“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

Sanchit Kantilal Ganore, Bhagur vs. ITO Ward 1(1), Nashik

In the result, appeal of the assessee is partly allowed

ITA 1767/PUN/2025[2017-18]Status: DisposedITAT Pune19 Sept 2025AY 2017-18

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.1767/Pun/2025 निर्धारण वषा / Assessment Year: 2017-18 Sanchit Kantilal Ganore, V The Income Tax Officer, 21, Main Road, Bhagur, S. Ward-1(1), Nashik. Nashik - 422502. Pan: Aprpg4907J Appellant/ Assessee Respondent / Revenue Assessee By Shri Piyush Bafna Revenue By Shri Aviyogi Ambadkar– Add.Cit(Dr) Date Of Hearing 09/09/2025 Date Of Pronouncement 19/09/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Is Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac] Passed Under Section 250 Of The Income Tax Act, 1961 For A.Y.2017-18, Dated 29.05.2025 Emanating From Assessment Order U/S.147 R.W.S 144 Of The I.T.Act, Dated 21.05.2023. The Assessee Has Raised Following Grounds Of Appeal : “1. On The Facts & In The Circumstances Of The Case & In Law & Without Prejudice To Other Grounds, Ld. Nfac Has Erred In Passing A

Section 147Section 148Section 149Section 151Section 250

independent verification of the information with facts already available on record to justify the formation of satisfaction that there is income suggesting escapement of income and hence, the entire proceedings are based on mechanical reproduction of information without due inquiry or examination of the facts specific to the Appellant

Manda Shantaram Garade, Talegaon Dabhade vs. Income Tax Officer 9(3), Akurdi

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

ITA 1343/PUN/2025[2019-20]Status: DisposedITAT Pune19 Sept 2025AY 2019-20

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपऩल सं. / Ita No.1343/Pun/2025 निर्धारण वषा / Assessment Year: 2019-20 Manda Shantaram Garade, V The Assessing Officer, 66, Dhamane Gavthan, Near S Ward-9(3), Pune. Padmavati Mandir, Talegaon, Maharashtra – 410506. Pan: Bjcpg4762K Appellant/ Assessee Respondent / Revenue Assessee By Shri Nishit Gandhi(Virtual), Aadnya Bhandari(Present In Itat Pune Bench) Revenue By Shri Ramnath P Murkunde – Cit(Dr) Date Of Hearing 18/09/2025 Date Of Pronouncement 19/09/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac] Passed Under Section 250 Of The Income Tax Act, 1961 Dated 26.03.2025 For The A.Y.2019-20 Emanating From The Assessment Order Passed Under Section 147 R.W.S 144 Read With Section 144B Of The Income Tax Act

Section 144Section 144BSection 147Section 148ASection 149(1)Section 151ASection 250Section 69A

reply. The Assessing ITA No.1343/PUN/2025 [A] Officer passed an order u/s.148A(d) on 15.03.2023, wherein it was observed that there is an escapement of income of Rs.22,03,000/-. 3. A notice u/s.148 was issued on 16.03.2023. Assessee failed to file any reply, accordingly, an Ex-parte Assessment Order ... issued in respect of information of cash deposits of Rs 15,000/-whereas the order u/s 148A(d) has been passed for escapement of income in respect of cash withdrawal of Rs 22,00,000/- & the order u/s 147 has been passed making addition of Rs 94,28,953/- being

Megnanapuram Paccs, Tiruchendur vs. PCIT, Madurai

ITA 895/CHNY/2025[2018-19]Status: DisposedITAT Chennai19 Sept 2025AY 2018-19

Bench: Shri Manu Kumar Giri & Shri S.R.Raghunathaआयकर अपील सं./Ita No.:895/Chny/2025 निर्धारण वर्ष / Assessment Year: 2018-19 Megnanapuram Primary Agricultural Co-Operative Credit Society 4/40, Megnanapuram Tiruchendur Road, Tiruchendur Thoothukudi – 628 210. [Pan: Aabam-9847-M] (अपीलार्थी/Appellant) Pcit Vs. Madurai - I (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/Appellant By : Shri. N. Arjun Raj, Advocate प्रत्यर्थी की ओर से/Respondent By : Shri. Shiva Srinivas, Cit सुनवाई की तारीख/Date Of Hearing : 24.06.2025 घोषणा की तारीख/Date Of Pronouncement : 19.09.2025 आदेश /Order Per S. R. Raghunatha, Am : This Appeal By The Assessee Is Filed Against The Order Of The Commissioner Of Income Tax (Appeals), Pcit, Madurai - 1, For The Assessment Year 2018-19, Vide Order Dated 17.03.2025. 2. The Grounds Raised By The Assessee Are As Follows: :-2-:

