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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

Nalini Parwani, Raipur vs. Income Tax Officer, Ward 3(1), Raipur

In the result, the appeal of the assessee is allowed in terms of the aforesaid observations

ITA 249/RPR/2023[2013-14]Status: DisposedITAT Raipur17 Oct 2023AY 2013-14

Bench: Shri Ravish Soodआयकर अपील सं. / Ita No. 249/Rpr/2023 "नधा"रण वष" / Assessment Year : 2013-14 Nalini Parwani C/O. G.K Automobiles P. Ltd. Opp. Kabir Nagar, Gate No.2. Ring Road-2, Sondongri, Raipur (C.G.)-492 001 Pan : Aeqpp5635N .......अपीलाथ" / Appellant बनाम / V/S. The Income Tax Officer, Ward-3(1), Raipur (C.G.)

For Appellant: Shri Rajesh Kumar Chawda, CAFor Respondent: Shri Satya Prakash Sharma, Sr. DR
Section 143(3)Section 147Section 148Section 28Section 57

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 gets support from the changes made to s. 147 of the Act, as quoted hereinabove. Under

DCIT, International Taxation Circle-Gurugram, Gurugram vs. Vikas Arora, Gurugram

In the result, the appeal is dismissed

ITA 2335/DEL/2022[2012-13]Status: DisposedITAT Delhi16 Oct 2023AY 2012-13

Bench: Shri Saktijit Dey, Vice- & Dr. B.R.R. Kumarassessment Year: 2012-13

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

record, in our view, reopening of assessment appears to be without proper application of mind and based on conjectures and surmises. There is no live link between the materials available on record and the formation of belief. Therefore, in our view, learned first appellate authority was justified in holding

Deputy Commissioner of Income Tax (Central-1), Raipur vs. M/S Sunil Sponge Pvt. Ltd., Raipur

In the result, the appeal of the revenue is dismissed in terms of our aforesaid observations

ITA 73/RPR/2022[2007-08]Status: DisposedITAT Raipur12 Oct 2023AY 2007-08

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.73/Rpr/2022 "नधा"रण वष" / Assessment Year : 2007-08 The Deputy Commissioner Of Income Tax, (Central Circle)-1, Raipur (C.G.) .......अपीलाथ" / Appellant बनाम / V/S. M/S. Sunil Sponge Pvt. Ltd. H. No.11, Jalvihar Colony, Raipur (C.G.)-492 001 (C.G.) Pan : Aahcs7999A ……""यथ" / Respondent

For Appellant: S/shri, Sakshi Gopal Agrawal &For Respondent: Shri Choudhary N.C. Roy, Sr. DR
Section 143(3)Section 147Section 148Section 40A(2)(b)

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 will:411e formation. of the belief" 8. In the present facts, we note that the Assessing Officer during the course of regular assessment proceedings leading ... 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 AO and the formation or his belief that there has been escapement of the income

Bhavin Arunbhai Patel, Valsad vs. Income Tax Officer, Ward-1, Vapi

In the result, the appeal is allowed in the terms indicated above

ITA 456/SRT/2023[2011-12]Status: DisposedITAT Surat12 Oct 2023AY 2011-12

Bench: Shri Dr. A. L. Sainiआयकर अपील सं./Ita No.456/Srt/2023 Assessment Year: (2011-12) (Physical Hearing) Bhavin Arunbhai Patel, Vs. The Ito, Parvassa Road, Mota Waghchhipa, Ward – 1, Kila Pardi, Valsad – 396001, Vapi Gujarat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Arypp2459F (Appellant) (Respondent)

Section 144Section 147Section 148Section 250Section 69A

taxes is strictly in accordance with law – not only substantive one but the procedural law, as well. 13. Reasons must have a live link with the formation of the belief. This is supported by Circular No.549 dated 31.10.1989 which clarified that the words “reason to believe” did not mean

DCIT-CC 5(2), Mumbai vs. Krishiraj Enterprises, Mumbai

In the result, the appeal by the Revenue is allowed

ITA 1923/MUM/2022[2017-18]Status: DisposedITAT Mumbai27 Sept 2023AY 2017-18

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

For Appellant: Shri Kunal Agarwal a/wFor Respondent: Shri P.D. Chogule
Section 143(3)Section 250Section 68

IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL

Assistant Commissioner of Income Tax (Central), Bilaspur vs. M/S Jagannathdas Harichandmal Jewellers Pvt. Ltd, Raigarh

In the result appeal of revenue is partly allowed in terms of our observations herein above

ITA 106/RPR/2022[2012-13]Status: DisposedITAT Raipur22 Sept 2023AY 2012-13

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.106/Rpr/2022 िनधा"रण वष" /Assessment Year: 2012-13 The Assistant Commissioner Of Vs M/S. Jagannathdas Harichandmal Income Tax (Central), Bilaspur Jewellers Pvt. Ltd. Sadar Bazar, Raigarh (C.G.) Pan: Aaccj2840G (अपीलाथ" /Appellant) (""यथ" / Respondent) .. िनधा"रती क" ओर से /Assessee By : Shri Sunil Kumar Agrawal, Ca राज"व क" ओर से /Revenue By : Shri Choudhary N.C. Roy, Sr. Dr सुनवाई क" तार"ख / Date Of Hearing : 14/07/2023 घोषणा क" तार"ख/Date Of Pronouncement : 22/09/2023 आदेश / O R D E R Per Arun Khodpia, Am : The Captioned Appeal Is Filed By The Revenue Against The Order Passed By The Ld. Commissioner Of Income Tax (Appeals)-3, Bhopal, Dated 16.03.2022 Which In Turn Arises From The Order By Ld. Assessing Officer U/S 143(3) R.W.S. 147 Dated 30.12.2018 For A.Y.2012-13. The Grounds Of The Appeal Raised By The Revenue Are As Under: “ 1. Whether On The Fact & In The Circumstances Of The Case In Law, While Holding Assessment Passed U/S 147 R.W.S. 143(3) Of Act As Invalid & Void-Ab-Initio, The Ld. Cit(A) Completely Ignored The Fact That During The Course Of Survey, The Assessee Failed To Discharge Its Burden In Establishing 'The Identity, Creditworthiness & Genuineness Of The Transactions As Required U/S 68 Of The Income Tac Act. Ld. Cit(A) Erred In Ignoring That Reassessment Proceeding Are Based On Fresh Facts/Information Rather Than Change Of Opinion. 2. Whether On The Fact & In The Circumstances Of The Case In Law, The Ld.Cit(A) Erred In Ignoring That Confirmation Of Concealment Of Income/Disclosure Made In Statement Recorded During Survey U/S 133A Of Act Is An Information, Though Not Conclusive, Which May Be Used In Regular Assessment Or Reassessment Proceedings.

For Appellant: Shri Sunil Kumar Agrawal, CAFor Respondent: Shri Choudhary N.C. Roy, Sr. DR
Section 133ASection 143(3)Section 147Section 148Section 68

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" In the present facts, we note that the Assessing Officer during the course of regular assessment proceedings leading ... 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 AO and the formation of his belief that there has been escapement of the income

Jagdish Manilal Desai, Surat vs. The Income Tax Officer, Surat

In the result the ground No

ITA 462/SRT/2023[2007-08]Status: HeardITAT Surat05 Sept 2023AY 2007-08

Bench: Shri Dr. A. L. Sainiआयकर अपील सं./Ita No.462/Srt/2023 Assessment Year: (2007-08) (Virtual Hearing) Jagdish Manilal Desai (Huf), Vs. The Ito, Prop. Hemal Gems, 104, 3Rd Ward – 1(3)(2), Floor, Keshav Jyot Apartment, Surat Lal Bunglow, Athwalines, Surat – 395007 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabhj3074D (Appellant) (Respondent)

Section 143(3)

providing accommodation entry by Bhanwarlal Jain Group. No specific information about the accommodation entry obtained by assessee was received by AO. There is no live link between the reasons recorded qua the assessee. Therefore, the re-opening is invalid and all subsequent action is liable to be set aside ... accommodation entry by Bhanwarlal Jain Group. And that there was no specific information about the accommodation entry availed by the assessee. There is no live link between the reasons recorded qua the assessee. We find that the assessee has raised objection against the validity of the reopening before

Lakshman Tools Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, appeals are dismissed

ITA 2136/DEL/2017[2011-12]Status: DisposedITAT Delhi29 Aug 2023AY 2011-12

Bench: Shri G.S. Pannu & Shri Saktijit Deyassessment Year: 2009-10 With Assessment Year: 2011-12

