“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

Patni Housing Private Limited, Nagpur vs. DCIT, Cencir 1(2), Nagpur

In the result, appeals of the assessee’s are allowed

ITA 194/NAG/2024[2015-16]Status: DisposedITAT Nagpur06 Feb 2025AY 2015-16

Bench: Shri V. Durga Rao

For Appellant: Shri K.P. Dewani, AdvocateFor Respondent: Shri Abhay Y. Marathe, Sr. DR

Section 147Section 148Section 69A

ITA.No.1224 of 2011 order dated 17.01.2013. 9 ITA.No.193/NAG./2024 5.2.3. He further submitted that the loose papers on which belief of escapement of income chargeable to tax has been derived does not even indicate name of these assessee’s or any date of alleged payment and without making

Taradevi Babulal Patni, Nagpur vs. DCIT, Circle-3, Nagpur

In the result, appeals of the assessee’s are allowed

ITA 193/NAG/2024[2015-16]Status: DisposedITAT Nagpur06 Feb 2025AY 2015-16

Bench: Shri V. Durga Rao

For Appellant: Shri K.P. Dewani, AdvocateFor Respondent: Shri Abhay Y. Marathe, Sr. DR

Section 147Section 148Section 69A

Dy. C.I.T. Cir-.2, Nagpur vs. Shri Govinddas Goverdhan Daga, Nagpur

ITA 517/NAG/2016[2012-13]Status: DisposedITAT Nagpur05 Feb 2025AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: NoneFor Respondent: Shri Sandipkumar Salunke

Section 147Section 148Section 44A

made in respect to long terms capital gain declared in return of income. The reasons recorded does not indicate belief of escapement of income for which notice u/s 148 of I.T. 1961 could be issued. In the absence of belief of escapement of income, no valid notice ... could be issued. The reason recorded does not indicate satisfaction as to belief of escapement of income and they are no valid reasons recorded in the eyes of law for issue of notice u/s 148 of I.T. Act 1961. Thus the reassessment framed is bad in law and deserves

Assisstant Commissioner of Income Tax, Circle-2, Ajmer vs. Baroda Rajasthan Kshetriya Gramin Bank, Ajmer

In the result, the appeal of the Revenue is dismissed and the C

ITA 1285/JPR/2024[2017-18]Status: DisposedITAT Jaipur05 Feb 2025AY 2017-18

Bench: Dr. S. Seethalakshmi & Shri Gagan Goyalassistant Commissioner Of Income Tax, Circle-2, Ajmer, C. R. Building – 305 001. ..... Appellant Vs.

For Appellant: Mr. Shailesh Mantri, CA, Ld. ARFor Respondent: Mr. Arvind Kumar, CIT, Ld. DR

Section 143(3)Section 147Section 148Section 250Section 254Section 43B

point no. 4 and were duly responded and explained by the assessee in its reply. Hence, there can’t be any allegation of escapement of income on assessee; rather it falls in the category of “Change of Opinion”. 6 Moreover, the issues under consideration are already decided in favour ... Assessing Officer has erroneously concluded that such CSR expenditure cannot be allowed under section 37 and to that extent, there is escapement of income, the said conclusion is patently erroneous and as such, the action which is sought to be initiated is impermissible. In fact, as a matter of records

Srinivas Shah Radraraju, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-2(1), Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 957/HYD/2019[2014-15]Status: DisposedITAT Hyderabad05 Feb 2025AY 2014-15

Bench: Shri Manjunatha G. & Shri K.Narasimha Charyआ.अपी.सं /Ita No.957/Hyd/2019 (निर्धारण वर्ा/Assessment Year: 2014-15) Srinivas Shah Rudraraju Vs. Dcit, Circle-2(1) Hyderabad Hyderabad [Pan :Afcpr1979L] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri P.Murali Mohan Rao,Ar रधजस् व द्वधरध/Revenue By: Dr.Sachin Kumar, Dr सुिवधई की तधरीख/Date Of Hearing: 15/01/2025 घोर्णध की तधरीख/Date Of 05/02/2025 Pronouncement: आदेश / Order Per. Manjunatha G., A.M: This Appeal Filed By The Assessee Is Directed Against The Order Dated 29.03.2019 Of The Learned Commissioner Of Income Tax (Appeals) [Ld.Cit(A)]-2, Guntur, Pertaining To A.Y.2014-15. 2. The Brief Facts Of The Case Are That, The Assessee Is An Individual, Filed His Return Of Income For The A.Y.2014-15 On 31.03.2015, Admitting Total Income Of Rs.53,50,976/-. The Case Was Selected For Scrutiny Under Cass For The Reason ‘Suspicious Long Term Capital Gain On Shares’ & During The Course Of Assessment Proceedings, The Assessing Officer, Noticed That The 2 Srinivas Shah Rudra Raju

