“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

Veena Goel Represented Legal Heir of Moti Lal Goel, Ghaziabad vs. ITO Ward 13(2), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 1190/DEL/2023[2017-18]Status: DisposedITAT Delhi19 Jun 2023AY 2017-18

Bench: Shri Saktijit Dey & Shri M. Balaganeshassessment Year: 2009-10 Smt. Sapna Gupta, Vs The Pr. Cit, 299, Awas Vikas Colony, Dehradun. Vivek Vihar, Haridwar – 249 407, Uttarakhand. Pan: Acspg4083D (Appellant) (Respondent) Assessee By : Shri Rohit Jain, Advocate & Ms Deepashri Rao, Ca Revenue By : Shri N.S. Jangpangi, Cit, Dr Date Of Hearing : 27.04.2023 Date Of Pronouncement : 08.06.2023 Order Per M. Balaganesh, Am: This Appeal In Ita No.16/Ddn/2021 For Ay 2009-10 Arises Out Of The Order Of The Pr. Commissioner Of Income Tax (Appeals), Dehradun, [Hereinafter Referred To As „Ld. Pcit‟, In Short] In Din & Order No. Itba/Rev/F/Rev5/2020- 21/1031815348(1) Dated 27.03.2021 Against The Order Of Assessment Passed U/S 148/147 R.W.S. 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As „The Act‟) Dated 26Th/28Th December, 2018 By The Ld. Assessing Officer, Ward 1(3)(3), Haridwar (Hereinafter Referred To As „Ld. Ao‟). 2. The Only Issue To Be Decided In This Appeal Is As To Whether The Ld. Pcit Was Justified In Invoking Revisionary Jurisdiction U/S 263 Of The Act In Respect Of Disallowance Of Purchases Of Rs 33,35,500/- In The Facts & Circumstances Of The Instant Case.

For Appellant: Shri Rohit Jain, Advocate &For Respondent: Shri N.S. Jangpangi, CIT, DR

Section 147Section 148Section 263Section 263(2)

setting aside the reassessment order on the issue of alleged bogus „purchases‟ from M/s Meet Enterprises, despite the fact that the issue in reassessment proceedings was restricted only to alleged bogus „payments‟ made to the said party. 2.2. That the PCIT failed to appreciate that the issue of disallowance ... alleged bogus purchases from M/s Meet Enterprises was, in any case, extensively examined during the course of original as well as reassessment proceedings and the same was, therefore, outside the scope of revisionary jurisdiction under section 263 of the Act. 2.3. That the PCIT failed to appreciate that the issue

Mahalaxmi Ornaments House Pvt. Ltd., New Delhi vs. ITO, Ward-16(1), New Delhi

In the result, all three captioned appeals are allowed on legal grounds

ITA 2233/DEL/2022[2011-12]Status: DisposedITAT Delhi16 Jun 2023AY 2011-12

Bench: Shri Chandra Mohan Garg

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Om Prakash, Sr. DR

search no incriminating material is found, in case of completed/unabated assessment, the only remedy available to the Revenue would be to initiate the reassessment proceedings under sections 147/48 of the Act, subject to fulfillment of the conditions mentioned in sections 147 / 148. Jasneet Kaur Chattwal Vs ITO - ITA No. 215/DEL/2016 ... reopening of assessment. He further submitted that in the present case the Assessing Officer invoked later recourse and initiated reassessment proceedings which cannot be alleged as bad in law. 12. On careful consideration of above submission, from the copy of the reasons available at page 1 to 21 of assessee

Mahalaxmi Ornaments House Pvt. Ltd., New Delhi vs. ITO, Ward-16(1), New Delhi

In the result, all three captioned appeals are allowed on legal grounds

ITA 2232/DEL/2022[2010-11]Status: DisposedITAT Delhi16 Jun 2023AY 2010-11

Bench: Shri Chandra Mohan Garg

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Om Prakash, Sr. DR

Mahalaxmi Ornaments House Pvt. Ltd., New Delhi vs. ITO, Ward-16(1), New Delhi

In the result, all three captioned appeals are allowed on legal grounds

ITA 2231/DEL/2022[2009-10]Status: DisposedITAT Delhi16 Jun 2023AY 2009-10

Bench: Shri Chandra Mohan Garg

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Om Prakash, Sr. DR

Milky Way Consultants LLP, New Delhi vs. ITO Ward - 37(1), New Delhi

In the result, the appeal of the assessee is partly allowed on legal grounds

ITA 1946/DEL/2020[2011-12]Status: DisposedITAT Delhi16 Jun 2023AY 2011-12

For Appellant: Ms. Rano Jain, Adv. & Ms. Mansi Jain, AdvFor Respondent: Shri Sumit Kumar Verma, Sr. DR

