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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

K K Spun India Limited, Delhi vs. DCIT Central Circle-2 New Delhi, Jhandewalan Delhi

The appeals of the assessee are allowed

ITA 2006/DEL/2024[2019-20]Status: DisposedITAT Delhi03 Jan 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 144Section 147Section 148Section 148ASection 14tSection 250Section 271Section 69A

same are contrary to the amended provision of Section 151A read with Section 144B of the Act as well as e-Assessment of Income Escaping Assessment Scheme, 2022. 17. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts ... same are contrary to the amended provision of Section 151A read with Section 144B of the Act as well as e-Assessment of Income Escaping Assessment Scheme, 2022. 15. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts

K K Spun India Limited, Delhi vs. DCIT, Jhandewalan Delhi

The appeals of the assessee are allowed

ITA 2005/DEL/2024[2018-19]Status: DisposedITAT Delhi03 Jan 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 144Section 147Section 148Section 148ASection 14tSection 250Section 271Section 69A

same are contrary to the amended provision of Section 151A read with Section 144B of the Act as well as e-Assessment of Income Escaping Assessment Scheme, 2022. 17. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts ... same are contrary to the amended provision of Section 151A read with Section 144B of the Act as well as e-Assessment of Income Escaping Assessment Scheme, 2022. 15. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts

Alps Construction, Mumbai vs. ITO Ward 23(1)(1), Mumbai

ITA 3953/MUM/2024[2017-18]Status: DisposedITAT Mumbai03 Jan 2025AY 2017-18

Bench: SHRI B R BASKARAN (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)

Section 143(3)Section 153CSection 254(1)

initiated upto 10 years in case of searches conducted on and after April 1, 2017, provided specific conditions are met i.e. if income escaping assessment amounting to Rs. 50 lakhs or more for period beyond 6 years. In appellant case admittedly search was conducted after 1.04.17 and quantum of escapement

S.P. Singla Construction Private Limited, Delhi vs. Deputy Commissioner of Income Tax, Chandigarh

In the result, the appeal is allowed

ITA 514/CHANDI/2023[2012-2013]Status: DisposedITAT Chandigarh02 Jan 2025AY 2012-2013

Bench: SHRI MAHAVIR SINGH (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Smt. Kusum Bansal, CIT-DR
Section 127Section 132Section 143(3)Section 147Section 148Section 148(2)Section 153Section 153A

that assessment in this case should have been framed, if at all, u/s 153A of the Act by invoking 4th provisio as the income escaping assessment was more than 50 lacs; therefore proceedings u/s 147 of the Act were bad in law, void ab initio has been examined. In order

Mr. Roshan A Kudalkar Through Legal Heir Mr. Swaroop R Kudalkar, Khed, Ratnagiri vs. ITO, Ward-3, Ratnagiri

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

ITA 2275/PUN/2024[2011-12]Status: DisposedITAT Pune30 Dec 2024AY 2011-12

Bench: MS.ASTHA CHANDRA, JUDICIAL MEMBER AND DR.DIPAK P. RIPOTE (Accountant Member)

Section 147Section 148Section 243ASection 250Section 250(4)

have condoned the delay and decided the case on merits. 2.2 Ld.AR also submitted that the notice u/sec.148 is bad in law, as income escaping assessment is less than the prescribed amount. Ld.AR invited our attention to page no.2 of the paper book which is computation of Capital Gains. Ld.AR

Atiq Ahmed, Hapur vs. ITO, Ward-2(3)(4), Hapur

In the result, both the appeals of the assessee are allowed

ITA 3676/DEL/2024[2014-15]Status: DisposedITAT Delhi27 Dec 2024AY 2014-15

Bench: Shri Mahavir Singh, Hon’Ble & Shri S Rifaur Rahmanआ.अ.सं/.I.T.A Nos.3675 & 3676/Del/2024 िनधा"रणवष"/Assessment Years: 2013-14& 2014-15 बनाम Atiq Ahmed Income Tax Officer, House No.333, Bhamda Patti, Vs. Ward-2(3)(4), Pattharwalakaun, Aaykarbhawan, Hapur, Uttar Pradesh. Teachers Colony, Bulandshahr, Uttar Pradesh. Pan No. Aifpa8796G अपीलाथ" Appellant ""यथ"/Respondent

Section 147Section 148Section 40A(3)

