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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

West Bengal Electronics Industry Development Corporation Limited, Kolkata vs. DCIT/ACIT, Circle - 2(1), Kolkata

The appeal of the assessee is allowed

ITA 1591/KOL/2024[2013-2014]Status: DisposedITAT Kolkata07 Jan 2026AY 2013-2014
Section 143(3)Section 147Section 148Section 24(1)Section 250

there is "tangible material" to come to the 6 ITA No. 1590 & 1591/Kol/2024 West Bengal Electronics Industry Development Limited conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from the changes made to Section

West Bengal Electronics Industry Development Corporation Limited, Kolkata vs. D.C.I.T./A.C.I.T., Circle - 2(1), Kolkata

The appeal of the assessee is allowed

ITA 1590/KOL/2024[2012-2013]Status: DisposedITAT Kolkata07 Jan 2026AY 2012-2013
Section 143(3)Section 147Section 148Section 24(1)Section 250

there is "tangible material" to come to the 6 ITA No. 1590 & 1591/Kol/2024 West Bengal Electronics Industry Development Limited conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from the changes made to Section

Assisstant Commissioner of Income Tax Corporate Circle 1 1, Chennai vs. M/S Ei Instrumentation Private Limited, Chennai

In the result, appeal filed by the Revenue is dismissed

ITA 1554/CHNY/2025[2018-19]Status: DisposedITAT Chennai07 Jan 2026AY 2018-19

Bench: Shri Aby T. Varkey & Shri S.R.Raghunatha

For Appellant: Ms.Janani, AdvocateFor Respondent: Ms.Kavitha, Addl.CIT
Section 139Section 148Section 69C

have booked expenditure using invoices/bills of M/s.Barbrik to the tune of ₹1,20,99,998/-, the AO recorded his satisfacton that there is escapement of income, and issued notice u/s.148 of the Act. Pursuant to the notice of reopening, the assessee is noted to have contested the allegation and asserted

Kaishar Interiors Private Limtied, Mumbai vs. Deputy Commissioner of Income Tax Circle 4(2)(2), Mumbai

Accordingly Ground No.16 raised by the Assessee is allowed

ITA 5665/MUM/2025[2010-11]Status: DisposedITAT Mumbai07 Jan 2026AY 2010-11

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI PRABHASH SHANKAR (Accountant Member)

For Appellant: Shri Dinesh Kukreja &For Respondent: Shri Hemanshu Joshi
Section 143(3)Section 147Section 148Section 14A

goods during the relevant previous year. The Assessing Officer formed the belief that the Assessee had recorded bogus purchases which had resulted in escapement of income for the Assessment Year 2010-2011. It is admitted position that the return filed by the Assessee was processed under Section

M/S Jhs Svendgaard Laboratories Ltd., New Delhi vs. DCIT CC-31, New Delhi

In the result, Appeal of the Assessee is allowed

ITA 3454/DEL/2025[2018-19]Status: DisposedITAT Delhi07 Jan 2026AY 2018-19

Bench: Shri S. Rifaur Rahman & Shri Yogesh Kumar U.S.M/S Jhs Svendgaard Vs. Dcit Laboratories Ltd. B1/E-23, Central Circle-31, New Mohan Cooperative Delhi Tuhglakabad, Badarpur, New Delhi New Delhi Pan: Aabcj5766G Appellant Respondent Assessee By Sh. Gaurav Jain, Adv & Sh. Tarun Chanana, Adv Revenue By Ms.Amisha S. Gupt, Cit (Dr) Date Of Hearing 09/10/2025 Date Of Pronouncement 07/01/2026 Order Per Yogesh Kumar, U.S. Jm: The Present Appeal Is Filed By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals)-30, New Delhi [‘Ld. Cit(A)’

Section 147Section 148Section 151ASection 37

establish any live link/nexus between the information provided and the allegation of income escaping assessment as there is in effect no information suggesting escapement of income, rendering the entire reassessment proceedings bad in law. 4. That on the facts and circumstances of the case, the reassessment proceedings initiated ... tangible nexus to the case of the Assessee and there was no live and rational nexus between information received and the belief of escapement of income formed by 4 M/S JHS Sevendgaard Laborotories Ltd. Vs. DCIT the A.O. The A.O. has not demonstrated the fact that the information relied upon