For Appellant: Shri P.Murali Mohan Rao,ARFor Respondent: Dr.Sachin Kumar, DR

Section 68

Capital Gain. Based on the said information, the Assessing Officer recorded reasons for reopening of the assessment and observed that there is an escapement of income from tax on account of under assessment of Long-Term Capital Gain derived from purchase and sale of shares. From the above ... considered opinion that there is a prima facie material on the basis of which the Assessing Officer formed reasonable belief of escapement of income and thus, the reopening of the assessment u/s 147 of the Act is on sound footing and valid. Accordingly, we reject the grounds taken

Suppahire Educational and Charitable Trust, Thanjavur vs. ITO, Exemptions Ward, Trichy

In the result, appeals filed by the assessee are allowed

ITA 2417/CHNY/2024[2018-19]Status: DisposedITAT Chennai05 Feb 2025AY 2018-19

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Mr.N. Arjun Raj, AdvocateFor Respondent: Ms.Sheila Parthasarthy

Section 144BSection 147Section 148Section 148ASection 151Section 151ASection 271A

assessee didn’t respond to the same, he passed the order u/s.148A(d) of the Act on 31.03.2022 holding that there is escapement of income of Rs.60,44,080/- and expressed his satisfaction to issue notice u/s.148 of the Act [refer Page Nos.147-148 of the Paper Book] and thereafter, issued

Sappahire Educational and Charitable Trust, Thanjavur vs. ITO, Exemptions Ward, Trichy

In the result, appeals filed by the assessee are allowed

ITA 2416/CHNY/2024[2018-19]Status: DisposedITAT Chennai05 Feb 2025AY 2018-19

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Mr.N. Arjun Raj, AdvocateFor Respondent: Ms.Sheila Parthasarthy

Section 144BSection 147Section 148Section 148ASection 151Section 151ASection 271A

Rajesh Kumar Bansal Tgharoch House, Cliffend Estate Shimla-171001, Himachal Pradesh vs. The Income Tax Officer Ward-2, Shimla, Himachal Pradesh

In the result, the appeals are allowed

ITA 86/CHANDI/2024[2014-2015]Status: DisposedITAT Chandigarh04 Feb 2025AY 2014-2015

Bench: Shri Rajpal Yadav & Shri Krinwant Sahay

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl.CIT, Sr.DR

Section 143(1)Section 143(3)Section 147Section 148Section 151Section 2(40)

Paper Book. The relevant part of these reasons is in para 4 which read as under : “4. Reasons forming belief and details of escapement of Income:- In view of the above, I have reason to believe that income arising out on sale of Flats during the year ... take note of the reasons for assessment year 2013-14 also which read as under : “4. Reasons forming belief and details of escapement of Income:- In view of the above, I have reason to believe that income arising out on sale of Flats during the year

Rajesh Kumar Bansal Tharoch House, Cliffend Estate Shimla-171001, Himachal Pradesh vs. The Income Tax Officer Ward -2 Shimla, Himachal Pradesh

In the result, the appeals are allowed

ITA 85/CHANDI/2024[2013-2014]Status: DisposedITAT Chandigarh04 Feb 2025AY 2013-2014

Bench: Shri Rajpal Yadav & Shri Krinwant Sahay

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl.CIT, Sr.DR

Section 143(1)Section 143(3)Section 147Section 148Section 151Section 2(40)

Rajesh Kumar Bansal Tharoch House, Cliffend Estate Shimla-171001, Himachal Pradesh vs. The Income Tax Officer Ward-2 Shimla, Himachal Pradesh

In the result, the appeals are allowed

ITA 232/CHANDI/2024[2012-2013]Status: DisposedITAT Chandigarh04 Feb 2025AY 2012-2013

