“income escaping assessment”

ReassessmentSection 147Section 1471,518 judgments

The decision most relied on for income escaping assessment is CIT v. Kelvinator of India Ltd. (320 ITR 561), cited in 1,673 judgments on BharatTax.

Leading authorities on income escaping assessment

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 income escaping assessment

M/S. Aryan Share and Stock Brockers Limited, Chennai vs. ITO, Corp Ward-1, Chennai

In the result, Appeal filed by the assessee is allowed

ITA 2115/CHNY/2025[2014-15]Status: DisposedITAT Chennai13 Jan 2026AY 2014-15

Bench: Shri Manu Kumar Giri & Shri Jagadishआयकर अपील सं./Ita No. 2115/Chny/2025 "नधा"रण वष"/Assessment Year: 2014-15 M/S Aryan Share & Stock Brokers V. Ito Corp Ward-1, Limited., Itd, M G Road, No. 07, 07Th Cross Street, Nungambakkam, 2Nd Floor, Shreeji Metropolis, Chennai-600034 Aminjikarai, Chennai-600030 Tamil Nadu Tamil Nadu [Pan:Aadca 1233 H] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Assessee By : Mr. Y Sridhar, Ca ""यथ" क" ओर से /Respondent By : Ms. Anitha, Addl.Cit सुनवाई क" तार"ख/Date Of Hearing : 10.11.2025 घोषणा क" तार"ख /Date Of Pronouncement : 13.01.2026

For Appellant: Mr. Y Sridhar, CAFor Respondent: Ms. Anitha, Addl.CIT

Section 147Section 69A

assessee company incurred fictious losses in Equity/Derivatives trading to the tune of Rs. 40,48,000/- Total Income escaping assessment Rs. 40,48,000/- Thus, on perusal of the details available on record, it is noticed that during the previous year relevant to the assessment year under consideration, the assessee

Yadiki Pacs, Anantapur vs. Income Tax Officer, Ward-1, Anantapur

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

ITA 926/HYD/2025[AY 2019-20]Status: DisposedITAT Hyderabad09 Jan 2026

Bench: the Andhra Pradesh High Court against the Order of the Chief Commissioner of Income Tax, Hyderabad rejecting the appellant's application filed u/s 119(2)(b) of the Act to condone the delay in filing the Income Tax Return for the subject AY 2019-20 is pending for disposal as on date. 7. For that the Learned Commissioner of Income Tax (Appeals) had erred in confirming the levy of interest u/s 234A of the Act in consequence to the above." 3

Section 119(2)(b)Section 139Section 147Section 148Section 148ASection 234ASection 80ASection 80P

void in that the said order is passed in violation of 'Faceless Jurisdiction of Income-tax Authorities Scheme, 2022' and 'e-Assessment of Income Escaping Assessment Scheme, 2022 for the assessment was reopened by the Jurisdictional Assessing Officer. Without prejudice to the above: 4. For that the Learned Commissioner

Thilak Babu Boppana, Chittor vs. Income Tax Officer, Ward-1(1), Tirupati

In the result, the appeal filed by the assessee is allowed in terms of our aforesaid observations

ITA 1628/HYD/2025[2020-21]Status: DisposedITAT Hyderabad09 Jan 2026AY 2020-21

Bench: Shri Manjunatha G. (Accountant Member), Shri Ravish Sood (Judicial Member)

For Appellant: Shri M.M. Shabid SameerFor Respondent: Shri K. Vinoth Kannan, Sr

Section 144Section 147Section 148Section 148A

outside the faceless mechanism as provided under the provisions of Section 144(b) read with Section 151A and the "E-Assessment Scheme of Income Escaping Assessment Scheme, 2022" notified by the Government of India on 29.03.2022 under Section 151A, are bad and illegal. Summing up his contention ... submitted that after the introduction of the "Faceless Jurisdiction of the Income Tax Authorities Scheme, 2022" and the "e-Assessment of Income Escaping Assessment Scheme, 2022", it is only the “Faceless Assessing Officer” (FAO) who can issue the notice 7 Tilak Babu Boppana vs. ITO under Section