Section 133(6)Section 143(1)Section 147

required to carry out any detailed investigation to establish that income, indeed, has escaped assessment. The only requirement is, there must be a live link between the material in his possession and the formation of belief. 12. In the facts of the present appeal, it is evident, the Assessing Officer

Lakshman Tools Pvt. Ltd., New Delhi vs. ITO, New Delhi

In the result, appeals are dismissed

ITA 2135/DEL/2017[2009-10]Status: DisposedITAT Delhi29 Aug 2023AY 2009-10

Bench: Shri G.S. Pannu & Shri Saktijit Deyassessment Year: 2009-10 With Assessment Year: 2011-12

Section 133(6)Section 143(1)Section 147

required to carry out any detailed investigation to establish that income, indeed, has escaped assessment. The only requirement is, there must be a live link between the material in his possession and the formation of belief. 12. In the facts of the present appeal, it is evident, the Assessing Officer

Mirnal Mehta, Cuttack vs. ITO Wrd-2(4), Cuttack

In the result, appeal of the assessee is allowed

ITA 169/CTK/2023[2017-18]Status: HeardITAT Cuttack09 Aug 2023AY 2017-18
For Appellant: Shri Mohit Sheth, AdvocateFor Respondent: Shri S.C.Mohanty, Sr. DR
Section 143(3)Section 147Section 148

reopen, provided there is „tangible material‟ to come to conclusion that 5 there is escapement of income from assessment; reasons must have a live link with formation of belief. Therefore, it was the prayer of the ld. AR that the reopening done by the AO is deserves to be quashed ... ld.AR, shows that there must be „tangible material‟ to come to conclusion that there is escapement of income from assessment; reasons must have a live link with formation of belief. The AO having done in depth examination of the said bank account and in respect of the bank accounts maintained

DCIT, Central Circle-8, New Delhi vs. Bhaijee Commodities Pvt. Ltd., Delhi

ITA 9133/DEL/2019[2010-11]Status: DisposedITAT Delhi07 Aug 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Surinder Mahajan CAFor Respondent: Shri Kanav Bali, Sr.DR
Section 133(6)Section 147Section 148Section 151Section 68

alleged fictitious profits. The formation of ‘reason to believe’ is thus clearly extraneous to any material relevant for formation of prima facie belief. No live link or direct nexus between the so called information and the belief is found. Noticeably, the objection of the Assessee has also been disposed

Bhaijee Commodities Pvt. Ltd., New Delhi vs. ACIT Circle-4(2), New Delhi

ITA 7921/DEL/2019[2010-11]Status: DisposedITAT Delhi07 Aug 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Surinder Mahajan CAFor Respondent: Shri Kanav Bali, Sr.DR
Section 133(6)Section 147Section 148Section 151Section 68

alleged fictitious profits. The formation of ‘reason to believe’ is thus clearly extraneous to any material relevant for formation of prima facie belief. No live link or direct nexus between the so called information and the belief is found. Noticeably, the objection of the Assessee has also been disposed

Ultratech Cement Limited, Mumbai vs. ACIT- CC -1(4), Mumbai

ITA 221/MUM/2022[2012-13]Status: DisposedITAT Mumbai03 Aug 2023AY 2012-13

Bench: Shri Kuldip Singh & Shri S Rifaur Rahmanassessment Year: 2012-13

For Appellant: Shri. Nitesh Joshi, A.R. &For Respondent: Shri. Alok Kumar, CIT DR
Section 132Section 143(3)Section 153CSection 35D

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.” 21. So in view of the matter ground Nos. 1 & 2 are determined in favour of the assessee

Omega Finhold Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 14, New Delhi

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

ITA 1286/DEL/2018[2010-11]Status: DisposedITAT Delhi27 Jul 2023AY 2010-11
Section 115JSection 147Section 148

ACIT form a belief that income of the assessee had escaped assessment due to client code modification as there is no live link between material available with the Ld. AO and the opinion framed thereon. Accordingly, he prayed for quashing reassessment proceedings. We find that on identical circumstances, this Tribunal ... find that the reasons recorded by the ld AO for reopening of the assessment in the instant case are very vague 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

