“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

ITO, Ward-6(1), Kolkata vs. M/S Daniel Commodities Pvt. Ltd., Kolkata

ITA 645/KOL/2020[2009-10]Status: DisposedITAT Kolkata07 May 2024AY 2009-10

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No.645/Kol/2020 Assessment Year: 2009-10 Ito, Ward-6(1), Kolkata………..…….......................…...……………....Appellant Vs. M/S Daniel Commodities Pvt. Ltd…..........…..........................…..…..... Respondent 6, Lyons Range, Kolkata – 1. [Pan: Aaccd9344F] C.O. 4/Kol/2023 (A/O I.T.A. No.645/Kol/2020) Assessment Year: 2009-10 M/S Daniel Commodities Pvt. Ltd…………….....................…..…..... Cross-Objector 6, Lyons Range, Kolkata – 1. [Pan: Aaccd9344F] Vs Ito, Ward-6(1), Kolkata …………….......................…...……………....Respondent Appearances By: Shri Abhijit Kundu, Cit-Dr, Advocate, Appeared On Behalf Of The Department. Shri Miraj D. Shah, Ar, Appeared On Behalf Of The Assessee. Date Of Concluding The Hearing : February 23, 2024 Date Of Pronouncing The Order : May 07, 2024

Section 143(1)Section 144Section 147Section 148Section 151Section 250Section 263

perusal of the aforesaid reasons it is evident that the jurisdictional fact/information on which the AO has based his reason to believe escapement of income was that the department received an authentic information that huge value of deposits were made in the bank account of one company called M/s. Miracle ... According to the Ld. AR, this foundational fact on the basis of which the AO had based his “reason to believe escapement of income" is factually wrong/erroneous since the foundation fact has been found to be absent, which fact is evident from the factual findings of the Ld. PCIT

Sanjay Vimalchand Borana, Mumbai vs. Income Tax Officer-20(3)(2), Mumbai

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

ITA 3831/MUM/2023[2010-11]Status: DisposedITAT Mumbai06 May 2024AY 2010-11

Bench: Shri B.R. Baskaranassessment Year 2010-11 Sanjay Vimalchand Borana, 3, Nanji Rawji Bldg, A.D.Marg , Sewree, Mumbai 400 015. Pan:Aeypb-2999-F - Appellant

For Appellant: Mr. Margav Shukla &For Respondent: Shri Suni Mathews, Sr.DR

Section 132Section 133(6)Section 143(1)Section 148Section 68

loan and claimed the same as deduction. On the basis of information mentioned above, the Assessing Officer took the view that there was escapement of income and accordingly reopened the assessment of the year under consideration by issuing notice u/s. 148 of the Act. Though the assessee furnished documents

Smt. Renu Gupta, Ambala City vs. ITO, Ward 3, Ambala

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

ITA 12/CHANDI/2023[2011-12]Status: DisposedITAT Chandigarh03 May 2024AY 2011-12

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

For Appellant: Shri Varun Gupta, AdvocateFor Respondent: Shri Dharam Vir, JCIT, Sr. DR

Section 142(1)Section 147Section 148

from MJs Barnala Construction & Property Consultant cannot be regarded as material evidence that prima-facie show or establishes nexus or link which disclosed escapement of income. 5. That since the Appellant-Assessee is of old age and her health has been deteriorated. As such she has been living with

Aishwarya Publications Private Ltd., Mumbai vs. ITO 1(1)(1), Mumbai

In the result, the appeal is dismissed

ITA 3650/MUM/2023[2010-11]Status: DisposedITAT Mumbai03 May 2024AY 2010-11

Bench: Shri Amit Shukla (Jm) & Smt. Renu Jauhri (Am) I.T.A. No. 3650/Mum/2023 (A.Y. 2010-11) M/S. Aishwarya Vs. Ito, Ward 1(1)(1) Publication Pvt. Ltd. Room No. 534/579A 3Rd Floor, Centre Point Aayakar Bhavan 18Th Road, Chembur M.K. Road Mumbai-400 070. Mumbai-400 020. Pan : Aaaca3569K (Appellant) (Respondent) Assessee By Shri S.G. Goyal & Shri Harsh S. Goyal Department By Shri Manoj Kumar Sinha Date Of Hearing 16.04.2024 Date Of Pronouncement 03.05.2024 O R D E R Per Renu Jauhri (Am) :-

