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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

DCIT, Circle- 19(1), Delhi vs. Paramount Propbuild Pvt. Ltd., Delhi

Appeal is dismissed

ITA 2072/DEL/2025[2018-19]Status: DisposedITAT Delhi09 Sept 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2018-19 Vs. Paramount Propbuild Pvt. Ltd., Dcit, Circle-19(1), 208, 2Nd Floor, Sikka Mansion, New Delhi Lsc, Savita Vihar, Delhi Pan: Aadcp5228P (Appellant) (Respondent) Assessee By Sh. Deepesh Garg, Adv. Department By Sh. Manish Gupta, Sr. Dr

Section 143(3)Section 148Section 148ASection 263

tenable. In view of the above, it emerges that the material available and evidence clearly indicate that there has been no escapement of income during the A.Y.2016-17. Hence it is a fit case for drop the proceedings u/s 148 5. This issues with the prior approval of Pr.CIT-7, Delhi

Bhupesh Gupta, Nalagarh, Himachal Pradesh vs. ACIT(Central Circle), Shimla, Himachal Pradesh

In the result, the appeals are allowed

ITA 442/CHANDI/2025[2018-19]Status: DisposedITAT Chandigarh08 Sept 2025AY 2018-19

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita Nos. 441 & 442/Chd/2025 "नधा"रण वष" / Assessment Year: 2017-18 & 2018-19 Shri Bhupesh Gupta, Vs The Acit, Aakash Hospital & Central Circle, Diagnostic, Nalagarh, Shimla. Solan. "थायी लेखा सं./Pan No: Aarpg5916A अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Sudhir Sehgal, Advocate Revenue By : Shri Vivek Vardhan, Jcit Sr.Dr Date Of Hearing : 01.09.2025 Date Of Pronouncement : 08.09.2025 Virtual Hearing O R D E R Per Raj Pal Yadav, Vp

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Vivek Vardhan, JCIT Sr.DR
Section 147

additional grounds was sought. In the additional ground of appeal, assessee has pleaded that assessments are not sustainable because assessment was reopened for escapement of income ‘A’ but no addition of item ‘A’ was made and addition of item ‘B’ was made. Thus, these additions are not sustainable in view ... improve the reasons by making reference to the original material/information possessed by the AO which can empower the AO to record reasons qua escapement of income on the basis of that ITA No.441 & 442/CHD/2025 A.Y.2017-18 & 2018-19 7 information. Therefore, we are of the view that AO has no power

Bhupesh Gupta, Nalagarh, Himachal Pradesh vs. ACIT (Central Circle ), Shimla, Himachal Pradesh

In the result, the appeals are allowed

ITA 441/CHANDI/2025[2017-18]Status: DisposedITAT Chandigarh08 Sept 2025AY 2017-18

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita Nos. 441 & 442/Chd/2025 "नधा"रण वष" / Assessment Year: 2017-18 & 2018-19 Shri Bhupesh Gupta, Vs The Acit, Aakash Hospital & Central Circle, Diagnostic, Nalagarh, Shimla. Solan. "थायी लेखा सं./Pan No: Aarpg5916A अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Sudhir Sehgal, Advocate Revenue By : Shri Vivek Vardhan, Jcit Sr.Dr Date Of Hearing : 01.09.2025 Date Of Pronouncement : 08.09.2025 Virtual Hearing O R D E R Per Raj Pal Yadav, Vp

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Vivek Vardhan, JCIT Sr.DR
Section 147

additional grounds was sought. In the additional ground of appeal, assessee has pleaded that assessments are not sustainable because assessment was reopened for escapement of income ‘A’ but no addition of item ‘A’ was made and addition of item ‘B’ was made. Thus, these additions are not sustainable in view ... improve the reasons by making reference to the original material/information possessed by the AO which can empower the AO to record reasons qua escapement of income on the basis of that ITA No.441 & 442/CHD/2025 A.Y.2017-18 & 2018-19 7 information. Therefore, we are of the view that AO has no power

