“ live link ”

354 ITR 536 · 2013 · High Court

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.

366

222 Taxman 15 (Gujarat)(MAG.), Principal Commissioner of Income-tax-4 v. G & G Pharma India Ltd.

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.

384 ITR 147 · 2016 · High Court

274

PCIT v. RMG Polyvinyl (I) Ltd.

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.

396 ITR 5 · 2017 · High Court

272

264 ITR 566 · 2003 · Supreme Court

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

253

ITO v. Selected Dalurband Coal Co. (P.) Ltd.

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.

217 ITR 597 · 1996 · Supreme Court

180

153 (Gujarat) 8 Shakti Karnawat v. ITO

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.

296 ITR 90 · 2008 · High Court

171

Kalyanji Mavji & Co. v. CIT

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.

102 ITR 287 · 1976 · Supreme Court

137

ITA 268/MUM/2020[2010-11]Status: DisposedITAT Mumbai29 Mar 2022AY 2010-11

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

Arvind Hanjarimal Jain, Mumbai vs. Asst CIT 31 (2), Mumbai

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

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Ble

For Appellant: Shri Jain DixitFor Respondent: Shri Mehul Jain

Section 132Section 133(6)Section 139Section 143Section 143(2)Section 143(3)Section 148Section 154

record from which the requisite belief could be formed by him and further whether that material had any rational connection or a live link for the formation of the requisite belief. If there is no rational and intelligible nexus between the reasons and the belief, the conclusion would be inescapable

Arvind Hanjarimal Jain, Mumbai vs. Asst CIT 31 (2), Mumbai

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

ITA 267/MUM/2020[2009-10]Status: DisposedITAT Mumbai29 Mar 2022AY 2009-10

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Ble

For Appellant: Shri Jain DixitFor Respondent: Shri Mehul Jain

Section 132Section 133(6)Section 139Section 143Section 143(2)Section 143(3)Section 148Section 154

Dy CIT-CC-6(3), Mumbai vs. M/S. Marathon Nextgen Realty Ltd, Mumbai

ITA 798/MUM/2021[2011-12]Status: DisposedITAT Mumbai25 Mar 2022AY 2011-12

Bench: Vikas Awasthy & Shri Prashant Maharishiआअसं. 797/मुं/2021 ("न. व. 2012-13 ) आअसं. 798/मुं/2021 ("न. व. 2011-12 ) आअसं. 799/मुं/2021 ("न. व. 2010-11) Dy. Commissioner Of Income Tax, Central Circle – 6(3), Room No.1926, 19Th Floor, Air India Building, Nariman Point, Mumbai 400 021 ..... अपीलाथ" /Appellant बनाम Vs. M/S. Marathon Nextgen Realty Limited, Marathon Futurex Mafatlal Mill Compound, N.M.Joshi Marg, Lower Parel, Mumbai 400 013. Pan: Aaacp-8032-E ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri J.P. Bairagra With Ms. Rupa Nanda ""तवाद" "वारा/Respondent By : Shri C.T. Mathews सुनवाई क" "त"थ/ Date Of Hearing : 23/02/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 25/03/2022 आदेश/ Order Per Vikas Awasthy, Jm: These Three Appeals By The Revenue Are Directed Against The Orders Of Commissioner Of Income Tax(Appeals)-54, Mumbai [In Short ‘ The Cit(A)’], For The 2

For Appellant: Shri J.P. Bairagra with Ms. Rupa NandaFor Respondent: Shri C.T. Mathews

Section 147Section 148

power to reopen, provided there is “tangible material” to come to the conclusion that there is escapement of income from assessment. Reason must have live link with the formation of belief. 9.2 The Hon'ble Bombay High Court in the case of Trent Ltd. vs. DCIT (supra) held that

Dy CIT, CC-6(3), Mumbai vs. M/S. Marathon Nextgen Realty Ltd, Mumbai

ITA 797/MUM/2021[2012-13]Status: DisposedITAT Mumbai25 Mar 2022AY 2012-13

For Appellant: Shri J.P. Bairagra with Ms. Rupa NandaFor Respondent: Shri C.T. Mathews

Section 147Section 148

Gm Overseas, New Delhi vs. ACIT Circle-48(1), New Delhi

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

ITA 1891/DEL/2020[2010-11]Status: DisposedITAT Delhi21 Mar 2022AY 2010-11

For Appellant: Shri Suresh Gupta, CAFor Respondent: Shri Hemant Gupta, Sr. DR

Section 131ASection 133ASection 143(3)Section 147

dated 15.02.2012, the Hon’ble Delhi High Court, which is the jurisdictional High Court, held that as long 3 as there is a ‘live link’ between the material which was placed before the Assessing Officer 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 Assessing Officer and his formation of belief that income has escaped assessment. Sufficiency of such information

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 465/BANG/2020[2014-15]Status: DisposedITAT Bangalore07 Mar 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 147Section 148

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 section 147 of the Act, as quoted hereinabove. Under

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 464/BANG/2020[2013-14]Status: DisposedITAT Bangalore07 Mar 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 147Section 148