For Appellant: Shri. N. Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT

Section 147Section 148Section 263Section 80P

आयकर अपीलीय अधिकरण, 'बी' न्यायपीठ, चेन्नई IN THE INCOME TAX APPELLATE TRIBUNAL 'B' BENCH, CHENNAI श्री मनु कुमार गिरि, न्यायिक

Raymix Concrete India Pvt. Ltd., Chennai vs. DCIT, Corp. Circle-5(1), Chennai

In the result, the appeal of the assessee is allowed

ITA 2770/CHNY/2024[2012-13]Status: DisposedITAT Chennai19 Sept 2025AY 2012-13

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

For Appellant: Mrs. Lekha, C. AFor Respondent: Ms. R. Anita, Addl. CIT

Section 143(3)Section 147Section 148Section 149Section 37

power to reopen an assessment provided there is tangible material to come to the conclusion that :-9-: ITA. No:2770 /Chny/2024 there was escapement of income from assessment. Applying the ratio laid down by the Hon’ble Supreme Court in the case of Kelvinator of India Limited (supra

Badalpur Charity Trust, Mumbai vs. Income Tax Officer (Exemption) Ward 1(1), Mumbai

In the result, both the appeals of the assessee are partly allowed for statistical purposes

ITA 2511/MUM/2025[2012-13]Status: DisposedITAT Mumbai19 Sept 2025AY 2012-13

Bench: Ms Suchitra Kamble & Shri Girish Agrawal

For Appellant: Shri Jigar Adhyaru, ARFor Respondent: Shri Bhagirath Ramawat, Sr. DR

Section 12ASection 143(3)Section 148

Assessment Year. The assessee is a trust and non-filer of return of income. The Assessing Officer observed that it has resulted in escapement of income. Hence the case of the assessee-trust was re-opened after recording the reasons and after taking approval from the prescribed authority. Notice u/s.148

Badalpur Charity Trust, Mumbai vs. Income Tax Officer (Exemption)-1(1), Mumbai

In the result, both the appeals of the assessee are partly allowed for statistical purposes

ITA 2510/MUM/2025[2011-12]Status: DisposedITAT Mumbai19 Sept 2025AY 2011-12

Bench: Ms Suchitra Kamble & Shri Girish Agrawal

For Appellant: Shri Jigar Adhyaru, ARFor Respondent: Shri Bhagirath Ramawat, Sr. DR

Section 12ASection 143(3)Section 148

Pushpanjali Constructions Private Limited, Pushpanjali Palace, Dehli Gate, Agra vs. DCIT, Cen Cir Ghaziabad

In the result appeal filed by the assessee is partly allowed

ITA 1001/DEL/2025[2012-13]Status: DisposedITAT Delhi19 Sept 2025AY 2012-13

Bench: Shris.Rifaur Rahman & Shri Sudhir Kumar

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Ms. Amisha S. Gupt, CITDR

Section 143(3)Section 153ASection 153CSection 153DSection 69C

From the above, thus, it is quite evident that how and in what manner, the AO had drawn the conclusion, that there is escapement of income on the basis of seized documents and it is also not mentioned that what is the undisclosed income, which is proposed to have ... that neither there is any mention of the assessment year, to which, the so called information relates and nor the amount of alleged escapement of income has been mentioned there and only things have been mentioned in a very casual manner. Firstly, in Sl. 1 of the satisfaction note

Santosh Rani Legal Heir of Late Sh Parveen Kalyan, Kurukshetra vs. Income Tax Officer, Ward 1, Karnal

