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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

DCIT(CC)-8(3), Mumbai vs. Shapoorji Pallonji and Company Private Limited, Mumbai

In the result, the cross-objection of the assessee is partly

ITA 2831/MUM/2025[2014-15]Status: DisposedITAT Mumbai12 Jan 2026AY 2014-15

Bench: Shri Om Prakash Kant ()

Section 115JSection 143(3)Section 147Section 148Section 14A

state that the above documents were available but an entirely different thing to state that on examining those documents the AO found the live link for forming the reason to believe that the sum added had escaped assessment. It must be recalled that these were re-assessment proceedings ... reassessment proceedings cannot be initiated on borrowed satisfaction. The Assessing Officer must independently apply his mind to the material before him and establish a live link between such material and the formation of belief that income chargeable to tax has escaped assessment. Where the Assessing Officer merely reproduces an report

Devi Manubhai Shah, Mumbai vs. ITO - Circle 32(1), Mumbai

ITA 7005/MUM/2025[2012-13]Status: DisposedITAT Mumbai09 Jan 2026AY 2012-13

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Piyush ChhajedFor Respondent: Shri Annavaran Kosuri
Section 143(1)Section 143(3)Section 147Section 54F

validly initiated, the Assessing Officer can assess any income that comes to light, even if not mentioned in the reasons, provided there is a live link to escapement. Here, the reassessment was validly initiated based on investment information, and the examination of the section 54F claim was within the Assessing

Pinnacle Consrto and Ecohomes Pvt.Ltd, Pune vs. DCIT Circle-4, Pune

In the result, appeal filed by the assessee is allowed

ITA 2818/PUN/2025[2017-18]Status: DisposedITAT Pune08 Jan 2026AY 2017-18

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.2818/Pun/2025 निर्धारण वषा / Assessment Year : 2017-18 Pinnacle Contro & V Dcit, Ecohomes Pvt. Ltd., S Circle-4, Pune. Madhav Heritage, Tilak Road, Sadashiv Peth, Pune – 411030. Pan: Aaecp0400E Appellant/ Assessee Respondent /Revenue Assessee By Shri Suhas P. Bora Revenue By Shri Madhukar Anand-Jcit(Through Virtual) Date Of Hearing 07/01/2026 Date Of Pronouncement 08/01/2026 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 For The A.Y.2017-18Dated 01.10.2025 Emanating From The Assessment Order Passed Under Section 147 Of The Act, Dated 27.08.2021. The Assessee Has Raised The Following Grounds Of Appeal : “1. Reassessment Bad In Law.

Section 143(3)Section 147Section 148Section 151Section 250Section 250(6)

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.” Unquote 2.7 Thus, Hon’ble Supreme Court observed that reasons must have live link with the formation of belief

Saluja Steel and Power Pvt. Ltd., Giridih vs. ACIT, C, Dhanbad

In the result, appeal of the assessee is allowed

ITA 287/RAN/2025[13-14]Status: DisposedITAT Ranchi07 Jan 2026

Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RATNESH NANDAN SAHAY (Accountant Member)

For Appellant: Shri Devesh Poddar, AdvocateFor Respondent: Shri Rajib Jain, CIT-DR
Section 131Section 142(1)Section 143(3)Section 148Section 156

reasons recorded blindly extracted the investigation report of the DDIT(Investigation). It was the submission that there was no live link between the reasons recorded and the factual position insofar as the share applicants mentioned are wrong and for this the AR drew our attention to the decision of jurisdictional ... Riddhi Siddhi Investment Consultants Pvt. Ltd. 10. It was the submission that the reasons recorded are liable to be quashed as there is no live link much less any link to the actual facts of the assessee’s case. Ld. AR also placed reliance on the decision

West Bengal Electronics Industry Development Corporation Limited, Kolkata vs. DCIT/ACIT, Circle - 2(1), Kolkata

The appeal of the assessee is allowed

ITA 1591/KOL/2024[2013-2014]Status: DisposedITAT Kolkata07 Jan 2026AY 2013-2014
Section 143(3)Section 147Section 148Section 24(1)Section 250

1591/Kol/2024 West Bengal Electronics Industry Development Limited 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 d hereinabove. Under the Direct

West Bengal Electronics Industry Development Corporation Limited, Kolkata vs. D.C.I.T./A.C.I.T., Circle - 2(1), Kolkata

The appeal of the assessee is allowed

ITA 1590/KOL/2024[2012-2013]Status: DisposedITAT Kolkata07 Jan 2026AY 2012-2013
Section 143(3)Section 147Section 148Section 24(1)Section 250

1591/Kol/2024 West Bengal Electronics Industry Development Limited 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 d hereinabove. Under the Direct