Doriswamy Gopi, Bengaluru vs. Income Tax Officer, Ward 3(1)(1), Bengaluru

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

ITA 2020/BANG/2025[A.Y. 2017-18]Status: DisposedITAT Bangalore09 Jan 2026

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2017-18

For Appellant: Shri Nagaraja K.H, CAFor Respondent: Shri Ganesh R Ghale, Standing Counsel for Department

Section 139Section 147Section 148Section 151Section 292B

challenged the validity of the assessment framed under section 147 of the Act on the ground that re- opening for the income escaping assessment was done by the AO on wrong assumption of facts. Page 2 of 6 3. The learned AR before us submitted that the assessee has filed

Sarabjeet Singh Bedi, New Delhi vs. DCIT, Central Circle 20, Delhi

ITA 4475/DEL/2025[2017-18]Status: DisposedITAT Delhi09 Jan 2026AY 2017-18

Bench: Shri S Rifaur Rahman & Shri Anubhav Sharmasarabjit Singh Bedi Vs. Dcit, Central Circle-20 C-706, New Friends Jhandewalan Extension Colony, New Delhi Delhi, New Delhi – 110065 New Delhi – 110055 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Abjpb3799H Appellant .. Respondent

For Appellant: Sh. Salil Agarwal, Sr.AdvFor Respondent: Sh. Jitender Singh, CIT, DR

Section 147Section 148Section 149Section 149(1)Section 149(1)(b)

such, the proceedings can only be initiated beyond a period of 3 assessment years upto 10 assessment years if the alleged income escaping assessment exceeds a sum of Rs. 50, 00, 000/-, whereas, the allegation in the instant notice is only

Rakesh Divedi, Delhi vs. Income Tax Officer, Ward 43(6), Delhi

In the result, appeal of the Assessee is allowed

ITA 3290/DEL/2025[2009-10]Status: DisposedITAT Delhi09 Jan 2026AY 2009-10

Bench: Shri Sudhir Kumar & Shri Manish Agarwalrakesh Divedi, Income Tax Officer, 87, Triveni Apartments, Ward-43(6), Delhi. Pitampura, New Delhi - Vs. 110034. Pan-Apcpd9179A (Appellant) (Respondent) Shri Pranshu Singhal, Ca Assessee By & Ms. Mansi Jain, Adv. Department By Ms. Ankush Kalra, Sr. Dr Date Of Hearing 30/10/2025 Date Of Pronouncement 09/01/2026 O R D E R Per Manish Agarwal, Am: This Appeal Is Filed By The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi (‘Ld. Cit(A)’ In Short) Dated 07.03.2025 In Appeal No.40/10204/2018-19 Arising Out Of The Order Passed By The Income Tax Officer, Ward-40(3) U/S 143(3) Of The Act (‘The Act’ For Short) Dated 20.12.2016 For Assessment Year 2009-10. 2. Brief Facts Of The Case Are That Assessee Is An Individual & Proprietor Of M/S Triambkay Gauri Impex. The Information Was Received By The Ao From Investigation Wing That There Were Cash Deposits In The Bank Account Of The Assesse With Icici Bank, However, Income Of The Assessee & Gross Receipt Has Not Rakesh Divedi Vs. Income Tax Officer Commensurate With The Cash So Deposited, Therefore, After Recording The Reason U/S 147, Notice U/S 148 Was Issued On 31.03.2016 After Obtaining Statutory Approval From The Pcit. Thereafter, Assessment Was Completed Vide Order Dated 20.12.2016 Wherein Total Addition Of Rs. 5,20,88,345/- Was Made U/S 68 Of The Act For Cash Deposited In The Bank Accounts By Holding The Same As Unexplained Cash Credits. 3. Against The Said Order, Assessee Has Filed An Appeal Before Ld. Cit(A) Who Vide Impugned Order Has Partly Allowed The Appeal Of The Assessee & Directed The Ao To Make Addition Of Peak Credit Of The Total Deposits In The Bank Accounts.

