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“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

Satish Kumar Birdika, Kolkata vs. I.T.O., Ward - 49(1), Kolkata

In the result, the appeal filed by the Assessee is hereby allowed

ITA 1359/KOL/2024[2017-2018]Status: DisposedITAT Kolkata30 Jun 2025AY 2017-2018

Bench: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Section 148Section 148ASection 151Section 151(1)Section 151(2)Section 68

issued. This plays out as follows under the old regime: 4 I.T.A. No. 1359/Kol/2024 Assessment Year: 2017-18 Satish Kumar Birdika (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under section 148 within four years after obtaining the approval ... appropriate authorities specified under section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal

M/S Parvesh Construction Pvt Ltd, Mumbai vs. DCIT 8(2)(1), Mumbai

ITA 2715/MUM/2025[2009-10]Status: DisposedITAT Mumbai30 Jun 2025AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2009-10 & Assessment Year: 2011-12

For Appellant: Mr. Nishit GandhiFor Respondent: Mr. R A Dhyani, CIT-DR
Section 147Section 148Section 14ASection 56(2)(viib)Section 68

backed by fundamentals of the assessee company as per its balance sheet as on 31 March 2009. Thus, the Ld. A.O. referred to income escaping assessment u/s 56(2)(viib) of the I. T. Act, 1961; whereas no addition was made in the reassessment order u/s 56(2)(viib

M/S. Parvesh Construction Pvt Ltd, Mumbai vs. DCIT 8(2)(1), Mumbai

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

ITA 2714/MUM/2025[2011-12]Status: DisposedITAT Mumbai30 Jun 2025AY 2011-12

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Respondent: Mr. Nishit Gandhi
Section 147Section 148Section 14ASection 56(2)(viib)Section 68

backed by fundamentals of the assessee company as per its balance sheet as on 31 March 2009. Thus, the Ld. A.O. referred to income escaping assessment u/s 56(2)(viib) of the I. T. Act, 1961; whereas no addition was made in the reassessment order u/s 56(2)(viib ... stated that, share premium received over and above the intrinsic value of the share has escaped assessment. Thus, the Ld. A.O. referred to income escaping assessment u/s 56(2)(vib) of the 1. T. Act, 1961; whereas no addition was made in the reassessment order u/s 56(2)(viib

Deepanshu Projects Private Limited, Delhi vs. ITO, Ward-7(1), C. R. Building

Appeal is allowed in above terms

ITA 1730/DEL/2025[2016-17]Status: DisposedITAT Delhi30 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara

Section 147Section 148Section 149Section 149(1)Section 151Section 151(1)Section 151(2)Section 234BSection 40

directly co-related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under Section 148 within four years after obtaining the approval ... appropriate authorities specified under Section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining PART E the prior approval

ACIT, New Delhi vs. Filatex India Limited, Delhi

ITA 5000/DEL/2024[2015-16]Status: DisposedITAT Delhi30 Jun 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

ITA Nos.4635, 5000, 2060, 4999, 4648, 3988, 2061, 1455, 2062 & 1456/Del/2024 & C.O.Nos.11, 32, 33, 34/Del/2025 & 89, 90 & 91/Del/2024 IN

ACIT, New Delhi vs. Filatax Inida Limited, Delhi

In the result, appeal of the assessee is partly allowed

ITA 4635/DEL/2024[2013-14]Status: DisposedITAT Delhi30 Jun 2025AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Bombay High Court in the case of V. Jaganmohan Rao (supra). We may also note that the heading of section 147 is "income escaping assessment" and that of section 148 "issue of notice where income escaped assessment". Section 148 is supplementary and complimentary to section 147. Sub-section

Marvelous Cement Private Limited, New Delhi vs. National E-Assessment Centre, New Delhi

