“ escapement of income ”

ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.

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.

291 ITR 500 · 2007 · Supreme Court

1,030

Raymond Woollen Mills Ltd. v. ITO

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.

236 ITR 34 · 1999 · Supreme Court

862

CIT v. Sun Engineering Works (P) Ltd.

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.

198 ITR 297 · 1992 · Supreme Court

814

ITO v. Lakhmani Mewal Das

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.

103 ITR 437 · 1976 · Supreme Court

721

Hindustan Lever Ltd. v. R.B. Wadkar

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.

268 ITR 332 · 2004 · High Court

695

CIT v. Jet Airways (I) Ltd.

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.

331 ITR 236 · 2011 · High Court

694

PCIT v. Meenakshi Overseas Pvt. Ltd.

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.

395 ITR 677 · 2017 · High Court

471

ITA 178/DEL/2023[2012-13]Status: DisposedITAT Delhi24 Oct 2025AY 2012-13

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

Parveen Aggarwal, Gurgaon vs. ACIT Central Circle-14, New Delhi

Accordingly the same are hereby upheld. Grounds of appeal Nos. 1 & 2 raised by the Revenue are dismissed

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal[Assessment Year : 2012-13] Parveen Aggarwal, Vs Acit, Ma-1/7, 3D, Garden Central Circle-14, Estate, M.G.Road, Gurgaon New Delhi Haryana-122002. Pan-Aahpa0660R Appellant Respondent [Assessment Year : 2012-13] Dcit, Vs Parveen Aggarwal, Central Circle-14, Ma-1/7, 3D, Garden New Delhi Estate, M.G.Road, Gurgaon, Haryana-122002. Pan-Aahpa0660R Appellant Respondent Assessee By Shri K.Sampath, Adv. & Shri V.Rajkumar, Adv. Revenue By Ms. Pooja Swaroop, Cit Dr Date Of Hearing 29.07.2025 Date Of Pronouncement 24.10.2025 Order Per Manish Agarwal, Am : The Captioned Cross-Appeals Are Filed By The Assessee & The Revenue Against The Order Of Ld. Commissioner Of Income Tax (A)- 27, New Delhi [“Ld. Cit(A)”] Dated 28.11.2022 In Appeal No. Cit(A), Delhi-27/10482/2019-20 Passed U/S 250 Of The Income Tax Act, 1961 [“The Act”] Arising From The Assessment Order Dt. 31.12.2019 Passed U/S 143(3) R.W.S. 147 Of The Act Pertaining To Assessment Year 2012-13. Ita Nos.178 & 197/Del/2023

Section 143(3)Section 147Section 148Section 250

that nature of these entries could be explained by the assessee only. Based on such information, AO recorded his satisfaction of escapement of income by recording the reasons on 29.03.2019 and re-opened the assessment of assessee by issue of notice u/s 148 of the Act. The assessee objected ... Assessing Officer in- i. initiating the proceedings u/s 147/148 of the Act without there being any valid reason leading the belief of escapement of income: ii. confirming the additions made to the returned income on account of credit entries in the bank account to the extent of Rs.1

Ketkiben Samirbhai Jani, Junagadh vs. ITO, Ward-1, Junagadh

ITA 544/RJT/2025[2019-20]Status: DisposedITAT Rajkot23 Oct 2025AY 2019-20

Bench: Dr. Arjun Lal Sainiआयकर अपीलसं./Ita No.544/Rjt/2025 निर्धारणवर्ष / Assessment Year: (2019-20) (Hybrid Hearing) Ketkiben Samirbhai Jani 11/12 Vs. Ito, Ward-1 Chamber Building,, Jaishree Talkies Road, Near Sardar Patel Bhavan, Junagadh. 362001, Bhoothnath Chambers, College Road, Junagadh 362001 स्थायी लेखासं./जीआइआरसं./Pan/Gir No.: Abupj1530B (Appellant) (Respondent) Appellant By : Shri Samir Jani, Ld. Ar Respondent By : Shri Abhimanyu Singh Yadav, Ld. Sr. Dr Date Of Hearing : 18/09/2025 Date Of Pronouncement : 23/10/2025 आदेश / Order Per, Dr. Arjun Lal Saini Am: Captioned Appeal Filed By The Assessee, Pertaining To Assessment Year 2019-20, Is Directed Against The Order Passed Under Section 250 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”) By National Faceless Appeal Centre (Nfac), Delhi/Commissioner Of Income-Tax (Appeals), Dated 18/08/2025, Which In Turn Arises Out Of An Order Passed By The Assessing Officer Dated 21/03/2024, U/S 147 Of The Income Tax Act, 1961. Page 1

For Appellant: Shri Samir Jani, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR

Section 132Section 147Section 148Section 250Section 69A

Appeals) has ignored the fact that there is no live nexus between information and reassessment for escapement of income as the appraisal report of the wing stated Mr. Manish Parmar as a Buyer and not the assessee. The addition is prayed for deletion. 4. The Ld. CIT (Appeals) has erred

