“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

ACIT Circle 22 (1) Mumbai, Mumbai vs. Rajesh Nemichand Jain, Mumbai

In the result, appeal of the revenue is dismissed

ITA 1457/MUM/2025[2016]Status: DisposedITAT Mumbai07 May 2025

Bench: Shri Saktijit Dey, Hon'Ble & Shri Narendra Kumar Billaiya, Hon'Ble

For Appellant: Mr. Shreyash Shah, A/RFor Respondent: Shri Govindrao J. Ninawe, Sr. D/R

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

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 the prior approval of the Principal

Smt Nirakumari Virendra Bajaj, Mumbai vs. ITO, Ward-17(2)(1), Mumbai

ITA 6177/MUM/2024[2018-19]Status: DisposedITAT Mumbai07 May 2025AY 2018-19

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Reepal TralshawalaFor Respondent: Shri Asif Karmali

Section 144BSection 147Section 148Section 148ASection 149Section 149(1)(a)Section 151Section 250

notice issued us. 148 of the Act dated 20.04.2022 is beyond 3 years from the relevant AY 2018-19 and the alleged income escaping assessment is less than Rs.50 lakhs, and this ground taken is rejected in para 4.1 of the order by holding that the same is general

Gck Stock Private Limited, Jaipur vs. ITO WD 1(4), Jaipur

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

ITA 1572/JPR/2024[2015-2016]Status: DisposedITAT Jaipur06 May 2025AY 2015-2016

For Appellant: Shri Bhupendra Shaha, C.AFor Respondent: Shri Arvind Kumar, CIT-DR

Section 131Section 133(6)Section 142(1)Section 143(3)Section 148Section 148ASection 234Section 250Section 271

misplaced. The Finance Act, 2021, introduced significant changes to Section 148 and 148A, allowing reassessment up to 10 years in cases involving income escaping assessment exceeding *50 lakh and the procedure laid down in the Act has been duly followed by the AO in this case read with TOLA (Taxation

Nissim Traders Pvt. Ltd., Mumbai vs. ACIT, Circle 10(3)(1), Mumbai

The appeal of the assessee is allowed

ITA 3090/MUM/2024[2012-13]Status: DisposedITAT Mumbai06 May 2025AY 2012-13

Bench: Shri Saktijit Dey, Vp & Ms Padmavathy S, Am

For Appellant: Shri P.V. Desai, ARFor Respondent: Shri Leyaqat Ali Aafaqui- Sr. DR

Section 133(6)Section 143(3)Section 144Section 147Section 148

other hand argued that the assessee's claim that the reasons recorded are not clear with regard to the income escaping assessment is not correct for the reason that the assessee has not raised any objections before the AO in this regard. The ld. DR drew our attention ... years. It is relevant to examine the provisions of section 147, with regard to reopening beyond 4 years which read as under – 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

Institute Management Committee Iti Jhalawar, Jhalawar vs. ITO Ward Jhalawar, Jhalawar

The appeals of the assessee are hereby allowed

ITA 41/JPR/2025[2014-15]Status: DisposedITAT Jaipur05 May 2025AY 2014-15

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee In This Appeal Has Raised The Following Grounds;

For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT

Section 10Section 144Section 147Section 151Section 234

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

Institute Management Committee Iti Jhalawar, Jhalawar vs. ITO Ward Jhalawar, Jhalawar

The appeals of the assessee are hereby allowed

ITA 39/JPR/2025[2013-14]Status: DisposedITAT Jaipur05 May 2025AY 2013-14

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee In This Appeal Has Raised The Following Grounds;

For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT

Section 10Section 144Section 147Section 151Section 234

Dattatray Namdev Suryawanshi, Panvel vs. Assessment Unit, Income Tax Department, New Delhi

