“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

Purple Suppliers Pvt. Ltd., Surat, Gujrat vs. A.C.I.T., Circle - 5(1), Kolkata

In the result, all the three appeal for AYs 2011-12 to 2013-14 of the assessee are allowed

ITA 757/KOL/2022[2011-2012]Status: DisposedITAT Kolkata26 Aug 2024AY 2011-2012

Bench: Dr. Manish Borad & Shri Sonjoy Sarmai.T.A. Nos.757 To 759/Kol/2022 Assessment Years: 2011-12 To 2013-14 Purple Suppliers Pvt. Ltd. ………. Appellant (Pan: Aafcp2218P) Vs. Asstt. Commissioner Of Income Tax, Circle-5(1), Kolkata. ………… Respondent Appearances By: Shri Anil Kochar, Advocate Appeared For Appellant. Shri Subhendu Datta, Cit, Dr Appeared For Respondent. Date Of Concluding The Hearing : 28.05.2024 Date Of Pronouncing The Order : 26.08.2024 Order Per Manish Borad: The Captioned Appeals Filed At The Instance Of The Assessee Pertaining To The Assessment Years (In Short “Ay”) 2011-12 To 2013-14 Are Directed Against The Separate Orders Passed U/S 250 Of The Income Tax Act, 1961 (In Short The “Act”) By Ld. Commissioner Of Income-Tax, Appeal, National Faceless Appeal Centre (Nfac), Delhi [In Short Ld. “Cit(A)”] Dated 03.11.2022 Arising Out Of The Separate Assessment Orders U/S 143(3)/147 Of The Act By Acit, Circle-5(1), Kolkata Dated 31.12.2018. Since Grounds Of Appeal Raised In These Appeals Are Common & Facts Are Identical, Except Variance In Amount, With The Consent Of Both The Parties, We Proceed To Dispose Of All These Appeals By This Consolidated Order For The Sake Of Brevity & Convenience.

Section 143(3)Section 147Section 148Section 250Section 69C

recorded, may not necessarily prove escapement of income at the stage of recording the reasons, such reasons must point out to an income escaping assessment and not merely need of an inquiry which may result in detection of an income escaping assessment. Undoubtedly at the stage of recording the reasons ... income has escapement. Merely because some further investigation have not been carried out, which if made, could have led to detection to an income escaping assessment, cannot be reason enough to hold the view that income has escaped assessment. It is also important to bear in mind the subtle

Deputy Commissioner of Income Tax, Mumbai vs. Teck Consultancy and Services Private Limited, Kolkata

In the result, the appeal of the revenue bearing ITA No

ITA 675/MUM/2024[2012-13]Status: DisposedITAT Mumbai26 Aug 2024AY 2012-13

Bench: Shri Amarjit Singh & Shri Anikesh Banerjee

For Appellant: Shri Vijay MehtaFor Respondent: Shri Solgy Jose T Kottaram, CIT, DR

Section 132(4)Section 139(1)Section 143(3)Section 153ASection 153DSection 250Section 68Section 69C

facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in holding that there was no income escaping assessment in the form of asset exceeding Rs. 50 lakhs, by disregarding the fact that the assessee's own unaccounted cash was routed to the balance ... lakh rupees or more in one year or in aggregate in the relevant four assessment years(falling beyond the sixth year), (ii) Such income escaping assessment is represented in the form of asset,M/s Tech Consultancy and Services Pvt LED Order u/s 1534 r.w.s

Anchita Properties Pvt. Ltd., Kolkata vs. ITO, Ward-12(1), Kolkata.

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

ITA 637/KOL/2024[2013-14]Status: DisposedITAT Kolkata22 Aug 2024AY 2013-14

Bench: Shri Rajpal Yadav, Vice-(Kz) & Dr. Manish Boradi.T.A. No. 637/Kol/2024 Assessment Year: 2013-2014 Anchita Properties Pvt. Limited,………………Appellant 29, Collotola Street, Kolkata-700029 [Pan:Aahca9115E] -Vs.- Income Tax Officer,………………………….……Respondent Ward-12(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 & I.T.A. No. 1067/Kol/2024 Assessment Year: 2013-2014 Anchita Properties Pvt. Limited,………………Appellant 29, Collotola Street, Kolkata-700029 [Pan:Aahca9115E] -Vs.- Principal Commissioner Of Income Tax,…Respondent Pcit, Kolkata-2, Office Of The Income Tax Officer, Ward-12(1), Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069

Section 133(6)Section 139(1)Section 143(2)Section 143(3)Section 147Section 148Section 250Section 263Section 68

enquiries made by the AO. (vi) 6th paragraph: It will include 'basis of reason to believe' along with nature and quantum of income escaping assessment. The AO will draw link between the findings and reasons to believe and will also give a categorical finding that reason to believe is based