Smita, Ranchi vs. ITO Ward 3(4), Chaibasa

The appeal of the assessee is allowed

ITA 266/RAN/2025[2018-19]Status: DisposedITAT Ranchi06 Jan 2026AY 2018-19

Bench: SHRI SONJOY SARMA, JUDICIAL MEMBER SHRI RATNESH NANDAN SAHAY (Accountant Member)

Section 144BSection 147Section 148Section 151

flat for a consideration of ₹30 lakhs, whereas the stamp duty value as per State valuation authority was ₹46.50 lakhs, resulting in alleged escapement of income chargeable to tax.The Assessing Officer completed reassessment by adopting the stamp duty valuation and made addition by computing capital gains accordingly, along with levy

Naveen Singh, Jamshedpur vs. Deputy Commissioner of Income Tax, Circle - 1, Jamshedpur

In the result, the appeal of the assessee is allowed

ITA 413/RAN/2024[2017-18]Status: DisposedITAT Ranchi06 Jan 2026AY 2017-18

Bench: Shri Sonjoy Sarma & Shri Ratnesh Nandan Sahayi.T.A. No.413/Ran/2024 Assessment Year: 2017-18 Naveen Singh………...…………….…….…............................……….……Appellant M-9 Old, Adityapur Jamshedpur, Jharkhand- 831013. [Pan: Adkps4229A] Vs. Dcit, Circle-1, Jamshedpur.….....…..…..….........……........……...…..…..Respondent Appearances By: Shri P. S. Paul, Ca, Appeared On Behalf Of The Appellant. Shri Sumit Dasgupta, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 18, 2025 Date Of Pronouncing The Order : January 06, 2026 Order Per Sonjoy Sarma: This Appeal Filed By The Assessee Is Directed Against The Order Of The Nfac, Delhi (Hereinafter Referred To As “Cit(A)”) Dated 12.09.2024 Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”). 2. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income For Assessment Year 2017–18 Declaring A Total Income Of ₹43,99,340/- Under Section 139(1) Of The Act. The Return Was Processed Under Section 143(1) Accepting The Income As Declared. Subsequently, The Ao Issued A Notice Under Section 148 Of The Act After Recording Reasons & Obtaining Sanction From The Competent Authority. The Assessee Did Not Respond To The Notice Under Section 148. Thereafter, Multiple Notices Under Section 142(1) Were Issued, Including Final Opportunity Notices, Which Were Duly Served But Remained Unanswered.

Section 139(1)Section 142(1)Section 143(1)Section 144Section 147Section 148Section 250Section 56(2)(x)

should have relevant material before him from which he could have drawn such conclusion. His vague imagination that there might have been some escapement of income from assessment is not sufficient [CHHUGANMAL RAJPAL VS. S. P. CHALIHA (1971) 79 ITR 603 (SC)]. It is emphatically I.T.A. No.413/Ran/2024 Naveen Singh settled ... should be based on credible material which must have a live link or nexus with the belief that there was escapement of income. There should be an independent application of mind on such material before recording the reasons and issuing notice u/s. 148 of the Act. The belief should

Shah Mahendrakumar Mafatlal (HUF), Mithkhali vs. Income Tax Officer, Ward 1(1)(3), Ahmedabad

In the result, the appeal of the assessee for A

ITA 1689/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad06 Jan 2026AY 2015-16

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1688 & 1689/Ahd/2025 (िनधा"रण वष" / Assessment Years : 2014-15 & 2015-16) बनाम/ Shah Mahendrakumar Income Tax Officer Mafatlal Huf Ward-1(1)(3), Vs. 27D, Maharashtra Society, Ahmedabad Anmol Mithkhali Owners Asso Mithkhali, Ellisbridge, Ahmedabad, Gujarat - 380006 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaihs8263H (Appellant) .. (Respondent) अपीलाथ" ओर से /Appellant By : Shri Sulabh Padshah, Ar ""यथ" क" ओर से/Respondent By : Shri Yogesh Mishra, Sr. Dr 16/12/2025 Date Of Hearing Date Of Pronouncement 06/01/2026