In the result, appeal filed by assessee is allowed

ITA 896/MUM/2025[2018-19]Status: DisposedITAT Mumbai02 May 2025AY 2018-19

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2018-19

For Appellant: Mr. Kaushik Makwana, ARFor Respondent: Shri R. R. Makwana, Addl. CIT

Section 115BSection 147Section 194CSection 234ASection 234BSection 250Section 270ASection 69

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 the prior approval of the Principal

Vinod Kumar Jangir, Jhunjhunu vs. Dct, Circle (Intl Tax), Jaipur

Appeal is allowed and the impugned assessment

ITA 779/JPR/2024[2013-14]Status: DisposedITAT Jaipur01 May 2025AY 2013-14

Bench: Shri Gagan Goyal & Shri Narinder Kumarmr. Vinod Kumar Jangir, C/O. Yashi Super Market, Vishwakarma Complex, Gandhi Chowk, Distt. Jhunjhunu -333001 Pan No. Arzpj 7960G ...... Appellant Vs.

For Appellant: Mr. R. S. Poonia, C.A., Ld. ARFor Respondent: Mrs. Alka Gautam, CIT, Ld. DR

Section 139(4)Section 144CSection 147Section 148Section 148ASection 69

been noticed that notices cannot be issued in a case for A.Y. 2013-14, A.Y. 2014-15 and A.Y. 2015-16. if the income escaping assessment, in that case for that year, amounts to or is likely to amount to less than fifty lakh rupees. Hence, in order to reduce ... information and material may not be provided in a case for A.Y. 2013-14. A.Y. 2014-15 and A.Y. 2015-16, if the income escaping assessment, in that case for that year, amounts to or is likely to amount to less than fifty lakh rupees. Separate instruction shall be issued

Dandu Jojappa Francis, Bangalore vs. Income Tax Officer, Ward-4(2)(3), Bengaluru

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

ITA 2305/BANG/2024[2016-17]Status: DisposedITAT Bangalore30 Apr 2025AY 2016-17

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.Assessment Year : 2016-17

For Respondent: Smt. Richa Bakiwala, CA &

Section 148Section 148ASection 151

been noticed that notices cannot be issued in a case for AY 2013-14, AY 2014-15 and AY 2015-16, if the income escaping assessment, in that case for that year, amounts to or is likely to amount to less than fifty lakh rupees. Hence, in order to reduce ... information and material may not be provided in a case for AY 2013-14, AY 2014-15 and AY 2015-16, if the income escaping assessment, in that case for that year, amounts to or is likely to amount to less than fifty lakh rupees. Separate instruction shall be issued

ACIT Circle 4(3)(1), Mumbai vs. Johnson Dye Works Pvt Ltd, Mumbai

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

ITA 1118/MUM/2024[2012-13]Status: DisposedITAT Mumbai30 Apr 2025AY 2012-13

Bench: Ms. Kavitha Rajagopal, Jm & Shri. Prabhash Shankar, Am Acit Circle 4(3)(1), Mumbai Johnson Dye Works Pvt. Ltd. Aayakar Bhavan, M. K. Road, Ground Floor, New Era House, Churchgate – 400020. Vs. Mogul Lane, Matunga (W), Mumbai – 400016. Pan/Gir No. Aaacj2082J (Assessee) : (Respondent) Assessee By : Shri. Jayesh Dadia/Samir Shah Respondent By : Shri. Ajay Singh (Sr. Dr) Date Of Hearing : 04.02.2025 Date Of Pronouncement : 30.04.2025 O R D E R Per Kavitha Rajagopal, J M: This Appeal Has Been Filed By The Assessee, Challenging The Order Of The Learned Commissioner Of Income Tax (Appeals) Delhi (‘Ld. Cit(A)’ For Short), National Faceless Appeal Centre (‘Nfac’ For Short) Passed U/S. 250 Of The Income Tax Act, 1961 (‘The Act'), Pertaining To The Assessment Year (‘A.Y.’ For Short) 2012-13. 2. The Revenue Has Raised The Following Grounds Of Appeal Along With Additional Grounds Of Appeal: “1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit (A) Has Erred In Deleting Transactions Of Rs. 2,12,42,250/-In Nsel Exchange As Client Code Modification Transaction For Shifting Of Profit/ Loss Added To The Income Of The Assessee Relying On The Decision In The Case Of Coronation Agro Industries Ltd. Vs. Dcit 390 Itr 464 (Bom.) Without Going Into The Merits Of The Case? Johnson Dye Works Pvt. Ltd.