Section 127Section 133(6)Section 143(2)Section 148Section 148(1)Section 151

Investigation Wing regarding bogus purchases of ₹ 65,00,000/- by the appellant, which was sufficient for forming a prima facie belief regarding escapement of income. Further an opportunity was also given to the appellant vide notice dated 27.03.2017 to furnish copy of ledger account alongwith supporting documents. (ii) The ACIT ... reasons to believe based on the specific and credible information received from the Investigation Wing of the department which prima facie showed escapement of income. Reasons recorded were duly furnished to the appellant. Since the return of income u/s.139(1) was filed at an income of Rs.53,77,300/-. (well

Computer Modelling Group Limited, Canada vs. ACIT International Taxation Circle 1(2)(1), New Delhi

In the result, all the four appeals of the assessee for AY 2012-13,

ITA 2091/DEL/2023[2020-21]Status: DisposedITAT Delhi03 May 2024AY 2020-21

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandra

Section 143(3)Section 144CSection 144C(13)Section 153Section 234ASection 234BSection 250Section 271(1)(c)Section 44B

does not have any office/base in India and it was unable to understand why it had received notices in respect of alleged escapement of income under section 147 of the Act. The Ld. CIT (A) also held reassessment proceedings under sections 147/148 of the Act as valid

Computer Modelling Group Limited, Canada vs. DCIT Circle International Taxation 1(2)(1), New Delhi

In the result, all the four appeals of the assessee for AY 2012-13,

ITA 2090/DEL/2023[2012-13]Status: DisposedITAT Delhi03 May 2024AY 2012-13

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandra

Section 143(3)Section 144CSection 144C(13)Section 153Section 234ASection 234BSection 250Section 271(1)(c)Section 44B

Computer Modelling Group Limited, Canada vs. ACIT, Circle-1(2)(1), Int. Taxation, New Delhi

In the result, all the four appeals of the assessee for AY 2012-13,

ITA 2305/DEL/2022[2019-20]Status: DisposedITAT Delhi03 May 2024AY 2019-20

Bench: Shri G.S. Pannu, Hon’Ble & Ms. Astha Chandra

Section 143(3)Section 144CSection 144C(13)Section 153Section 234ASection 234BSection 250Section 271(1)(c)Section 44B

M/S R.S.Darshan Singh Motors Car Finance Pvt. Ltd., Kolkata vs. ITO, Ward-11(3), Kolkata

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

ITA 265/KOL/2024[2013-14]Status: DisposedITAT Kolkata02 May 2024AY 2013-14

Bench: Sri Rajesh Kumar & Pradip Kumar Choubey

Section 143(1)Section 144BSection 147Section 148Section 250

assessee filed return of income under protest filed its objection challenging the re-opening of the proceeding alleging the escapement of income to the tune of Rs. 35 Lakh. The AO disposed of the objection without assigning any reason thereby holding that the assessee escaped the income to the tune ... opinion that there was no reason to believe on the part of the Assessing Officer to hold that there was escapement of income of the assessee in a particular year and as such it must be held that the Assessing Officer was not justified in issuing the notice in question

DCIT, Central Circle, Kolkata vs. Merlins, Kolkata

In the result, appeal of the revenue is dismissed

ITA 907/KOL/2023[2019-20]Status: DisposedITAT Kolkata02 May 2024AY 2019-20

Bench: Dr. Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 907/Kol/2023 Assessment Year: 2019-20 Deputy Commissioner Of Income Merlins Merlin House Tax, Central Circle -2(3), Kolkata Vs Samghu Nath Pandit Street Bhowanipore Kolkata - 700020 [Pan : Aatfm9627P] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri A.K. Tulsyan, Fca Revenue By : Shri Rakesh Kumar Das, Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 06/02/2024 घोषणा क" तारीख /Date Of Pronouncement: 02/05/2024 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Revenue Against The Order Of The Learned Commissioner Of Income Tax (Appeals) – 20, Kolkata (Hereinafter The “Ld. Cit(A)”) Dt. 02/06/2023, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2019-20. 2. The Registry Has Pointed Out That There Is A Delay Of 28 Days In Filing Of This Appeal. There Is A Petition For Condonation Of Delay Stating Therein, The Reasons For The Delay. On Perusal Of The Petition, We Are Convinced That The Revenue Was Prevented For Reasonable Cause From Filing This Appeal In Prescribed Time Limit. Accordingly, We Condone The Delay & Admit The Appeal For Hearing On Merits.

