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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

Impressive Trading Private Limited, Mumbai vs. Income Tax Officer 10(1)(1), Mumbai

In the result, all the above appeals in ITA Nos

ITA 7299/MUM/2025[2014-15]Status: DisposedITAT Mumbai11 Feb 2026AY 2014-15

Bench: Shri Narendra Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri Ketan Vajani, CAFor Respondent: Shri Virabhadra S. Mahajan, (Sr. DR)
Section 147Section 147oSection 148Section 148ASection 151A

contrary to the provisions contained in the section 151A of the Act read with notification issued on 29.03.2022 regarding e-Assessment of Income Escaping Assessment Scheme, 2022. 5. On the facts and under the circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeals) has erred ... contrary to the provisions contained in the section 151A of the Act read with notification issued on 29.03.2022 regarding e-Assessment of Income Escaping Assessment Scheme, 2022. P a g e | 3 ITA No. 7298, 7299& 7300/Mum/2025 A.Y. 2013-14, 2014-15 & 2015-16 Impressive Trading Pvt Ltd., Mumbai

Impressive Trading Pvt. Ltd., Mumbai vs. Income Tax Officer 10(1)(1), Mumbai

ITA 7298/MUM/2025[2013-14]Status: DisposedITAT Mumbai11 Feb 2026AY 2013-14
Section 147Section 148Section 148ASection 151A

contrary to the provisions contained in the section 151A of the Act read with notification issued on 29.03.2022 regarding e-Assessment of Income Escaping Assessment Scheme, 2022. 5. On the facts and under the circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeals) has erred ... contrary to the provisions contained in the section 151A of the Act read with notification issued on 29.03.2022 regarding e-Assessment of Income Escaping Assessment Scheme, 2022. आयकर अपीलीय अधिकरण INCOME TAX APPELLATE TRIBUNA Page 3 ITA No. 7298, 7299& 7300/Mum/2025 A.Y. 2013-14, 2014-15 & 2015-16 Impressive Trading

Unmesh Ravindranath Fadnis, Thane vs. ITO Ward 3(4), Thane

In the result, grounds raised by the assessee are allowed for statistical purpose

ITA 6589/MUM/2025[2017-18]Status: DisposedITAT Mumbai11 Feb 2026AY 2017-18

Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

For Appellant: Shri Sanjeev Bhramhe, CAFor Respondent: Shri Sushil Bhagat, Sr. DR
Section 142(1)Section 144Section 147Section 148Section 148ASection 194ASection 69

that appellant has no investment in debentures. 3. The Notice u/s.148 (1) (b) as well as 148 are bad-in-law as the income escaping assessment was less than Rs.50,00,000/- (it was investment Rs.23,50,000/-) 4. The Notice u/s.148

DCIT, Delhi vs. Shivli Agarwal, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 7045/DEL/2025[2016-17]Status: DisposedITAT Delhi11 Feb 2026AY 2016-17

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 132Section 153CSection 153C(1)Section 68Section 69ASection 69C

would be from AY 2017-18 to 2022-23. 5. Thereafter, the Ld. CIT(A) in order to ascertain whether income escaping assessment in the relevant assessment year or the aggregate of the assessment years amounted to was likely to amount to Rs. 50 lakhs or more perused the copy

DCIT, Delhi vs. Shivli Agarwal, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 7044/DEL/2025[2015-16]Status: DisposedITAT Delhi11 Feb 2026AY 2015-16

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 132Section 153CSection 153C(1)Section 68Section 69ASection 69C

would be from AY 2017-18 to 2022-23. 5. Thereafter, the Ld. CIT(A) in order to ascertain whether income escaping assessment in the relevant assessment year or the aggregate of the assessment years amounted to was likely to amount to Rs. 50 lakhs or more perused the copy

DCIT, Delhi vs. Shivli Agarwal, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 7043/DEL/2025[2014-15]Status: DisposedITAT Delhi11 Feb 2026AY 2014-15

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 132Section 153CSection 153C(1)Section 68Section 69ASection 69C

would be from AY 2017-18 to 2022-23. 5. Thereafter, the Ld. CIT(A) in order to ascertain whether income escaping assessment in the relevant assessment year or the aggregate of the assessment years amounted to was likely to amount to Rs. 50 lakhs or more perused the copy

