri Kul Bharat & Shri Anadee Nath Misshraassessment Year: 2016-17 Shashi Infra V. The Constructions Pvt Ltd Addl/Joint/Deputy/Asstt/Income 328B, 5Th Lane Rajendra Tax Officer, Lucknow Nagar, Lucknow-226004. National Faceless Assessment Centre Delhi Tan/Pan:Aaucs5802M (Appellant) (Respondent) Appellant By: Shri Saurabh Gupta, C.A. Respondent By: Shri R. K. Agarwal, Cit(Dr) O R D E R

For Appellant: Shri Saurabh Gupta, C.AFor Respondent: Shri R. K. Agarwal, CIT(DR)
Section 144Section 144BSection 147Section 148Section 253(3)Section 694ASection 69A

presumptions and surmises. It is a settled precedent by various courts that the reasons for reopening the assessment should have a nexus or a live link to be connoted as escapement of income. A notice u/s 148 should be there only when there is a definite Information which clearly establishes ... have rational connection with or relevant bearing on the formation of the belief. Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the ITO and the formation of this belief that there has been escapement of the Income

Terai Tea Company Ltd., Kolkata vs. ACIT, Circle 4(1), Kolkata

In the result, appeal of the assesee is allowed

ITA 706/KOL/2025[2016-17]Status: DisposedITAT Kolkata11 Sept 2025AY 2016-17
Section 131Section 143(1)Section 147Section 148Section 153A

reopening of assessment by the Assessing Officer based on this information is invalid and cannot be sustained. In our opinion, there is no live link or close nexus between the material before the Assessing Officer and belief which he believed that the income has escaped assessment. Our view get supports

Pfizer Limited (Formerly Known As Wyeth Limited), Mumbai vs. The ACIT Cir 7(3), Mumbai

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

ITA 97/MUM/2005[1994-1995]Status: DisposedITAT Mumbai11 Sept 2025AY 1994-1995

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Vishal Kalra (virtually appeared) and Ms. Manish Pal, A/RsFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. A/R
Section 143(3)Section 147

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 formation of belief. As no new tangible material has been brought on record, respectfully following the decision of the Hon’ble Supreme Court

The Dy.CIT-14(1)(1), Mumbai vs. M/S Pfizer Ltd (Formerly Known S Wyeth Lederle Ltd, Mumbai

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

ITA 327/MUM/2005[1994-1995]Status: DisposedITAT Mumbai11 Sept 2025AY 1994-1995

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Vishal Kalra (virtually appeared) and Ms. Manish Pal, A/RsFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. A/R
Section 143(3)Section 147

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 formation of belief. As no new tangible material has been brought on record, respectfully following the decision of the Hon’ble Supreme Court

Anusha Finvest Pvt Ltd, Jaipur vs. Assistant Commissioner of Income Tax Circle 1, Jaipur

In the result, the appeal of the assessee is allowed

ITA 985/JPR/2024[2010-2011]Status: DisposedITAT Jaipur10 Sept 2025AY 2010-2011

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. Saurav Harsh, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 142(1)Section 143(1)Section 143(2)Section 147Section 148

after many years is a serious matter, and the law requires that certain requirements be satisfied before taking such action. There must be a live link or close nexus between the material before the assessing officer and their belief that income has escaped assessment, based on relevant materials and documents ... material before AO to form such a belief that income had escaped due to such client code modification and thus there was no live link between the material before AO and inference made. The Hon’ble Supreme Court in the case of Rajesh Jhaveri Stock Brokers (P) Ltd. reported

Deputy Commissioner of Income Tax, Central Circle 3(2), Kolkata, Aayakar Bhawan Poorva vs. Bhagwan Das Agarwal, Kolkata

In the result, appeal of the revenue is dismissed

ITA 1254/KOL/2025[2014-15]Status: DisposedITAT Kolkata09 Sept 2025AY 2014-15

Bench: Shri George Mathan & Shri Rakesh Mishraआयकर अपील सं/Ita No.1254/Pat/2025 (निर्धारण वर्ा / Assessment Year : 2014-2015) Dcit, Central Circle-3(2), Vs Bhagwan Das Agarwal, Kolkata 21, Hemant Basu Sarani, Dalhousie, Kolkata-700001 Pan No. :Afjpa 9084 Q (अपीलधर्थी /Appellant) (प्रत्यर्थी / Respondent) .. रधजस्व की ओर से /Revenue By : Shri Raja Sengupta, Cit-Dr निर्धाररती की ओर से /Assessee By : Shri Devesh Poddar, Advocate सुनवाई की तारीख / Date Of Hearing : 09/09/2025 घोषणा की तारीख/Date Of Pronouncement : 09/09/2025 आदेश / O R D E R Per George Mathan, Jm: This Is An Appeal Filed By The Revenue Against The Order Passed By The Ld.Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Dated 24.03.2025 For The Assessment Year 2014-2015. 2. Shri Raja Sengupta, Ld. Cit-Dr Appeared On Behalf Of The Revenue & Shri Devesh Poddar, Ld. Ar Appeared On Behalf Of The Revenue. 3. A Perusal Of The Facts Of The Present Case Shows That The Order Of The Ld. Cit(A) Dated 24.03.2025 Has Been Received In The Office Of Pr.Cit, Central-2, Kolkata On 24.03.2025. The Limitation For Filing The Appeal Expired On 23.05.2025 & The Appeal Has Been Filed On 09.06.2025. Thus, There Is A Delay Of 21 Days In Filing The Appeal By The Revenue. In This Regard, The Revenue Has Filed A Condonation Application Stating Therein As Under :-