For Appellant: Shri A.K. Tulsyan, FCAFor Respondent: Shri Rakesh Kumar Das, CIT, D/R

Section 139(1)Section 143(2)Section 153ASection 250Section 68

date of search, the assessment years in question are completed/concluded assessments and there being no reference to any incriminating material showing escapement of income as discussed above, we find that the impugned additions in the case of assessees namely, Merlin Infra Project Private Limited , Merlin Acropolis Projects Private Limited, Merlin

Arjun Manoj Purohit, Thane vs. Income Tax Officer, Ward-2(1), Thane

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

ITA 3655/MUM/2023[2015-16]Status: DisposedITAT Mumbai02 May 2024AY 2015-16

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.3654/Mum/2023 (िनधा"रण वष" / Assessment Year: 2014-15) & आयकर अपील सं/ I.T.A. No.3655/Mum/2023 (िनधा"रण वष" / Assessment Year: 2015-16) बनाम/ Arjun Manoj Purohit Ito, Ward-2(1) Room No. 25B, 6Th Arjun Niwas Padmavati Vs. Nagar, 150 Feet Road Floor, Asher It Park, Shyander (W), Thane- Road No. 16Z, Wagle 401105. Industrial Estate, Thane- 400604. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Anxpp8321K (अपीलाथ" /Appellant) (""थ" / Respondent) .. Assessee By: Shri Rakesh Joshi Revenue By: Shri Manoj Kumar Sinha (Sr. Dr) सुनवाई की तारीख / Date Of Hearing : 03/04/2024 घोषणा की तारीख /Date Of Pronouncement : 02/05/2024 आदेश / O R D E R

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Manoj Kumar Sinha (Sr. DR)

Section 133(6)Section 148Section 68

Rs.1,17,00,000/-) which loan according to the AO were mere accommodation entry. And therefore, he recorded his satisfaction that there was escapement of income and he reopened the assessment. The assessee participated in the re- assessment proceedings wherein he was directed by the AO to prove the “nature

Arjun Manoj Purohit, Thane vs. Income Tax Officer, Ward-2(1), Thane

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

ITA 3654/MUM/2023[2014-15]Status: DisposedITAT Mumbai02 May 2024AY 2014-15

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Manoj Kumar Sinha (Sr. DR)

Section 133(6)Section 148Section 68

Dipti Garg, Tonk vs. ITO WD, Tonk

In the result, appeal of the assessee is partly allowed

ITA 633/JPR/2023[2014-15]Status: DisposedITAT Jaipur30 Apr 2024AY 2014-15

Bench: Dr. Manish Borad & Dr. S Seethalakshmi

Section 143(3)Section 148Section 250Section 56(2)(vii)Section 56(2)(viib)

failed to bring any substantial information to rebut the legality of reassessment proceeding. We, therefore, considering that Ld. AO having relevant information indicating escapement of income, was well within his jurisdiction to issue notice u/s. 148 of the Act and carry out the reassessment proceedings. Thus, the legal issue raised

Maya Milind Sirsath, Mumbai vs. Income Tax Officer 33(2)(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3562/MUM/2023[2012-13]Status: DisposedITAT Mumbai30 Apr 2024AY 2012-13

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

Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 149(1)(b)Section 69A

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI SANDEEP

Seema Singh, New Delhi vs. Income Tax Officer Ward 32(3), New Delhi

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

ITA 2777/DEL/2023[2011-12]Status: DisposedITAT Delhi30 Apr 2024AY 2011-12

Bench: Shri Kul Bharat & Dr.B.R.R.Kumar[Assessment Year : 2011-12] Seema Singh, Vs Ito, E-65, Chatterpur Extension, Near Ward-32(3), Suman Chowk, New Delhi-110074. New Delhi. Pan-Cazps4606K Appellant Respondent Appellant By Shri Pulkit Verma, Adv. Respondent By Shri Om Parkash, Sr.Dr Date Of Hearing 23.04.2024 Date Of Pronouncement 30.04.2024 Order Per Kul Bharat, Jm : The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By Ld.Cit(A), National Faceless Appeal Centre (“Nfac”), Delhi Dated 29.03.2023 For The Assessment Year 2011-12. 2. The Assessee Has Raised Following Grounds Of Appeal:-

Section 143(2)Section 144Section 147Section 148

sake of clarity, relevant contents of the written submissions are reproduced as under:- “The Appellant was subjected to reassessment under Section 148 alleging escapement of income to the extent of Rs. 22,00,000/- (INR Twenty-Two Lakh Only) being Time deposit during AY 2011-12. Subsequently, various notices under