Kulbir Singh, Mohali vs. Income Tax Officer, Ward-6(4), Mohali

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

ITA 1240/CHANDI/2024[2012-13]Status: DisposedITAT Chandigarh08 Sept 2025AY 2012-13

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita No. 1240/Chd/2024 "नधा"रण वष" / Assessment Year: 2012-13 Shri Kulbir Singh, The Ito, C/O Shri Tej Mohan Singh, Advocate V Ward 6(4), # 527, Sector 10-D, Chandigarh. S Mohali. "थायी लेखा सं./Pan No: Butps5735C अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Tej Mohan Singh, Advocate Revenue By : Shri Vivek Vardhan, Addl. Cit Sr.Dr Date Of Hearing : 02.09.2025 Date Of Pronouncement : 08.09.2025 Physical Hearing O R D E R

For Appellant: Shri Tej Mohan Singh, AdvocateFor Respondent: Shri Vivek Vardhan, Addl. CIT Sr.DR
Section 249Section 253Section 3Section 5

sold the land as alleged by the AO, then how a basis has been made by the AO demonstrating the escapement of income. Therefore, if objections are being filed by the assessee qua re-opening of assessment, then such objections are to be decided by a speaking order and thereafter

Tejashree Atul Patil, Pune vs. Pr.CIT - 2, Pune

In the result, appeal of the assessee is dismissed

ITA 927/PUN/2025[2015-16]Status: DisposedITAT Pune08 Sept 2025AY 2015-16

Bench: Dr.Manish Borad & Shri Vinay Bhamore

For Appellant: Shri C.V.DeshpandeFor Respondent: Shri Amit Bobde
Section 147Section 148Section 263Section 54F

stated to be sale of immovable property, this transaction of sale of immovable property is directly connected to the reasons recorded about the escapement of income of Rs.1,58,94,320/-. The issue mentioned in the reasons recorded and the transaction of sale of immovable property are directly connected ... assessment proceedings is incorrect because there is direct connection of the deduction u/s.54F of the Act in the given case of escapement of income amounting to Rs.1,58,94,320/-. It is not the case where the assessee has filed the return of income and showed the transaction

Narayan Suppliers Pvt. Ltd., Kolkata vs. I.T.O., Ward - 6(3), Kolkata

In the result, appeal of the assessee is dismissed

ITA 1077/KOL/2024[2011-2012]Status: DisposedITAT Kolkata08 Sept 2025AY 2011-2012

Bench: Shri George Mathan & Shri Rakesh Mishra

For Appellant: Shri Avijit Ghoshal, ARFor Respondent: Shri Raja Sengputa, CIT-DR
Section 10(38)

annexure. The annexure could not be regarded as a material or evidence that prima facie showed or established nexus or link which disclosed escapement of income. The annexure was not a pointer and did not indicate escapement of income. (iv) Further, the Assessing Officer did not apply his own mind ... been made in the income of the petitioner for the assessment year 2017-18 without there being any material disclosing escapement of income by the petitioner. The petitioner has been continuously bringing it to the notice of the respondents that he has not deposited any amount in his bank account

M/S Implex Ferro Tech Ltd., Kolkata vs. DCIT, Cir. 3(1), Kolkata

In the result, both the appeals filed by the assessee are dismissed as infructuous

ITA 293/KOL/2022[2012-13]Status: DisposedITAT Kolkata08 Sept 2025AY 2012-13

Bench: Shri George Mathan & Shri Rakesh Mishra

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

accounts, ledgers, bank statements, invoices etc. and the transactions were also recorded in the assessee's audited books, leaving no scope of escapement of income. 3. That, the Ld. C.I.T.(A) further erred in not holding that the reassessment order passed u/s 147/143(3) of the Act without meeting

M/S Implex Ferro Tech Ltd., Kolkata vs. DCIT, Cir. 3(1), Kolkata

In the result, both the appeals filed by the assessee are dismissed as infructuous

ITA 292/KOL/2022[2012-13]Status: DisposedITAT Kolkata08 Sept 2025AY 2012-13

Bench: Shri George Mathan & Shri Rakesh Mishra

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

accounts, ledgers, bank statements, invoices etc. and the transactions were also recorded in the assessee's audited books, leaving no scope of escapement of income. 3. That, the Ld. C.I.T.(A) further erred in not holding that the reassessment order passed u/s 147/143(3) of the Act without meeting

