“reassessment proceedings”

ReassessmentSections 147-151Sections 147-1518,150 judgments

The decision most relied on for reassessment proceedings is CIT v. Kelvinator of India Ltd. (320 ITR 561), cited in 1,673 judgments on BharatTax.

Leading authorities on reassessment proceedings

CIT v. Kelvinator of India Ltd.

320 ITR 561 · 2010 · Supreme Court

1,673

citing judgments

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

GKN Driveshafts (India) Ltd. v. ITO

259 ITR 19 · 2003 · Supreme Court

1,349

citing judgments

When a notice under Section 148 of the Income Tax Act is issued, the Assessing Officer is bound to furnish reasons for reopening upon the assessee's request and must dispose of the assessee's objections to the notice by passing a speaking order.

ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.

291 ITR 500 · 2007 · Supreme Court

1,030

citing judgments

For initiating reassessment proceedings under Section 147, the Assessing Officer needs only prima facie material providing a reason to believe that income has escaped assessment. Conclusive proof or the sufficiency/correctness of the material is not required at the stage of issuing the notice under Section 148.

Raymond Woollen Mills Ltd. v. ITO

236 ITR 34 · 1999 · Supreme Court

862

citing judgments

For reassessment proceedings under Section 148, the Assessing Officer only needs prima facie material to have a reason to believe income has escaped assessment. Conclusive proof or evaluation of the sufficiency and correctness of such material is not required at the stage of issuing the notice.

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.

Hindustan Lever Ltd. v. R.B. Wadkar

268 ITR 332 · 2004 · High Court

695

citing judgments

The validity of reassessment proceedings initiated under Section 147, by issuing a notice under Section 148, must be judged solely on the reasons originally recorded by the Assessing Officer. These recorded reasons cannot be supplemented, improved upon, or modified at any later stage.

PCIT v. Meenakshi Overseas Pvt. Ltd.

395 ITR 677 · 2017 · High Court

471

citing judgments

Reassessment proceedings initiated solely based on an investigation wing/appraisal report, without the Assessing Officer's independent application of mind to form a 'reason to believe' that income has escaped assessment, are beyond jurisdiction, bad in law, and void ab initio.

Ranbaxy Laboratories Ltd. v. CIT

336 ITR 136 · 2011 · High Court

398

citing judgments

In reassessment proceedings under Section 147/148, the Assessing Officer can assess other income not specified in the original notice if the initial ground for reopening assessment is found to be valid. However, if the income for which the assessment was initially reopened is found not to have escaped assessment, the Assessing Officer cannot proceed to assess any other income.

Judgments citing reassessment proceedings

Tribhovandas Bhimji Zaveri Limited, Mumbai vs. Asstt. Commissioner of Income Tax -18(30, Mumbai

In the result, appeal of the assessee is allowed

ITA 3698/MUM/2024[2010-11]Status: DisposedITAT Mumbai19 Nov 2024AY 2010-11

Bench: Shri Anikesh Banerjee & Shri Girish Agrawal

For Respondent: Shri Nitesh Joshi, CA and

Section 143(3)Section 147

IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT

Mr. Mohamadli Shaikh, Mumbai vs. ITO-21(2)(3), Mumbai

In the result, appeal of the assessee is allowed for statistical purposes with no order as to costs

ITA 336/MUM/2024[2011-12]Status: DisposedITAT Mumbai19 Nov 2024AY 2011-12

Bench: Shri Sandeep Gosain, Hon’Ble & Shri Prabhash Shankar, Hon’Ble

For Appellant: Shri S.L. Jain, A/RFor Respondent: Shri Raj Singh Meel, Sr. D/R

Section 143Section 143(3)Section 148Section 22Section 44ASection 68Section 69A

officer is against the law and facts on the file in as much as he was not justified to the resort to the reassessment proceedings under section 148 and according the notice issued 148 and according the notice issued under section

