“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

Kapil Food and Structure Private Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Central Circle-2(3), Hyderabad

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

ITA 654/HYD/2020[2013-14]Status: DisposedITAT Hyderabad04 Sept 2024AY 2013-14

Bench: Shri Laliet Kumar, Hon’Ble & Shri Manjunatha G, Hon’Ble

For Appellant: Shri S. Ramarao, AdvocateFor Respondent: Ms. Reema Yadav, Sr.AR

Section 132Section 143(3)Section 147Section 148Section 14ASection 36(1)(iii)

reopen, provided there is ‘tangible material’ to come to conclusion that there is escapement of income from assessment and further reasons must have a live link for formation of belief. A similar view has been taken by the Hon'ble Delhi High Court in the case of DCIT Vs. Rolls ... reopen, provided there is ‘tangible material’ to come to conclusion that there is escapement of income from assessment and further reasons must have a live link for formation of belief. A similar view has been taken by the Hon'ble Delhi High Court in the case of DCIT Vs. Rolls

Kapil Property Developers Limited, Hanumakonda vs. Dy Commissioner of Income Tax, Hyderabad

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

ITA 652/HYD/2020[2013-14]Status: DisposedITAT Hyderabad04 Sept 2024AY 2013-14

Bench: Shri Laliet Kumar, Hon’Ble & Shri Manjunatha G, Hon’Ble

For Appellant: Shri S. Ramarao, AdvocateFor Respondent: Ms. Reema Yadav, Sr.AR

Section 132Section 143(3)Section 147Section 148Section 14ASection 36(1)(iii)

Assistant Commissioner of Income Tax Corporate Circle 1(1), Nungambakkam vs. Idfc Limited, Teynampet

In the result, both the appeals filed by the Revenue are dismissed

ITA 819/CHNY/2024[2016-17]Status: DisposedITAT Chennai04 Sept 2024AY 2016-17

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. Nos.818 & 819/Chny/2024 िनधा"रण वष"/Assessment Year: 2016-17 The Assistant Commissioner Of Vs. Idfc Limited, 4Th Floor, Capitale Tower, No. 555, Income Tax, Corporate Circle 1(1), Anna Salai, Thiru Vi Ka Kudiyiruppu, Chennai 600 034. Teynampet, Chennai 600 018. [Pan:Aaaci2663N] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri V. Nandakumar, Cit ""थ" की ओर से/Respondent By : Shri Ketan Ved, C.A. सुनवाई की तारीख/ Date Of Hearing : 29.08.2024 घोषणा की तारीख /Date Of Pronouncement : 04.09.2024 आदेश /O R D E R Per S.S. Viswanethra Ravi: Both The Appeals Filed By The Revenue Are Directed Against Separate Orders Dated Both Dated 21.09.2022 Passed By The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi For The Assessment Year 2016-17. 2. Since The Issue Raised In Both The Appeals Are Similar Based On The Same Identical Facts, With The Consent Of The Both The Parties, We Proceed To Hear All These Appeals Together & Pass Consolidated Order For The Sake Of Convenience.

For Appellant: Shri V. Nandakumar, CITFor Respondent: Shri Ketan Ved, C.A

Section 143(3)Section 147Section 148Section 14ASection 36(1)(viia)Section 36(1)(viii)

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 the formation of the belief. Our view 6 I.T.A. Nos.818 & 819/Chny/24 gets support from the changes made to section

Assistant Commissioner of Income Tax Corporate Circle 1(1), Nungambakkam vs. Idfc Limited, Teynampet

In the result, both the appeals filed by the Revenue are dismissed

ITA 818/CHNY/2024[2016-17]Status: DisposedITAT Chennai04 Sept 2024AY 2016-17

For Appellant: Shri V. Nandakumar, CITFor Respondent: Shri Ketan Ved, C.A

Section 143(3)Section 147Section 148Section 14ASection 36(1)(viia)Section 36(1)(viii)

Jayantilal Bhagwanchand, Bengaluru vs. Income Tax Officer, Ward-5(2)(4), Bangalore

In the result, the appeal of the assessee is allowed

ITA 735/BANG/2024[2011-12]Status: DisposedITAT Bangalore03 Sept 2024AY 2011-12

Bench: Shri George George K & Shri Waseem Ahmedassessment Year : 2011-12

For Appellant: Shri Ravishankar S.V. AdvocateFor Respondent: Shri Ramanathan, Addl. CIT (DR)