Kaishar Interiors Private Limtied, Mumbai vs. Deputy Commissioner of Income Tax Circle 4(2)(2), Mumbai

Accordingly Ground No.16 raised by the Assessee is allowed

ITA 5665/MUM/2025[2010-11]Status: DisposedITAT Mumbai07 Jan 2026AY 2010-11

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI PRABHASH SHANKAR (Accountant Member)

For Appellant: Shri Dinesh Kukreja &For Respondent: Shri Hemanshu Joshi
Section 143(3)Section 147Section 148Section 14A

erred in issuing notice u/s 148 of the Act dated 18.03.2015 solely based on information from the Sales Tax Department without drawing a live link between material and reasons to believe. 6. On the facts and circumstances of the case and in law, the Ld AO erred in issuing notice

M/S Jhs Svendgaard Laboratories Ltd., New Delhi vs. DCIT CC-31, New Delhi

In the result, Appeal of the Assessee is allowed

ITA 3454/DEL/2025[2018-19]Status: DisposedITAT Delhi07 Jan 2026AY 2018-19

Bench: Shri S. Rifaur Rahman & Shri Yogesh Kumar U.S.M/S Jhs Svendgaard Vs. Dcit Laboratories Ltd. B1/E-23, Central Circle-31, New Mohan Cooperative Delhi Tuhglakabad, Badarpur, New Delhi New Delhi Pan: Aabcj5766G Appellant Respondent Assessee By Sh. Gaurav Jain, Adv & Sh. Tarun Chanana, Adv Revenue By Ms.Amisha S. Gupt, Cit (Dr) Date Of Hearing 09/10/2025 Date Of Pronouncement 07/01/2026 Order Per Yogesh Kumar, U.S. Jm: The Present Appeal Is Filed By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals)-30, New Delhi [‘Ld. Cit(A)’

Section 147Section 148Section 151ASection 37

reason to believe" contemplated under Section 147 requires the AO to form an independent belief founded on relevant and verifiable material that bears a live link with the alleged undisclosed income. The reasons recorded in the notice issued under Section 148A(b) of the Act clearly reflects that

Naveen Singh, Jamshedpur vs. Deputy Commissioner of Income Tax, Circle - 1, Jamshedpur

In the result, the appeal of the assessee is allowed

ITA 413/RAN/2024[2017-18]Status: DisposedITAT Ranchi06 Jan 2026AY 2017-18

Bench: Shri Sonjoy Sarma & Shri Ratnesh Nandan Sahayi.T.A. No.413/Ran/2024 Assessment Year: 2017-18 Naveen Singh………...…………….…….…............................……….……Appellant M-9 Old, Adityapur Jamshedpur, Jharkhand- 831013. [Pan: Adkps4229A] Vs. Dcit, Circle-1, Jamshedpur.….....…..…..….........……........……...…..…..Respondent Appearances By: Shri P. S. Paul, Ca, Appeared On Behalf Of The Appellant. Shri Sumit Dasgupta, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 18, 2025 Date Of Pronouncing The Order : January 06, 2026 Order Per Sonjoy Sarma: This Appeal Filed By The Assessee Is Directed Against The Order Of The Nfac, Delhi (Hereinafter Referred To As “Cit(A)”) Dated 12.09.2024 Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”). 2. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income For Assessment Year 2017–18 Declaring A Total Income Of ₹43,99,340/- Under Section 139(1) Of The Act. The Return Was Processed Under Section 143(1) Accepting The Income As Declared. Subsequently, The Ao Issued A Notice Under Section 148 Of The Act After Recording Reasons & Obtaining Sanction From The Competent Authority. The Assessee Did Not Respond To The Notice Under Section 148. Thereafter, Multiple Notices Under Section 142(1) Were Issued, Including Final Opportunity Notices, Which Were Duly Served But Remained Unanswered.

Section 139(1)Section 142(1)Section 143(1)Section 144Section 147Section 148Section 250Section 56(2)(x)

inalienable principle of law that the reasons recorded u/s. 148 of the Act should be based on credible material which must have a live link or nexus with the belief that there was escapement of income. There should be an independent application of mind on such material before recording

Adhi Kumara Guru, Chennai vs. DCIT, Ncc-22(1), Chennai

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

ITA 120/CHNY/2025[2014-15]Status: DisposedITAT Chennai05 Jan 2026AY 2014-15

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri Amitabh Shuklaमाननीय "ी मनु कुमार िग"र, "ाियक सद" एवं माननीय "ी अिमताभ शु"ा, लेखा सद" के सम"

For Appellant: Mr. P.M. Kathir, Advocate for Mr.G.Baskar, AdvocateFor Respondent: Ms. R Anitha, Addl.CIT
Section 143(2)Section 143(3)Section 147Section 148Section 54F

