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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

Venkatesan Ravi, Chennai vs. ACIT Non Corporate Circle-7(1), Chennai

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

ITA 2388/CHNY/2019[2011-12]Status: DisposedITAT Chennai02 Dec 2022AY 2011-12

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.2388/Chny/2019 िनधा"रण वष"/Assessment Year: 2011-12 Shri Venkatesan Ravi, Vs. The Assistant Commissioner Of 14A, Balu Nagar, Mogappair East, Income Tax, Chennai 600 037. Non Corporate Circle 7(1), Chennai – 34. [Pan:Adwpr8864L] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri V.S. Jayakumar, Advocate ""थ" की ओर से/Respondent By : Shri P. Sajit Kumar, Jcit सुनवाई की तारीख/ Date Of Hearing : 29.11.2022 घोषणा की तारीख /Date Of Pronouncement : 02.12.2022 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 7, Chennai Dated 25.06.2019 Relevant To The Assessment Year 2011-12. 2. The Only Ground Raised By The Assessee Before The Tribunal Is That “The Assessing Officer Ought To Have Been Passed Assessment Order Under Section 153C Of The Income Tax Act, 1961 [“Act” In Short] & Not Under Section 144 R.W.S. 147 Of The Act. The Issue Raised

For Appellant: Shri V.S. Jayakumar, AdvocateFor Respondent: Shri P. Sajit Kumar, JCIT
Section 144Section 147Section 148Section 153C

income escaped from assessment, both section are dealing with different situations. Section 147 comes into operation when the A.O. believes that there is escapement of income chargeable to tax, either from the return already filed or through some external material evidence which come to his knowledge, which shows the escapement

M/S. Global Arkitekts Pvt. Ltd., Chennai vs. ITO, Corporate Circle - 2 (2), Chennai

ITA 708/CHNY/2020[2009-10]Status: DisposedITAT Chennai30 Nov 2022AY 2009-10

Bench: Hon’Ble Shri V. Durga Rao & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri S. Sridhar (Advocate) &For Respondent: Shri S. Chandrasekaran (JCIT) – Ld. Sr. DR
Section 143(3)Section 147

passed without jurisdiction and not sustainable both on facts and in law. 3. The CIT (Appeals) failed to appreciate that the presumption of escapement of income was wholly unjustified and further ought to have appreciated that having not followed the procedure prescribed for conducting the re-assessment, the consequential ... merits. The Ld. Sr. DR, on the other hand, submitted that there was sufficient formation of belief by Ld. AO that there was escapement of income. Both sides filed written submissions which have duly been considered while adjudicating the issues. The assessee, in its written submissions has submitted that

Sss Sai Shipping Services Private Limited, Mumbai vs. Deputy Commissioner of Income Tax-1(3)(1), Mumbai

ITA 6261/MUM/2017[2008-09]Status: DisposedITAT Mumbai30 Nov 2022AY 2008-09

Bench: Shri Kuldip Singh & Shri Amarjit Singhassessment Year: 2008-09 M/S. Sss Sai Shipping Dy. Commissioner Of Services Pvt. Ltd., Income Tax-1(3)(1), A-304, Classique Centre, Aayakar Bhavan, Plot Number-26, Vs. Annex, Mahal Industrial Estate, Maharshi Karve Marg, Andheri (West), Mumbai - 400020 Mumbai – 400 093 Pan: Aalcs4908D (Appellant) (Respondent)

For Appellant: NoneFor Respondent: Shri Tejinder Pal Singh Anand, D.R
Section 131Section 144Section 147Section 148Section 151Section 68

issued u/s 148 only at the instance of some information from investigation wing without the Assessing Officer had any reason to believe for escapement of income. In respect of this said ground of appeal, the appellant submitted vide letter dated 19.01.2017 which has been considered while passing this order

Tata Motors Ltd, Mumbai vs. Asst CIT (Ltu), Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 7543/MUM/2013[2002-03]Status: DisposedITAT Mumbai30 Nov 2022AY 2002-03
Section 143(1)Section 147Section 148

basis of forming the belief However, the belief must be independently formed in the context of the material obtained that there is an escapement of income. Otherwise, no meaning is being given to the words 'to believe' as found in Section 147 of the Act. Therefore, the words 'whatever reasons ... belief i.e. there must be a live link between material coming the notice of the Assessing Officer and the formation of belief regarding escapement of income. If the aforesaid requirement are not met, the Assessee is entitled to challenge the very act of re-opening of Assessment and assuming jurisdiction