Devanshi Sharma, Mumbai vs. ITO Ward 34(1)(1), Mumbai

In the result, the appeal is allowed as indicated above

ITA 7007/MUM/2025[2017-18]Status: DisposedITAT Mumbai10 Feb 2026AY 2017-18

Bench: Shri Saktijit Dey & Shri Makarand Vasant Mahadeokardevanshi Sharma Ito, Ward 34(1)(1) 216, 2Nd Floor, Kautaliya Bhawan, Sagar Jyoti, Plot No. 18, Vs. 6Th Road, Jvpd Scheme, G-Block, Bandra Kurla Complex, Vile Parle (W), Mumbai-400 056 Bandra (E), Mumbai-400 051 Pan/Gir No. Cmvpk 6007 Q (Appellant) : (Respondent) Appellant By : Shri Shashank Mehta Respondent By : Shri Annavaram Kosuri Date Of Hearing : 05.02.2026 Date Of Pronouncement : 10.02.2026 O R D E R Per Saktijit Dey: This Is An Appeal By The Assessee Against Order Dated 27.10.2025, Passed By National Faceless Appeal Centre (‘Nfac’ For Short), Delhi For The Assessment Year (A.Y. For Short) 2017-18. 2. In Ground No. 1, The Assessee Has Raised A Pertinent Legal Issue, Challenging The Validity Of The Order Passed U/S. 148A(D) Of The Income Tax Act, 1961 (‘The Act’ For Short) As Also The Notice Issued U/S. 148 Of The Act. Since, The Aforesaid Issue Raised By The Assessee Is A Purely Legal & Jurisdictional Issue Going To The Root Of The Matter & Affecting The Validity Of The Proceedings Initiated U/S. 147 Of The Act, We Are Inclined To Address The Issue At The Very Outset.

For Appellant: Shri Shashank MehtaFor Respondent: Shri Annavaram Kosuri
Section 10(38)Section 147Section 148Section 148ASection 151

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

Krishan Pal, Gurgaon vs. ITO, Ward 2(2)-Gurgaon, Gurgaon

Appeal is allowed

ITA 139/DEL/2026[2014-15]Status: DisposedITAT Delhi10 Feb 2026AY 2014-15

Bench: Sh. Satbeer Singh Godaraita No. 139/Del/2026 : Asstt. Year: 2014-15 Krishan Pal, Vs Income Tax Officer, C/O Ca M R Sahu, Ward-2(2), House No. 651, 1St Floor, Sector- Gurgaon, 10A, Near G. D. Goenka Public Haryana-22001 School, Gurgaon-122001 (Appellant) (Respondent) Pan No. Asqpk6236J Assessee By: Sh. M. R. Sahu, Ca Revenue By : Sh. Manoj Kumar, Sr. Dr Date Of Hearing: 10.02.2026 Date Of Pronouncement: 10.02.2026 Order This Assessee’S Appeal For Assessment Year 2014-15 Arises Against The Cit(A)/Nfac, Delhi’S Din & Order No. Itba/Nfac/S/250/2024-25/1068016367(1) Dated 27.08.2024, In Proceedings U/S 147 R.W.S. 144 Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: Sh. M. R. Sahu, CAFor Respondent: Sh. Manoj Kumar, Sr. DR
Section 142(1)Section 147Section 148Section 151ASection 80C

Assessing Officer of National Faceless Assessment Centre,Delhi (FAO,NFAC-Delhi) erred in having assumed jurisdiction for concluding the face less assessment of income escaping assessment and passing the assessment order u/s.147 r.w.s 144 r.w.s 144B,dated 28/03/2022 prior to notification U/S.151A,dated 29/03/2022 for operation of 2 Krishan ... faceless income escaping assessment, accordingly the FAO is lack of jurisdiction for concluding income escaped assessment in a faceless manner, thus the assessee prays that the assessment order u/s.147 r.w.s 144 r.w.s 144B,dated 28/03/2022 may be held as null & void and to be quashed. (A). Additional legal jurisdictional grounds

M/S. Shreedhar Construction, Jamnagar vs. The ITO Ward- 1 (3) Jamnagar, Jamnagar

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

ITA 542/RJT/2025[2014-15]Status: DisposedITAT Rajkot09 Feb 2026AY 2014-15

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinhaआयकर अपील सं./Ita No. 542/Rjt/2025 (Assessment Year: 2014-15) (Hybrid Hearing) M/S. Shreedhar Construction, The Ito, Vs. 211, Divyam Complex Airodrome Ward-1(3), Road,Jamnagar-361006 ( Gujarat) Jamnagar "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aclfs0395R (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Kalpesh Doshi, Ld. ARFor Respondent: Shri Ahimanyu Singh Yadav, Sr. DR
Section 143(2)Section 147Section 148Section 148ASection 151Section 234ASection 271(1)(b)

Income-tax Act, 1961 read with section 3 of the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (TOLA) Income escaping assessment. Issue of notice for (Surviving time) Assessment year 2014- 15-Assessing Officer issued notice under section 148 on 22.06.2021 for assessment year 2014-15 during extended