In the result, appeal filed by the assessee is allowed

ITA 4100/DEL/2024[2018-19]Status: DisposedITAT Delhi30 Jun 2025AY 2018-19

Bench: Ms.Madhumita Roy & Shri Manish Agarwal

Section 139(1)Section 143(3)Section 147Section 148Section 250

Bombay High Court in the case of V. Jaganmohan Rao (supra). We may also note that the heading of section 147 is "income escaping assessment" and that of section 148 "issue of notice where income escaped assessment". Section 148 is supplementary and complimentary to section 147. Sub-section ... which reason was recorded”. The relevant head note of the judgement reads as under:- “Section 147 of the Income-tax Act, 1961 Income escaping assessment - Non-disclosure of primary facts Assessment years 1994-95 and 1995-96 Whether an Explanation to a statutory provision is intended to explain its content

Marvelous Cement Private Limited, New Delhi vs. Income Tax Officer Ward 16(4), New Delhi

In the result, appeal filed by the assessee is allowed

ITA 4099/DEL/2024[2012-13]Status: DisposedITAT Delhi30 Jun 2025AY 2012-13

Bench: Ms.Madhumita Roy & Shri Manish Agarwal[Assessment Year : 2012-13] Marvellous Cement Pvt.Ltd., Vs Income Tax Officer, Flat No.305, 3Rd Floor, Ward-16(4), Bakshi House, 40-41 Nehru New Delhi Place, New Delhi-110019. Pan-Aaecm9931F Appellant Respondent [Assessment Year : 2018-19] Marvellous Cement Pvt.Ltd., Vs National E-Assessment Flat No.305, 3Rd Floor, Centre, New Delhi Bakshi House, 40-41 Nehru Place, New Delhi-110019. Pan-Aaecm9931F Appellant Respondent Appellant By Shri Ashwani Kumar, Ca & Shri Ankur Agarwal, Ca Respondent By Shri Virender Kumar Singh, Sr.Dr Date Of Hearing 05.05.2025 Date Of Pronouncement 30.06.2025 Order Per Manish Agarwal, Am : Both The Captioned Appeals Are Filed By The Assessee Against Two Separate Orders, Both Dated 22.07.2024 Passed By Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (“Nfac”), Delhi [“Ld.Cit(A)”] In Appeal No. Cit(A), Delhi- 6/10624/2019-20 & Appeal No. Nfac/2017-18/10022053 Respectively, Passed U/S 250 Of The Income Tax Act, 1961 [“The Act”]. Both The Appeals Are Arising From The Assessment Orders, Dated 24.12.2019 U/S 143(3)/147 Of The Act & Dt. 15.09.2020

Section 139(1)Section 143(3)Section 147Section 148Section 250

Bombay High Court in the case of V. Jaganmohan Rao (supra). We may also note that the heading of section 147 is "income escaping assessment" and that of section 148 "issue of notice where income escaped assessment". Section 148 is supplementary and complimentary to section 147. Sub-section ... which reason was recorded”. The relevant head note of the judgement reads as under:- “Section 147 of the Income-tax Act, 1961 Income escaping assessment - Non-disclosure of primary facts Assessment years 1994-95 and 1995-96 Whether an Explanation to a statutory provision is intended to explain its content

DCIT, Central Circle-1, Jaipur vs. Animesh Agarwal, Sikar

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

ITA 290/JPR/2025[2016]Status: DisposedITAT Jaipur26 Jun 2025

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 of notice ... 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

Raj Bala, Haryana vs. ITO Ward-1, Narnaul

Appeal is allowed

ITA 1665/DEL/2025[2015-16]Status: DisposedITAT Delhi26 Jun 2025AY 2015-16

Bench: Sh. Satbeer Singh Godaraita No. 1665/Del/2025 : Asstt. Year : 2015-16 Raj Bala, Vs Income Tax Officer, Post Office Kanwi, Tehsil Narnaul, Ward-1, Mahendergarh, Haryana-123001 Narnaul, Haryana-123001 (Appellant) (Respondent) Pan No. Bjmpb1387H Assessee By: Sh. Parikshit Aggarwal, Ca Revenue By : Ms. Indu Bala Saini, Sr. Dr Date Of Hearing: 25.06.2025 Date Of Pronouncement: 25.06.2025 Order This Assessee’S Appeal For Assessment Year 2015-16, Arises Against The Cit(A)/Nfac, Delhi’S Din & Order No. Itba/Nfac/S/250/2024-25/1072284407(1) Dated 17.01.2025, In Proceedings U/S 147 R.W.S. 144 Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: Sh. Parikshit Aggarwal, CAFor Respondent: Ms. Indu Bala Saini, Sr. DR
Section 147Section 148Section 149(1)(b)