Reasons must have a live escapement of income from assessment. Reasons must have a live escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from link with the formation of the belief. Our view gets support from link

DCIT, Central Circle-5(4), Mumbai vs. Sunil Bhagwatlal Dalal, Mumbai

In the result, both the Revenue’s appeals are partly allowed and

ITA 4047/MUM/2025[2016-17]Status: DisposedITAT Mumbai02 Jan 2026AY 2016-17

Bench: Shri Justice (Retd.) C. V. Bhadang&

Section 143(3)Section 69Section 69A

Sunil Bhagwatlal Dalal, Mumbai 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. The Court also held ... stage is required to form only a prima facie belief or opinion that income chargeable to tax has escaped assessment." 71 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

DCIT, Central Circle 5(4), Mumbai vs. Sunil Bhagwatlal Dalal, Mumbai

In the result, both the Revenue’s appeals are partly allowed and

ITA 4046/MUM/2025[2015-16]Status: DisposedITAT Mumbai02 Jan 2026AY 2015-16

Bench: Shri Justice (Retd.) C. V. Bhadang&

Section 143(3)Section 69Section 69A

Sunil Bhagwatlal Dalal, Mumbai 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. The Court also held ... stage is required to form only a prima facie belief or opinion that income chargeable to tax has escaped assessment." 71 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

Maithan Ceramic Ltd., Kolkata vs. ACIT, Circle 7(1), Kolkata

ITA 1944/KOL/2025[2011-2012]Status: DisposedITAT Kolkata01 Jan 2026AY 2011-2012
For Appellant: Shri P.K.Himmatsinghka, ARFor Respondent: Shri Sandeep Lakra, Sr. DR
Section 142(1)Section 269S

which is impermissible in law. The reasons fail to specify the exact date or nature of the alleged transaction, and do not establish any live link between the information received and the income alleged to have escaped assessment. Key submissions in support of invalidity of reopening: a. No Transaction with

Ajaykumar Natwarlal Sheth, Rajkot vs. The DCIT, Circle 1(2) Rajkot, Rajkot

ITA 108/RJT/2025[2010-11]Status: DisposedITAT Rajkot31 Dec 2025AY 2010-11
Section 143(1)Section 143(3)Section 147Section 148Section 250

that the reasons to believe must have rational connection with or relevant bearing on the formation of belief, that is, 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

Vikas Jain, Kanpur vs. ACIT-CC 2(1)(1), Kanpur

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

ITA 434/LKW/2024[2015-16]Status: DisposedITAT Lucknow31 Dec 2025AY 2015-16

Bench: Sh. Kul Bharat & Sh. Nikhil Choudharya.Y. 2015-16 Vikas Jain, Vs. The Acit, H-2/1, Kidwai Nagar, Kanpur- Circle 2(1)(1), Kanpur 208001 208006 Pan: Abqpj8049R (Appellant) (Respondent) Assessee By: Sh. Rakesh Garg, Adv Revenue By: Sh. Amit Kumar, Dr Date Of Hearing: 07.10.2025 Date Of Pronouncement: 31.12.2025 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Orders Of The Ld. Cit(A), Nfac On 17.05.2024 Wherein The Ld. Cit(A) Has Dismissed The Appeal Of The Assessee Against The Order Passed By The Ld. Assessing Officer Under Section 147 R.W.S. 143(3) For The A.Y. 2015-16 On 27.12.2018. The Grounds Of Appeal Are As Under:- “01. Because There Being No Reason To Believe, Far From There Being Any Material To Form Reasons To Believe, The Proceedings Initiated Right From Issue Of Notice U/S. 148 & The Re-Assessment Framed Thereof Are All Without Jurisdiction Bad In Law, The Order Passed Be Quashed. 02. Because The So-Called Reasons Having Been Recorded Applying Explanation 2(A) To Section 147, Of The Act Which Not Being Applicable, The Very Reason To Believe Being Contrary To The Mandate Of The Section, The Proceedings- Initiated U/S 148, The Reassessment Framed Are All Contrary To The Provisions Of Law, Be Quashed. 03. Because The Approval Given By The Competent Authority U/S 151, Being Mechanical In Nature Without Verification Of Facts, The Notice Issued U/S 148 & The Reassessment Framed Thereafter Be Quashed.

