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“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

I.T.O., Ward-43(2), Kolkata vs. Champalal Omprakash, Kolkata

ITA 1545/KOL/2019[2010-11]Status: DisposedITAT Kolkata15 Jan 2024AY 2010-11

Bench: Shri Sanjay Garg, Judical Member & Dr. Manish Boradi.T.A. Nos.1168&1169/Kol/2019 Assessment Years: 2010-11 & 2011-12 Champalal Omprakash......................................................................Appellant 49, Madan Mohan Burman Street, Kolkata-700007. [Pan:Aabfc8279L] Vs. Ito, Ward-43(2), Kolkata................................................................Respondent I.T.A. Nos.1545&1546/Kol/2019 Assessment Years: 2010-11 & 2011-12 Ito, Ward-43(2), Kolkata................................................................ Respondent Vs. Champalal Omprakash..........................................................................Appellant 49, Madan Mohan Burman Street, Kolkata-700007. [Pan:Aabfc8279L] Appearances By: Shri J. P. Khaitan, Sr. Counsel, Appeared On Behalf Of The Appellant. Shri P. P. Barman, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 13, 2023 Date Of Pronouncing The Order : January 15, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Captioned Are Cross-Appeals Preferred By The Assessee As Well As By The Department Against The Impugned Common Order Dated 19.03.2019 Of The Commissioner Of Income Tax (Appeals)-13, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). Since Common Issues Involved

Section 131Section 250

reopen the assessment exclusively vests with the Assessing Officer only. It is the Assessing Officer who has to form the belief of escapement of income of the assessee and it is the Assessing Officer who has to decide the objections against the reopening of the assessment and further to give

Champalal Omprakash, Kolkata vs. I.T.O., Ward-43(2), Kolkata

ITA 1169/KOL/2019[2011-12]Status: DisposedITAT Kolkata15 Jan 2024AY 2011-12

Bench: Shri Sanjay Garg, Judical Member & Dr. Manish Boradi.T.A. Nos.1168&1169/Kol/2019 Assessment Years: 2010-11 & 2011-12 Champalal Omprakash......................................................................Appellant 49, Madan Mohan Burman Street, Kolkata-700007. [Pan:Aabfc8279L] Vs. Ito, Ward-43(2), Kolkata................................................................Respondent I.T.A. Nos.1545&1546/Kol/2019 Assessment Years: 2010-11 & 2011-12 Ito, Ward-43(2), Kolkata................................................................ Respondent Vs. Champalal Omprakash..........................................................................Appellant 49, Madan Mohan Burman Street, Kolkata-700007. [Pan:Aabfc8279L] Appearances By: Shri J. P. Khaitan, Sr. Counsel, Appeared On Behalf Of The Appellant. Shri P. P. Barman, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 13, 2023 Date Of Pronouncing The Order : January 15, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Captioned Are Cross-Appeals Preferred By The Assessee As Well As By The Department Against The Impugned Common Order Dated 19.03.2019 Of The Commissioner Of Income Tax (Appeals)-13, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). Since Common Issues Involved

Section 131Section 250

reopen the assessment exclusively vests with the Assessing Officer only. It is the Assessing Officer who has to form the belief of escapement of income of the assessee and it is the Assessing Officer who has to decide the objections against the reopening of the assessment and further to give

Champalal Omprakash, Kolkata vs. I.T.O., Ward-43(2), Kolkata

ITA 1168/KOL/2019[2010-11]Status: DisposedITAT Kolkata15 Jan 2024AY 2010-11

Bench: Shri Sanjay Garg, Judical Member & Dr. Manish Boradi.T.A. Nos.1168&1169/Kol/2019 Assessment Years: 2010-11 & 2011-12 Champalal Omprakash......................................................................Appellant 49, Madan Mohan Burman Street, Kolkata-700007. [Pan:Aabfc8279L] Vs. Ito, Ward-43(2), Kolkata................................................................Respondent I.T.A. Nos.1545&1546/Kol/2019 Assessment Years: 2010-11 & 2011-12 Ito, Ward-43(2), Kolkata................................................................ Respondent Vs. Champalal Omprakash..........................................................................Appellant 49, Madan Mohan Burman Street, Kolkata-700007. [Pan:Aabfc8279L] Appearances By: Shri J. P. Khaitan, Sr. Counsel, Appeared On Behalf Of The Appellant. Shri P. P. Barman, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 13, 2023 Date Of Pronouncing The Order : January 15, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Captioned Are Cross-Appeals Preferred By The Assessee As Well As By The Department Against The Impugned Common Order Dated 19.03.2019 Of The Commissioner Of Income Tax (Appeals)-13, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). Since Common Issues Involved