Section 143(2)Section 143(3)Section 147Section 148Section 151Section 68

basis of mechanical sanction as invalid by making following observations :- “ Section 151, read with section 148 of the Income-tax Act,1961 - Income escaping assessment - Sanction for issue of notice (Recording of satisfaction) - High Court by impugned order held that where Joint Commissioner recorded satisfaction in mechanical manner and without

Assistat Commissioner of Income Tax, New Delhi vs. Brij Bhushan Gupta, Delhi

In the result, the cross objections for AY 2013-14 filed by the assessee is

ITA 5899/DEL/2024[2015-16]Status: DisposedITAT Delhi09 Jan 2026AY 2015-16

Bench: Shri S.Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR

Section 147Section 148Section 148ASection 149Section 149(1)Section 149(1)(b)Section 3

applicable. Upto 6 years, assessment can be reopened upto any amount and beyond six years, assessment can be reopened only when the income escaping assessment is Rs.50,00,000 or more and it is represented in the form of asset. The wording of proviso to section 153A and Explanation

Assistant Commissioner of Income Tax, Delhi vs. Brij Bhushan Gupta, Delhi

In the result, the cross objections for AY 2013-14 filed by the assessee is

ITA 5891/DEL/2024[2013-14]Status: DisposedITAT Delhi09 Jan 2026AY 2013-14

Bench: Shri S.Rifaur Rahman & Shri Anubhav Sharma

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Ajay Kumar Arora, Sr. DR

Section 147Section 148Section 148ASection 149Section 149(1)Section 149(1)(b)Section 3

Best Bull Stock Trading Pvt Ltd., New Delhi vs. ACIT, Central Circle-18, New Delhi

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

ITA 2954/DEL/2024[2016-17]Status: DisposedITAT Delhi09 Jan 2026AY 2016-17

Bench: Sh. C.N. Prasad & Sh. M. Balaganesh

Section 132Section 147Section 148Section 150Section 150(1)Section 150(2)Section 153(6)Section 153A

hence cancelled. The AO should take remedial action under s. 147 or any other provisions of the Act to tax the income escaping assessment. Accordingly notice under s. 148 of the IT Act, 1961 was issued and sent by RPAD on 27th March, 1998, but assessee denied about the receipt ... other spheres of human activity, So far as the income-tax assessment orders are concerned, they cannot be reopened on the score of income escaping assessment under section 147 of the Act of 1961 after the expiry of four years from the end of the assessment year unless there

Best Bull Stock Trading Pvt Ltd., New Delhi vs. ACIT Central Circle-18, Delhi

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

ITA 2953/DEL/2024[2015-16]Status: DisposedITAT Delhi09 Jan 2026AY 2015-16

Bench: Sh. C.N. Prasad & Sh. M. Balaganesh

Section 132Section 147Section 148Section 150Section 150(1)Section 150(2)Section 153(6)Section 153A

Kalpesh Ravjibhai Sojitra, Jasdan vs. The Income Tax Officer, Ward 2(1)(2), Rajkot

In the result, appeal filed by the assessee is allowed, in above terms

ITA 487/RJT/2025[2017-18]Status: DisposedITAT Rajkot08 Jan 2026AY 2017-18

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha(Hybrid Hearing) Kalpesh Ravjibhai Sojitra, Vs. The Ito, Prop. Sojitra Petrolium, Bypass Ward-2(1)(2), Circle Atkot Road, Jasdan, Rajkot 360050, Rajkot-( Guj) "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Bqmps8120G (/Appellant) (/Respondent)

For Appellant: Shri Brijesh Parekh, Ld ARFor Respondent: Shri Abhimanyu Singh Yadav, Sr. DR