Divyaben Prafulchandra Parmar, Surat vs. Income Tax Officer, Ward 1(3)(1), Surat

In the result, appeal filed by the assessee is allowed

ITA 73/SRT/2023[2014-15]Status: DisposedITAT Surat27 Jul 2023AY 2014-15

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.73/Srt/2023 (Assessment Year: 2014-15) (Physical Hearing) Divyaben Prafulchand Parmar, Vs. The Ito, Ward-1(3)(1), 1-2, Harikrishna Niwas, B/H Braham Surat. Kumari Ashram, Bhatar Road, Surat – 395017. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Acbpp9559Q (Appellant) (Respondent)

Section 115BSection 143(3)Section 68Section 69

general observations based on statements, probabilities, human behavior, modus operandi etc. The AO has to show with evidence the chain of events and live link of the assessee's involvement in the scam including that he paid cash and in return received exempt LTCG gains. 7.1 . Notably in the case

R Vaidyanathan, Mumbai vs. ACIT-27(3), Navi Mumbai

ITA 1443/MUM/2023[2009-10]Status: DisposedITAT Mumbai26 Jul 2023AY 2009-10
For Appellant: Shri. M.M.Golvala , A.R. &For Respondent: Shri. B. Laxmi Kanth, D.R
Section 114GSection 143(3)Section 147

chargeable to tax has escaped assessment. 5) Both the lower authorities erred in resorting to the provisions of section 147 when there was no live link or nexus between the material and the belief that income chargeable to tax had escaped assessment. 6) Both the lower authorities erred in resorting

Shrimati Amarjit Kaur W/O Bugar Singh, Mansa vs. Income Tax Officer Ward 1(4), Mansa

In the result, the appeal of the assessee is dismissed

ITA 1/ASR/2018[2009-10]Status: DisposedITAT Amritsar26 Jul 2023AY 2009-10

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: NoneFor Respondent: Sh. S. M. Surendranath, Sr. DR
Section 147Section 148Section 251(2)Section 49

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

Macro Proprieties Private Limited, M 28 Income Tax Colony Tonk Road Jaipur vs. DCIT Central Circle 2, Lic Building Jaipur

In the result, the appeals of the assessee are allowed

ITA 174/JPR/2023[2013-2014]Status: DisposedITAT Jaipur17 Jul 2023AY 2013-2014

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;djvihy la-@ITA No.174 TO 177/JP/2023 fu/kZkj.ko"kZ@AssessmentYear : 2013-14 TO 2016-17 M/s. Macro Properties Pvt. Ltd.M-28, Income Tax Colony, Tonk Road Jaipur cuke Vs. The DCIT Central Circle-2 LIC Building, Jaipur LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAFCM 3633 D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby : Shri C.M. Agarwal, CA jktLo dh vksjls@Revenue by: Shri JameshKurian, CI

For Appellant: Shri C.M. Agarwal, CAFor Respondent: Shri JameshKurian, CIT
Section 153CSection 50C(1)Section 69

आयकरअपीलीय अधिकरण] जयपुरन्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh]U;kf

Kala Ramesh Parmar, Mumbai vs. ITO Ward- 23(2)(6), Mumbai

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

ITA 581/MUM/2023[2012-13]Status: DisposedITAT Mumbai05 Jul 2023AY 2012-13

Bench: Shri Pavan Kumar Gadalekala Ramesh Parmar Ito Ward – 23(2)(6), 2/21,Kishorebuilding, Room No.303, बनाम/ Opp Edward Cinema, 3Rd Floor, Vs. 2Nd Floor, 521, Earnest House, Kalbadevi Road, Nariman Point, Mumbai- 400002. Mumbai- 400021. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadpp6229M (""थ" / Respondent) (अपीलाथ" /Appellant)

For Appellant: Shri.Jitendra Singh.ARFor Respondent: Shri.Abhishek Kumar Singh, DR
Section 143(1)Section 143(3)Section 148Section 234BSection 250Section 68

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 Income-tax Officer and the formation of his belief that there has been escapement

Puri Oil Mills Ltd, New Delhi vs. ACIT, Circle-20(1), New Delhi

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

ITA 7726/DEL/2019[2013-14]Status: DisposedITAT Delhi30 Jun 2023AY 2013-14

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

Section 143(3)Section 2(24)Section 44A

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