Vinod Kumar Garg, Uttar Pradesh, India vs. ITO Ward 2(2)(5), Ghaziabad

In the result, the Assessee’s appeal is allowed for statistical purposes

ITA 3880/DEL/2024[2012-13]Status: DisposedITAT Delhi19 Nov 2024AY 2012-13

Bench: Shri Shamim Yahya & Shri Vimal Kumara.Yr. : 2012-13 Vinod Kumar Garg, Vs. Ito, Ward 2(2)(5), Iib, 85A, Nehru Nagar, Ghaziabad Ghaziabad – 201001 Uttar Pradesh (Pan: Acepg1571C) (Appellant) (Respondent)

For Appellant: Shri Gaurav Jain, Adv., Ms. RidhiFor Respondent: Shri Amit Katoch, Sr. DR

Section 144Section 147

principles of natural justice, and therefore deserved to be quashed. 3. That the Ld. CIT(A) has also grossly erred in sustaining the reassessment proceedings without appreciating that these proceedings were illegal, bad in law. and beyond jurisdiction, as they did not meet the requirements specified under sections

Bhawani Castings Private Limited, Delhi vs. Deputy Commissioner of Income Tax, New Delhi

In the result, appeal of assessee is allowed

ITA 1362/DEL/2024[2018-19]Status: DisposedITAT Delhi19 Nov 2024AY 2018-19

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.1362/िद"ी/2024 (िन.व. 2018-19) Bhawani Castings P. Ltd., Kn/F-1, Gali No. 10, Anand Parbat, ...... अपीलाथ"/Appellant Industrial Area, Delhi 110005 Pan: Aaacb-4622-Q बनाम Vs. Deputy Commissioner Of Income Tax, ..... "ितवादी/Respondent Circle 4(2), C.R Building, New Delhi अपीलाथ" "ारा/ Appellant By : S/Shri Ashwani Kumar & Ankur Agarwal, Chartered Accountants "ितवादी"ारा/Respondent By : Ms. Kirti Sankratyayan, Sr. Dr सुनवाई क" ितिथ/ Date Of Hearing : 06/11/2024 घोषणा क" ितिथ/ Date Of Pronouncement : : 19/11/2024 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Order Of Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (Hereinafter Referred To As 'The Cit(A)') Dated 21.02.2024, For Assessment Year 2018-19. 2. The Assessee Has Challenged The Order Of Cit(A) On Following Grounds:

For Appellant: S/Shri Ashwani Kumar &For Respondent: Ms. Kirti Sankratyayan, Sr. DR

Section 147Section 148ASection 250

order dated 30.03.2022 passed u/s. 148A(d) of the Act rejected the objections raised by the assessee against reopening. The AO proceeded with the reassessment proceedings and vide assessment order dated 30.03.2023 passed u/s. 147 r.w.s 144B of the Act made addition of Rs.1,35,40,359/- on account ... basis of reasons recorded for reopening, no other addition can be made. The reasons for reopening should coincide with the addition made in the reassessment proceedings. 8. Further, third party statement recorded subsequent to the reasons recorded, cannot form basis of Assessing Officer’s “reasons to believe” to reopen

Panache Dealtrade Pvt. Ltd., Kolkata vs. P.C.I.T., Central - 2, Kolkata

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

ITA 977/KOL/2024[2013-2014]Status: DisposedITAT Kolkata18 Nov 2024AY 2013-2014

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rajesh Kumari.T.A. No. 977/Kol/2024 Assessment Year: 2013-2014 Panache Dealtrade Pvt. Limited,…….………Appellant 1St Floor, Rup Chand Roy Street, Kolkata-700007, West Bengal [Pan:Aagcp0699B] -Vs.- Principal Commissioner Of Income Tax (Central), Kolkata-2,………………………………..………Respondent Aayakar Bhawan Poorva, 110, Shantipally, E.M. Bypass, Kolkata-700107 Appearances By: Shri S.K. Tulsiyan, Advocate & Mita Rizvi, Appeared On Behalf Of The Assessee Shri Subhendu Datta, Cit(D.R.), Appeared On Behalf Of The Revenue Date Of Concluding The Hearing : October 24, 2024 Date Of Pronouncing The Order : November 18, 2024 O R D E R