Section 148

with effect from 09.04.2015. 7. The Assessing Officer has not made any inquiry about the character or nature of transaction and proceeded to initiate reassessment proceedings to issue notice u/s. 148 3 of the Act for AY 2011-12 by considering the non existing entities during said period which were ... same has to held as unsustainable being bad in law. Accordingly ground no. 1 to 4 of assessee are allowed and initiation of reassessment proceedings u/s. 147 of the Act, notice u/s. 148 of the Act and all consequent orders and proceedings are quashed. 8. Since by the earlier part

Magpie Marketing LLP, New Delhi vs. ITO Ward - 38(2), New Delhi

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

ITA 1943/DEL/2020[2011-12]Status: DisposedITAT Delhi16 Jun 2023AY 2011-12

For Appellant: Ms. Rano Jain, Adv. & Ms. Mansi Jain, AdvFor Respondent: Shri Sumit Kumar Verma, Sr. DR

Section 147Section 148

material and the formation of the reason to believe that income has escaped assessment then it has to be held that the initiation of reassessment proceedings u/s. 147 of the Act and issuance of notice u/s. 147 of the Act does not satisfy mandatory requirement of the law and thus ... initiation of reassessment proceedings, issuance of notice u/s. 148 of the Act, and all consequent proceedings and orders including reassessment order deserve to be quashed being bad in law and we hold so. Accordingly, legal grounds no. 1 to 4 of assessee are allowed. 6. Since by the earlier part

Emm Aar Tourism Pvt Ltd, New Delhi vs. ITO Ward - 8(2), New Delhi

In the result, the appeal of the assessee partly allowed

ITA 5790/DEL/2019[2010-11]Status: DisposedITAT Delhi16 Jun 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri M. Balaganeshassessment Year: 2010-11 Emm Aar Tourism P. Ltd. Ito Ward 8(2), New Delhi 10685, Jhandewalan Road, Nabi Karim, New Delhi 110055 Vs. Pan Aacce 1918 Q (Appellant) (Respondent) For Assessee : Shri Shikar Garg, Ca Shri Manoj Garg, Ca Revenue For : Shri Vipul Kashyap, Sr. Dr Date Of Hearing : 19.04.2023 Date Of Pronouncement : 16.06.2023 Order Per Chandra Mohan Garg, J.M. This Appeal Has Been Filed Against The Order Of Ld. Cit(A)-24 New Delhi Dated 11.04.2019 For Ay 2010-11. 2. The Sole Legal Ground Of Assessee Is As Follows:- 1. That On The Facts & Circumstances Of The Case, The Ld Cit(A) Erred In Confirming The Action Of Ld. Ao For Initiation Of Reassessment Proceedings U/S. 147/148 Of The Income Tax Act. 3. The Ld. Assessee Representative Submitted That For Ay 2010-11 The Assessee Submitted Return Of Income On 25.09.2010 Declaring Loss Of Rs. 46,894/- Which Was Processed U/S. 143(3) Of The Act. Drawing Our Attention Towards Pages 27 To 32 Of Assessee Paper Book The Ld. Ar Submitted That The Assessing Officer Received Information From The Investigation Wing Which Conducted Search & Seizure Operation On 18.11.2015 On Pradeep Kumar Jindal Group. He Further Elaborated That On Receipt Of Information The Assessing Officer Recorded Reasons For Initiated Of Reassessment Proceedings On 29.03.2017 & Obtained Approval Of Acit As Well As Pcit On The Very Same Date. The Ld. Ar Drawing Our Attention Towards Page 28 Of The Approval Note Submitted That The Ld. Acit While Granting Approval Noted “Yes, It Is A Fit Case” & The 1