Anchita Properties Pvt. Ltd., Kolkata vs. P.C.I.T., Kolkata - 2, Kolkata

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

ITA 1067/KOL/2024[2013-2014]Status: DisposedITAT Kolkata22 Aug 2024AY 2013-2014

Section 133(6)Section 139(1)Section 143(2)Section 143(3)Section 147Section 148Section 250Section 263Section 68

Netherlands Operating Company B.V., Chennai vs. The Assistant Commissioner of Income Tax, Int. Taxation 2(1), Chennai

In the result, appeal filed by the assessee is allowed

ITA 1198/CHNY/2023[2010-11]Status: DisposedITAT Chennai21 Aug 2024AY 2010-11

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita No.1198/Chny/2023 िनधा"रणवष"/Assessment Year: 2010-11 V. Netherlands Operating Company B.V. The Acit, Rmz Millenia (Phase-1), International Taxation -2(1), Business Park, 4Th Floor, Campus 1C, Chennai. 11, Dr. M.G.R. Road, Kandanchavadi, Perungudi, Chennai-600 096. [Pan: Aabcl 0573 D] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vishal Kalra, Adv. &For Respondent: Shri R. Clement Ramesh –

Section 143Section 143(2)Section 143(3)Section 144C(1)Section 144C(3)(b)Section 147Section 148

Once 148 notice is validly issued then the Assessing Officer would be in seizing of the case and have jurisdiction to determine the income escaping assessment. Once this jurisdiction is validly assumed then any lapse in the procedural part would not render the assessment order to be null and void ... 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

L.K. Exports, Mumbai vs. ITO Mum-W-(199)(91), Ward 23(2)(1), Mumbai

ITA 3582/MUM/2024[2013-14]Status: DisposedITAT Mumbai21 Aug 2024AY 2013-14

Bench: Justice (Retd.) C.V. Bhadang & Shri B.R. Baskaran: A.Y : 2013-14

For Appellant: Shri Rajesh C. ShahFor Respondent: Shri Manoj Kumar Sinha

Section 143(1)Section 143(3)Section 144BSection 147Section 148Section 151

impugned notice has been issued by the JAO and not by the Faceless Assessment Officer (FAO) as required by the ‘e-assessment of Income Escaping Assessment Scheme, 2022’ (‘2022 Scheme’ for short) notified by the CBDT vide notification dated 29.03.2022. Secondly, it is submitted that the notice does not bear ... there was any failure on the part of assessee to disclose fully and truly any material particulars which has led to any such income escaping assessment. Thus, the impugned notice and the re- opening, in our view, cannot be sustained for more reasons than one as set 6 L.K. Exports

Prakash Ishwaradas Suhanda, Mumbai vs. Income Tax Officer-27(2)(5), Mumbai

ITA 3350/MUM/2024[2009-10]Status: DisposedITAT Mumbai21 Aug 2024AY 2009-10

Bench: SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Venugopal C. NairFor Respondent: Shri Manoj Kumar

Section 144Section 147Section 148Section 251

resorting to re-opening assessment u/s 147 by issue of notice U/s 148 on erroneous reason that mere cash deposit represents income escaping assessment, appellant has not filed ROI and about non response to a notice U/s Assessment Year: 2009-10 133(6) issued when no proceedings were pending. WITHOUT

Mr. Ramprakash Mathuradas Dhingra, Mumbai vs. ITO, Ward 2(3), Kalyan

In the result, the appeals of the assessee for AY 2010-11 and AY 2011-12

ITA 4303/MUM/2023[2011-12]Status: DisposedITAT Mumbai21 Aug 2024AY 2011-12

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

For Appellant: Shri Joginder Singh, Sr. DR

Section 147Section 148Section 2(14)Section 251Section 68Section 69A

bringing any corroborative evidence on record. In this regard, it is relevant to look at the provisions of section 147 of the Act. Income escaping assessment. 5 147. If the 6[Assessing] Officer 7[has reason to believe 8] that any income chargeable to tax has escaped assessment

Mr. Ramprakash Mathuradas Dhingra, Mumbai vs. ITO Ward 2(3), Kalyan

In the result, the appeals of the assessee for AY 2010-11 and AY 2011-12

ITA 4302/MUM/2023[2010-11]Status: DisposedITAT Mumbai21 Aug 2024AY 2010-11

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

For Appellant: Shri Joginder Singh, Sr. DR

Section 147Section 148Section 2(14)Section 251Section 68Section 69A

Pankaj Surech Rach, Mumbai vs. Income Tax Officer, Int Tax Ward 4(1)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 2290/MUM/2024[2017-18]Status: DisposedITAT Mumbai20 Aug 2024AY 2017-18