Subban Selvam, Namakkal vs. ITO, Ward-2, Namakkal

ITA 1981/CHNY/2025[2010-11]Status: DisposedITAT Chennai23 Oct 2025AY 2010-11

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

Section 144Section 147Section 148

liable to tax, has escaped assessment within the context and purview of section 147 of the IT Act. Therefore, as there is escapement of income, in order to assess the correct and exact income of the assessee, proceedings u/s.147 of the Act was initiated after obtaining proper approval from

Star Track Footwear Private Limited, New Delhi vs. Deputy Commissioner of Income Tax, Circle 22(2), New Delhi

The appeal of the Assessee is allowed

ITA 5250/DEL/2025[2012-13]Status: DisposedITAT Delhi22 Oct 2025AY 2012-13

Bench: Shri Mahavir Singh, Hon’Bleasstt. Year : 2012-13 Star Track Footwear Pvt. Ltd., Vs. Dcit, Circle 22(2), 10714, Jandewalan Road, New Delhi Nabi Karim, New Delhi – 110 055 (Pan:-Aalcs3783N) (Appellant) (Respondent) Appellant By : Shri Ashwani Kumar, Ca & Sri Ankur Agarwal, Ca Respondent By : Shri Ashok Kumar Pandey, Sr. Dr.

For Appellant: Shri Ashwani Kumar, CA & Sri AnkurFor Respondent: Shri Ashok Kumar Pandey, Sr. DR

Section 133(6)Section 143(2)Section 147Section 271(1)Section 37Section 68

were received which were placed on record. The case was reopened on the basis of STR and prima facie evidence of escapement of income. The firm has shown turnover amounting to Rs. 3,58,48,669/- and declaring income

Balachandra Builders Pvt. Ltd., Chennai vs. DCIT, Corp. Circle-1(2), Chennai

In the result, appeal of the assessee is allowed

ITA 989/CHNY/2025[2010-11]Status: DisposedITAT Chennai21 Oct 2025AY 2010-11

Bench: Shri Manu Kumar Giri & Shri S.R. Raghunathaआयकर अपील सं./Ita No.: 989/Chny/2025 िनधा"रण वष"/Assessment Year : 2010-11 V. Balchandra Builders Private Limited, Deputy Commissioner Of No.10 Venkataratnam Nagar, Adyar, Income Tax, Chennai- 600 020. Corporate Circle 1(2), Chennai. [Pan: Aaacb6727A] (अपीलाथ"/Appellant) (""यथ"/Respondent) : अपीलाथ" क" ओर से/ Appellant By Mr.N.Arjun Raj, Advocate, : ""यथ" क" ओर से /Respondent By Ms.R.Anitha, Addl.Cit : सुनवाई क" तार"ख/Date Of Hearing 28.07.2025 : घोषणा क" तार"ख /Date Of Pronouncement 21.10.2025

Section 143(2)Section 143(3)Section 147Section 148Section 80I

been made insofar as all materials germane to the computation of income and it forms part of return of income. In such circumstances, escapement of income, if any, cannot be attributed to the assessee. Balachandra Builders Pvt Ltd :: 6 :: 10. More over, the Apex Court in Kelvinator India Ltd., (supra ... April, 1989, Assessing Officer has power to re~open, provided there is 'tangible material' to come to the 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

Mr. Arpanbhai Virambhai Desai, Gandhinagar vs. The Pr. CIT, Ahmedabad-3, Ahmedabad

In the result, all four appeals filed by the assessee are

ITA 759/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad17 Oct 2025AY 2015-16

For Appellant: Shri D K Parikh, ARFor Respondent: Shri Sher Singh, CIT.DR

ITA 758/AHD/2024[2014-15]Status: DisposedITAT Ahmedabad17 Oct 2025AY 2014-15

been raised on several grounds. Beginning with the jurisdiction being invalid on account of there being no reasonable belief of the AO of escapement of income of the assessee and the belief of escapement of income being not that of the AO but borrowed belief, it was pointed out that ... valid assumption of jurisdiction to reopen the case of assesses u/s.147 of the Act, the AO has to form a reasonable belief of escapement of income on the basis of information in his possession and the belief has to be his own and not borrowed. That he has to apply

Mr. Arpanbhai Virambhai Desai, Gandhinagar vs. Pr.CIT, Ahmedabad-3, Ahmedabad

In the result, all four appeals filed by the assessee are allowed in above terms

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

For Appellant: Shri D K Parikh, ARFor Respondent: Shri Sher Singh, CIT.DR

ITA 339/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad17 Oct 2025AY 2018-19

been raised on several grounds. Beginning with the jurisdiction being invalid on account of there being no reasonable belief of the AO of escapement of income of the assessee and the belief of escapement of income being not that of the AO but borrowed belief, it was pointed out that ... assumption of jurisdiction to reopen the case of assesses u/s. 147 of the Act, the AO has to form a reasonable belief of escapement of income on the basis of information in his possession and the belief has to be his own and not borrowed. That he has to apply

Mr. Arpanbhai Virambhai Desai, Gandhinagar vs. The ITO, Ward-1, Int.Tax., Ahmedabad