Kirti M Shah, Mumbai vs. ITO 4 (3)(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 7750/MUM/2019[2013-14]Status: DisposedITAT Mumbai04 Mar 2022AY 2013-14

Bench: Shri Vikas Awasthyआअसं. 7750/मुं/2019 ("न.व 2013-14) Kirti M. Shah, A/703, Sheetal Dham, Sudha Park, Garodia Nagar, Ghatkopar West, Mumbai 400 077. Pan; Aagps-5048-E ...... अपीलाथ" /Appellant

For Appellant: Shri Mehul ShahFor Respondent: Shri T. Shankar

Section 143(1)Section 143(3)Section 57Section 68

that substantial loans taken have been advanced to Sneha Medicare Pvt. Ltd. Thus, the assessee is required to discharge his onus in proving live link between the borrowings and the amount advanced to Sneha Medicare Pvt. Ltd. In Index of the paper book at Serial No.7 it is mention: ‘Correlation ... this limited purpose this issue is restored to the file of Assessing Officer. To the extent, the assessee is able to show live link between the loans taken and advanced to Sneha Medicare Pvt. Ltd., the Assessing Officer shall allow interest claim of the assessee. With the above observations, ground

Mr.M J Aravind, Bangalore vs. Assistant Commissioner of Income Tax Circle-2(3)(1), Bangalore

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

ITA 222/BANG/2019[2011-12]Status: DisposedITAT Bangalore25 Feb 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2011-12

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT), Bengaluru

Section 143(3)Section 147Section 148Section 14ASection 48Section 57

Rr Carwell Pvt Ltd, New Delhi vs. DCIT Central Circle-4, New Delhi

In the result, appeals filed by the assessee for AY

ITA 9158/DEL/2019[2017-18]Status: DisposedITAT Delhi11 Feb 2022AY 2017-18

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Gurjeet Singh, C.A. &For Respondent: Smt. Sushma Singh, CIT-DR

ITA 9157/DEL/2019[2016-17]Status: DisposedITAT Delhi11 Feb 2022AY 2016-17

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “F” : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA

Rr Carwell Pvt Ltd, New Delhi vs. DCIT Central Circle-4, New Delhi

In the result, appeals filed by the assessee for AY

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Gurjeet Singh, C.A. &For Respondent: Smt. Sushma Singh, CIT-DR

ITA 9156/DEL/2019[2015-16]Status: DisposedITAT Delhi11 Feb 2022AY 2015-16

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “F” : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA

Rr Carwell Pvt Ltd, New Delhi vs. DCIT Central Circle-4, New Delhi

In the result, appeals filed by the assessee for AY

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Gurjeet Singh, C.A. &For Respondent: Smt. Sushma Singh, CIT-DR

ITA 9155/DEL/2019[2014-15]Status: DisposedITAT Delhi11 Feb 2022AY 2014-15

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “F” : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA

Rr Carwell Pvt Ltd, New Delhi vs. DCIT Central Circle-4, New Delhi

In the result, appeals filed by the assessee for AY

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Gurjeet Singh, C.A. &For Respondent: Smt. Sushma Singh, CIT-DR

ITA 9154/DEL/2019[2013-14]Status: DisposedITAT Delhi11 Feb 2022AY 2013-14

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “F” : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA

Rr Carwell Pvt Ltd, New Delhi vs. DCIT Central Circle-4, New Delhi

In the result, appeals filed by the assessee for AY

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Gurjeet Singh, C.A. &For Respondent: Smt. Sushma Singh, CIT-DR

ITA 9153/DEL/2019[2012-13]Status: DisposedITAT Delhi11 Feb 2022AY 2012-13

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “F” : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA

Rr Carwell Pvt Ltd, New Delhi vs. DCIT Central Circle-4, New Delhi

In the result, appeals filed by the assessee for AY

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Shri Gurjeet Singh, C.A. &For Respondent: Smt. Sushma Singh, CIT-DR

ITA 6303/DEL/2017[2011-12]Status: DisposedITAT Delhi03 Feb 2022AY 2011-12

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “F” : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR

ITA 6302/DEL/2017[2010-11]Status: DisposedITAT Delhi03 Feb 2022AY 2010-11

mere formality but it is mandatory and failure to fulfill that condition would vitiate the entire proceedings. 18. There must be direct nexus or live link coming to the notice of the Assessing Officer and formation of his belief that there has been escapement of income of the company from

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR

ITA 6301/DEL/2017[2009-10]Status: DisposedITAT Delhi03 Feb 2022AY 2009-10

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR

ITA 6300/DEL/2017[2008-09]Status: DisposedITAT Delhi03 Feb 2022AY 2008-09

Bentley Nevada Inc., Gurgaon vs. DCIT, Circle- 1(1)(2), International Taxation, New Delhi

In the result, all the four appeals of the assessee in ITA Nos

Bench: Shri N.K. Billaiya & Ms. Astha Chandra

For Appellant: Shri Sachit Jolly, AdvFor Respondent: Ms. Anupama Anand, CIT- DR