In the result, appeal of the assessee is allowed

ITA 4770/DEL/2024[2011-12]Status: DisposedITAT Delhi19 Sept 2025AY 2011-12

Bench: Shri Anubhav Sharma & Shri Manish Agarwal[Assessment Year : 2011-12] Santosh Rani Vs Ito, Legal Heir Of Late Shri Parveen Ward-1, Karnal, Kalyan, Krishna Nagar, Gamri, Haryana-132001. Thanesar, Distt.-Kurukshetra, Haryana-136118. Pan-Awhpr4944D Appellant Respondent Appellant By Shri Suresh K.Gupta, Ca Respondent By Shri Dheeraj Kumar Jaiswal, Sr.Dr Date Of Hearing 01.07.2025 Date Of Pronouncement 19.09.2025 Order

Section 144Section 147Section 148Section 151Section 250

notice u/s 148”. Ld.AR submits that approval so granted was in mechanical manner wherein Ld. Pr. CIT has not stated the reasons for escapement of income nor stated what material he has referred to reach such conclusion and thus, consequent order passed is deserve to be quashed. He further filed

Sh. Hari Prakash Gupta, Jaipur vs. ITO, Ward-1(2), Jaipur

The appeal stands allowed

ITA 772/JPR/2025[2010-11]Status: DisposedITAT Jaipur18 Sept 2025AY 2010-11

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri P. C. Parwal, CAFor Respondent: Shri Gautam Singh Choudhary, JCIT

Section 144Section 147Section 148Section 271(1)(c)Section 37(1)Section 44A

December 18, 2002 received by the assessee, was a bogus entry and therefore, you had a reason to believe that there was an escapement of income of Rs. 5,01,000. The reason is erroneous and invalid for the following reasons: 2.1. There are no details or material extracted

Sh. Hari Prakash Gupta, Jaipur vs. ITO, Ward-1(2), Jaipur

The appeal stands allowed

ITA 771/JPR/2025[2010-11]Status: DisposedITAT Jaipur18 Sept 2025AY 2010-11

For Appellant: Shri P. C. Parwal, CAFor Respondent: Shri Gautam Singh Choudhary, JCIT

Section 144Section 147Section 148Section 271(1)(c)Section 37(1)Section 44A

December 18, 2002 received by the assessee, was a bogus entry and therefore, you had a reason to believe that there was an escapement of income of Rs.5,01,000. The reason is erroneous and invalid for the following reasons: 2. 1. There are no details or material extracted

Mo. Shariph Kureshi, Sikar vs. ITO Ward-4 Sikar, Sikar

In the result, the appeal of the assessee is allowed

ITA 366/JPR/2025[2013-14]Status: DisposedITAT Jaipur18 Sept 2025AY 2013-14

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Shrawan Kumar Gupta, AdvFor Respondent: Shri Gautam Singh Choudhary, JCIT

Section 144Section 147Section 148Section 234ASection 271(1)(c)

case of Ranbaxy Laboratories Ltd. vs. CIT 336 ITR 0136(Del) held that The crux of s. 147 is the escapement of income which may be assessed or reassessed as well as any other income chargeable to tax which has escaped assessment and which comes to the notice ... applicable to AY 2013-14, to have an idea as to what income can be assessed and under what circumstances, while assessing escaped income. Income escaping assessment (Section 147) If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year

Nikulbhai Chaturbhai Patel, HUF, Gandhinagar vs. The ITO, Ward-4(2)(3), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 47/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad18 Sept 2025AY 2016-17

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Respondent by: Shri Rignesh Das, CIT-DR & Shri HargovindFor Respondent: Shri Rignesh Das, CIT-DR & Shri Hargovind

Section 143(1)Section 143(3)Section 147Section 148Section 250Section 68Section 69

paid more cane price than price fixed by Govt. under Sugar (Control) order which was nothing but distribution of profit resulting in escapement of income, was without jurisdiction. In the case of Shree Sayan Vibhag Sahkari vs. Deputy Commissioner of Income-tax [2016] 69 taxmann.com 245 (Gujarat

Nikulbhai Chaturbhai Patel, HUF, Gandhinagar vs. The ITO, Ward-4(2)(3), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 46/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad18 Sept 2025AY 2015-16

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Respondent by: Shri Rignesh Das, CIT-DR & Shri HargovindFor Respondent: Shri Rignesh Das, CIT-DR & Shri Hargovind