initiated beyond the statutory period of three years from the end of the relevant assessment year 2015-16 herein since involving the alleged income escaping assessment of Rs.18,50,000/- is less than Rs.50 lacs going by section 149(1)(b) of the Act. That being the case, the tribunal

Mangilal Datla, Banswara vs. Income Tax Officer, Ward Banswara, Banswara

ITA 304/JODH/2025[2017-18]Status: DisposedITAT Jodhpur25 Jun 2025AY 2017-18
Section 115BSection 142(1)Section 147Section 148Section 250Section 69A

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR. BEFORE: DR. MITHA LAL MEENA, ACCOUNTANT MEMBER & DR. S. SEETHALAKSHMI, JUDICIAL

Chetan Seth, New Delhi vs. ITO, Ward-15(3), Delhi

ITA 1808/DEL/2023[2004-05]Status: DisposedITAT Delhi25 Jun 2025AY 2004-05

Bench: Shri Satbeer Singh Godara & Shri Brajesh Kumar Singh

Section 147Section 151Section 2(22)(e)

stood prior to such substitution. Under the old provisions of section 147, separate clauses (a) and (b) laid down the circumstances under which income escaping assessment for the past assessment years could be assessed or reassessed. To confer jurisdiction under section 147(a) two conditions were required to be satisfied

Shri Chetan Seth, New Delhi vs. ITO, New Delhi

ITA 2985/DEL/2015[2007-08]Status: DisposedITAT Delhi25 Jun 2025AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri Brajesh Kumar Singh

Section 147Section 151Section 2(22)(e)

stood prior to such substitution. Under the old provisions of section 147, separate clauses (a) and (b) laid down the circumstances under which income escaping assessment for the past assessment years could be assessed or reassessed. To confer jurisdiction under section 147(a) two conditions were required to be satisfied

Shri Chetan Seth, New Delhi vs. ITO, New Delhi

ITA 2983/DEL/2015[2005-06]Status: DisposedITAT Delhi25 Jun 2025AY 2005-06

Bench: Shri Satbeer Singh Godara & Shri Brajesh Kumar Singh

Section 147Section 151Section 2(22)(e)

stood prior to such substitution. Under the old provisions of section 147, separate clauses (a) and (b) laid down the circumstances under which income escaping assessment for the past assessment years could be assessed or reassessed. To confer jurisdiction under section 147(a) two conditions were required to be satisfied

Rama Shanker Pareek, Jaipur vs. Income Tax Officer, Ward No. 7(2), Jaipur

In the result, appeal of the assessee is allowed

ITA 253/JPR/2025[2010-11]Status: DisposedITAT Jaipur24 Jun 2025AY 2010-11
For Appellant: Shri Shrawan Kumar Gupta, AdvocateFor Respondent: Shri Gautam Singh Choudhary, Addl.CIT
Section 142(1)Section 147Section 148Section 234ASection 250Section 69CSection 80C

Asstt. CIT (2008) 219 CTR (Ker) 359 : (2008) 305 ITR 170 (Ker) held no longer good law. The heading of s.147 is "Income escaping assessment" and that of s.148 "Issue of notice where income escaped assessment". Sec. 148 is supplementary and complimentary to s.147. Sub-s. (2) of s.148 mandates ... concurred with. The very basis of initiation of proceedings for which reasons to believe were recorded were income escaping assessment in respect of items of club fees, gifts and presents, etc., but the same having not been done, the AO proceeded to reduce the claim of deduction under ss.80HH

