“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

Marconi Infratech (P) Ltd., Gurgaon vs. ACIT Central Circle-11, Faridabad

In the result, assessee’s all appeals are allowed

ITA 3131/DEL/2023[2016-17]Status: DisposedITAT Delhi21 Jun 2024AY 2016-17

Bench: Shri S. Rifaur Rahman & Ms. Madhumita Royi.T.A. Nos. 3126 To 3132/Del/2023 (Assessment Years : 2011-12 To 2017-18) M/S. Marconi Infratech Vs. Acit (P.) Ltd., F-022, Lg, Central Circle – 11 Sushant Arcade, Sushant Faridabad Lok-1, Gurgaon Haryana – 122 002 Pan : Aagcm 1219 E (Appellant) .. (Respondent)

For Appellant: Shri S. S. Nager, C.AFor Respondent: Shri Subhra Jyoti Chakraborty

Section 127Section 132Section 143(3)Section 153A(1)(b)Section 153CSection 250(6)

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; (iii) the income escaping assessment or part thereof relates to such year or years. 80.5 Applicability

Marconi Infratech (P) Ltd., Gurgaon vs. ACIT Central Circle-11, Faridabad

In the result, assessee’s all appeals are allowed

ITA 3130/DEL/2023[2015-16]Status: DisposedITAT Delhi21 Jun 2024AY 2015-16

For Appellant: Shri S. S. Nager, C.AFor Respondent: Shri Subhra Jyoti Chakraborty

Section 127Section 132Section 143(3)Section 153A(1)(b)Section 153CSection 250(6)

Marconi Infratech (P) Ltd., Gurgaon vs. ACIT Central Circle-11, Faridabad

In the result, assessee’s all appeals are allowed

ITA 3129/DEL/2023[2014-15]Status: DisposedITAT Delhi21 Jun 2024AY 2014-15

For Appellant: Shri S. S. Nager, C.AFor Respondent: Shri Subhra Jyoti Chakraborty

Section 127Section 132Section 143(3)Section 153A(1)(b)Section 153CSection 250(6)

Marconi Infratech (P) Ltd., Gurgaon vs. ACIT Central Circle-11, Faridabad

In the result, assessee’s all appeals are allowed

ITA 3128/DEL/2023[2013-14]Status: DisposedITAT Delhi21 Jun 2024AY 2013-14

For Appellant: Shri S. S. Nager, C.AFor Respondent: Shri Subhra Jyoti Chakraborty

Section 127Section 132Section 143(3)Section 153A(1)(b)Section 153CSection 250(6)

Marconi Infratech (P) Ltd., Gurgaon vs. ACIT Central Circle-11, Faridabad

In the result, assessee’s all appeals are allowed

ITA 3127/DEL/2023[2012-13]Status: DisposedITAT Delhi21 Jun 2024AY 2012-13

For Appellant: Shri S. S. Nager, C.AFor Respondent: Shri Subhra Jyoti Chakraborty

Section 127Section 132Section 143(3)Section 153A(1)(b)Section 153CSection 250(6)

Marconi Infratech (P) Ltd., Gurgaon vs. ACIT Central Circle-11, Faridabad

In the result, assessee’s all appeals are allowed

ITA 3126/DEL/2023[2011-12]Status: DisposedITAT Delhi21 Jun 2024AY 2011-12

For Appellant: Shri S. S. Nager, C.AFor Respondent: Shri Subhra Jyoti Chakraborty

Section 127Section 132Section 143(3)Section 153A(1)(b)Section 153CSection 250(6)

Venkata Sudhakar Simhadri, Hyderabad vs. DCIT., Circle-2(1), Hyderabad

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

ITA 382/HYD/2024[2013-14]Status: DisposedITAT Hyderabad18 Jun 2024AY 2013-14

Bench: Shri K. Narasimha Chary & Shri Madhusudan Sawdia, Accounant Member आ.अपी.सं /Ita No.382/Hyd/2024 (निर्धारण वर्ा/Assessment Year:2013-14) Shri Venkata Sudhakar Dcit, Circle 2(1), Vs. Hyderabad. Simhadri, Hyderabad. Pan : Avnps0649D (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri Y. V. Bhanu Narayan Rao, C.A. रधजस् व द्वधरध/Revenue By:: Smt. Sheetal Sarin, Dr सुिवधई की तधरीख/Date Of Hearing: 18/06/2024 घोर्णध की तधरीख/Pronouncement: 19/06/2024