Income Tax Act, 1961 to re-open the assessment u/s 147 of Income Tax Act, 1961, so as to bring tax the income escaping assessment.” 7. Ld. Counsel for the assessee stated that the reason for which reopening was done was to bring the tax escaped income of credit entries ... Bombay High Court in the case of VI 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

Atiq Ahmed, Hapur vs. ITO, Ward-2(3)(4), Hapur

In the result, both the appeals of the assessee are allowed

ITA 3675/DEL/2024[2013-14]Status: DisposedITAT Delhi27 Dec 2024AY 2013-14

Bench: Shri Mahavir Singh, Hon’Ble & Shri S Rifaur Rahmanआ.अ.सं/.I.T.A Nos.3675 & 3676/Del/2024 िनधा"रणवष"/Assessment Years: 2013-14& 2014-15 बनाम Atiq Ahmed Income Tax Officer, House No.333, Bhamda Patti, Vs. Ward-2(3)(4), Pattharwalakaun, Aaykarbhawan, Hapur, Uttar Pradesh. Teachers Colony, Bulandshahr, Uttar Pradesh. Pan No. Aifpa8796G अपीलाथ" Appellant ""यथ"/Respondent

Section 147Section 148Section 40A(3)

Income Tax Act, 1961 to re-open the assessment u/s 147 of Income Tax Act, 1961, so as to bring tax the income escaping assessment.” 7. Ld. Counsel for the assessee stated that the reason for which reopening was done was to bring the tax escaped income of credit entries ... Bombay High Court in the case of VI 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

Satish Harnamdas Sethi, Mumbai vs. National Faceless Assessment Centre Delhi, Delhi

In the result, appeal of the assessee is allowed

ITA 3091/MUM/2024[2017-18]Status: DisposedITAT Mumbai24 Dec 2024AY 2017-18

Bench: Ms Kavitha Rajagopal & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Jitendra Singh, AdvocateFor Respondent: Shri Pushkaraj Bhangepatil, Sr.AR
Section 147Section 148Section 151Section 151ASection 56(2)(vii)

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 ... regime. The effect of Section 151 of the new regime is thus: 9 Satish Harnamdas Sethi, AY 2017-18 (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 Commissioner

ACIT-15(3)(2), Mumbai vs. Surya Ferrous Alloys Pvt Ltd, Navi Mumbai

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

ITA 1406/MUM/2024[2017-15]Status: DisposedITAT Mumbai24 Dec 2024AY 2017-15

Bench: Ms Kavitha Rajagopal & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Ajay R Singh, Advocate and Shri Akshay Pawar, AdvocateFor Respondent: Shri Pushkaraj Bhangepatil, Sr.DR
Section 144Section 144BSection 148Section 148ASection 151Section 151ASection 40A(3)

Assessing Officer in view of NOTIFICATION S.O. 1466(E) [NO. 18/2022/F. NO. 370142/16/2022- TPL(PART1], DATED 29-03-2022 titled "E-ASSESSMENT OF INCOME ESCAPING ASSESSMENT SCHEME, 2022" passed u/s 151A of the Act. Thus, Notice u/s 148 dated 30/07/2022 is bad in law. CO No. 77/Mum/2024 Surya Ferrous Alloys ... 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

M/S. Toyota Kirloskar Motor Pvt Ltd, Bengaluru vs. Assistant Commissioner of Income Tax, Ltu, Circle-1, Bengaluru

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

ITA 1333/BANG/2024[2011-12]Status: DisposedITAT Bangalore20 Dec 2024AY 2011-12

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeyassessment Year: 2011-12 M/S. Toyota Kirloskar Motor Pvt. Ltd. Plot No.1, Bidadi Industrial Area So Bidadi Acit Vs. Ramanagar Ltu, Circle-1 Bengaluru 562 109 Banalore Pan No : Aaact5415B Appellant Respondent Appellant By : Sri Padam Chand Kincha, A.R. Respondent By : Smt. Kumutha D., D.R. Date Of Hearing : 24.09.2024 Date Of Pronouncement : 20.12.2024

For Appellant: Sri Padam Chand Kincha, A.RFor Respondent: Smt. Kumutha D., D.R
Section 143(1)Section 143(3)Section 147Section 148Section 234BSection 234B(3)Section 250

liable to be quashed. b. Without any 'reason to believe' as to how the said information has resulted in income escaping assessment, the impugned order passed by the learned AO is thus bad in law and liable to be quashed. 3. The learned CIT(A) has erred in confirming ... Income Tax Act, 1961 [for short, "the Act"]. Prior to Direct Tax Laws (Amendment) Act, 1987, Section 147 reads as under: "Income escaping assessment. 147. If-- [a] the Income-tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee

Pankaj Chandrakant Pimple, Borivali (West), Mumbai vs. Int Tax Ward 3(3)(1), Mumbai

ITA 1577/MUM/2024[2017-18]Status: DisposedITAT Mumbai20 Dec 2024AY 2017-18

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am

Section 143(2)Section 144Section 144C(1)Section 148Section 148ASection 151Section 56Section 56(2)Section 69

IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE MS. KAVITHA RAJAGOPAL, JM AND SMT. RENU JAUHRI, AM ITA

Vairavan Muthuraman, Chennai vs. ACIT, Circle-1, Karaikudi

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 2328/CHNY/2024[2014-15]Status: DisposedITAT Chennai18 Dec 2024AY 2014-15

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. No.2328/Chny/2024 िनधा"रण वष"/Assessment Year: 2014-15 Vairavan Muthuraman, Vs. The Assistant Commissioner Of New No. 45, First Main Road, Shenoy Income Tax, Nagar (West), Chennai. Circle, 1, Karaikudi. [Pan:Abapm0217G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri T. Vasudevan, Advocate ""थ" की ओर से/Respondent By : Smt. Samantha Mullamudi, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 12.12.2024 घोषणा की तारीख /Date Of Pronouncement : 18.12.2024 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Order Dated 08.07.2024 Passed By The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi For The Assessment Year 2014-15. 2. At The Outset, The Ld. Ar Shri T. Vasudevan, Advocate Submits That Ld. Cit(A) Did Not Give Any Finding On The Legal Issue Of Reopening Of Assessment Under Section 147 Of The Income Tax Act, 1961 [“Act” In 2

For Appellant: Shri T. Vasudevan, AdvocateFor Respondent: Smt. Samantha Mullamudi, Addl. CIT
Section 147Section 37

there was neither any failure on the part of assessee to disclose material facts nor any fresh material had arisen leading to any income escaping assessment, thereby, the reopening of assessment is unsustainable and untenable in law. Further he submits that the issues of house rent allowance claimed under section

Shambhavee Shashikant Kadam, Andheri (West) vs. National Faceless Assessment Centre, New Delhi

The appeal of the assessee is partly allowed

ITA 4748/MUM/2024[2017-18]Status: DisposedITAT Mumbai18 Dec 2024AY 2017-18

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Respondent: Shri Bhangepatil Pushkaraj
Section 147Section 148Section 148ASection 151Section 234BSection 56(2)(vii)Section 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

M/S. Flourish Purefoods Pvt.Ltd., Ahmedabad vs. The DCIT., Cent.Circle-2(1), Ahmedabad

In the result, this ground of appeal of the assessee is allowed

ITA 30/AHD/2022[2016-17]Status: DisposedITAT Ahmedabad16 Dec 2024AY 2016-17

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyali.T(Ss).A. No.518/Ahd/2019 (Assessment Year: 2015-16) Flourish Purefoods Pvt. Ltd., Vs. Deputy Commissioner Of Income 11-12, Ecs House, Garden View, Tax, Nr. Global Hospital, Bodakdev, Central Circle-2(1), Ahmedabad-380054 Ahmedabad [Pan No.Aadcv2683B] (Appellant) .. (Respondent)

For Appellant: Shri Parimalsinh B. Parmar, A.RFor Respondent: Shri B. P. Srivastava, Sr. D.R
Section 132(4)Section 153ASection 271(1)(c)Section 32Section 68

earlier year as elaborated somewhere in the preceding paragraph. 11.6 Moving further, we also note that the assessee has claimed that there was income escaping assessment in the hands of Shri Kanjibhai Desai under the provisions of section 147 of the Act out on account of cash deposited