For Appellant: Shri Sulabh Padshah, ARFor Respondent: Shri Yogesh Mishra, Sr. DR
Section 143(3)Section 147

action of A.O. reopening of appellant's case invoking the-provisions Section 147 of the Ac. It is submitted that there is no escapement of income or default on part of appellant at any stage of proceeding. On facts and circumstances of the case, the whole reopening of assessment ... Jignesh Shah Dissemination amounting to Rs. 4741600/- during the year under consideration. 3. Basis of forming reasons to believe and details of escapement of income: On perusal of the details and information, it is very clear that the assesse assessee had made transaction as fictitious loan (Entry operator beneficiaries

Shah Mahendrakumar Mafatlal (HUF), Mithkhali vs. Income Tax Officer, Ward 1(1)(3), Ahmedabad

In the result, the appeal of the assessee for A

ITA 1688/AHD/2025[ 2014-15]Status: DisposedITAT Ahmedabad06 Jan 2026

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1688 & 1689/Ahd/2025 (िनधा"रण वष" / Assessment Years : 2014-15 & 2015-16) बनाम/ Shah Mahendrakumar Income Tax Officer Mafatlal Huf Ward-1(1)(3), Vs. 27D, Maharashtra Society, Ahmedabad Anmol Mithkhali Owners Asso Mithkhali, Ellisbridge, Ahmedabad, Gujarat - 380006 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaihs8263H (Appellant) .. (Respondent) अपीलाथ" ओर से /Appellant By : Shri Sulabh Padshah, Ar ""यथ" क" ओर से/Respondent By : Shri Yogesh Mishra, Sr. Dr 16/12/2025 Date Of Hearing Date Of Pronouncement 06/01/2026

For Appellant: Shri Sulabh Padshah, ARFor Respondent: Shri Yogesh Mishra, Sr. DR
Section 143(3)Section 147

action of A.O. reopening of appellant's case invoking the-provisions Section 147 of the Ac. It is submitted that there is no escapement of income or default on part of appellant at any stage of proceeding. On facts and circumstances of the case, the whole reopening of assessment ... Jignesh Shah Dissemination amounting to Rs. 4741600/- during the year under consideration. 3. Basis of forming reasons to believe and details of escapement of income: On perusal of the details and information, it is very clear that the assesse assessee had made transaction as fictitious loan (Entry operator beneficiaries

Income Tax Officer, Dhule vs. Santosh Jaynarayan Sharma, Dhule

In the result, the appeal filed by the Revenue is dismissed whereas the Cross Objection filed by the assessee is partly allowed

ITA 2324/PUN/2025[2017-18]Status: DisposedITAT Pune06 Jan 2026AY 2017-18

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2324/Pun/2025 Assessment Year : 2017-18

For Appellant: Shri Sanjay DhivareFor Respondent: Shri Chinmayy Suhas
Section 133(6)Section 145(3)Section 147Section 148Section 148ASection 151Section 69

support of its contention, he submitted that case of the assessee is for A.Y. 2017-18 and the alleged escapement of income is less than ₹50.00 lakh and the notice u/s.148A(d) has been issued after three years and therefore the approval ought to have been taken from the Principal ... approval from the Principal Commissioner, Nashik. Now the issue raised by the assessee in Ground No.1 of the Cross Objection that since the escapement of income is less than ₹50.00 lakh and notice has been issued after three years, ld. Assessing Officer ought to have taken approval from Principal Chief

Jap Overseas Private Limited, Mumbai vs. ITO Ward, 10 (2)(1), Mumbai

In the result, the appeal by the assessee is allowed

ITA 7228/MUM/2025[2010 - 11]Status: DisposedITAT Mumbai06 Jan 2026

Bench: Shri Sandeep Gosain & Shri Bijayananda Prusethjap Overseas Private Vs. Ito Ward, 10(2)(1) Limited Room No. 573, Aayakar Bhawan, B-102, Twinkle Maharishi Karve Road, New Marine Lines, Apartments, New Link Mumbai-400020. Road, Lokhandwala Complex, Andheri (W), Mumbai-400053. Pan/Gir No: Aaacj1573C (Appellant) (Respondent)