Asst CIT Ltu, Mumbai vs. The Tata Finance Ltd, Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 7359/MUM/2013[2002-03]Status: DisposedITAT Mumbai30 Nov 2022AY 2002-03
Section 143(1)Section 147Section 148

basis of forming the belief However, the belief must be independently formed in the context of the material obtained that there is an escapement of income. Otherwise, no meaning is being given to the words 'to believe' as found in Section 147 of the Act. Therefore, the words 'whatever reasons ... belief i.e. there must be a live link between material coming the notice of the Assessing Officer and the formation of belief regarding escapement of income. If the aforesaid requirement are not met, the Assessee is entitled to challenge the very act of re-opening of Assessment and assuming jurisdiction

Gold Star Diamond Private Limited, Mumbai vs. Principal Commissioner of Income Tax - 5, Mumbai

In the result, the appeals of the assessee are allowed

ITA 2965/MUM/2018[2013-14]Status: DisposedITAT Mumbai25 Nov 2022AY 2013-14

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh

For Appellant: Nishant Thakker &For Respondent: Hemant Kumar Chimanlal
Section 143Section 143(3)Section 148Section 263Section 40(3)

issue has been examined by the AO during the reassessment proceedings as the assessment was reopened only to examine the issue of escapement of income resulting from bogus purchases and the assessment was framed by the AO after making addition of Rs.40,10,094/-. Thus the Ld. PCIT proposes

Gold Star Diamond Private Limited, Mumbai vs. Principal Commissioner of Income Tax - 5, Mumbai

In the result, the appeals of the assessee are allowed

ITA 2964/MUM/2018[2011-12]Status: DisposedITAT Mumbai25 Nov 2022AY 2011-12

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh

For Appellant: Nishant Thakker &For Respondent: Hemant Kumar Chimanlal
Section 143Section 143(3)Section 148Section 263Section 40(3)

issue has been examined by the AO during the reassessment proceedings as the assessment was reopened only to examine the issue of escapement of income resulting from bogus purchases and the assessment was framed by the AO after making addition of Rs.40,10,094/-. Thus the Ld. PCIT proposes

Sri A.M. Abdul Basheer Rahman, Rajapalayam vs. ITO, Ward-2, Virudhunagar

The appeal stand allowed in terms of our above order

ITA 3008/CHNY/2019[1987-88]Status: DisposedITAT Chennai23 Nov 2022AY 1987-88

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri N.V. Balaji &For Respondent: Shri P.Sajit Kumar, (JCIT)- Ld. DR
Section 144Section 148Section 149Section 150Section 150(1)Section 153(3)(ii)

free to examine the source for capital contribution in the hands of individual partners. Considering the same, Ld. AO formed an opinion of escapement of income and reopened the case of the assessee partner to bring to tax capital contribution of Rs.5 Lacs. Accordingly, a notice u/s 148 was issued

Roxaane Research P.Ltd, Chennai vs. ACIT Corporate Circle-5(4), Chennai

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

ITA 2528/CHNY/2019[2009-10]Status: DisposedITAT Chennai23 Nov 2022AY 2009-10

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.2528/Chny/2019 िनधा"रण वष" /Assessment Year: 2009-10 M/S.Roxaane Research Pvt. Ltd., V. The Asst. Commissioner- Unit 9, Stpi Building, Of Income Tax, 5 Rajiv Gandhi Salai, Corporate Circle-5(4), Taramani, Chennai-600 113. Chennai.