Vatadi Krishnarao, Palakole vs. ITO, Ward - 1, Palakole

ITA 528/VIZ/2025[2017-18]Status: DisposedITAT Visakhapatnam09 Feb 2026AY 2017-18

Bench: Shri Ravish Sood, Hon’Ble

Section 147Section 148Section 148ASection 151ASection 250

notice issued u/s 148 of the IT Act by ITO, Ward 1, Palakole is invalid in terms of the "e-Assessment of Income Escaping Assessment Scheme, 2022" notified by Central Government w.e.f 27-03-2022 in terms of section 151A as per which notices u/s 148 shall be issued through ... Ld.AO vide order passed u/s 148A of the IT Act dt.12-03-2025, is that the withdrawals from bank account of assessee amounted to income escaping assessment, which opinion of Ld.AO is incorrect, illogical and is contrary to the facts, hence this basis on which the subject re-opening was made, makes

Amiben Rajeshkumar Punatar, Rajkot vs. ITO, Ward-1(2)(1), Rajkot

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

ITA 24/RJT/2026[2015-16]Status: DisposedITAT Rajkot06 Feb 2026AY 2015-16

Bench: Dr. Arjun Lal Sainiआयकरअपील सं. /Ita No.24/Rjt/2026 िनधा"रण वष"/Assessment Year : 2015-16 Amiben Rajeshkumar Punatar, बनाम/ Ito, Ashish, 41-New Jagnath Plot, Vs Ward – 1(2)(1), Rajkot – 360001(Gujarat) Rajkot "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Ahrpp4181F (अपीलाथ"/Assessee) (""थ"/Respondent)

For Appellant: Shri Mehul Ranpura, ARFor Respondent: Shri Dheeraj Kumar Gupta, Sr. DR
Section 10(38)Section 143Section 143(2)Section 143(3)Section 147Section 148Section 250

thereafter the assessing officer seeks to take an action u/s 147 of the Act, for re-assessment of income escaping assessment, after the period of 4 years from the end of the relevant assessment year, than such proceedings can be initiated only where income chargeable to tax has escaped assessment

Income Tax Officer, Ward-1, Gudiwada vs. Chagantipadu Primary Agricultural Co-Operative Credit Society Limited Noh957, Chagantipadu Village

In the result, the appeal by the Revenue and the cross objection by the

ITA 641/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam06 Feb 2026AY 2018-19

Bench: Shri Sandeep Singh Karhail, Hon’Ble

Section 147Section 148Section 250Section 69A

Faceless Assessment Mechanism as laid down in the provisions of section 144B of the Act r.w.s. 151A and “E-Assessment Scheme of Income Escaping Assessment Scheme-2022” notified by the Government of India on 29.03.2022 under section 151A of the Act. Thus, Ld.AR submitted that after the introduction ... outside the Faceless Mechanism as provided in section 144B r.w.s. 151A of the Act and “E-Assessment Scheme of Income Escaping Assessment Scheme-2022”. Consequently, the Co-ordinate Bench quashed the assessment order passed by the Assessment Unit of the Income Tax Department under section 147 r.w.s. 144B

Raghavan Nambath Menon, Bengaluru vs. ITO, Ward Intl. Taxation 1(2), Bmtc Building, Koramangala, Bengaluru

In the result, I pass the following:-

ITA 278/BANG/2025[2015-16]Status: DisposedITAT Bangalore06 Feb 2026AY 2015-16

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: CA Suresh Muthukrishnan, A.RFor Respondent: Dr. Divya K.J., CIT D.R
Section 143(2)Section 147Section 148Section 148ASection 149Section 149(1)(b)Section 68

there is time limit of 6 years available to the assessing officer for reopening of assessment if the income escaping assessment is more than Rs.1 lakh. In this case the income escaping assessment is more than Rs.1 lakh and the time limit of six years ends on 31/03/2022 ... invoked the extended period since the above investments/income fall in the category of ‘asset’ as per explanation to section 149(1) and the income escaping assessment represented in the form such assets, amounts to more than fifty lakh rupees. In reply to the SCN, the assessee categorically stated that

Rahul Meka, Bengaluru vs. Income Tax Officer, Ward International Taxation-1(2), Bengaluru

In the result, appeal filed by the assessee is allowed

ITA 813/BANG/2024[2016-17]Status: DisposedITAT Bangalore06 Feb 2026AY 2016-17

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Divya K.J – CIT(DR)(ITAT), Bangalore
Section 147Section 45Section 54Section 54FSection 68

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

Suman Jagannath Sankhe, Mumbai vs. ITO Ward 41.4.4, Kautilya Bhavan, Mumbai

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

ITA 7528/MUM/2025[2016-17]Status: DisposedITAT Mumbai06 Feb 2026AY 2016-17

Bench: Smt. Beena Pillai ()

