“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

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 6971/DEL/2018[2012-13]Status: DisposedITAT Delhi30 Jun 2023AY 2012-13

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

Suresh Kumar Divakar, Sambalpur vs. ACIT, Circle 1(1), Sambalpur

In the result, appeal of the assessee is allowed

ITA 129/CTK/2022[2013-14]Status: DisposedITAT Cuttack26 Jun 2023AY 2013-14

For Appellant: Shri P.K.Mishra and Himanshu Jena, AdvsFor Respondent: Shri S.C.Mohanty, Sr. DR

Section 143(3)Section 147Section 148Section 14ASection 44A

reopen provided there is ‘tangible material’ to come to conclusion that there is escapement of income from assessment and the reasons must have a live link with formation of belief. He also placed reliance on the decision of Hon’ble Jurisdictional High Court in the case of Ram Kumar Agrawal

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

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. 15 ITA. 6300/Del/2018 AND C. O. No. 70/Del/2021 M/s. RPS Infrastructure Ltd., ND Our view gets support from

Shri Bhawani Shankar Parashar, Indore vs. The DCIT/ACIT 1 (2), Indore

In the result, appeal of assessee is allowed

ITA 411/IND/2022[2012-13]Status: DisposedITAT Indore21 Jun 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanishri Bhawani Shankar Pr. Cit-1 Prashar Indore 28, Lasudia Mori, Vijay Vs. Nagar, Indore (Appellant / Assessee) (Respondent/ Revenue) Pan: Bgbpp 2475 G Assessee By Shri S.N. Agrawal, Ar Revenue By Shri P.K. Mishra, Cit-Dr Date Of Hearing 02.05.2023 Date Of Pronouncement 21.06.2023

Section 263

case and in law, the Ld Assessing Officer erred in reopening the case of the appellant in the absence of any tangible material and live link o f concealment of income that could lead to a formation of belief that income chargeable to tax has escaped from assessment 2.That

Ankur Agrawal, Indore vs. ITO-5(1), Indore

In the result, all three appeals of two assessee are allowed

ITA 217/IND/2019[2015-16]Status: DisposedITAT Indore21 Jun 2023AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 10(38)Section 68

आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY

Smt. Sheela Agrawal, Indore vs. ITO-5(5), Indore

In the result, all three appeals of two assessee are allowed

ITA 216/IND/2019[2015-16]Status: DisposedITAT Indore21 Jun 2023AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 10(38)Section 68

आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY

Smt. Sheela Agrawal, Indore vs. ITO-5(5), Indore

In the result, all three appeals of two assessee are allowed

ITA 215/IND/2019[2014-15]Status: DisposedITAT Indore21 Jun 2023AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 10(38)Section 68

आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY

Advantage Overseas Pvt.Ltd., Mumbai vs. CIT, CC-5(3), Mumbai

In the result, appeal of the assessee is dismissed

ITA 1254/MUM/2022[2012-13]Status: DisposedITAT Mumbai12 Jun 2023AY 2012-13

Bench: Shri Kuldip Singh & Shri Gagan Goyalm/S. Advantage Overseas Pvt. Ltd. 414, A-Wing Express Zone, Off Western Express Highway, Malad East Mumbai-400 097 Pan: Aaaeca8925F ...... Appellant Vs. Dcit Cc-5(3) Mumbai ..... Respondent

For Appellant: Shri Rushabh Mehta, Ld. ARFor Respondent: Shri Manoj Kumar Sinha, Sr. AR

Section 12ASection 138Section 143(3)Section 250Section 68

Officer of reopening the case of the appellant without any independent application of mind; merely based on reason to suspect and without having any live link / nexus with the information / material received. 2. The Id. CIT (A) erred in facts and law in confirming the addition made

Boston Scientific International Bv the Netherlands, Netherland vs. ACIT, Circle-1(1)(2), Int. Taxation, New Delhi

In the result, the appeal of the assessee is allowed and the stay petition of the assessee is dismissed as infructuous

ITA 789/DEL/2023[2013-14]Status: DisposedITAT Delhi08 Jun 2023AY 2013-14

Bench: Shri Kul Bharat & Shri M. Balaganeshboston Scientific International Vs. Acit, Bv The Netherlands, Circle-1(1)(2), 100A, The Capital Court Oiof International Taxation, Palm Marg Munirka, Delhi- New Delhi 110067 (Appellant) (Respondent) Pan: Aaacb4238J Sa No. 152/Del/2023 (In Ita No. 789/Del/2023) (Assessment Year: 2013-14) Boston Scientific International Vs. Acit, Bv The Netherlands, Circle-1(1)(2), 100A, The Capital Court Oiof International Taxation, Palm Marg Munirka, Delhi- New Delhi 110067 (Appellant) (Respondent) Pan: Aaacb4238J

For Appellant: Sh. Deepak Kumar, AdvFor Respondent: Shri Vijay B. Vasanta, CIT DR

Section 115JSection 143(3)Section 147Section 148Section 151Section 151(1)Section 40