For Appellant: Shri Shikar Garg, CA

Section 143(3)Section 147Section 148Section 151

That on the facts and circumstances of the case, the ld CIT(A) erred in confirming the action of ld. AO for initiation of reassessment proceedings u/s. 147/148 of the Income Tax Act. 3. The ld. assessee representative submitted that for AY 2010-11 the assessee submitted return of income ... operation on 18.11.2015 on Pradeep Kumar Jindal Group. He further elaborated that on receipt of information the Assessing Officer recorded reasons for initiated of reassessment proceedings on 29.03.2017 and obtained approval of ACIT as well as PCIT on the very same date. The ld. AR drawing our attention towards page

Ga Infra Private Limited, Jaipur vs. PCIT, Jaipur-2

In the result, appeal of the assessee is allowed

ITA 219/JPR/2023[2018-19]Status: DisposedITAT Jaipur14 Jun 2023AY 2018-19

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Shri Shailendra Sharma (CIT) a

Section 142(1)Section 143(2)Section 143(3)Section 263Section 80I

perverse or unsustainable in law, in any manner and the same would be a possible view keeping in mind the assessee’s submissions during reassessment proceedings. This being the case, the assessment order could not be subjected to revision u/s 263 and the action of Ld. Pr.CIT in invoking jurisdiction

Income Tax Officer, Ward-1-1, Kota vs. Shri Chandi Ram, Kota

In the result, appeal of the revenue is dismissed

ITA 662/JPR/2018[2012-13]Status: DisposedITAT Jaipur14 Jun 2023AY 2012-13

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Siddharth Ranka (Adv.) &For Respondent: Smt Runi Pal (Addl. CIT)

Section 143(3)

stand on this has to be seen in the light of department's earlier stand. On his part the assessee, in the course of reassessment proceedings filed a revised computation offering an additional 0.5% above the originally returned income (accepted by the department with income ... stand on this has to be seen in the light of department’s earlier stand. On his part the assessee, in the course of reassessment proceedings filed a revised computation offering an addition 0.5% above the originally returned income (accepted by the department with income

Silmohan Gems Pvt Ltd. Company, Mumbai vs. DCIT, Circle-5(3)(1), Mumbai

In the result, the appeals of the assessee

ITA 472/MUM/2023[2012-13]Status: DisposedITAT Mumbai13 Jun 2023AY 2012-13

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

that income escaped assessment and believe that income escaped assessment and issued notice u/s 148 ed notice u/s 148 of the Act and commenced reassessment proceedings u/s 147 of of the Act and commenced reassessment proceedings of the Act and commenced reassessment proceedings the Act accordingly. The Assessing Officer

Silmohan Gems Pvt Ltd. Company, Mumbai vs. DCIT, Circle-5(3)(1), Mumbai

In the result, the appeals of the assessee

ITA 471/MUM/2023[2013-14]Status: DisposedITAT Mumbai13 Jun 2023AY 2013-14

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

DCIT 5(3)(1), Mumbai vs. Silmohan Gems Private Limted, Mumbai

In the result, the appeals of the assessee

ITA 450/MUM/2023[2012-2013]Status: DisposedITAT Mumbai13 Jun 2023AY 2012-2013

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

DCIT 5(3)(1), Mumbai vs. Silmohan Gems Private Limited, Mumbai

In the result, the appeals of the assessee

ITA 449/MUM/2023[2013-2014]Status: DisposedITAT Mumbai13 Jun 2023AY 2013-2014

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

M/S Jammu Cooperative Whole Sale Limited, Jammu vs. Income Tax Officer Ward-2 (1), Jammu

ITA 150/ASR/2020[2005-06]Status: DisposedITAT Amritsar13 Jun 2023AY 2005-06

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjeei.T.A. No. 150/Asr/2020 Assessment Year: 2005-06 M/S Jammu Cooperative Whole Sale The Ito Limited (Super Bazar) Old Hospital Ward-2(1) Road, City Chowk, Jammu- Jammu 180001(J&K)-180001

For Appellant: None

Section 147Section 148Section 152Section 40A(3)

permitted to be agitated in the re-assessment proceedings unless relatable to that item sought to be taxed as "escaped income". In the reassessment proceedings for bringing to tax items which had escaped assessment, it would be open to an assessee to put forward claims for deduction of any expenditure

Satish Tyagi, Ghaziabad vs. ITO, Ward-2(4), Ghaziabad

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

ITA 9601/DEL/2019[2010-11]Status: DisposedITAT Delhi13 Jun 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Nitin Kumar, CAFor Respondent: Shri Anuj Garg, Sr.DR

