“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

M/S Vinayak Financial Consultants Private Limited, Kolkata vs. D.C.I.T., Central Circle-4(1), Kolkata

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

ITA 2695/KOL/2024[2013-14]Status: DisposedITAT Kolkata10 Jul 2025AY 2013-14

Bench: Shri George Mathan

For Appellant: Shri A.K.Tulsyan & Shri RobinFor Respondent: Smt. Madhumita Das, Sr.DR

Section 139(1)Section 143(1)Section 147Section 148

issued on assumption, surmises and conjecture and on suspicion for making further verification and fishing enquiries to find out whether there is any escapement of Income I which exercise is required before issuance of the Notice w's 148) and Initiation of reassessment proceedings on such suspicion Page ... escapement or not. • True it is, at the stage of initiation, it is not necessary to have the established fact of escapement of income but what is necessary is that there is relevant material on which a reasonable person could have formed the requisite belief. In the other words even

Mohammed Basheer Bairikatte Hosamane, Dakshina Kannada vs. Income Tax Officer, Ward-2(1), Mangalore

In the result, appeal filed by the assessee is allowed

ITA 242/BANG/2025[2018-19]Status: DisposedITAT Bangalore10 Jul 2025AY 2018-19

Bench: Shri. Laxmi Prasad Sahu & Shri. Soundararajan Kassessment Year : 2018-19

For Appellant: Shri. Suresh Kumar, CAFor Respondent: Shri. Subramanian S, JCIT(DR)(ITAT), Bangalore

Section 139(1)Section 145(3)Section 147Section 148Section 148A

assessee’s Axis Bank account noted supra but there is no return filed by the assessee. Therefore, it has been treated as escapement of income within the meaning of section 147 of the Act. During the course of assessment proceedings, various basic details were not filed by the assessee. Therefore ... purpose for issue of notice under section 148 of the Act, there is no addition made by the AO on the basis of escapement of income noted in the 148 notice. We are not restricting only on the addition made by the AO. We have to examine, whether

Savita Gupta, Kota vs. ITO, Delhi

ITA 609/JPR/2025[2013-14]Status: DisposedITAT Jaipur09 Jul 2025AY 2013-14

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. Vinod Kumar Gupta, CAFor Respondent: Sh. Gautam Singh Choudhary, JCIT

Section 132Section 133(6)Section 142(1)Section 147Section 148Section 69

reasons recorded in the notice are exfacie without any foundation and do not have any direct nexus or live link with the alleged escapement of income by appellant. The said action is illegal. Hence, the order deserves to be quashed. 3. The Ld. CIT(A) erred in confirming the action ... recorded in the notice are ex-facie without any foundation and do not have any direct nexus or live link with the alleged escapement of income by appellant. The said action is illegal. Hence, the order deserves to be quashed. Ground of Appeal No. 3: The Ld. CIT(A) erred

Shrikant Herwade Family Trust, Kolhapur vs. Income Tax Officer Ward 2(1), Kolhapur

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

ITA 1452/PUN/2025[2015-16]Status: DisposedITAT Pune09 Jul 2025AY 2015-16

Bench: Dr.Manish Borad

For Appellant: Shri Vaibhav ChauguleFor Respondent: Shri Deepak Kumar Kedia

Section 154Section 161(1)Section 250

Therefore, it is clear that an amount of Rs. 71,182/- is not offered for taxation by the asessee trust and it is escapement of income. Hence the same is added to the total income. 1. In addition to above it is also observed that the beneficiaries of the trust

Shrikant Herwade Family Trust, Kolhapur vs. Income Tax Officer Ward(2)(1), Kolhapur

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

ITA 1451/PUN/2025[2014-15]Status: DisposedITAT Pune09 Jul 2025AY 2014-15

Bench: Dr.Manish Borad

For Appellant: Shri Vaibhav ChauguleFor Respondent: Shri Deepak Kumar Kedia

Section 154Section 161(1)Section 250

Shrikant Herwade Family Trust, Kolhapur vs. Income Tax Officer, Ward(2)(1), Kolhapur