Hence, it can be safely concluded that there is no absolutely tangible material available with the ld AO which has a live link to enable the ld AO to form a belief that income of the assessee had escaped assessment. Moreover the ITA No. 789/Del/2023 & SA No. 152/Del/2023 Boston Scientific

Larsen & Toubro Infotech Ltd, Mumbai vs. Addl CIT RG 2(2), Mumbai

ITA 1924/MUM/2014[2009-10]Status: DisposedITAT Mumbai31 May 2023AY 2009-10

For Appellant: Shri Percy J PardiwallaFor Respondent: Dr. Yogesh Kamat, CIT DR

Section 10ASection 143(2)Section 143(3)Section 144C(13)Section 144C(5)Section 92C

gains derived from onsite development of computer software and also services for development of software rendered outside India. So long as there remains a live link between onsite development of computer software and services for development of software with the development of software from the eligible undertaking, the consideration awarded

Shri Bhavesh Bhuva, Surat vs. Income Tax Officer, Ward - 3(3)(1), Surat

In the result, ground No. 2(i) of the appeal is allowed

ITA 235/SRT/2022[2012-13]Status: DisposedITAT Surat29 May 2023AY 2012-13

Bench: Shri Pawan Singhआ.अ.सं./Ita No.235/Srt/2022 (Ay 2012-13) (Hearing In Physical Court) Bhavesh Bhuva Income Tax Officer, C-51, Khodiyar Nagar Ward-3(3)(1), Surat, Income Vs Society, Nr. Chikoo Tax Office, Aaykar Bhavan, Wadi, Nana Varachha, Anavil Business Centre, Surat-395006 Hazira Road, Adajan, Pan No: Antpb 8989 P Surat-395007 अपीलाथ"/Appellant ""यथ" /Respondent "नधा"रती क" ओर से /Assessee By Ms. Chaitali Shah, Ca राज"व क" ओर से /Revenue By Shri Vinod Kumar, Sr-Dr सुनवाई की तारीख/Date Of Hearing 25.05.2023 उ"घोषणा क" तार"ख/Date Of 29.05.2023 Pronouncement Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. This Appeal By Assessee Is Directed Against The Order Of National Faceless Appeal Centre, Delhi [For Short To As “Nfac/Ld. Cit(A)”] Dated 10.06.2022 For Assessment Year 2012-13, Which In Turn Arises From The Addition Made By The Income Tax Officer, Ward-3(3)(1), Surat / Assessing Officer In Assessment Order Passed Under Section 143(3) R.W.S.147 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Dated 26.11.2019. The Assessee Has Raised The Following Grounds Of Appeal:- Bhavesh Bhuva “1. On The Facts & Circumstances Of The Case, The Learned Cit(A), Nfac Has Grossly Erred In Passing The Impugned Appellate Order On An Ex-Parte Basis, By Erroneously Holding That The Appellant Is Not Interested In Pursuing The Appeal, When The Fact Is That The Appellant Has Made Detailed Submissions In Form No.35 Itself, Which Ought To Have Been Considered By The Learned Cit(A), Nfac While Passing The Impugned Order. Therefore, The Appellate Order Of The Learned Cit(A), Nfac Being Passed On An Ex-Parte Basis, Needs To Be Quashed As Being Erroneous, Illegal & Bad-In-Law.

Section 133(6)Section 143(3)Section 144Section 147Section 148Section 254(1)Section 69

specific finding on such submissions. 12. The Hon’ble Apex Court in ITO Vs Lakhmani Mewal Das (supra) held that there must be a live link between the material coming to the notice of Income Tax Officer notice and formation of his belief that there has been escapement of assessees

Dy, CIT 6(1)(1), Mumbai vs. M/S Epc Offshore Subsea Projects Ltd, Mumbai

ITA 3834/MUM/2017[2009-10]Status: DisposedITAT Mumbai26 May 2023AY 2009-10

For Appellant: Shri Biswanath DasFor Respondent: None

Section 143(3)Section 148Section 68

there is ‘tangible material’ to come to the conclusion that there is escapement of income from assessment and that the reasons must have a live link with the formation of the belief. On perusal of the reasons recorded, it can be seen that the reassessment proceedings have been initiated only

Tadisetti Murali Mohan, Guntur vs. Deputy Commissioner of Income Tax, Circle-1(1), Guntur

In the result, appeal of the assessee is allowed

ITA 35/VIZ/2023[2016-17]Status: DisposedITAT Visakhapatnam23 May 2023AY 2016-17

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri M.V. Prasad, ARFor Respondent: Sri MN Murthy Naik, CIT-DR

Section 133ASection 143(2)Section 143(3)Section 144Section 144(1)(b)Section 148Section 68Section 69

assessment must be based on tangible material. It has been explained in a number of decisions that there must be a "close nexus" or "live link" between tangible material and the reason to believe that income has escaped assessment. It follows that the material on the basis of which reassessment