For Appellant: Sh. Rakesh Garg, AdvFor Respondent: Sh. Amit Kumar, DR
Section 143(1)Section 147Section 148Section 151Section 156Section 48Section 50C

believe should not be based merely on suspicion, gossip or rumor. Relying upon the same, the ld. AR argued that there was a, ‘live link’ between the material available on record and the escaped income and because the ld. AO had reason to believe that the assessee had not disclosed

Shree Krishna Gyanodaya Flour Mills Pvt. Ltd., Kolkata vs. ACIT, Central Circle 4(3), Kolkata

In the result, the appeal of the assessee is allowed

ITA 2179/KOL/2025[2011-2012]Status: DisposedITAT Kolkata31 Dec 2025AY 2011-2012

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm Shree Krishna Gyanodaya Acit, Central Circle 4(3) Flour Mills Pvt. Ltd. Aaykar Bhawan Poorva 15Th Floor, 46C, Chowringhee 110, Kolkata-700107, Vs. Road, Everest House, Kolkata- West Bengal 700071, West Bengal (Appellant) (Respondent) Pan No. Aahcs8774P Assessee By : Shri S.K. Tulsiyan, Ar Revenue By : Shri Sanat Kumar Raha, Dr Date Of Hearing: 01.12.2025 Date Of Pronouncement: 31.12.2025

For Appellant: Shri S.K. Tulsiyan, ARFor Respondent: Shri Sanat Kumar Raha, DR
Section 139(1)Section 143(2)Section 143(3)Section 144Section 147Section 148Section 151(1)Section 153ASection 68

wherein it has held that reopening made on the basis of borrowed satisfaction cannot be sustained where the reasons failed to demonstrate live link between the tangible material and formation of the reason to believe that the income has escaped assessment. 3.1. The ld. AR also referred to the Circular ... enquiry before the reopening of assessment and recorded the reasons to believe by relying on the information received. In other words, there is no live link between the information received and formation of belief by the ld. AO. In our opinion, the ld. AO is supposed to conduct an enquiry

Assistant Commissioner of Income Tax, Delhi vs. The Indure Private Limited, Delhi

In the result, the appeal filed by the Department of Revenue is dismissed

ITA 4640/DEL/2024[2013-14]Status: DisposedITAT Delhi31 Dec 2025AY 2013-14

Bench: Shri S Rifaur Rahman & Shri Vimal Kumarassessment Year: 2013-14 Assistant Commissioner Of Vs. The Indure Private Limited, Income Tax, Indure House, Greater Kailash Part Ii, Delhi South Delhi 1100 48 Pan :Aaact0121C (Appellant) (Respondent)

Section 139(1)Section 142(1)Section 143(2)Section 147Section 148Section 148ASection 250Section 69C

reopened only on the basis of the report of the investigation agencies in which there is a concrete information and this information has a live link with the escapement of income. In this regard, it may be noted that on one side the assessee have submitted reply dated 25.05.2022 asking

Sudarshan Jeans Private Limited, Kolhapur vs. ITO, Ambala

The appeal stand allowed

ITA 1070/CHANDI/2024[2015-16]Status: DisposedITAT Chandigarh30 Dec 2025AY 2015-16

Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Sh. Rohit Goel (CA) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR
Section 142(1)Section 143(3)Section 147Section 148Section 32(1)(iia)

provided there is 'tangible material' to come to a conclusion that there is escapement of income from assessment. The recorded reasons must have a live link with formation of belief. With effect from 1-4-1989, the condition to reopen the case is that Ld. AO must have reasons

Shri Vipul Bansal, Mumbai vs. Income Tax Officer Ward 7(1)(2), Mumbai

The appeal of the assessee is partly allowed for statistical purposes

ITA 5628/MUM/2025[2010-11]Status: DisposedITAT Mumbai30 Dec 2025AY 2010-11

Bench: Shri Sandeep Singh Karhail & Shri Makarand Vasant Mahadeokar

Section 131Section 143(3)Section 147Section 148Section 250Section 271(1)(c)Section 37(1)Section 69C

sufficiency or correctness of such belief is not to be examined at that stage. In the present case, the reasons recorded demonstrate a live link between the information received from the Investigation Wing and the belief formed by the Assessing Officer regarding escapement of income. 38. In view ... applicable to the assessment year under consideration, were not satisfied. The learned AR contended that the reasons recorded do not establish any live link or rational nexus between the information received and the formation of belief that income chargeable to tax had escaped assessment. At best, the reasons indicate

Hardayal Milk Products Private Limited, Shikohabad vs. DCIT, Circle-2(2)(1), Firozabad

In the result, both the appeals filed by assessee are allowed

ITA 344/AGR/2025[2013-14]Status: DisposedITAT Agra29 Dec 2025AY 2013-14

Bench: : Shri S. Rifaur Rahman & Shri Sunil Kumar Singh

Section 143(3)Section 145(3)Section 147Section 148Section 151Section 250Section 68

Sharma nor to provide an apportunity to the assessee to cross examine Mahesh Sharma. Thus, in the absence of any tangible material or a live link between Mahesh Sharma and the assessee, the reopening of assessment of the assesee has to be held bad in law. The decision