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

ITA 1450/PUN/2025[2012-13]Status: DisposedITAT Pune09 Jul 2025AY 2012-13

Bench: Dr. Manish Boradआयकर अपील सं. / Ita Nos.1449 To 1452/Pun/2025

Section 154Section 161(1)Section 250

income. Therefore, it is clear that an amount of Rs.71,182/- is not offered for taxation by the asessee trust and it is escapement of income. Hence the same is added to the total income. In addition to above it is also observed that the beneficiaries of the trust

Shrikant Herwade Family Trust, Kolhapur vs. Income Tax Officer Ward(2)(1), Kolhapur

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

ITA 1449/PUN/2025[2011-12]Status: DisposedITAT Pune09 Jul 2025AY 2011-12

Bench: Dr.Manish Borad

For Appellant: Shri Vaibhav ChauguleFor Respondent: Shri Deepak Kumar Kedia

Section 154Section 161(1)Section 250

Shyama Shree, Asansol vs. I.T.O., Ward - 1(1), Asansol

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

ITA 967/KOL/2025[2013-2014]Status: DisposedITAT Kolkata09 Jul 2025AY 2013-2014

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 143(3)Section 147Section 148Section 250Section 69A

ignoring the submission made on 22/07/2015 that cash deposits relate to PAN ACMPA3683P and the fact that there was no escapement of income within the meaning of section 147 of I.T. Act, 1961 in the hands of the appellant 2. Because that the ld. Commissioner of Income Tax (Appeals) erred ... passed by the Ld. A.O. which was otherwise passed arbitrarily, and void ab- Initio, in view of the fact that there was no escapement of income within the meaning of section 147 of the I.T. Act 1961, as the partnership was dissolved w.e.f. 01.-04.2012 and cash deposit has been

Panchatcharam, Kancheepuram vs. ITO, Ncw-22(1), Tambaram

In the result, appeal filed by the assessee is dismissed

ITA 3236/CHNY/2024[2016-17]Status: DisposedITAT Chennai09 Jul 2025AY 2016-17

Bench: Shri Aby T. Varkey & Shri Manoj Kumar Aggarwal

For Appellant: Mr.G. Tarun, AdvocateFor Respondent: Mr.Gouthami Manivasagam

Section 147Section 148Section 148ASection 251(1)(a)

shows that the assessee has understated his income to the tune of Rs.1,17,99,394/- in his RoI; and it tantamounts to escapement of income and therefore, he issued notice u/s.148 of the Act expressing his desire to re-open the assessment. The AO notes that the assessee didn

Tremendous Mining and Minerals Pvt Limited, Delhi vs. DCIT Central Circle-3, New Delhi

ITA 157/DEL/2023[2012-13]Status: DisposedITAT Delhi09 Jul 2025AY 2012-13

Bench: Shri S. Rifaur Rahman & Shri Anubhav Sharmaassessment Year: 2012-13 Tremendous Mining & Vs Dcit, Minerals Pvt. Ltd., Central Circle-3, Cabin No.-1, 1205, New Delhi. 89-Hemkunth Chamber, Nehru Place, New Delhi – 110 019. Pan: Aacct8840N (Appellant) (Respondent) Assessee By : Shri Ashwini Kumar, Ca & Shri Ankur Aggarwal, Ca Revenue By : Shri Kailash Dan Ratnoo, Cit-Dr Date Of Hearing : 01.05.2025 Date Of Pronouncement : 09.07.2025 Order Per Anubhav Sharma, Jm: This Appeal Is Preferred By The Assessee Against The Order Dated 05.01.2023 Of The Commissioner Of Income-Tax (Appeals)-23, New Delhi (Hereinafter Referred To As The Ld. First Appellate Authority Or ‘The Ld. Faa’, For Short) In Appeal No.Cit(A), Delhi-23/10303/2019-20 Arising Out Of The Appeal Before It Against The Order Dated 24.12.2019 Passed U/S 148 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) By The Dcit, Central Circle- 3, Delhi (Hereinafter Referred To As The Ld. Ao).