For Appellant: Shri Y. V. Bhanu NarayanFor Respondent: : Smt. Sheetal Sarin, DR

Section 147Section 148Section 234ASection 234BSection 69

circumstances of the case, the learned A.O. did not have any tangible material on record to prove that there was income escaping assessment for the A.Y. 2013-14 except for AIR information. Further, the learned A.O. did not make any independent enquiry before issuing notice

Manak Chand Daga, Faridabad vs. ITO, Ward-1(3), Faridabad

In the result, the appeal filed by the assessee for Assessment

ITA 17/DEL/2024[2014-15]Status: DisposedITAT Delhi14 Jun 2024AY 2014-15

Section 143(2)Section 147Section 148

same has been issued in violation of section1448 r.w.s. section 151A of the Act along with e-Assessment of Income Escaping Assessment Scheme, 2022. 6. (i) On the facts and circumstances of the case, the learned CIT(A), ITD has erred both on facts and in law in confirming

Manak Chand Daga, Faridabad vs. ITO, Ward-1(3), Faridabad

In the result, the appeal filed by the assessee for Assessment

ITA 16/DEL/2024[2013-14]Status: DisposedITAT Delhi14 Jun 2024AY 2013-14

Bench: the Ld. CIT(A) and filed the detailed submissions before him with grounds of appeal. In the appellate proceedings, the assessee has not complied to the various notices for hearing issued by the Ld. CIT(A), since, no representation was forthcoming from the assessee side, the Ld. CIT(A) decided the issue based on the information available on record. Accordingly, he sustained the addition made by the Assessing Officer.

Section 143(2)Section 147Section 148

Mak, Engineering Industries Ltd., Kolkata vs. PCIT(Cen.)-2, Kolkata

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

ITA 930/KOL/2024[2015-16]Status: DisposedITAT Kolkata10 Jun 2024AY 2015-16

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 115JSection 139(1)Section 143(1)Section 153ASection 263Section 40A(7)

repetition it needs to be stated that in the absence of any incriminating seized material, there is no scope for any extrapolation of income escaping assessment through the mechanism of any action u/s 263 of the Act. It is felt that the Department had an option to explore the alleged

Metsil Exports Pvt. Ltd., Kolkata vs. PCIT Cen.-2, Kolkata

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

ITA 928/KOL/2024[2018-19]Status: DisposedITAT Kolkata10 Jun 2024AY 2018-19

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 143(1)Section 153ASection 263Section 79

Bengal General Trading Co. Pvt. Ltd., Kolkata vs. PCIT(Cen.)-Kolkata-2, Kolkata

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

ITA 927/KOL/2024[2017-18]Status: DisposedITAT Kolkata10 Jun 2024AY 2017-18

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 10(38)Section 143(3)Section 153ASection 263

accepted on the basis of returned income/loss. In the absence of any incriminating seized material, there is no scope for any extrapolation of income escaping assessment through the mechanism of any action u/s 263 of the Act. It is felt that the Department had an option to explore the alleged

Jbs Projects Pvt. Ltd., Bankura vs. ITO, Ward-3(1), Kolkata

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

ITA 439/KOL/2024[2016-17]Status: DisposedITAT Kolkata06 Jun 2024AY 2016-17

Bench: Sri Sanjay Garg & Sri Sanjay Awasthi

Section 144Section 144BSection 147Section 148Section 148ASection 250

Assessment Year 2016-17 which was beyond 3 years from the end of the relevant Assessment Year and thus the essential condition of income escaping assessment to be more than 50 lakh, and that too represented in the form of an asset, was not getting fulfilled in the instant case

Om Kothari Foundation, Jaipur, Rajasthan vs. ITO (E), Ward-1, Jaipur, Jaipur Rajasthan

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

ITA 59/JPR/2024[2014-15]Status: DisposedITAT Jaipur04 Jun 2024AY 2014-15

For Appellant: Shri Anish Maheshwari, CAFor Respondent: Shri A.S. Nehra, Addl.CIT

Section 10Section 11Section 12ASection 13(1)Section 13(1)(d)Section 143(3)Section 147Section 164(2)

stage of recording the reasons is existence of belief based on faithful appreciation of material which has live link to an income escaping assessment, but not the established fact of escapement of income by detailed investigation or legal analysis. In other words, at the point of time o initiating

Om Kothari Foundation, Jaipur, Rajasthan vs. ITO, (Exemption) Ward-1, Jaipur, Rajasthan

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

ITA 57/JPR/2024[2009-10]Status: DisposedITAT Jaipur04 Jun 2024AY 2009-10

Bench: SHRI SANDEEP GOSAIN (Judicial Member), DR MITHA LAL MEENA (Accountant Member)