For Appellant: Mr.T. Banusekar, CAFor Respondent: Mr.V. Nandakumar, JCIT
Section 10ASection 143(3)Section 147Section 148

assessment submitted that the assessment has been re-opened merely on ‘change of opinion’ without there being any fresh tangible material which suggest escapement of income, which is not permissible under the law. In this regard, he relied upon certain judicial precedents, including the decision of the Hon’ble Supreme ... Ld.DR, on the other hand, supporting the order of the Ld.CIT(A), submitted that the AO has formed reasonable belief of escapement of income on the basis of fresh material which suggest escapement of income and thus, there is no merit in the arguments of the assessee that the assessment

Rajnish Chamanlal Bharti, Mumbai vs. ITO 24(2)(3)/30(2)(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 5826/MUM/2016[2009-10]Status: DisposedITAT Mumbai22 Nov 2022AY 2009-10

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.5826/Mum/2016 (निर्धारण वर्ा / Assessment Years: 2009-10) Shri Rajnish C. Bharti बिधम/ Ito-24(2)(3)/30(2)(3) 506B, Rajendra Vihar Bkc, Bandra, Mumbai. Vs. Evershine Nagar, Malad West, Mumbai-400064. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabpb6150F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri C. V. Jain Revenue By: Ms. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 12/10/2022 घोषणा की तारीख /Date Of Pronouncement: 22 /11/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax-41, Mumbai Dated 03.08.2016 For Assessment Year 2009-10. 2. The Grounds Of Appeal Raised By The Assessee Are As Under: - “1. On The Facts, In The Circumstances Of The Case & In Law, The Learned Commissioner Of Income Tax Appeals Ld Cit (A)] Has Erred In Upholding The Impugned Assessment Order Passed By The Learned Assessing Officer (Ld. A.0) Without Having Any Lawful Jurisdiction As- A. There Were No Cogent Reasons To Believe That The Income Had Escaped Assessment & Accordingly The Provisions Of Section 147 & 148 Were Not Applicable To The Case

For Appellant: Shri C. V. JainFor Respondent: Ms. Mahita Nair (Sr. AR)
Section 143(2)Section 143(3)Section 147Section 148

accepting the contention of the assessee that the AO without fulfilling the condition precedents (“reason to believe escapement of Income”) has resorted to reopen the assessment u/s 147 of the Income Tax Act, 1961 (hereinafter “the Act”). Therefore, according to Ld. AR, the AO did not had the requisite jurisdiction ... action of reopening the assessment u/s 147 of the Act (i.e. without satisfying the essential condition precedents i.e. “reason to believe escapement of income”). For assailing the same (legal issue against re-opening/jurisdiction), the Ld. AR drew our attention to the page no. 29 of the PB wherein

Dandvati Investments & Trading Company P.Ltd, Mumbai vs. Asst CIT Cir 1(1), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 1916/MUM/2014[2006-07]Status: DisposedITAT Mumbai21 Nov 2022AY 2006-07

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.3638/मुं/2012(िन.व. 2006-07) आअसं.1916/मुं/2014(िन.व. 2006-07) Dandvati Investments & Trading Company Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacd-3925-E ...... अपीलाथ"/Appellant बनाम Vs. Additional Commissioner Of Income Range 2(1) Mumbai. Aaykar Bhavan, M.K.Road, ..... "ितवाद"/Respondent Mumbai – 400 020 आअसं.3635/मुं/2012 (िन.व. 2006-07) आअसं.1915/मुं/2014 (िन.व. 2006-07) M/S. Firestorm Electronics Corporation Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacf-4730-D ...... अपीलाथ"/Appellant बनाम Vs. Assistant Commissioner Of Income Tax Circle -1(1), Mumbai.Room No.533, 5Th Floor,Aaykar Bhavan, M.K.Road, Mumbai – 400 020..... "ितवाद"/Respondent

For Appellant: Shri Yogesh Thar & Ms.Ikshu ShahFor Respondent: Shri Hoshang Boman Irani /
Section 143(3)Section 14A

liable to be set-aside on this ground alone. The ld. Authorized Representative for the assessee further submits that there is no escapement of income. The assessee had disclosed Non-compete fees under the head “capital gains”, the same was examined and accepted by the Assessing Officer during assessment proceedings

Firestorm Electronics Corporation P.Ltd, Mumbai vs. Asst CIT Cir 1(1), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 1915/MUM/2014[2006-07]Status: DisposedITAT Mumbai21 Nov 2022AY 2006-07