JCIT OSD Central-1, Bhopal vs. M/S Shakshi Town Ship P Ltd, Gwalior

ITA 94/IND/2021[2011-12]Status: DisposedITAT Indore23 Jun 2025AY 2011-12

Bench: Shri B.M. Biyani & Shri Dinesh Mohan Sinha

Section 127Section 129Section 139Section 142(1)Section 143(1)Section 143(2)Section 144Section 147Section 148Section 68

reasons recorded by AO u/s 148 for issuance of notice, placed at Page 24 of Paper-Book-las under: Reasons for Income Escaping Assessment u/s 148 Name of the Assessee Address PAN Status Α.Υ. M/s. Shakshi Township Pvt. Ltd. S-36, Sanjay Complex, Jayendraganj, Gwalior-474001 AAQCS1892P Company ... which is chargeable to tax has escaped assessment for A.Y. 2011-12 and that, it is a fit case for income escaping assessment u/s 147 of the Act (Avaneesh Tiwari) Dy. Commissioner of Income Tax (Central)-1 Bhopal Reading line by line in open court, Ld. AR narrated that

Alauddin, Agra vs. ITO, Ward 1(1)(1), Agra

In the result, the appeal is partly allowed for statistical purposes

ITA 241/AGR/2024[2015-16]Status: DisposedITAT Agra20 Jun 2025AY 2015-16

Bench: : Shri Sunil Kumar Singh & Shri Manish Agarwalassessment Year: 2015-16

Section 142(1)Section 147Section 148Section 151Section 2(14)Section 250Section 54

assessment proceedings, which were being proceeded in the faceless manner u/s. 144B of the Act and entire procedure of faceless assessment of income escaping assessment was adopted by the Assessing Officer as 11 | P a g e provided u/s. 151A of the Act. We accordingly, do not find any illegality

Rising Star Investment, Mumbai vs. ITO Ward 26(1)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 186/MUM/2025[2017-2018]Status: DisposedITAT Mumbai20 Jun 2025AY 2017-2018

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri. Ashwin Chhag, CAFor Respondent: Shri. Mahadevan A.M. Krishanan, Addl. CIT
Section 139(1)Section 143(3)Section 147Section 148Section 148ASection 151Section 56(2)(via)Section 56(2)(viia)

appropriate authorities specified under Section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal ... Principal Director or Commissioner or Director; and (b) no notice could be issued after the expiry of three years; and (ii) If income escaping assessment is more than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner

Prakash Babulal Bhandari, Ahmedabad vs. The ITO, Ward-3(3)(1), Ahmedabad

In the result, we are of the considered view that the notice issued by the Assessing Officer under Section 148A of the Act was barred by limitation and hence, the appeal of the assessee succeeds

ITA 737/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad18 Jun 2025AY 2015-16

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Kirit B. Soni, A.RFor Respondent: Shri Hargovind Singh, Sr. DR
Section 148Section 69

case of Sri Adiparashakti Boards vs. ITO in ITA No. 1131/Hyd/2024 vide order dated 03.04.2025 the ITAT Hyderabad held that since the actual income escaping assessment was below Rs. 50,00,000/-, the Assessing Officer lacked proper jurisdiction to reopen the assessment. 12. In the result

Shri Amit Jayantilal Doshi, Mumbai vs. ITO Ward 19(1)(1), Mumbai

In the result, the appeal is allowed

ITA 2950/MUM/2025[2018-19]Status: DisposedITAT Mumbai18 Jun 2025AY 2018-19

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri Reepal Tralshawala, ARFor Respondent: Shri Aditya Rai (Sr. DR)
Section 147Section 148Section 148ASection 151Section 69C

notice issued u/s 148 of the Act dated 21.04.2022 is beyond 3 years from the relevant AY 2018-19 and the alleged income escaping assessment is less than Rs. 50 lakhs, and hence, the reopening of the assessment is bad in law and liable to be quashed. b. without prejudice ... that notice issued u/s 148 of the Act dated 21.04.2022 is beyond 3 years from the relevant AY 2018-19 and the alleged income escaping assessment is less than Rs. 50 lakhs, and hence, the reopening of the assessment is bad in law and liable to be quashed