For Appellant: Shri Anish Maheshwari, CAFor Respondent: Shri A.S. Nehra, Addl.CIT

Section 10Section 11Section 12ASection 13(1)Section 13(1)(d)Section 143(3)Section 147Section 164(2)

Jesudason Biji, Chennai vs. Office of Income Tax Officer Int. Taxn Ward1(1), Chennai

In the result, appeal filed by the assessee is allowed

ITA 567/CHNY/2024[2014-15]Status: DisposedITAT Chennai30 May 2024AY 2014-15

Bench: Shri Aby T. Varkey & Shri S.R.Raghunatha

For Appellant: Shri M.V.Swaroop, AdvocateFor Respondent: Shri D. Hema Bhupal, JCIT

Section 119(2)(b)Section 139(1)Section 139(5)Section 147Section 148Section 148ASection 149Section 54ESection 54F

procedure governing initiation of reassessment proceedings prior to coming into force of the Finance Act, 2021 was governed by the following provisions: - “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 ... March, 2021. The substituted sections 147 to 149 and section 151 applicable w.e.f. 01.04.2021, passed in the Finance Act, 2021, are as under:- Income escaping assessment- “147. If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer

Deputy Commissioner of Income Tax, Central Circle-19, New Delhi., Delhi vs. Sandeep Bajaj, Delhi

In the result, the Cross Objection filed by the assessee is

ITA 2993/DEL/2023[2014-15]Status: DisposedITAT Delhi29 May 2024AY 2014-15

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 147Section 148Section 151Section 2(22)(e)Section 56

head note of the judgement is as under:- Section 151, read with section 147, of the Income-tax Act, 1961-Income escaping assessment Sanction for issue of notice Assessment year 1995-96 Assessing Officer completed original assessment under section 143(3) Subsequently he issued on assessee a notice under section

Tulshi Dealtrade Pvt. Ltd., Howrah vs. ITO, WD-11(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 776/KOL/2023[2012-13]Status: DisposedITAT Kolkata28 May 2024AY 2012-13

Bench: Shri Rajesh Kumar, Am& Shri Pradip Kumar Choubey, Jm]

Section 143(1)Section 143(3)Section 147Section 148Section 148(2)Section 151

believing that income of the assessee has escaped assessment. The underlying reason for that is that instances of concealed income or other income escaping assessment in a large number of cases come to the notice of the income-tax authorities after the assessment has been completed. The provisions

Sunita Tyagi, Ghaziabad vs. ITO Ward 2(2)(3), Ghaziabad

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

ITA 3775/DEL/2023[2012-13]Status: DisposedITAT Delhi28 May 2024AY 2012-13

Bench: Shri Kul Bharat & Shri Pradip Kumar Kedia[Assessment Year : 2012-13] Sunita Tyagi, Vs Ito, R-7/120, Raj Nagar, Ward-2(2)(3), Ghaziabad, Ghaziabad. Uttar Pradesh-201002. Pan-Aaupt3785H Appellant Respondent Appellant By Shri Sahil Sharma, Adv & Shri Sanjay Parashar, Adv. Respondent By Shri Gurpreet Singh, Sr. Dr Date Of Hearing 16.05.2024 Date Of Pronouncement 28.05.2024 Order Per Kul Bharat, Jm The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By Ld. Cit(A), National Faceless Appeal Centre (“Nfac”), Delhi Dated 30.11.2023 For The Assessment Year 2012-13. The Assessee Has Raised Following Grounds Of Appeal:-

Section 133(6)Section 144Section 148Section 151

information under borrowed satisfaction, and based upon incorrect factual context without any independent examination/satisfaction by the Ld. A.O., rendering the income escaping assessment proceedings legally void. 1 | P a g e 3. That on the facts and circumstances of the case and in law, the verification letter dated 22.02.2019 issued ... accordance with law, as the said approval was issued in a mechanical manner without independent application of mind, and hence the income escaping assessment proceedings are legally void. 5. Without prejudice, that on the facts and circumstances of the case and in law, the Ld. A.O. erred in passing

Ntpc Ltd., New Delhi vs. DCIT, Circle- 13(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 3176/DEL/2019[2006-07]Status: DisposedITAT Delhi24 May 2024AY 2006-07

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. M. G. Joseph Gangte, CIT-DR

Section 143(3)Section 147Section 148

regard to issue of notice, the provisions of Section 147 of the Income Tax Act, 1961 are examined which are 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