Bench: Shri Rajpal Yadav & Shri Krinwant Sahay

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl.CIT, Sr.DR

Section 143(1)Section 143(3)Section 147Section 148Section 151Section 2(40)

M/S. Shroff Properties Pvt. Ltd., Kolkata vs. I.T.O., Ward - 1(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1951/KOL/2024[2010-2011]Status: DisposedITAT Kolkata04 Feb 2025AY 2010-2011

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.1951/Kol/2024 Assessment Year : 2010-11

For Appellant: Shri Abhishek Bansal, ARFor Respondent: Shri Kapil Mondal, Addl. CIT

Section 143(2)Section 143(3)Section 147Section 148Section 250Section 68

Assessing Officer issue a reopening notice at the dictate and/or satisfaction of some other authority. Therefore, on receipt of any information which suggests escapement of income, the Assessing 6 M/s. Shroff Properties Pvt. Ltd. Officer must examine the information in the context of the facts of the case and only ... Services Ltd is a penny stock listed on the Bombay Stock Exchange and that the petitioner had dealt with the same leading to escapement of income. On receipt of information, the least that is expected of the Assessing Officer is to examine the same in the context of the facts

Amalsad Vibhag Vivish Karyakari Sahkari Khedut Mandli Ltd., Na vs. Arivs.PCIT, Valsad

ITA 491/SRT/2024[2018-19]Status: DisposedITAT Surat03 Feb 2025AY 2018-19

Bench: Shri Pawan Singh & Shri Bijayananda Prusethआयकर अपील सं./Ita No.491/Srt/2024 Ays: 2018-19 (Physical Court Hearing) Amalsad Vibhag Vividh Principal Commissioner Of Karyakari Sahkari Khedut Income Tax, Valsad, 301/3Rd Vs. Mandli Ltd., At & Po. Floor, Palak Arcade, Shanti Amalsad, Tal. Gandevi, Nagar, Tithal Road, Valsad-396 Dist. Navsari-396 310 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aaaaa 1043 N (अपीलाथ"/Appellant) (""थ" /Respondent) िनधा"रती की ओर से /Assessee By Shri P.M Jagasheth, Ca राज" की ओर से /Revenue By Shri Ravi Kant Gupta, Cit-Dr सुनवाई की तारीख/Date Of Hearing 17.12.2024 उद्घोषणा की तारीख/Date Of Pronouncement 03.02.2025

Section 143(3)Section 263Section 57Section 80P

placed with the bank. Hence, clause(d) of Explanation 2 of Section 263 of the Act is applicable in case of assessee. Considering escapement of income of Rs.2,41,38,304/- resulting in lawful loss of tax of Rs.83,50,323/-, the order of AO was also prejudicial

Manju Devi Daftari, Kolkata vs. I.T.O., Ward - 36(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1571/KOL/2024[2011-2012]Status: DisposedITAT Kolkata03 Feb 2025AY 2011-2012

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.1571/Kol/2024 Assessment Year : 2011-12

For Appellant: Shri Sunil Surana, ARFor Respondent: 26.11.2024

Section 143(1)Section 144Section 147Section 148Section 250

Assessing Officer issue a reopening notice at the dictate and/or satisfaction of some other authority. Therefore, on receipt of any information which suggests escapement of income, the Assessing Officer must examine the information in the context of the facts of the case and only on satisfaction leading to a reasonable ... Services Ltd is a penny stock listed on the Bombay Stock Exchange and that the petitioner had dealt with the same leading to escapement of income. On receipt of information, the least that is expected of the Assessing Officer is to examine the same in the context of the facts

Assistant Commissioner of Income Tax, Kolkata vs. Om Prakash Jalan, Kolkata

In the result, the appeal of the revenue is hereby dismissed whereas the Cross Objection of the assessee stand allowed

ITA 747/KOL/2024[2018-19]Status: DisposedITAT Kolkata31 Jan 2025AY 2018-19

Bench: Sri Sanjay Garg & Shri Rakesh Mishra

Section 132Section 147Section 148Section 148ASection 151ASection 153CSection 250Section 69A

through broker namely, Shri Jai Bhagwan Agarwal. This information in itself is not sufficient to form the belief by the Assessing Officer regarding escapement of income of the assessee. The Assessing Officer has only the information that the assessee had received loan and the amount received as loan