In the result, all four appeals filed by the assessee are allowed in above terms

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

For Appellant: Shri D K Parikh, ARFor Respondent: Shri Sher Singh, CIT.DR

ITA 338/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad17 Oct 2025AY 2017-18

been raised on several grounds. Beginning with the jurisdiction being invalid on account of there being no reasonable belief of the AO of escapement of income of the assessee and the belief of escapement of income being not that of the AO but borrowed belief, it was pointed out that ... assumption of jurisdiction to reopen the case of assesses u/s. 147 of the Act, the AO has to form a reasonable belief of escapement of income on the basis of information in his possession and the belief has to be his own and not borrowed. That he has to apply

Mr. Arpanbhai Virambhai Desai, Gandhinagar vs. The ITO, Ward-1, Int.Tax., Ahmedabad

In the result, all four appeals filed by the assessee are allowed in above terms

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

For Appellant: Shri D K Parikh, ARFor Respondent: Shri Sher Singh, CIT.DR

ITA 1369/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad16 Oct 2025AY 2016-17

been raised on several grounds. Beginning with the jurisdiction being invalid on account of there being no reasonable belief of the AO of escapement of income of the assessee and the belief of escapement of income being not that of the AO but borrowed belief, it was pointed out that ... assumption of jurisdiction to reopen the case of assesses u/s. 147 of the Act, the AO has to form a reasonable belief of escapement of income on the basis of information in his possession and the belief has to be his own and not borrowed. That he has to apply

Sneha Pawan Agarwal, Ahmedabad vs. ITO Ward 1(1)(3), Ahmedabad

The appeals are allowed for statistical purposes

Bench: Ms. Suchitra Raghunath Kamble & Makarand V.Mahadeokar

For Appellant: Shri Sulabh Padshah, ARFor Respondent: Shri Veerabadram Vislavath, Sr.DR

Section 144Section 144BSection 147Section 250Section 253(3)Section 253(5)

section 147 of the Act, which was based solely on third-party information without any independent application of mind OR tangible material establishing escapement of income on part of the assessee. The reopening is therefore invalid and liable to be quashed. The learned CIT(A) erred in confirming the initiation

Sneha Pawan Agarwal, Ahmedabad vs. ITO Ward 1(1)(3), Ahmedabad

The appeals are allowed for statistical purposes

ITA 1368/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad16 Oct 2025AY 2014-15

Bench: Ms. Suchitra Raghunath Kamble & Makarand V.Mahadeokar

For Appellant: Shri Sulabh Padshah, ARFor Respondent: Shri Veerabadram Vislavath, Sr.DR

Section 144Section 144BSection 147Section 250Section 253(3)Section 253(5)

Samrat Finvestors Private Limited, Kolkata vs. DCIT, Cent. Cir. 4(2), Kolkata

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

ITA 1038/KOL/2025[2016-2017]Status: DisposedITAT Kolkata16 Oct 2025AY 2016-2017

Bench: Shri Rajesh Kumar, Am & Shrigeorge Mathan, Jm

For Appellant: Shri Soumitra Choudhury, ARFor Respondent: Shri Sanat Kumar Raha, DR

ITA 1037/KOL/2025[2015-2016]Status: DisposedITAT Kolkata16 Oct 2025AY 2015-2016

completed u/s 143(3) of the Act can be reopened upto six years from the end of the relevant assessment year if the escapement of income is there due to the failure on the part of the assessee to fully and truly disclose material facts for assessment of income ... 148A(d) of the Act on 30.05.2022 in which the learned AO concluded that assessee has no proper explanation with respect to escapement of income in A.Y. 2016-17 and it is clear that assessee had prima facie no valid proof nor evidence to defend the alleged escaped income

Samrat Finvestors Private Limited, Kolkata vs. DCIT, Cent. Cir. 4(2), Kolkata

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

Bench: Shri Rajesh Kumar, Am & Shrigeorge Mathan, Jm

For Appellant: Shri Soumitra Choudhury, ARFor Respondent: Shri Sanat Kumar Raha, DR

ITA 1036/KOL/2025[2014-2015]Status: DisposedITAT Kolkata16 Oct 2025AY 2014-2015

Samrat Finvestors Private Limited, Kolkata vs. DCIT, Cent. Cir. 4(2), Kolkata

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

Bench: Shri Rajesh Kumar, Am & Shrigeorge Mathan, Jm

For Appellant: Shri Soumitra Choudhury, ARFor Respondent: Shri Sanat Kumar Raha, DR

ITA 1035/KOL/2025[2012-2013]Status: DisposedITAT Kolkata16 Oct 2025AY 2012-2013

Samrat Finvestors Private Limited, Kolkata vs. ITO, Ward 5(2) (Now DCIT, Cent.Cir. 4(2)), Kolkata

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

Bench: Shri Rajesh Kumar, Am & Shrigeorge Mathan, Jm

For Appellant: Shri Soumitra Choudhury, ARFor Respondent: Shri Sanat Kumar Raha, DR