Tadisetti Murali Mohan, Guntur vs. Deputy Commissioner of Income Tax, Circle-1(1), Guntur

In the result, appeal of the assessee is allowed

ITA 34/VIZ/2023[2015-16]Status: DisposedITAT Visakhapatnam23 May 2023AY 2015-16

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri M.V. Prasad, ARFor Respondent: Sri MN Murthy Naik, CIT-DR

Section 133ASection 143(2)Section 143(3)Section 144Section 144(1)(b)Section 148Section 68Section 69

Tadisetti Murali Mohan, Guntur vs. Deputy Commissioner of Income Tax, Circle-1(1), Guntur

In the result, appeal of the assessee is allowed

ITA 33/VIZ/2023[2014-15]Status: DisposedITAT Visakhapatnam23 May 2023AY 2014-15

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri M.V. Prasad, ARFor Respondent: Sri MN Murthy Naik, CIT-DR

Section 133ASection 143(2)Section 143(3)Section 144Section 144(1)(b)Section 148Section 68Section 69

Tadisetti Murali Mohan, Guntur vs. Deputy Commissioner of Income Tax, Circle-1(1), Guntur

In the result, appeal of the assessee is allowed

ITA 32/VIZ/2023[2012-13]Status: DisposedITAT Visakhapatnam23 May 2023AY 2012-13

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri M.V. Prasad, ARFor Respondent: Sri MN Murthy Naik, CIT-DR

Section 133ASection 143(2)Section 143(3)Section 144Section 144(1)(b)Section 148Section 68Section 69

The ITO -1(4), Indore vs. Smt Rakhi Gautam, Indore

In the result appeal filed by the assessee is allowed for

ITA 48/IND/2023[2012-13]Status: HeardITAT Indore22 May 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanismt. Rakhi Gautam Ito- 1(4), Aayakar Cm-626, 2Nd Floor, Bhawan Sukhliya, Indore, M.P. Vs. Indore, Madhya Pradesh Pin-452001 (Appellant / Assessee) (Respondent/ Revenue) Pan: Aaaji0159C Assesseeby Shri S.N. Agrawal, Ca, Ar Revenue By Shri Ashish Porwal, Acit-Sr.Dr Date Of Hearing 18.05.2023 Date Of Pronouncement 22.05.2023

Section 147

proceeding initiated under section 147 of the 1 Income tax Act, 1961 even when reopening was done in absence of any tangible material and live link of concealment of income that could lead to a formation of belief that income chargeable to tax has escaped from assessment . (3) That

Gulshan Investment Co. Ltd., New Delhi vs. ITO Ward-10(4), New Delhi

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

ITA 7679/DEL/2019[2010-11]Status: DisposedITAT Delhi16 May 2023AY 2010-11

Bench: Us. We Deem It Fit To Address This Preliminary Ground First.

Section 142(1)Section 143(3)Section 147Section 148Section 14A

Investigation Wing and considered the same as sacrosanct. Hence in our considered opinion, the Ld. AO did not have any information which had a live link to form a belief that income of the assessee escaped assessment warranting reopening within the meaning of section 147 of the Act. Instead ... only concludes that the assessee had denied having any transactions in derivatives with the sub-brokers and directly without any live link and without any cogent reason, the Ld. AO concludes that based on the information from investigation wing, he has reason to believe that income of the assessee

Bharati Hemant Chheda, Mumbai vs. Income Tax Officer 29(1)(2), Mumbai

In the result, grounds pertaining to re-opening of the case and consequent additions made are set-aside

ITA 197/MUM/2023[2010-2011]Status: DisposedITAT Mumbai15 May 2023AY 2010-2011

Bench: Shri Kuldip Singh & Shri Gagan Goyalbharti Hemant Chheda B-30, Konark Indraprastha Chs Ltd Sarvodaya Nagar, Jain Mandir Road Mulund (W), Mumbai-400 080 Pan: Aadpc1013E ...... Appellant Vs. Ito 29(1)(2), Bandra Kurla Complex, Bandra(E), Mumbai-400 051 ..... Respondent

For Appellant: Shri Nishit GandhiFor Respondent: Shri Chetan M. Kacha, Sr. AR

Section 143(3)Section 148Section 250

sure about that, the appellant claimed loss or profit by misuse of the CCM. He also not able to substantiate that there is any live link or direct nexus between alleged material and, inference drawn by the Assessing Officer. On this issue we relied upon the decision

Ballu Singh, Gurgaon vs. ITO Ward -65(5), New Delhi

In the result, the appeal of the assessee is allowed

ITA 800/DEL/2020[2009-10]Status: DisposedITAT Delhi15 May 2023AY 2009-10

Bench: Shri Kul Bharat

Section 133(6)Section 143(2)Section 143(3)Section 144Section 147Section 148Section 44ASection 69A

order dated 09/10/2017, (paper book page no. 122-131)], in all the cases, the Learned Tribunal has observed that there is no nexus or live link between the material which had come to the notice of the Assessing officer, and the formation of his belief that there was escapement ... 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