Section 143(3)Section 144Section 147Section 54F

benefit of revenue as held in Sun Engineering and therefore the income returned cannot be assessed at a lower figure in the reassessment proceedings. 6. In consonance with the restoration made in Amrish Kumar, the captioned appeal is also restored to the file of the Assessing Officer for fresh adjudication

Keval H Seth, Mumbai vs. ITO Ward 16(2)(1), Mumbai

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

ITA 418/MUM/2020[2007-08]Status: DisposedITAT Mumbai09 Jun 2023AY 2007-08

Bench: Shri Pavan Kumar, Hon’Blekeval H. Seth V. Ito, Ward 16(2)(1), 17-D Malabar Apartment Matrumandir, Nepeansea Road Tardeo Road, Mumbai- 400036 Mumbai- 400007 Pan: Afbps4180H

Section 132Section 143(1)Section 147Section 148Section 151Section 250

merits of the case. Whereas the CIT(A) considered the grounds of appeal, submissions and findings AO and has upheld the validity of reassessment proceedings and enhanced the assessment dealt at Para 5.4 of the order and dismissed the asssessee appeal. Aggrieved by the CIT(A)order, the assessee ... bonafide ‘belief’ that the assessee being a beneficiary, too would have fudged the transactions, therein vesting with him the necessary jurisdiction to initiate reassessment proceedings in the hands of the assessee u/s 147 of the ‘Act’. We however are unable to persuade ourselves to subscribe to the view that such

ITO 24(1)(2), Mumbai vs. Shri Ashokkumar Murajmal Raimalani, Mumbai

In the result, appeal by the Revenue is partly allowed

ITA 3569/MUM/2019[2009-10]Status: DisposedITAT Mumbai09 Jun 2023AY 2009-10

Bench: Shri Vikas Awasthy& Shri S.Rifaur Rahmanआअसं.3569/मुं/2019 ("न.व. 2009-10) The Income Tax Officer -24(1)(2), Room No.605, Piramal Chambers, Jeejeebhoy Lane,Lalbaug, Parel, Mumbai 400 012 ...... अपीलाथ"/Appellant बनाम Vs. Shri Ashokkumar Murajmal Raimalani, 2Nd Floor, 108, Zaveri Bazar, Andheri (West), Mumbai 400 058. Pan: Aaapr-8617-A .....""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Ashok Kumar Kardam –Cit Dr ""तवाद" "वारा/Respondent By : Shri Ketan Shah सुनवाई क" "त"थ/ Date Of Hearing : 16/03/2023 घोषणा क" "त"थ/ Date Of Pronouncement : 09/06/2023 आदेश/Order Per Vikas Awasthy, Jm:

For Appellant: Shri Ashok Kumar Kardam –CIT DRFor Respondent: Shri Ketan Shah

Section 148Section 292B

process has earned profit of Rs.14,06,91,911/- during the Financial Year 2008-09. The Assessing Officer in reassessment proceedings made addition of the artificial losses booked by the assessee. 3.1 The ld. Departmental Representative submits that before issuance of notice u/s. 148 of Income ... line with the provisions of section 282(2) of the Act. No doubt the assessment year under appeal is assessment year 2009-10, however, reassessment proceedings in the case of assessee were initiated for the aforesaid assessment year in 2016. The provisions of section 282 by that time were amended

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 80/ASR/2020[2014-15]Status: DisposedITAT Amritsar09 Jun 2023AY 2014-15

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

Section 144Section 250(6)

first proviso. It also means that only one assessment will be made under the aforesaid provisions as the two proceedings i.e. assessment or reassessment proceedings and proceedings under this provision merge into one. If assessment made under sub- section (1) is annulled in appeal or other legal proceedings, then

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 79/ASR/2020[2013-14]Status: DisposedITAT Amritsar09 Jun 2023AY 2013-14

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

Section 144Section 250(6)

M/S Narula Foods Private Limited, Ferozepur vs. Deputy Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeals of the revenue are dismissed and appeals of assessee are allowed in the terms indicated above

ITA 78/ASR/2020[2012-13]Status: DisposedITAT Amritsar09 Jun 2023AY 2012-13

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

Section 144Section 250(6)