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.3638/मुं/2012(िन.व. 2006-07) आअसं.1916/मुं/2014(िन.व. 2006-07) Dandvati Investments & Trading Company Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacd-3925-E ...... अपीलाथ"/Appellant बनाम Vs. Additional Commissioner Of Income Range 2(1) Mumbai. Aaykar Bhavan, M.K.Road, ..... "ितवाद"/Respondent Mumbai – 400 020 आअसं.3635/मुं/2012 (िन.व. 2006-07) आअसं.1915/मुं/2014 (िन.व. 2006-07) M/S. Firestorm Electronics Corporation Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacf-4730-D ...... अपीलाथ"/Appellant बनाम Vs. Assistant Commissioner Of Income Tax Circle -1(1), Mumbai.Room No.533, 5Th Floor,Aaykar Bhavan, M.K.Road, Mumbai – 400 020..... "ितवाद"/Respondent

For Appellant: Shri Yogesh Thar & Ms.Ikshu ShahFor Respondent: Shri Hoshang Boman Irani /
Section 143(3)Section 14A

liable to be set-aside on this ground alone. The ld. Authorized Representative for the assessee further submits that there is no escapement of income. The assessee had disclosed Non-compete fees under the head “capital gains”, the same was examined and accepted by the Assessing Officer during assessment proceedings

Dandvati Investments & Trading Company P Ltd, Mumbai vs. Addl CIT RG 2(1), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 3638/MUM/2012[2006-07]Status: DisposedITAT Mumbai21 Nov 2022AY 2006-07

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.3638/मुं/2012(िन.व. 2006-07) आअसं.1916/मुं/2014(िन.व. 2006-07) Dandvati Investments & Trading Company Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacd-3925-E ...... अपीलाथ"/Appellant बनाम Vs. Additional Commissioner Of Income Range 2(1) Mumbai. Aaykar Bhavan, M.K.Road, ..... "ितवाद"/Respondent Mumbai – 400 020 आअसं.3635/मुं/2012 (िन.व. 2006-07) आअसं.1915/मुं/2014 (िन.व. 2006-07) M/S. Firestorm Electronics Corporation Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacf-4730-D ...... अपीलाथ"/Appellant बनाम Vs. Assistant Commissioner Of Income Tax Circle -1(1), Mumbai.Room No.533, 5Th Floor,Aaykar Bhavan, M.K.Road, Mumbai – 400 020..... "ितवाद"/Respondent

For Appellant: Shri Yogesh Thar & Ms.Ikshu ShahFor Respondent: Shri Hoshang Boman Irani /
Section 143(3)Section 14A

liable to be set-aside on this ground alone. The ld. Authorized Representative for the assessee further submits that there is no escapement of income. The assessee had disclosed Non-compete fees under the head “capital gains”, the same was examined and accepted by the Assessing Officer during assessment proceedings

Firestorm Electronics Corporaiton P.Ltd, Mumbai vs. Addl CIT RG 2(1), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 3635/MUM/2012[2006-07]Status: DisposedITAT Mumbai21 Nov 2022AY 2006-07

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.3638/मुं/2012(िन.व. 2006-07) आअसं.1916/मुं/2014(िन.व. 2006-07) Dandvati Investments & Trading Company Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacd-3925-E ...... अपीलाथ"/Appellant बनाम Vs. Additional Commissioner Of Income Range 2(1) Mumbai. Aaykar Bhavan, M.K.Road, ..... "ितवाद"/Respondent Mumbai – 400 020 आअसं.3635/मुं/2012 (िन.व. 2006-07) आअसं.1915/मुं/2014 (िन.व. 2006-07) M/S. Firestorm Electronics Corporation Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacf-4730-D ...... अपीलाथ"/Appellant बनाम Vs. Assistant Commissioner Of Income Tax Circle -1(1), Mumbai.Room No.533, 5Th Floor,Aaykar Bhavan, M.K.Road, Mumbai – 400 020..... "ितवाद"/Respondent

For Appellant: Shri Yogesh Thar & Ms.Ikshu ShahFor Respondent: Shri Hoshang Boman Irani /
Section 143(3)Section 14A

liable to be set-aside on this ground alone. The ld. Authorized Representative for the assessee further submits that there is no escapement of income. The assessee had disclosed Non-compete fees under the head “capital gains”, the same was examined and accepted by the Assessing Officer during assessment proceedings