Section 133(6)Section 143(1)Section 147Section 151Section 263Section 263(1)

reasons. The ld. A.R. submitted that when the items proposed by the ld. PCIT in the show-cause notice were not part of the reassessment proceedings nor any such item came to the notice of the ld. Assessing Officer during the assessment proceedings in terms of Explanation 3 to section

Dhruv Vanijya Private Limited, Kolkata vs. Income Tax Officer, Ward 8(2), Kolkata

In the result, appeal of the assessee is allowed

ITA 867/KOL/2024[2012-13]Status: DisposedITAT Kolkata18 Nov 2024AY 2012-13

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 147Section 68

assessment order passed by the Ld. AO without providing the assessee copies of material relied upon, inquiries made and approval obtained before initiating the reassessment proceedings is bad in law. 3. For that the Ld. CIT(A)- NFAC erred in confirming the action of the Ld. AO in assessing

Glasseye Traders Pvt. Ltd., Kolkata vs. I.T.O., Ward - 1(1), Kolkata

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

ITA 1485/KOL/2024[2013-2014]Status: DisposedITAT Kolkata18 Nov 2024AY 2013-2014

Bench: Sri Sanjay Garg & Sri Sanjay Awasthi

Section 147Section 148Section 250Section 69A

seen that the ld. CIT(A) has recorded in the impugned order (especially para 4.3 & 6.1) that it was only during the course of reassessment proceedings that the facts regarding different entities was brought to light and the ld. AO was right in bringing the amounts standing against them ... canvas the point that the ld. AO was at liberty to consider all or any item of income in reassessment proceedings, which are noticed by him during the course of such proceedings. 3. We have carefully considered the orders of the ld. AO/ld. CIT(A) and the averments

DCIT, CC-I, Ludhiana vs. Oswal Polycot (India) Pvt. Ltd., Ludhiana

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

ITA 1108/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh14 Nov 2024AY 2012-13

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Gaurav Sharma, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

Section 132Section 143(2)Section 153Section 153ASection 153C

said in respect of amount received from other two companies. It was held that in case of M/s Fantastic Commercial Pvt. Ltd. during its reassessment proceedings, addition has been made vide order dt. 24/12/2018 by treating it as a company used for the purpose of receiving and transferring money ... response to return of income filed under section 153C of the Act, the AO lacks the necessary jurisdiction and the entire reassessment proceedings stood vitiated and in support reliance was placed on the decision of Hon’ble Supreme Court in case of CIT Vs. Laxman Das Khandelwal

DCIT, CC-I, Ludhiana vs. Oswal Polycot (India) Pvt. Ltd., Ludhiana

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

ITA 1107/CHANDI/2019[2011-12]Status: DisposedITAT Chandigarh14 Nov 2024AY 2011-12

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Gaurav Sharma, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

Section 132Section 143(2)Section 153Section 153ASection 153C

Oswal Polycot (India) Pvt. Ltd., Ludhiana vs. DCIT, CC-I, Ludhiana

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

ITA 1105/CHANDI/2019[2013-14]Status: DisposedITAT Chandigarh14 Nov 2024AY 2013-14

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Gaurav Sharma, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

Section 132Section 143(2)Section 153Section 153ASection 153C

Oswal Polycot (India) Pvt. Ltd., Ludhiana vs. DCIT, CC-I, Ludhiana

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

ITA 1104/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh14 Nov 2024AY 2012-13

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Gaurav Sharma, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

Section 132Section 143(2)Section 153Section 153ASection 153C

Oswal Polycot (India) Pvt. Ltd., Ludhiana vs. DCIT, CC-I, Ludhiana

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

ITA 1103/CHANDI/2019[2011-12]Status: DisposedITAT Chandigarh14 Nov 2024AY 2011-12

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Gaurav Sharma, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

Section 132Section 143(2)Section 153Section 153ASection 153C

Arvindbhai Manubhai Patel, Ahmedabad vs. The Income Tax Officer, Ward-3(3)(5), Ahmedabad