M/S Real Time Consultants Pvt. Ltd., Mumbai vs. ITO 15(3)(1), Mumbai

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

ITA 3290/MUM/2019[2011-12]Status: DisposedITAT Mumbai05 Sept 2025AY 2011-12

Bench: Shri Pawan Singh & Shri Prabhash Shankar

For Appellant: Shri Rushabh Mehta,ARFor Respondent: Shri Uma Shankar Prasad, (CIT DR)
Section 131Section 133(6)Section 143(3)Section 147Section 148

assessee is chargeable to tax has escaped assessment, which facts suggests that, there is live link between the material which suggested escapement of income and information of belief. Under the circumstances, we are satisfied that, there was enough material before the AO to initiate proceedings under section

Income Tax Officer Ward-3(3)(2), Ahmedabad vs. Kapil Arun Agrawal, Ahmedabad

In the result, appeal of the Revenue stands dismissed

ITA 672/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad04 Sept 2025AY 2015-16

Bench: Shri Sanjay Garg & Smt. Annapurna Guptaआयकर अपील सं /Ita No.672/Ahd/2025 िनधा"रण वष" /Assessment Year : 2015-16 Income Tax Officer Kapil Arun Agrawal बनाम/ Ward-3(3)(2) B-130 Pushp Industrial Park V/S. Ahmedabad Near Shital Cinema, Gomtipur Rakhial Ahmeabad – 390 021 "थायी लेखा सं./Pan: Agupa 1914 H (अपीलाथ)/ Appellant) (*+ यथ)/ Respondent) Assessee By : Ms. Urvashi Sodhan, Ar Revenue By : Shri Ravindra, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 28/08/2025 घोषणा की तारीख /Date Of Pronouncement: 04/09/2025 आदेश/O R D E R Per Sanjay Garg:

For Appellant: Ms. Urvashi Sodhan, ARFor Respondent: Shri Ravindra, Sr.DR
Section 147Section 250Section 68Section 69C

escaped assessment. It has been held time and again that such reasons to believe must have a material bearing on the question of escapement of income. It does not mean a purely subjective satisfaction of the assessing authority, such reason should be held in good faith and cannot merely ... direct nexus or live link between the material coming to the notice of the Assessing Officer and the formation of belief regarding escapement of income. The powers of Assessing Officer to reopen an assessment, though wide, are not plenary. The words of the statute are "reason to believe

Yajuvendra Arjunbhai Dodiya, Ahmedabad vs. The ITO, Ward-3(3)(5), Ahmedabad

In the result, appeal of the assessee is treated as allowed for statistical purposes

ITA 428/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad04 Sept 2025AY 2018-19

Bench: Shri Sanjay Garg & Smt. Annapurna Guptaआयकर अपील सं /Ita No.428/Ahd/2025 िनधा"रण वष" /Assessment Year : 2018-19 Yajuvendra Arjunbhai Dodiya The Ito बनाम/ 34, Parimal Park, Iocl Ward-3(3)(5) V/S. Colony Road Ahmedabad – 380 051 Ahmedabad – 382 150 "थायी लेखा सं./Pan: Agapd 6830 B (अपीलाथ)/ Appellant) (*+ यथ)/ Respondent) Assessee By : Shri Rohan Thakkar, Ca Revenue By : Shri Ravindra, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 28/08/2025 घोषणा की तारीख /Date Of Pronouncement: 04/09/2025 आदेश/O R D E R Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As ‘Cit(A)’] Dated 28/12/2024 Passed U/S.250 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) For The Assessment Year (Ay) 2018-2019. 2. The Assessee, In This Appeal, Has Agitated Against The Action Of The Ld.Cit(A) In Confirming The Addition Made By The Assessing Officer (Ao) Of Rs.39,95,720/- Being The Amount Of Commission Received By The Assessee From Tirth Agro Technology Pvt.Ltd. As Reflected In Form 26-As. The Ao Further Yajuvendra Arjunbhai Dodiya Vs. Ito Asst. Year : 2018-19