Ravi Gopal Trivedy, Mumbai vs. National E-Assessment Centre, Delhi

ITA 4062/MUM/2023[2013-14]Status: DisposedITAT Mumbai24 Apr 2024AY 2013-14

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am Ravi Gopal Trivedy 402, Sheetal, A Wing, Lokhandwala Complex, Andheri (West), Mumbai-400053 Pan : Abсрт1927А Ι.Τ.Α. No. 4062/Mum/2023 (Assessment Year: 2013-14) Vs. National E-Assessment Centre, Delhi Appellant) Respondent) Appellant/Assessee By Dr. K. Shivaram A/W Mr. Shashi Bekal, Ca Revenue/Respondent By Shri R.R. Makwana, Jcit Date Of Hearing 23.04.2024 Date Of Pronouncement 24.04.2024 Order Per Padmavathy S, Am: This Appeal Is Against The Order Of The Commissioner Of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi [For Short 'The Cit(A)] Dated 16.10.2023 For The Ay 2013-14. The Assessee Raised The Following Revised Grounds: 2

Section 143(1)Section 148

that before reopening an assessment, the AO has to record the reasons wherein he has to spell out the "Reasons to believe, escapement of income". It is well settled that "Reasons to believe" postulate foundation based on information and belief based on reason. After a foundation based on information

Aadinath Securities Private Ltd, Mumbai vs. ITO Ward 4(1)(3), Mumbai

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

ITA 4005/MUM/2023[2014-15]Status: DisposedITAT Mumbai24 Apr 2024AY 2014-15

Bench: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHARI (Accountant Member)

Section 142(1)Section 143(2)Section 147Section 148Section 271(1)(b)Section 68Section 69A

facts and the transaction which has been stated in the ‘reasons recorded’ have already been offered to tax and therefore, there was no escapement of income. Further, assessee had also filed reply and details as and when required. The chronology of events and the remarks for each date of compliance

Aadinath Securities Pvt Ltd, Mumbai vs. ITO Ward 4(1)(3), Mumbai

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

ITA 4003/MUM/2023[2015-16]Status: DisposedITAT Mumbai24 Apr 2024AY 2015-16

Bench: SHRI AMIT SHUKLA (Judicial Member), SMT RENU JAUHARI (Accountant Member)

Section 142(1)Section 143(2)Section 147Section 148Section 271(1)(b)Section 68Section 69A

Dy Commissioner of Income Tax (Exemption)-2(1), Mumbai vs. Sir Dorabji Tata Trust, Mumbai

In the result, appeal filed by the revenue is dismissed and cross appeal filed by the assessee is allowed

ITA 2116/MUM/2023[2013-2014]Status: DisposedITAT Mumbai24 Apr 2024AY 2013-2014

Bench: Shri Narendra Kumar Billaiya, Hon'Bleand**

Section 12ASection 143(3)Section 147Section 148

attracted to prohibit claim of exemption u/s. 11 which the assessee has made in its ROI and allowed in the assessment resulting into escapement of income of over Rs. 1 lac from assessment. The assessee has not disclosed fully and truly all material facts in respect to payment to persons

Sir Dorabji Tata Trust, Mumbai vs. CIT (Appeals) NFAC, Mumbai

In the result, appeal filed by the revenue is dismissed and cross appeal filed by the assessee is allowed

ITA 2085/MUM/2023[2013-14]Status: DisposedITAT Mumbai24 Apr 2024AY 2013-14

Bench: Shri Narendra Kumar Billaiya, Hon'Bleand**

Section 12ASection 143(3)Section 147Section 148

Chaudhary Stone Crusher, New Delhi vs. ITO Ward 3(1), Saharanpur

In the result of the assessee is allowed

ITA 2314/DEL/2023[2011-12]Status: DisposedITAT Delhi24 Apr 2024AY 2011-12

Bench: Shri Amit Shukla & Shri M. Balaganeshchaudhary Stone Crusher, Vs. Ito, C/O. Sh. C. S. Anand, Ward-3(1), Advocate, 104, Pankaj Saharanpur, Tower, 10, L. S. C. Savita Vihar, Delhi-92 (Appellant) (Respondent) Pan: Aagfc5621D Assessee By : Shri C. S. Anand, Adv Revenue By : Shri Vivek Kumar Upadhyay, Sr. Dr Date Of Hearing 14/02/2024 Date Of Pronouncement 24/04/2024

For Appellant: Shri C. S. Anand, AdvFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR

Section 144Section 147Section 148Section 50C

bank A/c remain not only unexplained but also unexamined in absence of any documentary evidence. 6. Basis of forming reason and details of escapement of Income:- It is apparent that assessee has not explained the cash deposit despite several opportunities and the unexplained cash deposit of Rs.91