ACIT 2(1), Mumbai vs. Firestorm Electronics Corp Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 3538/MUM/2012[2006-07]Status: DisposedITAT Mumbai21 Nov 2022AY 2006-07

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.3638/मुं/2012(िन.व. 2006-07) आअसं.1916/मुं/2014(िन.व. 2006-07) Dandvati Investments & Trading Company Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacd-3925-E ...... अपीलाथ"/Appellant बनाम Vs. Additional Commissioner Of Income Range 2(1) Mumbai. Aaykar Bhavan, M.K.Road, ..... "ितवाद"/Respondent Mumbai – 400 020 आअसं.3635/मुं/2012 (िन.व. 2006-07) आअसं.1915/मुं/2014 (िन.व. 2006-07) M/S. Firestorm Electronics Corporation Pvt. Ltd. ‘The International’ 5Th Floor, 16, New Marine Lines Cross Road No.1, Churchgate, Mumbai – 400 020 Pan: Aaacf-4730-D ...... अपीलाथ"/Appellant बनाम Vs. Assistant Commissioner Of Income Tax Circle -1(1), Mumbai.Room No.533, 5Th Floor,Aaykar Bhavan, M.K.Road, Mumbai – 400 020..... "ितवाद"/Respondent

For Appellant: Shri Yogesh Thar & Ms.Ikshu ShahFor Respondent: Shri Hoshang Boman Irani /
Section 143(3)Section 14A

liable to be set-aside on this ground alone. The ld. Authorized Representative for the assessee further submits that there is no escapement of income. The assessee had disclosed Non-compete fees under the head “capital gains”, the same was examined and accepted by the Assessing Officer during assessment proceedings

DCIT, Corporate Cirlce - 3 (2), Chennai vs. M/S. Venture Lighting India Ltd., Chennai

In the result, the appeal filed by the Revenue is dismissed

ITA 704/CHNY/2020[2008-09]Status: DisposedITAT Chennai18 Nov 2022AY 2008-09

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.704/Chny/2020 िनधा"रण वष"/Assessment Year: 2008-09 The Deputy Commissioner Of Vs. M/S. Venture Lighting India Ltd., Income Tax, Plot No. A-30, D-5, Phase Ii, Corporate Circle – 3(2), Zone-B, Mepz, Tambaram, Chennai – 600 034. Chennai 600 045. [Pan: Aaaca9284H] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri P. Sajit Kumar, Jcit ""थ" की ओर से/Respondent By : Shri S. Sridhar, Advocate सुनवाई की तारीख/ Date Of Hearing : 19.10.2022 घोषणा की तारीख /Date Of Pronouncement : 18.11.2022 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Revenue Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-7, Chennai, Dated 09.03.2020 For The Assessment Year 2008-09. 2. The Appeal Filed By The Revenue Is Delayed By 78 Days In Filing The Appeal Due To Outbreak Of Covid-19 Pandemic & Hence, The Delay In Filing The Appeal Is Condoned & Admitted The Appeal For 2

For Appellant: Shri P. Sajit Kumar, JCITFor Respondent: Shri S. Sridhar, Advocate
Section 143(2)Section 143(3)Section 147Section 148Section 234C

assessment. The Assessing Officer, only based on the material available on record re-examined and formed a different conclusion that there is an escapement of income chargeable to tax. The same records were already verified by the Assessing Officer and passed a detailed assessment order under section 143(3) r.w.s ... April, 1989, the Assessing Officer has power to reopen, provided there is ‘tangible material’ to come to the conclusion that there is escapement of income from assessment. Reasons must have a link with the formation of the belief.’ 12. If the Assessing Officer, after issuing intimation u/s. section

Smt. Krishnaiah Ranganayaki, Cuddalore vs. ITO, Ward - 1, Cuddalore

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

ITA 618/CHNY/2020[2011-12]Status: DisposedITAT Chennai18 Nov 2022AY 2011-12

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No. 618/Chny/2020 िनधा"रण वष"/Assessment Year:2011-12 Smt. Krishnaiah Ranganayaki, Vs. The Income Tax Officer, No. 17, Seetharam Nagar, Ward 1, Cuddalore 607 001. Cuddalore. [Pan:Aewpr9630P] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri J. Prabhakar, C.A. ""थ" की ओर से/Respondent By : Shri P. Sajit Kumar, Jcit सुनवाई की तारीख/ Date Of Hearing : 09.11.2022 घोषणा की तारीख /Date Of Pronouncement : 18.11.2022 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), Puducherry, Dated 20.02.2020 Relevant To The Assessment Year 2011-12. 2. The Appeal Filed By The Assessee Is Delayed By 37 Days In Filing The Appeal Due To Outbreak Of Covid-19 Pandemic & Accordingly, The Delay In Filing The Appeal Is Condoned & Admitted For Adjudication.