Section 10(38)Section 68

each case, by the party alleging so, that this assessee in question was part of this arrangement. The chain of events and the live link of the assessee’s action that he was involved in such rigging up of share price should be established based on cogent materials. The allegation ... provider. However, any material/ statement was neither provided to the assessee for his rebuttable nor any independent cogent material brought on record suggesting any live link between the material received from the DDIT and transaction caried out by the assessee on hand. Therefore, no adverse inference can be drawn against

H. Sherul & Co., Mumbai vs. ACIT-19(1), Mumbai

In the result, the appeal is dismissed

ITA 551/MUM/2024[2013-14]Status: DisposedITAT Mumbai02 Sept 2024AY 2013-14

Bench: Shri Anikesh Banerjee & Shrigirish Agrawal

For Appellant: Shri Vaidyalingan, CAFor Respondent: Shri P.D.Chougule (Addl. CIT) SRDR

Section 143Section 143(3)Section 147Section 250

purpose of the section." "It is, therefore, essential that before such action is taken the requirements of the law should be satisfied. The live link or close nexus which should be there between the material before the Income-tax Officer," 11. We find that the 'reasons recorded', do not state

H. Sherul & Co., Mumbai vs. ACIT-19(1), Mumbai

In the result, the appeal is dismissed

ITA 550/MUM/2024[2011-12]Status: DisposedITAT Mumbai02 Sept 2024AY 2011-12

Bench: Shri Anikesh Banerjee & Shrigirish Agrawal

For Appellant: Shri Vaidyalingan, CAFor Respondent: Shri P.D.Chougule (Addl. CIT) SRDR

Section 143Section 143(3)Section 147Section 250

Gajanand Vithoba Bankar, Solapur vs. ITO, Ward-1, Pandharpur

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 993/PUN/2024[2014-15]Status: DisposedITAT Pune30 Aug 2024AY 2014-15

Bench: Shri R. K. Panda & Shri S.S. Godara

For Appellant: Shri Suhas P BoraFor Respondent: Shri Keyur Patel, CIT-DR

Section 132Section 143(2)Section 147Section 148

applied his independent competent mind to the information received from the ACIT, Central Circle - 2(2), Pune. d. There is no live link between information received and reasons recorded by the AO in as much as he has also failed in complying with the Standard Procedure for Recording Satisfaction U/Sec.147 ... applied his independent competent mind to the information received from the ACIT Central Circle - 2(2), Pune. d. There is no live link between information received and reasons recorded by the AO in as much as he has also failed in complying with the Standard Procedure for Recording Satisfaction U/Sec.147

Gajanand Vithoba Bankar, Solapur vs. ITO, Ward-1, Pandharpur

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 992/PUN/2024[2013-14]Status: DisposedITAT Pune30 Aug 2024AY 2013-14

Bench: Shri R. K. Panda & Shri S.S. Godara

For Appellant: Shri Suhas P BoraFor Respondent: Shri Keyur Patel, CIT-DR

Section 132Section 143(2)Section 147Section 148

ACIT Ltu 2, Chennai vs. Indian Overseas Bank, Chennai

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

ITA 946/CHNY/2018[2010-11]Status: DisposedITAT Chennai29 Aug 2024AY 2010-11

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.775/Chny/2018 (िनधा"रणवष" / Assessment Year: 2010-2011 ) Indian Overseas Bank, Vs. The Deputy Commissioner Of 763, Anna Salai, Income Tax, Chennai 600 002. Large Taxpayer Unit-2, Chennai 600 034. आयकरअपील सं./ Ita No.946/Chny/2018 (िनधा"रणवष" / Assessment Year: 2010-2011. ) The Assistant Commissioner Of Vs. Indian Overseas Bank, Income Tax, 763, Anna Salai, Large Taxpayer Unit-2, Chennai 600 002. Chennai 600 034. [Pan: Aaaci 1223J] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By : Shri. C. Naresh, C.A., Department By : Shri. A. Sasikumar, Irs, Cit. सुनवाई क" तार"ख/Date Of Hearing : 06.08.2024 घोषणा क" तार"ख /Date Of Pronouncement : 29.08.2024

For Appellant: Shri. C. Naresh, C.AFor Respondent: Shri. A. Sasikumar, IRS, CIT

Section 115JSection 143(2)Section 143(3)Section 148Section 263Section 36(1)(viia)