For Appellant: Shri Devesh Poddar, AdvocateFor Respondent: Shri Raja Sengupta, CIT-DR
Section 153ASection 3Section 68

there is no application of mind by the Assessing Officer and the satisfaction appears to be more akin to a ‘borrowed satisfaction’ without any live link to the facts of the case. The relevant findings of the ld. CIT(A) recorded in this regard are as under :- Applying the test ... thereof. There is no application of mind in any manner and his satisfaction appears to be more akin to a 'borrowed satisfaction' without any live link to the facts of the case. 11. A perusal of the grounds raised by the revenue clearly shows that the revenue has not challenged

Narayan Suppliers Pvt. Ltd., Kolkata vs. I.T.O., Ward - 6(3), Kolkata

In the result, appeal of the assessee is dismissed

ITA 1077/KOL/2024[2011-2012]Status: DisposedITAT Kolkata08 Sept 2025AY 2011-2012

Bench: Shri George Mathan & Shri Rakesh Mishra

For Appellant: Shri Avijit Ghoshal, ARFor Respondent: Shri Raja Sengputa, CIT-DR
Section 10(38)

Gujrat) which observed that What transpires from the judicial pronouncements, as discussed above, is that there must be a live link between the materials on which conclusions are based and the actual conclusion of the Assessing Officer information of his belief that any income chargeable to tax has escaped assessment

M/S Real Time Consultants Pvt. Ltd., Mumbai vs. ITO 15(3)(1), Mumbai

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

ITA 3290/MUM/2019[2011-12]Status: DisposedITAT Mumbai05 Sept 2025AY 2011-12

Bench: Shri Pawan Singh & Shri Prabhash Shankar

For Appellant: Shri Rushabh Mehta,ARFor Respondent: Shri Uma Shankar Prasad, (CIT DR)
Section 131Section 133(6)Section 143(3)Section 147Section 148

Finlease (P) Ltd (ITA No. 342 of 2011) dated 15.02.2012, the Hon'ble Delhi High Court, held that as long as there is a 'live link' between the material which was placed before the AO at the time when reasons for reopening were recorded, proceedings u/s 147 would be valid ... done in a mechanical manner without application of mind, we find there is nothing on record to support such a contention. There is a live link between the information which was available with the AO and his formation of belief that income had escaped assessment. Sufficiency of such information cannot

Income Tax Officer Ward-3(3)(2), Ahmedabad vs. Kapil Arun Agrawal, Ahmedabad

In the result, appeal of the Revenue stands dismissed

ITA 672/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad04 Sept 2025AY 2015-16

Bench: Shri Sanjay Garg & Smt. Annapurna Guptaआयकर अपील सं /Ita No.672/Ahd/2025 िनधा"रण वष" /Assessment Year : 2015-16 Income Tax Officer Kapil Arun Agrawal बनाम/ Ward-3(3)(2) B-130 Pushp Industrial Park V/S. Ahmedabad Near Shital Cinema, Gomtipur Rakhial Ahmeabad – 390 021 "थायी लेखा सं./Pan: Agupa 1914 H (अपीलाथ)/ Appellant) (*+ यथ)/ Respondent) Assessee By : Ms. Urvashi Sodhan, Ar Revenue By : Shri Ravindra, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 28/08/2025 घोषणा की तारीख /Date Of Pronouncement: 04/09/2025 आदेश/O R D E R Per Sanjay Garg:

For Appellant: Ms. Urvashi Sodhan, ARFor Respondent: Shri Ravindra, Sr.DR
Section 147Section 250Section 68Section 69C

rational connection with or relevant bearing on the formation of the belief. Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the Assessing Officer and the formation of belief regarding escapement of income. The powers of Assessing Officer

Giriraj Daulal Damani HUF, Mumbai vs. Income Tax Officer, Piramal Chembers

In the result all appeals filed by the assessees for all assessment years stands partly allowed for statistical purposes

ITA 4516/MUM/2025[2012-13]Status: DisposedITAT Mumbai29 Aug 2025AY 2012-13

Bench: Smt. Beena Pillai () I.T.A. No. 4513/Mum/2025 Assessment Year: 2012-13 Anant Vijay Damani Vs. Income Tax Officer 1304/1305, F Wing Ashok Piramal Chember, Gardens, Tokersi, Jivraj Lalbaug, Parel Road Sewree, Mumbai-400013 Mumbai- 400015 Pan:Aeepd7764E (Appellant) (Respondent)

Section 51

shares were directly credited to the demand account of all assesse’s. It was submitted that, there is no documentary evidence for any live link with the Department to come to the conclusion that the assessee was involved in the price rigging of Rutron International