“escapement of income”

ReassessmentSection 147Section 1473,765 judgments

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

Leading authorities on escapement of income

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.

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.

CIT v. Sun Engineering Works (P) Ltd.

198 ITR 297 · 1992 · Supreme Court

814

citing judgments

A court's pronouncement derives its scope and color from the specific questions involved in the case, thus, due regard must always be given to the questions framed before the court when interpreting its judgment.

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.

CIT v. Jet Airways (I) Ltd.

331 ITR 236 · 2011 · High Court

694

citing judgments

The Assessing Officer loses jurisdiction and the entire reassessment becomes invalid if no addition is made in respect of the income that formed the basis of the reopening. Explanation 3 to Section 147 does not permit assessing other escaped income unless an addition is made for the original income forming the reason to believe.

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.

Judgments citing escapement of income

DCIT, Vikash Bhawan Delhi vs. Rajan Kumar, Laxmi Nagar, Delhi

In the result, the appeal of the Revenue appeal is dismissed and the cross objection filed by the assessee is allowed in the aforesaid manner

ITA 130/DEL/2025[2012-13]Status: DisposedITAT Delhi06 Feb 2026AY 2012-13

Bench: Shri Sudhir Kumar & Smt. Renu Jauhridcit Vs Rajan Kumar Room No. 218-D Block, 31,Vijay Block Laxmi Vikash Bhawan, Nagar Delhi-110092 Delhi- 110 002 Pan: Caapk8381E

Section 132Section 142(1)Section 143(1)Section 147Section 148Section 69A

disclosed the fully and truly materials facts at the time of the original assessment. The Assessing officer has failed to show that escapement of income is due to failure on part of the assessee. Since the assessment had earlier been concluded under section 143(3) by order dated

Lakhvir Singh, Bathinda vs. ITO, Ward 1(1), Btd, Bathinda

The appeal stand partly allowed for statistical purposes

ITA 63/ASR/2025[2014-15]Status: DisposedITAT Amritsar05 Feb 2026AY 2014-15

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Shri Udayan Dasgupta, Jm

For Appellant: Sh. Vipul Arora (CA) – Ld. ARFor Respondent: Sh. Charan Dass (Addl. CIT) - Ld. Sr DR

Section 147

that the assessee remained non-filer. Pursuant to receipt of information of deposit by the assessee, Ld. AO formed prima-facie belief of escapement of income and reopened the case of the assessee. At the time of reopening, in our considered opinion, it was not incumbent upon ... quantify the exact escapement of income. The only requirement was possession of tangible material suggesting escapement of income. This condition, in the present case, has duly been fulfilled and therefore, no fault could be found in reopening. The corresponding legal grounds as urged by Ld. AR stand dismissed

Ammann India Private Limited, Mehsana vs. The Pr. CIT-3, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1536/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad05 Feb 2026AY 2020-21

Bench: Shri Tr Senthil Kumar & Shri Narendra Prasad Sinhaassessment Years: 2020-21

Section 143(3)Section 144BSection 263

further submitted that the Department had initiated proceedings u/s 148 of the Act in A.Y. 2018-19 on the ground of escapement of income in respect of depreciation of goodwill. However, the reopening proceeding for that year was quashed by Hon’ble Gujarat High Court in Civil Application

Mittal Cotspin Limited, Ludhiana vs. Income Tax Officer, Ward-2(5), Ludhiana

In the result, appeal is allowed

ITA 950/CHANDI/2025[2014-15]Status: DisposedITAT Chandigarh04 Feb 2026AY 2014-15

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 950/Chd/2025 "नधा"रण वष" / Assessment Year: 2014-15 M/S Mittal Cotspin Ltd., The Ito, St. No. 1, Opp. Govt. Primary Vs Ward 2(5), High School, Madhopouri, Ludhiana. Ludhiana. "थायी लेखा सं./Pan No: Aagcm7124G अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Ashwani Kumar, Ca, Shri Aditya Sood, Ca & Ms. Deepali Aggarwal, Ca Revenue By : Dr. Ranjit Kaur, Addl. Cit Sr. Dr Date Of Hearing : 28.01.2026 Date Of Pronouncement : 04.02.2026

For Appellant: Shri Ashwani Kumar, CA, Shri Aditya Sood, CAFor Respondent: Dr. Ranjit Kaur, Addl. CIT Sr. DR

Section 143(2)Section 143(3)Section 147Section 68

escaped assessment within the meaning of provisions of section 147 of the Income Tax Act, 1961. 7. Escapement of income chargeable to tag in relation to any assets' (including financial interest in any entity): Not Applicable. 8. Applicability of the provisions of section 147/151 to the facts of the case ... which has a live nexus with formation of belief that income has escaped assessment. The AO was not possessing any information exhibiting escapement of income for assessment year 2014-15. The ld.CIT (Appeals) has failed to appreciate this aspect while dealing with this issue in paragraph