Section 133(6)Section 142(1)Section 147Section 148Section 148ASection 68

dated 28.10.2025. The Hon’ble High Court in its aforesaid order had held that after the formulation of the "e-Assessment of Income Escaping Assessment Scheme, 2022", the notice under Section 148 of the Act can only be issued by the FAO and not by the JAO. For the sake ... present batch of Writ Petitions is no more res integra. (E). Considering the background in notifying the (E- Assessment Scheme of Income Escaping Assessment Scheme, 2022) notified by the Government of India on 29.03.2022, and in the light of the decisions of various High Courts stated supra and upon careful

Sanjay Champalal Jaiswal, Nanded-Waghala vs. ITO, Ward-1, Nanded-Waghala

In the result, appeal of the assessee is partly allowed

ITA 2136/PUN/2025[2016-17]Status: DisposedITAT Pune08 Jan 2026AY 2016-17

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.2136/Pun/2025 निर्धारण वषा / Assessment Year: 2016-17 Sanjay Champalal Jaiswal, V The Income Tax Officer, At Post, Hadsani, Mahur, S Ward-1, Nanded. Tq.Mahur, Nanded-Waghala, Maharashtra - 431721. Pan: Awlpj7783Q Appellant/ Assessee Respondent / Revenue Assessee By Shri Govind Prasad Mandala (Through Virtual) Revenue By Shri Madhukar Anand – Jcit(Through Virtual) Date Of Hearing 07/01/2026 Date Of Pronouncement 08/01/2026 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An 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 For The A.Y.2016-17 Dated 18.07.2025 Emanating From The Assessment Order Passed Under Section 147 R.W.S 144 Of The Act, Dated 29.03.2023. The Assessee Has Raised The Following Grounds Of Appeal :

Section 147Section 148Section 149Section 250Section 69A

A.Y.2016-17 was issued after a lapse of three years from the end of Assessment Year. Ld.AR further submitted that the alleged income escaped assessment is only Rs.49,01,630/- which is less than Rs.50 lakhs. Ld.AR submitted that hence the notice u/s.148 is bad in law. 3 ITA No.2136/PUN/2025 ... specifically precluded Assessing Officer for issuing notice u/s.148 if three years have elapsed from the end of the relevant assessment year and income escaping assessment is less than Rs.50 lakhs. ITA No.2136/PUN/2025 [A] 4.2 The relevant part of the order u/s.148A(d) for A.Y.2016-17 dated 26.07.2022 is scanned and reproduced

Income Tax Officer, Pune vs. Sagar Construction Company, Pune

In the result, the appeal filed by the Revenue is dismissed and the CO filed by the assessee is allowed

ITA 1812/PUN/2025[2017-18]Status: DisposedITAT Pune08 Jan 2026AY 2017-18

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2017-18

For Appellant: Shri Suhas Bora and Riya OswalFor Respondent: Shri S. Sadananda Singh, JCIT

Section 142(1)Section 143(1)Section 147Section 148Section 269SSection 37Section 68

provisions of Section 147 of the I.T. Act, it will be appropriate to extract the said provisions, which reads thus: "147. Income escaping assessment.--If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject ... period as specified in the said provision and after compliance of other provisions as mandated. On the other hand, Section 147 provides for "Income escaping assessment", can be invoked when any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year. In such

Saluja Steel and Power Pvt. Ltd., Giridih vs. ACIT, C, Dhanbad

In the result, appeal of the assessee is allowed

ITA 287/RAN/2025[13-14]Status: DisposedITAT Ranchi07 Jan 2026

Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RATNESH NANDAN SAHAY (Accountant Member)

For Appellant: Shri Devesh Poddar, AdvocateFor Respondent: Shri Rajib Jain, CIT-DR

Section 131Section 142(1)Section 143(3)Section 148Section 156

without any basis and is unsupported by any factual connection with the assessee. 9. Ld.AR further drew our attention to the alleged income escaping assessment as mentioned by the AO which is said to be Rs.9,61,95,000/-. It was the submission that the assessee never received such huge

West Bengal Electronics Industry Development Corporation Limited, Kolkata vs. DCIT/ACIT, Circle - 2(1), Kolkata