For Appellant: Shri J. Prabhakar, C.AFor Respondent: Shri P. Sajit Kumar, JCIT
Section 143(1)Section 143(3)Section 148Section 54Section 54F

claim under section 54F of the Act, the Assessing Officer cannot reopen the assessment unless the Assessing Officer satisfies that there is an escapement of income. It was further submission that in the reasons recorded, the Assessing Officer has no raised the issue of escapement of income and therefore ... accordance with law. While reopening the assessment, the Assessing Officer has to record his satisfaction that there is an escapement of income chargeable to tax. However, in this case, the reopening was done on the ground to verify the correctness of claim made under section 54F of the Act, which

M/S Kamuthi Agricultural Products Co Operative Marketing Society Limited, Ramnad vs. ITO Ward 1 (1), Ramanathapuram

ITA 414/CHNY/2018[2009-10]Status: DisposedITAT Chennai18 Nov 2022AY 2009-10

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.414/Chny/2018 िनधा"रण वष" /Assessment Year: 2009-10 V. M/S.Kamuthi Agricultural Producers The Income Tax Officer, Co-Operative Marketing Society Ltd., Ward-1 (1), 5/206, Thiruchuli Road, Kamuthi, Ramanathapuram. Ramanathapuram District-623 603. [Pan: Aaaaa 0334 J] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Respondent: Mr. AR.V.Sreenivasan
Section 143(3)Section 147Section 148Section 80P(2)Section 80P(2)(a)

India Ltd. (supra). But, facts remains that whether the assessment has been re-opened on the basis of formation of reasonable belief of escapement of income or merely on change of opinion, has to be decided on the basis of facts of each case. In this case, the assessee ... Therefore, subsequent re-opening of assessment to deny excess claim of deduction, on non-eligible income on the basis of reasonable belief of escapement of income, cannot be considered as change of opinion. In our considered view, the question of concept of change of opinion does arise only

Mohideen Gafoor, Chennai vs. Income Tax Officer, Non Corporate Ward 1(3), Chennai

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

ITA 137/CHNY/2022[2011-12]Status: DisposedITAT Chennai16 Nov 2022AY 2011-12

Bench: Shri Mahavir Singhand Shri G. Manjunatha

For Appellant: Shri N V Narayanan, AdvocateFor Respondent: Shri R. Mohan Reddy, CIT
Section 143(3)Section 147Section 148Section 263

believe and not otherwise. The PCIT cannot consider, the order to be erroneous, when the assessing officer did not have any belief of escapement of income in respect of cost of improvement. 4. Brief facts are that the assessee is an individual, filed a belated return of income

M/S. Gita Refractories Private Limited, Bangalore vs. Income Tax Officer, Ward- 11(2), Bangalore

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

ITA 81/BANG/2020[2007-08]Status: DisposedITAT Bangalore11 Nov 2022AY 2007-08

Bench: Smt. Beena Pillai & Ms. Padmavathy Sassessment Year : 2007-08

For Appellant: Shri Ravi Shankar, AdvocateFor Respondent: Shri Pavan Kumar, Addl.CIT(DR), ITAT, Bangalore
Section 133ASection 147Section 148Section 151

live link between the material coming to the notice of the Assessing Officer and the formation of his belief that there has been escapement of income of the assessee from assessment in the particular year. In the given case, from the notings in the diary, the AO has a reason ... expression "believe" in Section 147 requires an objective satisfaction based on definite material and information, howsoever insufficient it is. The belief formed about escapement of income for recording reasons to reopen the assessment is only prima Page 8 of 18 facie. Such material coming from independent source