For Appellant: Shri. Jayesh Dadia/Samir ShahFor Respondent: Shri. Ajay Singh (Sr. DR)

Section 133(6)Section 142(1)Section 143(2)Section 143(3)Section 148Section 250

errors in filling of the client code. At any rate, what can be taxed in the hands of the present assessee is the income escaping assessment. Even if the Revenue's theory of the assessee having enabled the clients to claim contrived losses, the Revenue had to bring on record

Ritika Jain, Thane vs. ITO(It Tp), Bhopal, Aaykar Bhavan

Appeal of the assessee is allowed for statistical purpose

ITA 632/IND/2024[2015-16]Status: DisposedITAT Indore29 Apr 2025AY 2015-16

Bench: Smt. Annapurna Gupta & Shri Paresh M Joshiritika Jain, Cit (Appeals), बना A-504, Laxmi Residency Chs Nfac, म/ Ltd, Delhi Vs. Opposite Datta Mandir Check Naka, Wagle Estate, Thane

Section 142(1)Section 144CSection 148Section 148ASection 250Section 253

appellant was not having the jurisdiction for the same in view of Section 151A and the notification issued thereunder notifying e-Assessment of Income Escaping Assessment Scheme, 2022 and, thereby, rendering the said order and the notice as well as the entire assessment proceeding as null and void

Assistant Commissioner of Income Tax, Coimbatore vs. Kamatchipuram Vellingiri Jayaraman, Coimbatore

Appeal of the revenue is dismissed, where as the Cross objection of the assessee is allowed

ITA 2777/CHNY/2024[2017-18]Status: DisposedITAT Chennai29 Apr 2025AY 2017-18

Bench: Shri Manu Kumar Giri & Shri S.R.Raghunatha

For Appellant: Ms. D.Komali Krishna, CITFor Respondent: Mr.Venkatswami, ITP &

Section 147Section 148

Income Tax Act, which is central to this determination, as it stood then, in relevant part, is set out below: "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

Sonali Dharmendra Mhatre, Mumbai vs. ITO, WD 3(2), Kalyan

In the result, the appeal filed by the Assessee stands allowed

ITA 6594/MUM/2024[2015-16]Status: DisposedITAT Mumbai28 Apr 2025AY 2015-16

Bench: Shri Narender Kumar Choudhryassessment Year: 2015-16

For Appellant: Shri Shashank Mehta, Ld. A.RFor Respondent: Shri Manoj Kumar Sinha, Ld. Sr.D.R

Section 147Section 148Section 148ASection 250

order, accepted such claim of the Assessee and ultimately made no addition on account of such deposit, which goes to show that the income escaping assessment, has not exceeded Rs.50,00,000/- and therefore in view of the provisions of section 149(1)(b) of the Act; after elapsing

Dy. Commmissioner of Income Tax, Mumbai vs. Prasad Shetty, Sion, Mumbai

In the result, appeal of the Revenue is dismissed and cross objection of the assessee is allowed

ITA 6256/MUM/2024[2017-18]Status: DisposedITAT Mumbai28 Apr 2025AY 2017-18

Bench: SHRI AMIT SHUKLA (Judicial Member), SMT. RENU JAUHRI (Accountant Member)

Section 144BSection 147Section 148Section 148ASection 149(1)(a)Section 151ASection 56(2)(vii)

same has not been issued in accordance with Section 151A read with the e-Assessment of Income Escaping Assessment Scheme 2022. 5. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in upholding the additions of Rs. 6,05,551 being the difference