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Rahul Chaudhary, Hon’Ble

For Appellant: Ms. Kinjal Bhuta, A/RFor Respondent: Shri Anil Sant, Addl. CIT D/R

Section 147Section 148Section 148ASection 149Section 151Section 50C

this reopening can be done only after the approval of the Principal Chief Commissioner, the highest level of the Income-tax Department…" Memorandum "…Income escaping assessment and search assessments Under the Act, the provisions related to income escaping assessment provide that if the Assessing Officer has reason to believe that ... procedure are as under:- ** ** (iii) Section 147 proposes to allow the Assessing Officer to assess or reassess or re-compute any income escaping assessment for any assessment year (called relevant assessment year). ** ** (vii) New Section 148A of the Act proposes that before issuance of notice the Assessing Officer shall conduct

M/S Man Diesel & Turbo India Ltd., Maharashtra vs. DCIT, New Delhi

In the result, assessee’s appeal is hereby dismissed

ITA 4295/DEL/2015[2003-04]Status: DisposedITAT Delhi20 Aug 2024AY 2003-04

Bench: Shri Kul Bharat & Shri Brajesh Kumar Singha.Y. 2003-04

Section 143(3)Section 147Section 148Section 250

submissions as called for. The objections raised by the assessee were disposed off by the AO vide order dated 26.11.2010. The above income escaping assessment because of the claim of provision as deduction was never disclosed by the appellant in the original assessment proceeding u/s 143(3). In view

Rajesh Khanna, Neelkanth Plywood, Yamunanagar vs. Income Tax Officer, Ward-3, Yamunanagar

In the result, the assessee's appeal in ITA

ITA 62/CHANDI/2024[2018-19]Status: DisposedITAT Chandigarh19 Aug 2024AY 2018-19

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Rohit Goel, CAFor Respondent: Shri Dharam Vir, JCIT Sr.DR

Section 148Section 69A

Bill 2021: "In view of above, there is a need to completely reform the system of assessment or reassessment or re-computation of income escaping assessment and the assessment of search related cases. The Bill ITA 62, 230/CHD/2024 & S.A.11/CHD/2024 A.Y.2018-19 20 proposes a completely new procedure of assessment of such

Income Tax Officer, Yamuna Nagar vs. Rajesh Khanna, Yamuna Nagar

In the result, the assessee's appeal in ITA

ITA 230/CHANDI/2024[2018-19]Status: DisposedITAT Chandigarh19 Aug 2024AY 2018-19

Bench: SHRI A.D.JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Rohit Goel, CAFor Respondent: Shri Dharam Vir, JCIT Sr.DR

Section 148Section 69A

Jain Machine Tools, Mumbai vs. Income Tax Officer, Ward 26(1)(7), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2110/MUM/2024[2012-13]Status: DisposedITAT Mumbai19 Aug 2024AY 2012-13

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh () Assessment Year: 2012-13 Jain Machine Tools, Ito, Ward 26(1)(7), 16, Meghal Industrial Estate, Room 625, 6Th Floor, Kautilya Vs. Devidayal Road, Mulund (West) Bhavan, C-41 To C-43, G Block, Mumbai-400080. Bandra Kurla Complex, Bandra (East), Mumbai-400051. Pan No. Aacfj 6163 H Appellant Respondent

For Appellant: Ms. Rajeshwari Menon, Sr. DRFor Respondent: Mr. Devendra Jain

Section 143(3)Section 147Section 148

additions of Rs. 2,27,46.240/- while the approval note under section 151 e the approval note under section 151 was obtained for income escaping assessment of Rs. 1,00,000/ was obtained for income escaping assessment of Rs. 1,00,000/ was obtained for income escaping assessment ... appeal and submitted submitted that at the time of recording reasons to that at the time of recording reasons to believe that income escaped assessment, the Assessing Officer was believe that income escaped assessment, the Assessing Officer was believe that income escaped assessment, the Assessing Officer was not having

Pareshkumar Punamchand Shah, Ahmedabad vs. The Income Tax Officer, Ward-2(2)(4), Ahmedabad

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

ITA 1096/AHD/2023[2011-12]Status: DisposedITAT Ahmedabad16 Aug 2024AY 2011-12

Bench: Shri Ramit Kochar (Accountant Member)

For Appellant: CA Preyashi TatedFor Respondent: Shri Hrishikesh Hemant Patki, Sr. D.R

Section 144Section 250Section 253(3)

rightly has reasons to believe that income of the assessee has escaped assessment. At the stage of reopening of assessment, conclusive proof of income escaping assessment is not required rather a prima-facie formation of a belief of the AO is required based on tangible material having live link/nexus with