Section 131Section 250

reopen the assessment exclusively vests with the Assessing Officer only. It is the Assessing Officer who has to form the belief of escapement of income of the assessee and it is the Assessing Officer who has to decide the objections against the reopening of the assessment and further to give

Rahul Maheshwari, Jaora, Ratlam vs. Income Tax Officer, Ratlam

Appeal is partly allowed

ITA 267/IND/2023[2013-14]Status: DisposedITAT Indore15 Jan 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year: 2013-14 Rahul Maheshwari, Ito, 111/1, Pathan Toli, Ward 1, बनाम/ Jaora, Ratlam Ratlam Vs. (Assessee/Appellant) (Revenue/Respondent) Pan: Atwpm4233A Assessee By Shri Sakar Sharma, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 04.01.2024 Date Of Pronouncement 15.01.2024

Section 139(1)Section 142(1)Section 143(2)Section 144BSection 145Section 147Section 148Section 69A

explain sources of deposit in bank a/c, this information duly considered by AO could be sufficient to form a belief that there was escapement of income. The assessee is neither having copy of exact reasons recorded by AO nor able to demonstrate in any manner that

Xebec Hospitality P.Ltd, New Delhi vs. ITO, Ward-27(4), New Delhi

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

ITA 877/DEL/2019[2010-11]Status: DisposedITAT Delhi11 Jan 2024AY 2010-11

Bench: Shri N.K. Billaiya & Shri Yogesh Kumar U.S

For Appellant: Ms. Chinu Bhasin , CAFor Respondent: Shri P.N. Barnwal, CIT-DR
Section 133(6)Section 147Section 153ASection 271(1)

without providing an opportunity of being heard, thereby violating the principles of natural justice. 4. 2.2. without any tangible evidence to show that escapement of income from tax has occurred. 5. 2.3. without appreciating that an order under Section 147 of the Act cannot be passed merely

Singhal Fabrics Pvt.Ltd., Ahmedabad vs. Income Tax Officer, Ward-4(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 632/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad10 Jan 2024AY 2012-13

Bench: Ms. Suchitra Kamble (Judicial Member)

For Appellant: Shri Chetan Agarwal, A.RFor Respondent: Ms. Saumya Pandey Jain, Sr. D.R
Section 147Section 148Section 69A

submitted that the assessee did not receive any accommodation entry from Shri Om Prakash Vihani and therefore there is no escapement of income. The assessee has disclosed all the credit income in the ITR for the 4 I.T.A No. 632/Ahd/2023 A.Y. 2012-13 Page No. Singhal Fabrics

Coral Venture Private Limited, Mumbai vs. Assistant Commissioner of Income Tax 12(1)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2483/MUM/2023[2010-2011]Status: DisposedITAT Mumbai10 Jan 2024AY 2010-2011

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2010-11

For Appellant: Mr. Subhash Chhajed and Mr. Hitesh RathodFor Respondent: Mr. H.M. Bhatt, Sr. DR
Section 143(3)Section 147Section 148Section 151

incorrect passed u/s 147 r.w. sec. 143(3) of the Act based on the incorrect facts and reasons to believe the escapement of income within the facts and reasons to believe the escapement of income within th facts and reasons to believe the escapement of income within th meaning

Sh. Sandeep Kumar, Ludhiana vs. ITO, Ward-4, Khanna

In the result, the appeal of the assessee is allowed

ITA 313/CHANDI/2023[2010-11]Status: DisposedITAT Chandigarh09 Jan 2024AY 2010-11

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Kuldeep Singh, ITP and Shri M.P. S. Malhotra, ITPFor Respondent: Shri Dharam Vir, JCIT, Sr. DR
Section 144Section 147Section 148Section 206CSection 68

section 148 was issued. 10.1 It was submitted that while recording the reasons and issuance of notice under section 148, absolute certainty regarding escapement of income is not necessary. It was submitted that in the instant case, there was tangible material in the form of TCS deducted on payment

Golden Vats Private Limited, Chennai vs. ACIT, Central Circle 3(2), Chennai

In the result, the appeal filed by the assessee is allowed and the order passed by the Commissioner dated 14

ITA 416/CHNY/2023[2017-18]Status: DisposedITAT Chennai09 Jan 2024AY 2017-18

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.416/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) M/S. Golden Vats Private Limited Acit बनाम New No.272, 3Rd Floor, Central Circle-3(2), Avvai Shanmugam Salai, Chennai. / Vs. Gopalapuram , Chennai-600 086. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaccg-9782-G (अपीलाथ"/Appellant) : (!"थ" / Respondent)