Southern Enterprises, Chennai vs. ACIT Non Corporate Ward 22, Chennai

In the result, appeal filed by the assessee is allowed

ITA 2941/CHNY/2017[2009-10]Status: DisposedITAT Chennai04 Feb 2026AY 2009-10

Bench: Shri Aby T. Varkey & Ms. Padmavathy. S

For Appellant: Ms. S. Sanchitha for Mr. R. SivaramanFor Respondent: Mr. Praveen. S, JCIT

Section 10BSection 142(1)Section 143(2)Section 143(3)Section 147Section 148

725/269 ITR 192 (Punj. & Har.): ''that the reasons recorded for issue of notice showed that the satisfaction recorded therein wes merely about the escapement of income. There was not even a whisper of an allegation that such escapement had occurred by reason of failure on the part of the assessee ... into". That, on those two issues regarding subsidy and provident fund being disallowed, the Assessing Officer does not even say that there is escapement of income from assessment. He therefore submits that the proviso to section 147 is not attracted. That, on the said two points, there is nothing

Kalpana Ramesh Jain, Mumbai vs. Deputy Commissioner of Income Tax- Central Circle-4(3)(1), Mumbai

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

ITA 4597/MUM/2025[2017-18]Status: DisposedITAT Mumbai04 Feb 2026AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Respondent: Shri Mani Jain a/w Shri Prateek

Section 10(38)Section 147Section 148Section 68

assessee as an accommodation entry provider to treating her as a beneficiary—further demonstrates the absence of a valid and coherent belief regarding escapement of income. 4.4 It was submitted that since the reasons recorded themselves suffer from factual inaccuracies and non-application of mind, the sanction obtained for reopening

Kalpana Ramesh Jain, Mumbai vs. Deputy Commissioner of Income Tax- Central Circle-4(3)(1), Mumbai

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

ITA 4596/MUM/2025[2016-17]Status: DisposedITAT Mumbai04 Feb 2026AY 2016-17

Section 10(38)Section 147Section 148Section 68

assessee as an accommodation entry provider to treating her as a beneficiary-further demonstrates the absence of a valid and coherent belief regarding escapement of income. 4.4 It was submitted that since the reasons recorded themselves suffer from factual inaccuracies and non-application of mind, the sanction obtained for reopening

Kalpana Ramesh Jain, Mumbai vs. Deputy Commissioner of Income Tax- Central Circle-4(3)(1), Mumbai

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

ITA 4595/MUM/2025[2015-16]Status: DisposedITAT Mumbai04 Feb 2026AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Respondent: Shri Mani Jain a/w Shri Prateek

Section 10(38)Section 147Section 148Section 68

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1161/MUM/2025[2014-15]Status: DisposedITAT Mumbai04 Feb 2026AY 2014-15

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR

Section 139Section 147Section 148Section 250Section 271(1)(c)

predecessor that there was no mala fide intention to take undue benefit of the law or to twist the law for the escapement of income by not disclosing the additional income in the return filed. Accordingly, the learned CIT(A) directed the AO to delete the penalty levied under section

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1160/MUM/2025[2010-11]Status: DisposedITAT Mumbai04 Feb 2026AY 2010-11

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR

Section 139Section 147Section 148Section 250Section 271(1)(c)

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1159/MUM/2025[2009-10]Status: DisposedITAT Mumbai04 Feb 2026AY 2009-10

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR

Section 139Section 147Section 148Section 250Section 271(1)(c)

Deputy Commissioner of Income Tax(It)-2(1)-2, Mumbai vs. Dz Bank India Representative Office, Mumbai

In the result, the appeals by the Revenue and the cross-objections by the assessee are dismissed

ITA 1158/MUM/2025[2008-09]Status: DisposedITAT Mumbai04 Feb 2026AY 2008-09

Bench: Shri Om Prakash Kantshri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Krishna Kumar, Sr. DR

Section 139Section 147Section 148Section 250Section 271(1)(c)

Proform Interiors Private Limited, Gurgaon vs. DCIT CC-20, Delhi

In the result, all the appeals for Assessment Years 2013-14 to 2022-23 in ITA

ITA 2717/DEL/2025[2022-23]Status: DisposedITAT Delhi04 Feb 2026AY 2022-23

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 132Section 139(1)Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 250

introduced through significant amendments to Sec.147 and Sec.148, along with the insertion of Explanations-1 and 2 and the concept of "information suggesting escapement of income" was explicitly defined. From the reading of Explanation-2 to Section 147, it would be evident that in cases where a search is initiated ... Sec.148. The Explanation provide that if a search is initiated then the AO shall be deemed to have information suggesting escapement of income for the three AYs immediately preceding the AY relevant to the previous year in which the search is initiated. Therefore, the only permissible statutory course