For Appellant: Shri Ashwini Kumar, CA &For Respondent: Shri Kailash Dan Ratnoo, CIT-DR

Section 132Section 139Section 143(1)Section 143(3)Section 148Section 153A

assessee company and also by e-mail, but, no response was received. Thus, the receipt of Rs.25 crores was considered to be an escapement of income chargeable to tax and, accordingly, the notice was issued. The 3 assessee filed a reply explaining the receipt which was not found tenable ... reassessment in consequence to the search. Here, in this case search assessment stood concluded, therefore, when there was a reopening on account of escapement of income the fact of earlier assessments being concluded u/s 143(3) or u/s 153A of the Act are of no consequence except where the reopening

ITO, Ward-18(), New Delhi vs. Nivia Agencies Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1009/DEL/2021[2002-03]Status: DisposedITAT Delhi09 Jul 2025AY 2002-03

Bench: MS. MADHUMITA ROY (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)

Section 139(1)Section 142Section 143(1)Section 144Section 148Section 250(6)Section 68

must have reasons to believe that income of the assessee has escaped assessment. ii) He must have reason to believe that such escapement of income is by reason of the omission or failure on part of the assessee to disclose fully and truly all the material facts necessary. Reliance ... There is no mention of any fresh tangible material with the AO for coming to a conclusion that there is an escapement of income. 7.5 In view of the facts and respectfully following the judgments outlined in para 7.3 and 7.4 of this order, it is hereby held that

DCIT, Central Circle-1, Jaipur vs. Vaibhav Banka, Sikar

In the result, the appeals of the revenue stands dismissed, and the

ITA 301/JPR/2025[2016]Status: DisposedITAT Jaipur08 Jul 2025

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

correction. Nothing fettered the right of the respondents to commence reassessment if they were of the opinion that, notwithstanding absence of incriminating material, escapement of income had occurred. It was open for the respondents to establish that an action for reassessment was warranted independently and irrespective of no adverse material ... empowered to assess or re-assess the income which has escaped assessment. So at the most, if the Revenue wishes to tax the escapement of income then it has followed the scheme provided under the Act. The relevant provisions for taxing the escape income are given u/s 147/263

DCIT, Central Circle-1, Jaipur vs. Subhash Chandra Banka, Jaipur

In the result, the appeals of the revenue in ITA No

ITA 294/JPR/2025[2016]Status: DisposedITAT Jaipur08 Jul 2025

DCIT, Central Circle-1, Jaipur vs. Vipul Banka, Sikar

In the result, the appeals of the revenue stands dismissed, and the

ITA 291/JPR/2025[2014]Status: DisposedITAT Jaipur08 Jul 2025

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

Ramachandran Annapoorni, Chennai vs. ITO, Ncw-9(1), Chennai

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

ITA 863/CHNY/2025[2015-16]Status: DisposedITAT Chennai08 Jul 2025AY 2015-16

Bench: Shri George George K

For Appellant: Shri Arjun Raj, AdvocateFor Respondent: Shri Ashwin Gowda, JCIT

Section 147Section 148Section 148ASection 149(1)Section 250Section 69Section 69A

also confirmed by the Assessing Officer in Para 3.4 of the impugned assessment order, extracted supra. If such duplication is removed, the escapement of income would be only to the extent of Rs.37,47,450/-. The time limit for re-opening the assessment in terms of Section ... lakh rupees or more:” 14. The Assessing Officer before passing the order u/s 148A(d) of the Act had to establish that the escapement of income is more than Rs. 50 Lakhs by validating the information available with him. In fact, the provisions of Section 148A of the Act specifically