For Appellant: Shri Rohan Thakkar, CAFor Respondent: Shri Ravindra, Sr.DR
Section 139(1)Section 147Section 250

also duly disclosed the said commission income as shown in Form 26-AS. He has submitted that, in this case, there was no escapement of income. He has further submitted that since there was no taxable income of the assessee, which had escaped assessment, therefore, it was not a case ... Arjunbhai Dodiya vs. ITO Asst. Year : 2018-19 assessee has duly taken into account the alleged commission income and that there was no escapement of income, we, therefore, set aside the impugned order of the Ld.CIT(A) and restore the matter to the file of the AO for de novo

Zalavadiya Kalubhai Mohanbhai, HUF, Ahmedabad vs. The Income Tax Officer, Ward-5(3)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 806/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad04 Sept 2025AY 2015-16

Bench: Ms. Suchitra Kamble & Shri Narendra Prasad Sinha, Accountannt Member Assessment Year 2015-16

For Appellant: Shri Tushar Hemani, Sr. A.R. &For Respondent: Shri Abhijit, Sr. D.R
Section 10(38)Section 142(1)Section 143(2)Section 147Section 148

basis of information from the Investigation wing uploaded on insight portal. The AO reopened assessment without having any tangible evidence for escapement of income and without application of mind. The ld CIT(A)-NFAC has disposed-off of this ground without considering appellant's submission. The notice issued on borrowed ... reopening the assessment proceedings on the basis of Information received from Insight Portal. The AO has not provided any tangible evidence of escapement of income except report of Investigation Wing. The Id CIT(A)-NFAC has disposed-off of this ground without considering appellant's submission. Therefore assessment

ITO-34.2.1, Mumbai vs. Mangal Suresh Karkhanis, Mumbai

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

ITA 486/MUM/2025[2016]Status: DisposedITAT Mumbai04 Sept 2025
Section 147Section 148Section 148ASection 151

vitiate substantive reassessment proceedings where credible material of income escaping assessment has been unearthed. He argued that the legislative intent was to prevent escapement of income, and technical objections regarding sanction ought not to defeat the substantive charge of tax. He therefore urged that the additions be examined on merits

Income Tax Officer Ward-3(3)(2), Ahmedabad vs. Manthan Shyam Ganatra, Ahmedabad

In the result, appeal filed by the Revenue is dismissed

ITA 2032/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad03 Sept 2025AY 2018-19

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI T.R. SENTHIL KUMAR (Judicial Member)

For Appellant: Shri Yogesh Mishra, Sr.DRFor Respondent: Shri Sunil Maloo, AR
Section 139(1)Section 139(4)Section 148Section 148ASection 250Section 68

transactions of sale of immovable property, proceeded to conduct necessary inquiry, provided in law, to decide whether it was a fit case of escapement of income so as to assume jurisdiction u/s 148 of the Act for reopening the case of the assessee. According he shared the information

M/S Lorgan Lifestyle Ltd., Pune vs. ITO, Ward14(4), Pune

In the result, appeal of the assessee is allowed as per terms indicated above

ITA 215/PUN/2025[2015-16]Status: DisposedITAT Pune03 Sept 2025AY 2015-16

Bench: Dr.Manish Borad & Ms.Astha Chandra

For Appellant: Shri B S RajpurohitFor Respondent: Shri Amol Khairnar
Section 143(3)Section 250

Taxman.com 1. 7.1 Ld. Counsel for the assessee also submitted that as per the reasons recorded by ld. AO for the alleged escapement of income, there were three issues, firstly substantial cash deposit in the bank account, secondly purchase of more than one vehicle and thirdly interest receipts ... Form No.26AS. However, no addition out of the reasons to believe of escapement of income has been made but addition has been made on the other issue without issuing any fresh notice u/s.148 of the Act. 8. Ld. Departmental Representative vehemently argued supporting the order of ld.CIT(A) but failed