Section 144BSection 148Section 148ASection 151Section 151ASection 68

beyond a period of three years from the end of the relevant assessment year (A.Y. 2016-17) despite the fact that the alleged income escaping assessment is only Rs. 15,00,000/- and even the assessed income is only Rs. 20,25,144/-, which is well below Rs. 50 lakhs ... issued without any Document Identification Number (DIN) as mandated by CBDT Circular No. 19 of 2019; h. In any case, there is no income escaping assessment in the present case and therefore the entire exercise is bad in law even on this count. 2.3 In the facts and circumstances

Late Chanchal Hiralal Shah (Represented by Legal Heir Rohit Hiralal Shah), Mumbai vs. ITO, Ward-20(1)(1), Mumbai

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

ITA 6349/MUM/2025[2017-18]Status: DisposedITAT Mumbai06 Feb 2026AY 2017-18

Bench: Smt. Beena Pillai ()

Section 148Section 148ASection 149Section 151Section 151ASection 56(2)(vii)

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. 4. On the facts ... I.T.A. No. 6349/Mum/2025 having the jurisdiction for the same in view of Section 151A and the notification issued therender 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

K V Tex Firm, Chennai vs. Asst. Commissioner of Income Tax, Chennai

Appeals of the assessee stand allowed

ITA 1865/CHNY/2025[2022-23]Status: DisposedITAT Chennai04 Feb 2026AY 2022-23

Bench: Shri George George K & Shri S.R. Raghunatha

For Appellant: Shri. D. Anand, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139(1)Section 143Section 147Section 44A

under section 148 dated 30.03.2023 by the Jurisdictional Assessing Officer, instead of the Faceless Assessing Officer as mandated under the e-Assessment of Income Escaping Assessment Scheme, 2022 notified u/s 151A, are without jurisdiction and therefore void ab initio? 18. The Id.AR submitted that on 29.03.2022, the CBDT notified ... Assessment of Income Escaping Assessment Scheme, 2022 in exercise of powers u/s.151A of the Act. Clause 3(b) of the said Scheme expressly provides that issuance of notice u/s.148 of the Act shall be through automated allocation in a faceless manner, in accordance with the risk management strategy formulated

K V Tex Firm, Chennai vs. Asst. Commissioner of Income Tax, Chennai

In the result, all the three appeals of the assessee stand allowed

ITA 1860/CHNY/2025[2020-21]Status: DisposedITAT Chennai04 Feb 2026AY 2020-21

Bench: Shri George George K & Shri S.R. Raghunatha

For Appellant: Shri. D. Anand, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139(1)Section 143Section 147Section 44A

under section 148 dated 30.03.2023 by the Jurisdictional Assessing Officer, instead of the Faceless Assessing Officer as mandated under the e-Assessment of Income Escaping Assessment Scheme, 2022 notified u/s 151A, are without jurisdiction and therefore void ab initio? 18. The ld.AR submitted that on 29.03.2022, the CBDT notified ... Assessment of Income Escaping Assessment Scheme, 2022 in exercise of powers u/s.151A of the Act. Clause 3(b) of the said Scheme expressly provides that issuance of notice u/s.148 of the Act shall be through automated allocation in a faceless manner, in accordance with the risk management strategy formulated

K V Tex Firm, Chennai vs. Asst. Commissioner of Income Tax, Chennai

Appeals of the assessee stand allowed

ITA 1859/CHNY/2025[2021-22]Status: DisposedITAT Chennai04 Feb 2026AY 2021-22

Bench: Shri George George K & Shri S.R. Raghunatha

For Appellant: Shri. D. Anand, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139(1)Section 143Section 147Section 44A

under section 148 dated 30.03.2023 by the Jurisdictional Assessing Officer, instead of the Faceless Assessing Officer as mandated under the e-Assessment of Income Escaping Assessment Scheme, 2022 notified u/s 151A, are without jurisdiction and therefore void ab initio? 18. The Id.AR submitted that on 29.03.2022, the CBDT notified ... Assessment of Income Escaping Assessment Scheme, 2022 in exercise of powers u/s.151A of the Act. Clause 3(b) of the said Scheme expressly provides that issuance of notice u/s.148 of the Act shall be through automated allocation in a faceless manner, in accordance with the risk management strategy formulated

Kalpana Ramesh Jain, Mumbai vs. Deputy Commissioner of Income Tax- Central Circle-4(3)(1), Mumbai

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

ITA 4597/MUM/2025[2017-18]Status: DisposedITAT Mumbai04 Feb 2026AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail ()

For Respondent: Shri Mani Jain a/w Shri Prateek
Section 10(38)Section 147Section 148Section 68

income-tax Act, 1961 and section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act. 2020 Income escaping assessment (Sanction for issue of notice) Assessment years 2013-14 to 2017-18-Whether section 3(1) of TOLA relaxes time limit for compliance with actions that