Section 142(1)Section 143(1)Section 143(2)Section 147Section 148Section 250Section 69C

said order did not at all deal with the objections that were actually raised by the appellant and even the issue of escapement of income as per the reasons recorded' and as per the 'said order' were altogether different. 4. The Id. CIT(A) erred in confirming the addition

Nagarajan Jaya, Kancheepuram vs. ITO, Ward-1, Kanchipuram

In the result the appeal of the Assessee is allowed

ITA 1815/CHNY/2025[2011-12]Status: DisposedITAT Chennai05 Jan 2026AY 2011-12

Bench: Shri George George K & Shri S.R. Raghunatha

For Appellant: Shri. S. P. Chidambaram, AdvocateFor Respondent: Ms. Gouthami Manivasagam, J.C.I.T
Section 143(3)Section 147Section 148Section 264

amount of Rs.1,84,07,272/- undertaken during the A.Y.2011-12 and therefore the AO was of the opinion that there is an escapement of income for the above assessment year. Later, the reassessment proceedings were completed on the basis that the gross receipts of the Assessee was in excess ... escaped assessment, but when these are applied to the proviso to section 147, it is necessary to establish that such escapement of income was only due to failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. If the view canvassed

Adhi Kumara Guru, Chennai vs. DCIT, Ncc-22(1), Chennai

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

ITA 120/CHNY/2025[2014-15]Status: DisposedITAT Chennai05 Jan 2026AY 2014-15

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri Amitabh Shuklaमाननीय "ी मनु कुमार िग"र, "ाियक सद" एवं माननीय "ी अिमताभ शु"ा, लेखा सद" के सम"

For Appellant: Mr. P.M. Kathir, Advocate for Mr.G.Baskar, AdvocateFor Respondent: Ms. R Anitha, Addl.CIT
Section 143(2)Section 143(3)Section 147Section 148Section 54F

escapement of Basis of forming reasons to believe and details of escapement of Basis of forming reasons to believe and details of escapement of income: The details with regards to sale consideration of the capital income: The details with regards to sale consideration of the capital income: The details with ... second reopening themselves the reasons recorded for the second reopening themselves the reasons recorded for the second reopening themselves acknowledge that the escapement of income was sought to be acknowledge that the escapement of income was sought to be acknowledge that the escapement of income was sought to be inferred

M/S. Shakambhari Ispat & Power Ltd., Kolkata vs. DCIT, Central Circle 3(3), Kolkata

ITA 931/KOL/2025[2019-2020]Status: DisposedITAT Kolkata02 Jan 2026AY 2019-2020
For Appellant: Shri S. Jhajharia, FCAFor Respondent: Shri Sanat Kumar Raha, CIT-DR
Section 132Section 132(1)Section 147Section 148

PCIT has accorded the approval only as per the proviso (a) to Section 148A, without their being any positive finding about the escapement of income. We also find that there is no incriminating material seized during the course of search with regard to any purchases & sale outside the books ... persons, the issuance of notice under Section 148 still requires the Assessing Officer to demonstrate that the information unearthed during search leads to escapement of income in the specific assessment year. The mere fact of search, in itself, is not sufficient reason to issue a notice. Failure to establish this

Deputy Commissioner of Income Tax, Central Circle 3(1), Kolkata vs. Shakambhari Ispat & Power Limited, Kolkata

ITA 1591/KOL/2025[2021-22]Status: DisposedITAT Kolkata02 Jan 2026AY 2021-22
For Appellant: Shri S. Jhajharia, FCAFor Respondent: Shri Sanat Kumar Raha, CIT-DR
Section 132Section 132(1)Section 147Section 148

PCIT has accorded the approval only as per the proviso (a) to Section 148A, without their being any positive finding about the escapement of income. We also find that there is no incriminating material seized during the course of search with regard to any purchases & sale outside the books ... persons, the issuance of notice under Section 148 still requires the Assessing Officer to demonstrate that the information unearthed during search leads to escapement of income in the specific assessment year. The mere fact of search, in itself, is not sufficient reason to issue a notice. Failure to establish this