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

Indian Overseas Bank, Chennai vs. DCIT Ltu-2, Chennai

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

ITA 775/CHNY/2018[2010-11]Status: DisposedITAT Chennai29 Aug 2024AY 2010-11

For Appellant: Shri. C. Naresh, C.AFor Respondent: Shri. A. Sasikumar, IRS, CIT

Section 115JSection 143(2)Section 143(3)Section 148Section 263Section 36(1)(viia)

Brij Bihari Agrawal, Jaipur vs. The Assistant Commissioner of Income Tax Central Circle - 1, Jaipur

In the result the appeal of the assessee is allowed

ITA 737/JPR/2023[2013-14]Status: DisposedITAT Jaipur29 Aug 2024AY 2013-14

For Appellant: Shri Tarun Mittal (C.A)

Section 142(1)Section 147Section 148Section 153ASection 153C

section 147 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. Jai Hotels Co. Limited Vs. Asst. DIT, (2009) 24 DTR 37 (Del): 15 ITA No. 737/JPR/2023 Sh. Brij

Income Tax Officer - 19(2)(2), Mumbai vs. Kuverben Kantilal Raval, Mumbai

In the result all the grounds of the appeal of the learned assessing officer are dismissed

ITA 2066/MUM/2024[2013-14]Status: DisposedITAT Mumbai29 Aug 2024AY 2013-14

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm A.Y.2013-14 The Income Tax Officer Kunverben Ratilal Raval 7, Taldhwaj Bhavan 19 (2) (2) Mumbai 3 Road 503, 5Th Floor, Pinjrapole Lane Vs. Piramal Chambers Mumbai 400004 Lal Baug, Parel Mumbai (Appellant) (Respondent) Pan Aadpr8076L Assessee By Mr Mitesh Mehta Ca Revenue By Shri P D Chougule Adl Cit Sr Dr Date Of Hearing 14-08-2024 Date Of Pronouncement 29.08.2024

Section 131Section 143Section 144BSection 147Section 148

claim of the assessee that in the reasons recorded for reopening, neither there is any material linking to the assessee and there is no live link with the income of the assessee. Assessee has not entered any client code modification transaction. NSEL transactions of the agricultural commodities is without ... assessment year 2013 – 14.Therefore, he quashed reopening of the assessment stating there is no escapement of income, there is no live link. 10. Aggrieved with the order of the learned CIT – A the learned assessing officer is in appeal before us. 11. The learned departmental representative pressing ground number

Deputy Commissioner of Income Tax, Aurangabad vs. Suryachandra Lalmani Dubey, Aurangabad

In the result, appeal of the Revenue is allowed

ITA 206/PUN/2024[2014-15]Status: DisposedITAT Pune28 Aug 2024AY 2014-15

Bench: SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR.DIPAK P. RIPOTE (Accountant Member)

Section 143(1)Section 147Section 148Section 250

irrational, vague, distant or irrelevant. The AO has recorded reason for issue of notice u/s 148 based on direct and circumstantial evidence which has live link with the tangible information available with him, but not on mere suspicion. 3.2 The facts of the case in Nivi Trading

DCIT, Cir-3(3)(1), Mumbai vs. Motech Software Pvt Ltd, Mumbai

ITA 2295/MUM/2023[2007-08]Status: DisposedITAT Mumbai28 Aug 2024AY 2007-08

Bench: Shri B.R. Baskaran & Shri Pavan Kumar Gadale

Section 69

refer to one and same Bank. (d) There is no tangible material to support the belief entertained by the AO, since there was no live link between the materials relied by the AO and the reasons recorded by him. 6.1. The first contention raised by the assessee on this legal ... noted by the tax authorities. (b) there is no credible material to support the belief entertained by the AO and hence there is no live link between the alleged materials and the reasons recorded by the AO. 13 Motech Software Pvt. Ltd., We prefer to dispose of these two contentions

DCIT, Cir-3(3)(1), Mumbai vs. Motech Software Pvt Ltd, Mumbai

ITA 2294/MUM/2023[2006-07]Status: DisposedITAT Mumbai28 Aug 2024AY 2006-07

Bench: Shri B.R. Baskaran & Shri Pavan Kumar Gadale

For Appellant: Shri F.V. Irani, &For Respondent: Smt. Sanyogita Nagpal &

Section 69

refer to one and same Bank. (d) There is no tangible material to support the belief entertained by the AO, since there was no live link between the materials relied by the AO and the reasons recorded by him. 6.1. The first contention raised by the assessee on this legal ... noted by the tax authorities. (b) there is no credible material to support the belief entertained by the AO and hence there is no live link between the alleged materials and the reasons recorded by the AO. Motech Software Pvt. Ltd., We prefer to dispose of these two contentions later