For Appellant: Shri T.S. Lakshmi Venkatraman (FCA)- Ld.ARFor Respondent: Shri V. Nandakumar (CIT)- Ld. DR
Section 143(3)Section 147Section 148Section 151Section 153CSection 263Section 263(1)Section 3Section 40

submissions, Ld. Pr. CIT held that the reasons recorded for issuance of notice u/s 148 were duly supplied to the assessee. There was escapement of income since the assessee did not disallow the donations and CSR expenses which were not incurred for the purpose of business. The two components were ... that original assessment was completed in assessee’s case u/s 143(3) on 16.12.2019. However, the case was reopened on the allegation of escapement of income and notice u/s 148 was issued on 30.03.2021. In the meanwhile, proceedings u/s 153C were issued against the assessee consequent to search action

M/S. Delighted Holdings (P) Ltd., Kolkata vs. Dcir, Cir-8(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 624/KOL/2023[2011-12]Status: DisposedITAT Kolkata08 Jan 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 143(1)Section 147Section 148

that is failure on the part of the assessee to truly and fully disclose any material fact or information which ultimately leads to escapement of income. In the present case before us, the assessment was framed u/s 143(3) of the Act vide order dated 24.02.2014. We note that during

Suksham Finlease & Investment P.Ltd, New Delhi vs. ITO, Ward-24(3), New Delhi

In the result, appeal of the assessee is allowed

ITA 8321/DEL/2018[2009-10]Status: DisposedITAT Delhi08 Jan 2024AY 2009-10
Section 147Section 151Section 234BSection 69C

case, the dispute is whether there is any tangible material to infer that by way of the client code modification, the assessee has escaped the income and evaded the Income-tax. The Learned Counsel of the assessee has referred to the various decisions mentioned above, wherein cases were reopened ... orders. The reasons do not indicate the basis for the Assessing Officer to come to reasonable belief that there has been any escapement of income on the ground that the modifications done in the client code was not on account of a genuine error, originally occurred while punching the trade

Alishan Steels (P) Ltd, Kolkata vs. DCIT, Circle-1(1), Kolkata

In the result, the appeal of assessee allowed

ITA 1000/KOL/2023[2014-15]Status: HeardITAT Kolkata05 Jan 2024AY 2014-15

Bench: Shri Rajesh Kumar & Shri Sonjoy]

Section 142(1)Section 143(3)

course of assessment proceedings, in a limited scrutiny case, if it comes to notice to the AO that there is a potential escapement of income exceeding Rs.5 lakhs for normal CIT charge and for metro CIT charge, monetary limit shall be Rs.10 lakhs requiring substantial verification on any other issue ... scrutiny to complete scrutiny is that during the course of assessment proceedings, which comes to the notice of the AO that the potential escapement of income exceeding Rs.5 lakhs for normal CIT charge and exceeding Rs.10 lakhs for monetary limits for metro CIT charge. The case can be taken

Smita Biswas, Jalpaiguri vs. A.C.I.T., Circle-1(1), Jalpaiguri

In the result, the appeal of the assessee is allowed

ITA 464/KOL/2022[2016-2017]Status: DisposedITAT Kolkata05 Jan 2024AY 2016-2017

Bench: Shri Rajesh Kumar]

Section 127(1)Section 143(2)

income as per return has fixed the jurisdiction of the Assessing Officers. 7. Now, in this case, the reasons for forming belief of escapement of income by the assessee were recorded by the ITO, Ward-23(3), Hooghly and thereafter, notice u/s 148 of the Act was also issued

Trident Towers Pvt. Ltd., New Delhi vs. ACIT, Central Circle-30, New Delhi

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

ITA 323/DEL/2019[2011-12]Status: DisposedITAT Delhi05 Jan 2024AY 2011-12

Bench: Shri M. Balaganesh & Shri Anubhav Sharma

For Appellant: Shri P. C. Yadav, AdvFor Respondent: Shri Anuja Garg, Sr. DR
Section 147Section 68

existence of cogent material that would lead a person of normal prudence, acting reasonably, to an honest belief as to the escapement of income from assessment," Also, in the case of Phoolchand Bajrang Lal v. ITO 203 ITR 456 (SC), the Hon'ble Apex Court has held that :- "An assessment ... recorded the reasons for his belief that the assessee had not fully and truly disclosed particulars of his income and hence there was escapement of income. Held that the reopening of the case was valid." Also in the case of Raymond Wollen Mills