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

ITA 1448/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad14 Nov 2024AY 2015-16

Bench: Dr. B.R.R. Kumar, Vice-

For Appellant: Shri Hem Chhajed, ARFor Respondent: Shri Ketan Gajjar, Sr DR

Section 148Section 2(14)Section 250Section 54B

passed by the Ld. CIT (A) is against law, equity & justice. 2. The assessment order passed by the Ld. A.O. is bad & illegal as reassessment proceedings is void and illegal as notice issued u/s 148 of the Act by JAO instead of AO of National Faceless Assessment Centre. 3. Assessment

Income Tax Officer, Delhi vs. Svam Software Ltd., Delhi

In the result, the appeal of the revenue for assessment year 2013-

ITA 334/DEL/2024[2013-14]Status: DisposedITAT Delhi14 Nov 2024AY 2013-14

Bench: Shri Saktijit Dey, Hon’Ble & Shri M. Balaganesh

For Appellant: Shri Ved Jain, AdvFor Respondent: Shri Mritunjay Prasad Dwivedi, Sr. DR

Section 132Section 147Section 153C

aforesaid observations and respectfully following the judicial precedents relied upon herein above, we hold that the Id CIT(A) had rightly quashed the reassessment proceedings u/s 147 of the Act in the facts and circumstances of the instant case. We do not find any infirmity in the said order. Accordingly ... aforesaid cases would squarely be applicable to the facts of the instant case. Accordingly, respectfully following the said decisions, we hold that the reassessment proceedings under section 147 of the Act are to be declared void ab initio and liable to be quashed. Accordingly, the ground No. 12 raised

Income Tax Officer, Delhi vs. Svam Software Ltd., Delhi

In the result, the appeal of the revenue for assessment year 2013-

ITA 333/DEL/2024[2012-13]Status: DisposedITAT Delhi14 Nov 2024AY 2012-13

Bench: Shri Saktijit Dey, Hon’Ble & Shri M. Balaganesh

For Appellant: Shri Ved Jain, AdvFor Respondent: Shri Mritunjay Prasad Dwivedi, Sr. DR

Section 132Section 147Section 153C

Maxis Mobile Services Sdn. Bhd., Malaysia vs. The Assistant Commissioner of Income Tax, Circle 2(2)(1), International Taxation

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

ITA 2746/DEL/2024[2014-15]Status: DisposedITAT Delhi14 Nov 2024AY 2014-15

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Kamal Sawhney, AdvFor Respondent: Shri Vijay B. Vasanta, CIT-DR

Section 144Section 144C(1)Section 144C(13)Section 148Section 149Section 234BSection 271(1)(c)Section 56

appeal to the Hon’ble Delhi High Court, it was held that as per the new 148 provision, the time to complete the reassessment proceedings for income which is less than 50 lakhs should be within 3 years from the relevant assessment year. In the instant case the re-assessment

New Edge Shares and Securities Private Limited, Delhi vs. Income Tax Officer, Ward 18(1), Delhi

ITA 1691/DEL/2024[2011-12]Status: DisposedITAT Delhi14 Nov 2024AY 2011-12

Bench: Shri Pradip Kumar Kedia & Shri Pradip Kumar Kedia & Shri Pradip Kumar Kedia & Shri Vimal Kumarshri Vimal Kumar

Section 144Section 147Section 148Section 250Section 68

facts and in the circumstances of the case, the Ld CIT( erred in law in upholding the impugned reassessment proceedings erred in law in upholding the impugned reassessment proceedings erred in law in upholding the impugned reassessment proceedings ignoring the fact that the jurisdictional notice u/s 148 was never ignoring ... circumstances of the case, the authorities below have On facts and circumstances of the case, the authorities below have erred in upholding the reassessment proceedings ignoring the fact erred in upholding the reassessment proceedings ignoring the fact erred in upholding the reassessment proceedings ignoring the fact that impugned assessment