Shah Brothers, Chaibasa vs. ACIT, Central Circle-1, Ranchi

In the result, Revenue's appeal stands allowed partly for statistical purpose

ITA 275/RAN/2023[2016-2017]Status: DisposedITAT Ranchi07 Jul 2025AY 2016-2017

Bench: Shri Sonjoy Sarma & Shri Ratnesh Nandan Sahayi.T.A. No.275/Ran/2023 Assessment Year: 2016-17 Shah Brothers, Chaibasa……...................…...........................……….……Appellant Sadar Bazar, West Singhbhum, Jharkhand-833201. [Pan: Aazfs7498F] Vs. Acit, Central Circle-1, Ranchi..…..….…..….........……........……...…..…..Respondent Appearances By: Shri Devesh Poddar & R. R. Mittal, Ar, Appeared On Behalf Of The Appellant. Shri Khubchand T. Pandya, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : June 26, 2025 Date Of Pronouncing The Order : July 07, 2025 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against An Order Dated 28.11.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income U/S 139 Of The Act Declaring Total Income Of Rs.14,04,03,980/- For Assessment Year 2016-17. The Assessment Of The Assessee Was Completed U/S 143(3) Of The Act On 31.102.108 Accepting The Said Returned Income. Subsequently, Based On Information Received From Dcit, Cc-1(3), Mumbai, It Was Alleged That The Said Assessee Had Claimed A Bogus Contract Expenses Of Rs.2,69,14,526/- In Lieu Of The Bogus Work Order To M/S Pandhe Infracons Pvt. Ltd. During The F.Y 2015-16 Without Any Actual Work Had Been Performed. The Revenue Relied Upon Search Operation U/S 132 Of The Act Conducted On M/S

Section 132Section 132(4)Section 139Section 143(3)Section 147Section 148Section 150(1)Section 250Section 251

empowered to assess or re- assess the income which has escaped assessment. So at the most, if the Revenue wishes to tax the escapement of income then it has followed the scheme provided under the Act. The relevant provisions for taxing the escape income are given u/s 147/263

Vinodchandra Madhabhai Lavri, Surat vs. ITO, Ward 2(3)(4), Surat

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

ITA 151/SRT/2025[2013-14]Status: HeardITAT Surat07 Jul 2025AY 2013-14

Bench: Shri T.R. Senthil Kumar & Shri Bijayananda Pruseth

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Ashish Pophare, CIT DR

Section 132Section 143(1)Section 143(2)Section 147Section 148Section 292C

assessee. Further, the assessee has not shown the LTCG on the transfer of capital assets relating to the assessment year. Thus, there is escapement of income chargeable to tax to the extent of Rs. 20,58,43,869/- in the case of the assessee for the following three assessment years

Vinodchandra Madhabhai Lavri, Surat vs. ITO, Ward 2(3)(4), Surat

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

ITA 150/SRT/2025[2012-13]Status: HeardITAT Surat07 Jul 2025AY 2012-13

Bench: Shri T.R. Senthil Kumar & Shri Bijayananda Pruseth

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Ashish Pophare, CIT DR

Section 132Section 143(1)Section 143(2)Section 147Section 148Section 292C

Vinodchandra Madhabhai Lavri, Surat vs. ITO, Ward 2(3)(4), Surat

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

ITA 149/SRT/2025[2011-12]Status: HeardITAT Surat07 Jul 2025AY 2011-12

Bench: Shri T.R. Senthil Kumar & Shri Bijayananda Pruseth

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Ashish Pophare, CIT DR

Section 132Section 143(1)Section 143(2)Section 147Section 148Section 292C

Rajeev Kumar Sehgal, Lakhimpur Kheri vs. ITO-3(4), Lakhimpur Kheri-2

The appeal of the assessee stands partly allowed

ITA 30/LKW/2024[2014-15]Status: DisposedITAT Lucknow04 Jul 2025AY 2014-15

Bench: Shri. Sudhanshu Srivastavaassessment Year: 2014-15 Rajeev Kumar Sehgal V. The Income Tax Officer 3(4) Punjab Colony Lakhimpur Kheri - 2 Lakhimpur Kheri Tan/Pan:Asbps5131M (Appellant) (Respondent) Appellant By: Shri Saurabh Gupta, C.A. Respondent By: Shri Sanjeev Krishna Sharma, D.R. O R D E R

For Appellant: Shri Saurabh Gupta, C.AFor Respondent: Shri Sanjeev Krishna Sharma, D.R

Section 142(1)Section 143(3)Section 147Section 148Section 44A

respect to Reopening an already concluded assessment u/s 143(3), especially when no fresh material has been brought on record to suggest any escapement of income. 3. That the Learned learned Commissioner of Income Tax Appeals NFAC failed to appreciate the argument that the appellant had already furnished all documents