Deputy Commissioner of Income Tax, Kolkata vs. Shakambhari Ispat & Power Limited, Kolkata

ITA 1561/KOL/2025[2020-21]Status: DisposedITAT Kolkata02 Jan 2026AY 2020-21
Section 132Section 132(1)Section 147Section 148

PCIT has accorded the approval only as per the proviso (a) to Section 148A, without their being any positive finding about the escapement of income. We also find that there is no incriminating material seized during the course of search with regard to any purchases & sale outside the books ... persons, the issuance of notice under Section 148 still requires the Assessing Officer to demonstrate that the information unearthed during search leads to escapement of income in the specific assessment year. The mere fact of search, in itself, is not sufficient reason to issue a notice. Failure to establish this

Deputy Commissioner of Income Tax, Kolkata vs. Shakambhari Ispat & Power Limited, Kolkata

ITA 1560/KOL/2025[2019-20]Status: DisposedITAT Kolkata02 Jan 2026AY 2019-20
For Appellant: Shri S. Jhajharia, FCAFor Respondent: Shri Sanat Kumar Raha, CIT-DR
Section 132Section 132(1)Section 147Section 148

PCIT has accorded the approval only as per the proviso (a) to Section 148A, without their being any positive finding about the escapement of income. We also find that there is no incriminating material seized during the course of search with regard to any purchases & sale outside the books ... persons, the issuance of notice under Section 148 still requires the Assessing Officer to demonstrate that the information unearthed during search leads to escapement of income in the specific assessment year. The mere fact of search, in itself, is not sufficient reason to issue a notice. Failure to establish this

D.C.I.T., CC - 3(1), Kolkata vs. Shakambhari Ispat & Power Limited, Kolkata

ITA 1541/KOL/2025[2018-19]Status: DisposedITAT Kolkata02 Jan 2026AY 2018-19
Section 132Section 132(1)Section 147Section 148

PCIT has accorded the approval only as per the proviso (a) to Section 148A, without their being any positive finding about the escapement of income. We also find that there is no incriminating material seized during the course of search with regard to any purchases & sale outside the books ... persons, the issuance of notice under Section 148 still requires the Assessing Officer to demonstrate that the information unearthed during search leads to escapement of income in the specific assessment year. The mere fact of search, in itself, is not sufficient reason to issue a notice. Failure to establish this

Deputy Commissioner of Income Tax, Kolkata vs. Shakambhari Ispat & Power Limited, Kolkata

ITA 1515/KOL/2025[2017-18]Status: DisposedITAT Kolkata02 Jan 2026AY 2017-18
For Appellant: Shri S. Jhajharia, FCAFor Respondent: Shri Sanat Kumar Raha, CIT-DR
Section 132Section 132(1)Section 147Section 148

PCIT has accorded the approval only as per the proviso (a) to Section 148A, without their being any positive finding about the escapement of income. We also find that there is no incriminating material seized during the course of search with regard to any purchases & sale outside the books ... persons, the issuance of notice under Section 148 still requires the Assessing Officer to demonstrate that the information unearthed during search leads to escapement of income in the specific assessment year. The mere fact of search, in itself, is not sufficient reason to issue a notice. Failure to establish this

Deputy Commissioner of Income Tax, Central Circle 3.1, Kolkata vs. Shakambhari Ispat & Power Limited, Kolkata

ITA 1436/KOL/2025[2016-17]Status: DisposedITAT Kolkata02 Jan 2026AY 2016-17
For Appellant: Shri S. Jhajharia, FCAFor Respondent: Shri Sanat Kumar Raha, CIT-DR
Section 132Section 132(1)Section 147Section 148

PCIT has accorded the approval only as per the proviso (a) to Section 148A, without their being any positive finding about the escapement of income. We also find that there is no incriminating material seized during the course of search with regard to any purchases & sale outside the books ... persons, the issuance of notice under Section 148 still requires the Assessing Officer to demonstrate that the information unearthed during search leads to escapement of income in the specific assessment year. The mere fact of search, in itself, is not sufficient reason to issue a notice. Failure to establish this