Sachin Jain, New Delhi vs. ITO Ward 47(2), New Delhi

In the result, both the appeals of the assessee are allowed

ITA 3246/DEL/2023[2012-13]Status: DisposedITAT Delhi14 Nov 2024AY 2012-13

Bench: Ms. Madhumita Roysachin Jain Vs. Ito,Ward-47(2) 1732, Mz Floor, Nayi Drumshape Building, Basti, Naya Bazar, Delhi- 110002 Delhi – 110006 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aijpj5875F Appellant .. Respondent

For Appellant: NoneFor Respondent: Sh. Sanjay Kumar, Sr. DR

Section 142(1)Section 144Section 147Section 148

reported in (2016) 236 taxman 494 (Del) and Ferrous Infrastructure Pvt. Ltd. Vs. DCIT, reported in (2015) 120 DTR 0281 (Del) found the reassessment proceedings were vitiated as the Assessing Officer has not passed a separate speaking and reasoned order by disposing off the objection raised by the assessee against ... furnished to the assessee when sought for so as to enable the assessee to object the same before the AO failing which the reassessment proceedings suffers from jurisdictional error and thus, vitiated. 7. Having regard to the identical facts and circumstances of the matter, respectfully relying upon the judgment passed

DCIT, Central Circle - 7(1), Mumbai vs. Trikesh Trade Link Pvt Ltd, Ahmedabad

In the result, appeal of the Revenue is allowed for statistical purposes

ITA 2379/MUM/2024[2013-14]Status: DisposedITAT Mumbai13 Nov 2024AY 2013-14

Bench: Shri Anikesh Banerjee & Shri Girish Agrawalassessment Year: 2013-14

For Appellant: Shri Sharwan Kumar Jha, AdvocateFor Respondent: Shri Biswanath Das, CIT DR

Section 142(1)Section 143(3)Section 68Section 69A

been made in the case of Access Diamond Pvt. Ltd. within a period of one month. 3.1. In the course of reassessment proceedings, ld. AO called for details and supporting documents to explain the credits in the bank account of the assessee of Rs.19,14,000/- in cash

Income Tax Officer, Ward-3(1)(1), Ahmedabad, Vejalpur vs. Nana Layja Power Company Limited, Ahmedabad

In the result, the appeal of the Revenue stands dismissed

ITA 1457/AHD/2024[2014-15]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2014-15

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.1457/Ahd/2024 िनधा"रण वष" /Assessment Year : 2014-15 The Income Tax Officer Nanalayja Power Company Ltd. बनाम/ Ward-3(1)(1) 301-303, Kaivanna Complex V/S. Ahmedabad Panchwati, Ahmedabad - 380 006 (Gujarat) "थायी लेखा सं./Pan: Aadcn 45111 F अपीलाथ&/ (Appellant) '( यथ&/ (Respondent) Assessee By : -None- Revenue By : Shri Surendra Kumar, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 11/11/2024 घोषणा की तारीख /Date Of Pronouncement: 12/11/2024 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: This Appeal By The Revenue Arises From The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac) [Hereinafter Referred To As “Cit(A)”], Dated 11/06/2024, For The Assessment Year (Ay) 2014-15, Wherein The Cit(A) Deleted The Addition Of Rs.1,17,75,568/- Made By The Assessing Officer [Hereinafter Referred To As “Ao”] U/S.56 Of The Act In The Assessment Order Passed Under Section 143(3) R.W.S. 147 Of The Income Tax Act, 1961 [Hereinafter Referred To As “The Act”], Dated 27/11/2019. Ito Vs. Nana Layja Power Company Ltd. Asst. Year : 2014-15

For Appellant: -None-For Respondent: Shri Surendra Kumar, Sr.DR

Section 143(3)Section 147Section 56

grounds that interest income of Rs.1,17,75,568/-, earned on temporarily parked project funds, had escaped assessment. During the reassessment proceedings, the AO concluded that this interest income was liable to tax under the head "Income from Other Sources," relying on the principles laid down in the case