The appeal of the assessee is allowed

ITA 1591/KOL/2024[2013-2014]Status: DisposedITAT Kolkata07 Jan 2026AY 2013-2014

Section 143(3)Section 147Section 148Section 24(1)Section 250

Income Tax Act, 1961 (for short, "the Act"). Prior to the Direct Tax Laws (Amendment) Act, 1987, Section 147 read as under: "147. Income escaping assessment.-II- (a) the Income Tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee ... Direct Tax Laws (Amendment) Act, 1987 i.e. prior to 1-4- 1989, Section 147 of the Act reads as under: "147. Income escaping assessment. If the assessing officer, for reasons to be recorded by him in writing, is of the opinion that any income chargeable to tax has escaped assessment

West Bengal Electronics Industry Development Corporation Limited, Kolkata vs. D.C.I.T./A.C.I.T., Circle - 2(1), Kolkata

The appeal of the assessee is allowed

ITA 1590/KOL/2024[2012-2013]Status: DisposedITAT Kolkata07 Jan 2026AY 2012-2013

Section 143(3)Section 147Section 148Section 24(1)Section 250

All India Insurance Pensioners Association, Chennai vs. On Corp Ward 9(1) Che/, Chennai

In the result, appeal filed by the assessee is allowed

ITA 2879/CHNY/2025[2019-20]Status: DisposedITAT Chennai07 Jan 2026AY 2019-20

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

For Appellant: Mr.R.V. Veeramani, CAFor Respondent: Mr. K.Ilaiyaraja, Addl.CIT

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

issued a notification dated 29.03.2022 [after laying the same before each House of Parliament] and formulated a Scheme called "the e-Assessment of Income Escaping Assessment Scheme, 2022" (herein after ‘the Scheme’). And that the Scheme provides that (a) the assessment, reassessment or re-computation u/s.147

Wellcare International Hospital and Research Institute Pvt. Ltd., Trichy vs. ITO, Ward-1(1), Trichy

In the result, appeal filed by the assessee is allowed

ITA 2867/CHNY/2025[2018-19]Status: DisposedITAT Chennai07 Jan 2026AY 2018-19

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

For Appellant: Ms. R. Sumedha, Advocate for Ms. G. Vardini KarthickFor Respondent: Mr. K.Ilaiyaraja, Addl.CIT

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

Nos.2867/Chny/2025 (AY 2018-19) Wellcare International Hospital & Research Institute Pvt.Ltd. :: 3 :: House of Parliament] and formulated a Scheme called "the e-Assessment of Income Escaping Assessment Scheme, 2022" (herein after ‘the Scheme’). And that the Scheme provides that (a) the assessment, reassessment or re-computation u/s.147

Vijayakumar Balaji, Coimbatore vs. ITO, Ncw-3(1), Coimbatore

In the result, appeal filed by the assessee is allowed

ITA 2853/CHNY/2025[2020-21]Status: DisposedITAT Chennai07 Jan 2026AY 2020-21

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

For Appellant: Mr.S. Girish Kumar AdvocateFor Respondent: Mr. Shiva Srinivas, CIT

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

issued a notification dated 29.03.2022 [after laying the same before each House of Parliament] and formulated a Scheme called "the e-Assessment of Income Escaping Assessment Scheme, 2022" (herein after ‘the ITA Nos.2853/Chny/2025 (AY 2020-21) Vijayakumar Balaji. :: 3 :: Scheme’). And that the Scheme provides that (a) the assessment, reassessment

Shanmugam Palanisamy, Keerambur vs. Income Tax Officer, Ward 2, Namakkal

In the result, appeal filed by the assessee is allowed

ITA 2701/CHNY/2025[2020-21]Status: DisposedITAT Chennai07 Jan 2026AY 2020-21

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

For Appellant: Mr.P.M.Kathir, AdvocateFor Respondent: Mr. K.Ilaiyaraja, Addl.CIT

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