Mr Rahat Mohammed Riyazuddin Shaikh, Mumbai vs. Income Tax Officer NFAC, Mumbai

In the result, appeal of the assessee is allowed

ITA 5291/MUM/2024[2017-18]Status: DisposedITAT Mumbai28 Apr 2025AY 2017-18

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

For Appellant: Shri Ajay Singh, Advocate and Shri Akshay Pawar, ARFor Respondent: R. R. Makwana, Addl. CIT

Section 147Section 148Section 148ASection 151Section 151(1)Section 50CSection 56(2)Section 56(2)(vii)

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

Income Tax Officer, Mumbai vs. Uttamchand Rajmal Jain, Mumbai

In the result the cross objection filed by the assessee stands allowed in terms of grounds 2, 5 and 7 and the appeal filed by the revenue stands dismissed

ITA 4714/MUM/2024[2016-17]Status: DisposedITAT Mumbai24 Apr 2025AY 2016-17

Bench: Smt. Beena Pillai () & Smt. Renu Jauhri ()

Section 147Section 148Section 151Section 69A

submitted that as per section 151 of the new regime the appropriate authorities are based on two criteria’s as under: “(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

Moorthy, Salem vs. ACIT, Circle-2, Salem

Appeal of the assessee is allowed

ITA 490/CHNY/2025[2011-12]Status: DisposedITAT Chennai23 Apr 2025AY 2011-12

Bench: Shri Manu Kumar Giri & Shri S.R.Raghunatha

For Appellant: Mr.T.S.Lakshmi VenkatramanFor Respondent: Ms. Anitha, Addl.CIT

Section 143(3)Section 147Section 148

Miker Financial Consultants Pvt. Ltd., Mumbai vs. Ward-10(2)(4), Mumbai

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

ITA 849/MUM/2024[2017-18]Status: DisposedITAT Mumbai23 Apr 2025AY 2017-18

Bench: SHRI VIKRAM SINGH YADAV (Accountant Member), SHRI SANDEEP SINGH KARHAIL (Judicial Member)

Section 144Section 151Section 250Section 68Section 69C

earned any exempt Long Term Capital Gains (LTCG) nor earned any Short Term Capital Gains (STCG) and thus, no question of any income escaping assessment by way of bogus exempt LTCG. 3.The NFAC (CIT(A)) failed to appreciate that the information of alleged escapement of income is wrong and contrary

Hasmukh Khetshi Shah, Mumbai vs. ITO Circle 23(1), Mumbai

In the result, the appeal filed by the Assessee stands allowed

ITA 5932/MUM/2024[2010-11]Status: DisposedITAT Mumbai23 Apr 2025AY 2010-11

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarassessment Year: 2010-11

For Appellant: Shri Ajay R. Singh, Ld. A.RFor Respondent: Shri Hemanshu Joshi, Ld. D.R

Section 131Section 143(1)Section 143(3)Section 147Section 148Section 250

errors in filling of the client code. At any rate, what can be taxed in the hands of the present Assessee is the income escaping assessment. Even if the Revenue's theory of the Assessee having enabled the clients to claim contrived losses, the Revenue had to bring on record

Suman Kishore, New Delhi vs. ITO, New Delhi

ITA 1434/DEL/2012[2008-09]Status: DisposedITAT Delhi23 Apr 2025AY 2008-09

Bench: Shri Anubhav Sharma & Shri Manish Agarwal[Assessment Year : 2012-13] Sunita Bhardwaj, Vs Acit, 1/2, Taj Apartments, Circle-63(1), R.K.Puram, Sector-12, Delhi Delhi-110022. Pan-Ahfpb1928E Appellant Respondent

Section 1Section 147Section 148Section 250Section 68

basis of mechanical sanction is invalid by returning following findings :- “ 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