Vishal Vijay Jaiswal, Jalgaon vs. ITO Ward 2(1), Jalgaon

In the result, appeal of the assessee is allowed

ITA 1634/PUN/2025[2017-18]Status: DisposedITAT Pune03 Sept 2025AY 2017-18

Bench: Dr.Manish Borad

For Appellant: Shri Vinay KawadiaFor Respondent: Shri Sanjay Dhivare
Section 147Section 148Section 148ASection 151Section 250

notice u/s.148 of the Act is barred by limitation. 3. At the outset, Ld. Counsel for the assessee submitted that the escapement of income is less than Rs.50.00 lakh and ld. Assessing Officer (AO) was required to issue notice u/s.148 of the Act within three years from ... India, Faizpur Branch assessee was issued notice u/s.148 of the Act on 29.07.2022 after obtaining approval from Pr.CIT, Nashik. Admittedly, the alleged escapement of income is less than Rs.50.00 lakh and the time limit for issuing the notice u/s.148 of the Act is three years from

Maruti Jakhuji Kude, Pune vs. ITO Ward 9(3) Pune, Pune

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

ITA 2255/PUN/2024[2016-17]Status: DisposedITAT Pune03 Sept 2025AY 2016-17

Bench: Dr.Manish Borad & Ms.Astha Chandra

For Respondent: Appellant by Shri Mahavir Jain
Section 139(1)Section 147Section 148Section 148ASection 2(14)Section 250

grounds of appeal submitted that the impugned order is exparte. He also raised a legal issue stating that even when the alleged escapement of income is less than Rs.50.00 lakh, notice u/s.148 of the Act has been issued beyond the period of three years. He also submitted that even ... legal issue challenging the validity of notice u/s.148 of the Act. Before us, ld. Counsel for the assessee has stated that the escapement of income is less than Rs.50.00 lakh. However, the addition made by ld. AO is Rs.50.00 lakh and there was no information provided by the assessee during

DCIT Central Circle 1(1) Ahmedabad, Ahmedabad vs. Mahendrakumar Chunilal Sanghvi, Ahmedabad

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

ITA 1351/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad02 Sept 2025AY 2021-22

Bench: DR. BRR Kumar (Vice President), Shri T. R. Senthil Kumar (Judicial Member)

Section 147Section 148Section 148ASection 149Section 69C

Further, in view of above discussions and on the basis of seized materials, it is found that there is an escapement of income of Rs.35,21,970/- for the A.Y. 2017-18 in the hand of the assessee. Therefore, this is a fit case for initiation of proceedings ... section 148A are not applicable in this case. b. On the basis of seized materials, it is found that there is an escapement of income of Rs.35,21,970/ represented in the form of asset for the AY 2017-18 in the hand of the assessee. Therefore, this

Mahendrakumar Chunilal Sanghvi, Mumbai vs. DCIT CC 1(1) Ahmedabad, Ahmedabad

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

ITA 1267/AHD/2024[2017-2018]Status: DisposedITAT Ahmedabad02 Sept 2025AY 2017-2018

Bench: or at the time of hearing of the appeal."

Section 147Section 148Section 148ASection 149Section 69C

Further, in view of above discussions and on the basis of seized materials, it is found that there is an escapement of income of Rs.35,21,970/- for the A.Y. 2017-18 in the hand of the assessee. Therefore, this is a fit case for initiation of proceedings ... section 148A are not applicable in this case. b. On the basis of seized materials, it is found that there is an escapement of income of Rs.35,21,970/ represented in the form of asset for the AY 2017-18 in the hand of the assessee. Therefore, this

DCIT, Central Circle-1(4), Kolkata vs. Murlidhar Ratanlal Exports Ltd, Kolkata

Appeal of the Revenue is dismissed

ITA 2541/KOL/2024[2008-09]Status: DisposedITAT Kolkata02 Sept 2025AY 2008-09

Bench: 30th day of September 2007.

Section 143(3)Section 147Section 148Section 250Section 32

appeal or at the time of appeal proceedings.” 3. Before us, the Ld. DR argued that the Ld. AO had worked out escapement of income on the basis of some facts which were evident from the records themselves. The Ld. DR took us through various portions