Section 143(1)Section 143(3)Section 147Section 148Section 250Section 68Section 69

Nikulbhai Chaturbhai Patel, HUF, Gandhinagar vs. The ITO, Ward-4(2)(3), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 45/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad18 Sept 2025AY 2014-15

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Respondent by: Shri Rignesh Das, CIT-DR & Shri HargovindFor Respondent: Shri Rignesh Das, CIT-DR & Shri Hargovind

Section 143(1)Section 143(3)Section 147Section 148Section 250Section 68Section 69

Income Tax Ward 4(2)(3) Ahmedabad, Ahmedabad vs. Nikulbhai Chaturbhai Patel HUF, Gandhinagar

In the result, the appeal of the assessee is allowed

ITA 267/AHD/2025[2016-17]Status: DisposedITAT Ahmedabad18 Sept 2025AY 2016-17

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Respondent by: Shri Rignesh Das, CIT-DR & Shri HargovindFor Respondent: Shri Rignesh Das, CIT-DR & Shri Hargovind

Section 143(1)Section 143(3)Section 147Section 148Section 250Section 68Section 69

Income Tax Ward 4(2)(3) Ahmedabad, Ahmedabad vs. Nikulbhai Chaturbhai Patel HUF, Gandhinagar

In the result, the appeal of the assessee is allowed

ITA 266/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad18 Sept 2025AY 2014-15

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Respondent by: Shri Rignesh Das, CIT-DR & Shri HargovindFor Respondent: Shri Rignesh Das, CIT-DR & Shri Hargovind

Section 143(1)Section 143(3)Section 147Section 148Section 250Section 68Section 69

Amee Govindbhai Patel, Mehsana vs. The Income Tax Officer, Ward-1, Mehsana

In the result, the appeal of the assessee is, therefore, allowed in above terms

ITA 120/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad18 Sept 2025AY 2016-17

Bench: Shri Sanjay Garg & Smt. Annapurna Gupta

For Appellant: Respondent byFor Respondent: Shri Abhijit, Sr. DR

Section 147Section 250Section 68Section 69A

erred in confirming the reopening of assessment under section 147 of the Act in as much as there is no escapement of income and that the notice issued is bad in law and is not in conformity of the provisions of law. 2. On the facts and in the circumstances ... authorities below. 5. The information in the possession of the Assessing Officer (AO) which formed the basis of his belief of escapement of income of the assessee for assuming jurisdiction to reopen the case of the assessee is recorded in his reasons for reopening the case of the assessee

Sulochana Devi Bagaria, Kolkata vs. ITO, Ward 44(2), Kolkata

In the result, all the captioned appeals of the assessee are allowed

ITA 1211/KOL/2025[2015-2016]Status: DisposedITAT Kolkata18 Sept 2025AY 2015-2016

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1208 To 1211/Kol/2025 Assessment Year: 2015-16 Sulochana Devi Bagaria..……………………………………….……….……Appellant 200, Bangur Avenue, Block-A, Kol-700055. [Pan: Aebpb4214J] Vs. Ito, Ward-44(2), Kolkata………………………………….....……...…..…..Respondent Appearances By: Shri Anil Kochar, Advocate, Appeared On Behalf Of The Appellant. Shri S. B. Chakraborthy, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : September 11, 2025 Date Of Pronouncing The Order : September 18, 2025 Order Per Pradip Kumar Choubey:

Section 148Section 250

under section 148 was issued on 31.03.2021. Therefore, admittedly the proceedings were initiated under section 148 of the Act for reassessment relating to escapement of income of late Manju Goel and such proceedings as has been initiated in the year 2020-21. Now the question before me is whether proceedings

Sulochana Devi Bagaria, Kolkata vs. ITO, Ward 44(2), Kolkata

In the result, all the captioned appeals of the assessee are allowed

ITA 1210/KOL/2025[2015-2016]Status: DisposedITAT Kolkata18 Sept 2025AY 2015-2016

Section 148Section 250

Sulochana Devi Bagaria, Kolkata vs. ITO, Ward 44(2), Kolkata

In the result, all the captioned appeals of the assessee are allowed

ITA 1209/KOL/2025[2015-2016]Status: DisposedITAT Kolkata18 Sept 2025AY 2015-2016

Section 148Section 250