Atul Shamji Bharani, Mumbai vs. DCIT CC- 4(1), Mumbai

Appeal are allowed

ITA 2023/MUM/2023[2011-12]Status: DisposedITAT Mumbai09 Aug 2024AY 2011-12

Bench: Shri Narendra Kumar Billaiya & Shri Sandeep Singh Karhail

For Appellant: Shri Vinod Kumar BindalFor Respondent: Shri Ajay Chandra

Section 10(38)Section 132Section 143(3)Section 147Section 148Section 151Section 153ASection 250Section 68Section 69C

wherein on the basis of information supplied by the Investigation Wing of income-tax department, he recorded ‘reason to believe’ that income escaped assessment. 6.4.4 In view of above discussion, we set aside the finding of the Ld. CIT(A) on the issue in dispute and uphold the validity ... pages 12-15 of the decision, we find that the AO also considered the undisclosed loan granted by the taxpayer as the income escaping assessment under section 147 of the Act, and such income was considered to be an “asset” within the meaning of Explanation-2 to section 153A

Atul Shamji Bharani, Mumbai vs. DCIT CC- 4(1), Mumbai

Appeal are allowed

ITA 2022/MUM/2023[2013-14]Status: DisposedITAT Mumbai09 Aug 2024AY 2013-14

Bench: Shri Narendra Kumar Billaiya & Shri Sandeep Singh Karhail

For Appellant: Shri Vinod Kumar BindalFor Respondent: Shri Ajay Chandra

Section 10(38)Section 132Section 143(3)Section 147Section 148Section 151Section 153ASection 250Section 68Section 69C

DCIT, Gurugram vs. Rajesh Kumar, Sonepat

In the result, cross-appeal filed by the Revenue is dismissed

ITA 82/DEL/2023[2018-19]Status: DisposedITAT Delhi07 Aug 2024AY 2018-19

Bench: Shri Kul Bharat & Shri Avdhesh Kumar Mishra[Assessment Year : 2018-19] Rajesh Kumar, Vs Acit, C/O-Shiva Constructions Co., Central Circle-2, Plot No.69, Sidharth Enclave, Gurgaon. Delhi Road Sonipat, Sonipat, Haryana-131001. Pan-Bkspk2518K Appellant Respondent [Assessment Year : 2018-19] Dcit, Vs Rajesh Kumar, Gurgaon. C/O-Shiva Constructions Co., Plot No.69, Sidharth Enclave, Delhi Road,Sonipat, Haryana-131001. Pan-Bkspk2518K Appellant Respondent Appellant By Shri Umesh Takkar, Ca & Shri Saurabh Nagpal, Ca Respondent By Shri P N Barnwal, Sr.Dr Date Of Hearing 03.07.2024 Date Of Pronouncement 07.08.2024 Order Per Kul Bharat, Jm : These Two Cross-Appeals Filed By The Assessee & The Revenue, Are Directed Against The Order Passed By Ld. Commissioner Of Income Tax(Appeals) [“Ld.Cit(A)”]-3, Gurgaon Dated 31.10.2022 For The Assessment Year 2018-19. Both Appeals Of The Assessee & The Revenue Are Heard Together & Are Being Disposed Off By Way Of Common Order For The Sake Of Brevity.

Section 133ASection 139(1)Section 142(1)Section 143(2)Section 147Section 148Section 40Section 41(1)Section 43BSection 68

this issue for the relevant Assessment Year. For the sake of clarity, Section 147 of the Act is reproduced as under:- [Income escaping assessment]. 147. “If the [Assessing] officer [has reason to believe] that any income chargeable to tax has escaped assessment for any assessment year, he may, subject

Rajesh Kumar, Sonepat vs. ACIT, Central Circle-2, Gurgaon

In the result, cross-appeal filed by the Revenue is dismissed

ITA 61/DEL/2023[2018-19]Status: DisposedITAT Delhi07 Aug 2024AY 2018-19

Section 133ASection 139(1)Section 142(1)Section 143(2)Section 147Section 148Section 40Section 41(1)Section 43BSection 68

Industrial Laminates India Private Limited, Shahpur Thane vs. The Assistant Commissioner of Income Tax Circle 6 (3) (1) Mumbai, Mumbai

In the result, appeal of the assessee ITA No

ITA 2599/MUM/2024[2012-13]Status: DisposedITAT Mumbai02 Aug 2024AY 2012-13

Bench: Shri Br Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Nishit GandhiFor Respondent: ShriH.M. Bhatt (SR DR)

Section 143(3)Section 144Section 147Section 250Section 69

initiation and completion of a re-assessment are not fulfilled in the present case and in any case there is no income escaping assessment in the present case. ON MERITS: 4.1 In the facts and circumstances of the case and in law, the Ld. CIT(A) erred inconfirming the action