Shri Mohan Lal Gupta, Shimla vs. Pr.CIT-1, Chandigarh

In the result, appeal of the Assessee is partly allowed

ITA 119/CHANDI/2021[2011-12]Status: DisposedITAT Chandigarh04 Jan 2024AY 2011-12

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Vishal Mohan, Sr. Advocate with Shri Aditya Sood, AdvocateFor Respondent: Smt. Kusum, CIT DR
Section 143(3)Section 147Section 148Section 263Section 54F

issue for which the case of the assessee was reopened under section 147 of the Act or has resulted in any escapement of income and came to the notice of the AO during the course of reassessment proceedings under section 147. Infact, we find that in the original assessment proceedings

Creative Realmart Pvt. Ltd., Jaipur vs. ITO, Ward-3(5), Jaipur

ITA 599/JPR/2023[2013-14]Status: DisposedITAT Jaipur04 Jan 2024AY 2013-14
For Appellant: Sh. P.C. Parwal (CA)For Respondent: Sh. A.S. Nehra (Addl.CIT)
Section 133ASection 143(1)Section 144Section 147Section 148Section 68

आयकर अपीलीय अधिकरण, जयपुर न्यायपीठ, जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “A” JAIPUR श्री संदीप गोसाई, न्यायिक

Springer Verlag Gmbh, New Delhi vs. DDIT, New Delhi

ITA 3660/DEL/2009[2002-03]Status: DisposedITAT Delhi04 Jan 2024AY 2002-03

Bench: G.S. Pannu, Vice- & Shri Saktijit Dey, Vice-

For Appellant: Sh. Sanjeev Chaudhary, ARFor Respondent: Sh. Sanjay Kumar, Sr. DR
Section 131Section 133ASection 139(1)Section 143(2)Section 147Section 148Section 44C

Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. He submitted, the expression ‘reason to believe’ and ‘escapement of income’ would mean that the reason for formation of belief must have rational connection with the information received. He submitted, there must be some direct ... nexus and live link between the material and the formation of belief that there is escapement of income in a particular assessment year. He submitted, in the facts of the present appeal, that live link and direct nexus is missing. Thus, he submitted, in absence of such nexus between

Sprnger Verlag Gmbh vs. DDIT, Circle-2(2)

ITA 645/DEL/2005[2001-2002]Status: DisposedITAT Delhi04 Jan 2024AY 2001-2002

Bench: G.S. Pannu, Vice- & Shri Saktijit Dey, Vice-

For Appellant: Sh. Sanjeev Chaudhary, ARFor Respondent: Sh. Sanjay Kumar, Sr. DR
Section 131Section 133ASection 139(1)Section 143(2)Section 147Section 148Section 44C

Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. He submitted, the expression ‘reason to believe’ and ‘escapement of income’ would mean that the reason for formation of belief must have rational connection with the information received. He submitted, there must be some direct ... nexus and live link between the material and the formation of belief that there is escapement of income in a particular assessment year. He submitted, in the facts of the present appeal, that live link and direct nexus is missing. Thus, he submitted, in absence of such nexus between

Springer Verlag Gmbh vs. DDIT, Circle-2(2)

ITA 644/DEL/2005[2000-2001]Status: DisposedITAT Delhi04 Jan 2024AY 2000-2001

Bench: G.S. Pannu, Vice- & Shri Saktijit Dey, Vice-

For Appellant: Sh. Sanjeev Chaudhary, ARFor Respondent: Sh. Sanjay Kumar, Sr. DR
Section 131Section 133ASection 139(1)Section 143(2)Section 147Section 148Section 44C

Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. He submitted, the expression ‘reason to believe’ and ‘escapement of income’ would mean that the reason for formation of belief must have rational connection with the information received. He submitted, there must be some direct ... nexus and live link between the material and the formation of belief that there is escapement of income in a particular assessment year. He submitted, in the facts of the present appeal, that live link and direct nexus is missing. Thus, he submitted, in absence of such nexus between

Springer Verlag Gmbh vs. DDIT, Circle-2(2)

ITA 643/DEL/2005[1999-2000]Status: DisposedITAT Delhi04 Jan 2024AY 1999-2000

Bench: G.S. Pannu, Vice- & Shri Saktijit Dey, Vice-

For Appellant: Sh. Sanjeev Chaudhary, ARFor Respondent: Sh. Sanjay Kumar, Sr. DR
Section 131Section 133ASection 139(1)Section 143(2)Section 147Section 148Section 44C

Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. He submitted, the expression ‘reason to believe’ and ‘escapement of income’ would mean that the reason for formation of belief must have rational connection with the information received. He submitted, there must be some direct ... nexus and live link between the material and the formation of belief that there is escapement of income in a particular assessment year. He submitted, in the facts of the present appeal, that live link and direct nexus is missing. Thus, he submitted, in absence of such nexus between