Damji J Gala, Khandilkar Road vs. ITO 19(1)(4), Tardeo Road

In the result the appeal filed by the assessee stands partly

ITA 3407/MUM/2024[2010-11]Status: DisposedITAT Mumbai16 Dec 2024AY 2010-11

Bench: Smt Beena Pillai & Shri Prabhash Shankar

Section 147Section 148Section 2Section 2(47)

assessee and it is noticed by the Assessing Officer that the assessee has understated the income shall be deemed to be income escaping assessment for the purpose of Section 147 of the I.T. Act. Income escaping assessment under the Income-tax Act covers the case of discovery of mistake ... taxed as per the provisions of section 50C of the I.T. Act. Hence there has been a direct link with the income escaping assessment in your case. Further, according to the registration of the document, ownership of the asset got transferred to the buyer on 27.05.2009, hence chargeability of capital

Mili Marketing Pvt Ltd., New Delhi vs. ITO, Ward-16(4), New Delhi

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

ITA 2319/DEL/2023[2016-17]Status: DisposedITAT Delhi12 Dec 2024AY 2016-17

Bench: Shri Pradip Kumar Kedia & Shri Yogesh Kumar Us[Assessment Year : 2016-17] M/S. Mili Marketing Pvt.Ltd., Vs Ito, H-108, Connaught Circus, Ward-16(4), New Delhi-110001. New Delhi. Pan-Aabcm7097H Appellant Respondent Appellant By Shri Ved Jain, Adv & Shri Aman Garg, Ca Respondent By Ms. Smita Singh, Sr.Dr Date Of Hearing 12.09.2024 Date Of Pronouncement 12.12.2024

Section 133(6)Section 143(3)Section 68

investigation report. Present case is the case of regular scrutiny assessment u/s ➤ 143(3) of the Act. ➤ There is no allegation of any income escaping assessment against the assessee. ➤ Assessee has provided details in respect of source of the source of investment. 26. The above-mentioned facts, highlight the important

Rashmi, Kaithal vs. Income Tax Officer, Kaithal

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

ITA 406/CHANDI/2024[2012-13]Status: DisposedITAT Chandigarh06 Dec 2024AY 2012-13

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Pulkit Saini, AdvocateFor Respondent: Dr. Ranjeet Kaur, Sr. DR
Section 143(2)Section 143(3)Section 147Section 148Section 234ASection 69

case, the AO while recording the reasons came to the conclusion merely based on suspicion that cash deposited in the bank account reflects income escaping assessment without making any inquiry or effort to find out the nature of receipt in the hands of the assessee. It was submitted that

Aditi Express Cargo India Private Limited, Nagpur vs. DCIT ACIT Circle -3, Nagpur

In the result, all the captioned seven appeal are allowed for statistical purposes

ITA 560/NAG/2024[2014-15]Status: DisposedITAT Nagpur06 Dec 2024AY 2014-15

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

For Appellant: S/Shri Nitin Gulati a/w Pankaj KapoorFor Respondent: Shri Abhay Y. Marathe
Section 142(1)Section 147Section 148Section 250

alternate modes, including affixture. 3. Lack of Tangible Material for Reassessment: The reassessment was initiated without any tangible material or concrete evidence of income escaping assessment. The reassessment appears to be based on mere assumptions without establishing a live link between the information and the alleged income escapement

Aditi Express Cargo India Private Limited, Nagpur vs. DCIT ACIT Circle -3, Nagpur

In the result, all the captioned seven appeal are allowed for statistical purposes

ITA 559/NAG/2024[2014-15]Status: DisposedITAT Nagpur06 Dec 2024AY 2014-15

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

For Appellant: S/Shri Nitin Gulati a/w Pankaj KapoorFor Respondent: Shri Abhay Y. Marathe
Section 142(1)Section 147Section 148Section 250

alternate modes, including affixture. 3. Lack of Tangible Material for Reassessment: The reassessment was initiated without any tangible material or concrete evidence of income escaping assessment. The reassessment appears to be based on mere assumptions without establishing a live link between the information and the alleged income escapement

Aditi Express Cargo India Private Limited, Nagpur vs. DCIT ACIT Circle -3, Nagpur

In the result, all the captioned seven appeal are allowed for statistical purposes

ITA 558/NAG/2024[2014-15]Status: DisposedITAT Nagpur06 Dec 2024AY 2014-15

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

For Appellant: S/Shri Nitin Gulati a/w Pankaj KapoorFor Respondent: Shri Abhay Y. Marathe
Section 142(1)Section 147Section 148Section 250

alternate modes, including affixture. 3. Lack of Tangible Material for Reassessment: The reassessment was initiated without any tangible material or concrete evidence of income escaping assessment. The reassessment appears to be based on mere assumptions without establishing a live link between the information and the alleged income escapement