Pixel Commercial Pvt. Ltd., Kolkata vs. I.T.O., Ward - 9(3), Kolkata

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

ITA 1601/KOL/2024[2009-2010]Status: DisposedITAT Kolkata31 Jan 2025AY 2009-2010

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.1601/Kol/2024 Assessment Year : 2009-10

For Appellant: Shri Amit Agrawal, AdvFor Respondent: Smt. Madhumita Das, Addl. CIT

Section 143(2)Section 143(3)Section 147Section 148Section 250Section 69

Income Tax (Appeals) erred in upholding the reopening of assessment u/s 148 of the Act without any tangible material having link to escapement of income and hence the reopening be declared to be bad in law and the reassessment order be quashed. 7. That the National Faceless Appeal Centre, Delhi

Mr. D K Shivakumar, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(4), Bangalore

ITA 205/BANG/2022[2006-07]Status: DisposedITAT Bangalore31 Jan 2025AY 2006-07

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

For Appellant: Shri. Chandrasekhar, ARFor Respondent: Shri. Y. V. Raviraj, Sr. Standing Counsel

Section 153ASection 153C

Before doing so, the Assessing Officer should satisfy himself that, there is material which suggests that there is an ITA.1154 & 1155/Bang/2015 Page 10 escapement of income. The AO can exercise these powers with a reasonable belief coupled with some material which suggest the escapement of income. Once the conditions precedent ... income escaped from tax, both are works in a different situations, i.e. section 147 comes in to operation where there is an escapement of income chargeable to tax and section 153A comes in to operation where there is search u/s 132. 13. Under the provisions of section 153A, the Assessing

Deputy Commissioner of Income Tax, Central Circle- 1(4), Bangalore vs. Mr. D K Shivakumar, Bangalore

In the result, we allow appeal filed by the assessee

ITA 48/BANG/2020[2010-11]Status: DisposedITAT Bangalore31 Jan 2025AY 2010-11

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

Section 153ASection 153C

Before doing so, the Assessing Officer should satisfy himself that, there is material which suggests that there is an ITA.1154 & 1155/Bang/2015 Page - 10 escapement of income. The AO can exercise these powers with a reasonable belief coupled with some material which suggest the escapement of income. Once the conditions precedent ... situations, i.e. section 147 comes in to operation ITA Nos.45, 46, 47, 48/Bang/2020 ITA No.205/Bang/2022 Page 17 of 77 where there is an escapement of income chargeable to tax and section 153A comes in to operation where there is search u/s 132. 13. Under the provisions of section 153A

Deputy Commissioner of Income Tax, Central Circle- 1(4), Bangalore vs. Mr. D K Shivakumar, Bangalore

In the result, we allow appeal filed by the assessee

ITA 47/BANG/2020[2009-10]Status: DisposedITAT Bangalore31 Jan 2025AY 2009-10

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

Section 153ASection 153C

Deputy Commissioner of Income Tax, Central Circle- 1(4), Bangalore vs. Mr. D K Shivakumar, Bangalore

In the result, we allow appeal filed by the assessee

ITA 46/BANG/2020[2008-09]Status: DisposedITAT Bangalore31 Jan 2025AY 2008-09

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

Section 153ASection 153C

Deputy Commissioner of Income Tax, Central Circle- 1(4), Bangalore vs. Mr. D K Shivakumar, Bangalore

ITA 45/BANG/2020[2007-08]Status: DisposedITAT Bangalore31 Jan 2025AY 2007-08

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

For Respondent: Shri. Chandrasekhar, AR

Section 153ASection 153C

Before doing so, the Assessing Officer should satisfy himself that, there is material which suggests that there is an ITA.1154 & 1155/Bang/2015 Page 10 escapement of income. The AO can exercise these powers with a reasonable belief coupled with some material which suggest the escapement of income. Once the conditions precedent ... both are works in a different situations, i.e. section 147 comes in to operation Page 17 of 77 where there is an escapement of income chargeable to tax and section 153A comes in to operation where there is search u/s 132. 13. Under the provisions of section 153A, the Assessing