Preet International Pvt Ltd, New Delhi vs. ACIT Circle-20(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 3600/DEL/2019[2010-11]Status: DisposedITAT Delhi28 Aug 2024AY 2010-11

Bench: Shri M. Balaganesh & Shri Vimal Kumarpreet International Pvt. Ltd, Vs. Acit, 240, Ff, Dda Office Complex Circle-20(1), Cycle Market, Jhandewalan New Delhi Extn, New Delhi (Appellant) (Respondent) Pan: Aaaco9321J Assessee By : Shri Ved Jain, Adv Ms. Supriya Mehta, Ca Revenue By: Shri Vivek Vardha, Sr. Dr Date Of Hearing 05/06/2024 Date Of Pronouncement 28/08/2024

For Appellant: Shri Ved Jain, AdvFor Respondent: Shri Vivek Vardha, Sr. DR

Section 143(3)Section 147Section 148

find that the reasons recorded by the Id AO for reopening of the assessment in the instant case are very without having any live link to form a reasonable belief that the income of the assessee had escaped assessment. The reasons recorded and the assessment order only talk about modus ... sure about that, the appellant claimed loss or profit by misuse of the CCM. 5.3 He also submitted that there is no live link or direct nexus between alleged material and, inference drawn by the Assessing Officer. The learned Counsel relied on decision of Hon'ble Bombay High Court

M/S. Krishna Nirman Pvt. Ltd., Kolkata vs. I.T.O., Ward - 7(3), Kolkata

In the result, appeal of the assessee is allowed

ITA 155/KOL/2023[2008-2009]Status: DisposedITAT Kolkata27 Aug 2024AY 2008-2009

Bench: Shri Manish Borad, Judicial Member Shri Sonjoy Sarma (Accountant Member)

Section 131Section 133(6)Section 143(1)Section 147Section 148Section 250Section 68

down that the reasons to believe must have rational connection wuh or relevant bearing on the formation of belief Le there must be a live link between material coming the notice of the Assessing Officer and the formation of belief regarding escapement of income. If the aforesaid requirement

Cheyur Ramakrishnan, Chennai vs. ITO, Business Ward - 2(3), Chennai

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

ITA 334/CHNY/2024[2007-08]Status: DisposedITAT Chennai27 Aug 2024AY 2007-08

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.334/Chny/2024. (िनधा"रणवष" / Assessment Year: 2007-2008) Cheyur Ramakrishnan Rajkumar, Vs. The Income Tax Officer, No.7/4, Meenakshi P.S Business Ward Ii(3) Sivasamy Road, Chennai. Mylapore, Chennai 600 004. [Pan: Accpr 4434P] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri. R. Subramanian, C.A., ""यथ" क" ओर से /Respondent By : Shri. Arv Srinivasan, Irs, Addl.Cit. सुनवाई क" तार"ख/Date Of Hearing : 19.06.2024 घोषणा क" तार"ख /Date Of Pronouncement : 27.08.2024 आदेश / O R D E R Per Manu Kumar Giri ()

For Appellant: Shri. R. Subramanian, C.AFor Respondent: Shri. ARV Srinivasan, IRS, Addl.CIT

Section 143(1)Section 143(3)Section 147Section 148Section 151Section 2(14)Section 54B

reopening and consequent reassessment is bad in law. 10. For that Commissioner of Income Tax (Appeals) failed to appreciate that the there is no live link between the formation of a belief that income has escaped assessment and the reopening of the assessment and hence the reopening and consequent reassessment ... clearly held that the power to reopen must be supported by the availability of tangible fresh materials as also a live link with the formation of a belief that income chargeable to tax has escaped assessment. 16. The SC, in the above Case has further hold that availability of tangible

Padam Kumar Goyal, Tonk vs. ITO Ward-Tonk, Income Tax Department, Tonk

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

ITA 581/JPR/2024[2012-13]Status: DisposedITAT Jaipur27 Aug 2024AY 2012-13

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Nikhilesh Kataria (C.A)For Respondent: Smt. Monisha Choudhary (Addl. CIT)

Section 131Section 143(2)Section 144Section 147Section 148

What is to be seen at the stage of recording the reasons is existence of belief based on faithful appreciation of material which has live link to an income escaping assessment, but not the established fact of escapement of income by detailed investigation or legal analysis. In other words