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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

Gaurav Jain, New Delhi vs. ITO Ward 60(3), New Delhi

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

ITA 217/DEL/2024[2012-13]Status: DisposedITAT Delhi20 May 2024AY 2012-13

Bench: Shri C. N.Prasad & Shri Avdhesh Kumar Mishra

Section 142(1)Section 143(3)Section 147Section 148Section 151

appellant/assessee, who was non-filer of the income tax return, in his bank account in the relevant year, was nothing but the income escaped assessment. 3. After reopening the assessment, the AO issued various notices u/s 142(1) of the Act as detailed in para 4 of the assessment order ... were reopened on the similar reasoning that the cash deposits in bank account were nothing but the income escaping assessment in absence of any return of income filed by the appellant/assessee. However, the AO treated cash deposits in the bank account as sales and assessed the income embedded therein

Sukh Darshan Singh, Delhi vs. ITO Ward.43(2), Delhi

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

ITA 2233/DEL/2023[2011-12]Status: DisposedITAT Delhi17 May 2024AY 2011-12

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member)

Section 10Section 142(1)Section 143(2)Section 148Section 54F

Regular assessment). Ld A.O. waited till end exceeding 4 years to reopen the case u/s.147 r.w.s 148 of I. T. Act 1961 as Income escaping assessment category for which action being unfair & arbitrary in Law, So Proceeding u/s. 148 r.w.s 147 needs to be quashed being devoid of merit ... r.w.s 148 r.w.s 151(1) to express her Satisfaction on reason to believe of Ld. A.O, has in fact expressed her Satisfaction on Income escaping assessment & by doing so, Illegality has crept in by which Ld. PCIT was not only biased but also illegally influenced while Ld PCIT accorded

M/S Guru Awaas Pvt. Ltd., Kolakta vs. ITO, Ward-9(2), Kolkata

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

ITA 227/KOL/2024[2012-13]Status: DisposedITAT Kolkata15 May 2024AY 2012-13

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2012-13

For Appellant: Shri Abhisek Bansal, ARFor Respondent: Shri P. P. Barman, Addl. CIT, Sr. DR
Section 143(1)Section 147Section 68

Kolkata. The assessee furnished the return of income showing total income of Rs. Nil on 31.03.2019 and also asked for reasons recorded for income escaping assessment. The AO has mentioned in the assessment order that the reason had been supplied to the assessee and the objection for reopening ... received during the year under consideration. It was also contended that the reasons recorded were wrong as the reasons were recorded for income escaping assessment of Rs.50,50,000/- while the addition has been made for Rs.50,00,000/-. It was submitted that the conveyance deed was submitted before

ITO, WD.9(1), Kolkata vs. M/S Maharaj Vincom Pvt. Ltd., Kolkata

ITA 35/KOL/2021[2009-10]Status: DisposedITAT Kolkata15 May 2024AY 2009-10

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No.35/Kol/2021 Assessment Year: 2009-10 Ito, Ward-9(1), Kolkata……………….......................…...……………....Appellant Vs. M/S Maharaj Vincom Pvt. Ltd……............…..........................…..…..... Respondent 69, Jamunalal Bajaj Street, Kolkata- 700007. [Pan: Aafcm6496E] C.O. No.6/Kol/2023 (A/O I.T.A. No.35/Kol/2021) Assessment Year: 2009-10 M/S Maharaj Vincom Pvt. Ltd……............…..........................…....... Cross-Objector 69, Jamunalal Bajaj Street, Kolkata- 700007. [Pan: Aafcm6496E] Vs Ito, Ward-9(1), Kolkata …………..….......................…...……………....Respondent Appearances By: Shri Miraj D. Shah, Ar, Appeared On Behalf Of The Assessee. Shri Abhijit Kundu, Cit-Dr, Appeared On Behalf Of The Department. Date Of Concluding The Hearing : March 07, 2024 Date Of Pronouncing The Order : May 15, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: This Appeal By The Revenue & Corresponding Cross-Objection By The Assessee Have Been Preferred Against The Order Dated 08.09.2020 Of The Commissioner Of Income Tax (Appeals)-7, Kolkata (Hereinafter Referred To As The ‘Cit(A)’) Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’).

Section 143(1)Section 143(3)Section 147Section 250Section 263

assessee to seek a review of the concluded item, unconnected with the escapement of income, for the purpose of computation of the income escaping assessment; and, therefore, the Tribunal was right in holding that the respondent was not entitled to reagitate the question of the set- off of losses

Income Tax Office -34(3)(2), Mumbai vs. Prime Developers, Mumbai

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

ITA 4246/MUM/2023[2011-12]Status: DisposedITAT Mumbai10 May 2024AY 2011-12

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

Section 142(1)Section 143(3)Section 147Section 148Section 41Section 41(1)

done. 9. Apart from that, there has to be some tangible material and information coming on record having live link nexus with the income escaping assessment, especially more so in the cases where assessment has been completed u/s.143(3) and the had already been scrutinized and examined

M/S Prime Developers, Mumbai vs. Assistant Commissioner of Income Tax -25(3), Mumbai

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

ITA 4152/MUM/2023[2011-12]Status: DisposedITAT Mumbai10 May 2024AY 2011-12

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

Section 142(1)Section 143(3)Section 147Section 148Section 41Section 41(1)

done. 9. Apart from that, there has to be some tangible material and information coming on record having live link nexus with the income escaping assessment, especially more so in the cases where assessment has been completed u/s.143(3) and the had already been scrutinized and examined

Aishwarya Publications Private Ltd., Mumbai vs. ITO 1(1)(1), Mumbai

In the result, the appeal is dismissed

ITA 3650/MUM/2023[2010-11]Status: DisposedITAT Mumbai03 May 2024AY 2010-11

Bench: Shri Amit Shukla (Jm) & Smt. Renu Jauhri (Am) I.T.A. No. 3650/Mum/2023 (A.Y. 2010-11) M/S. Aishwarya Vs. Ito, Ward 1(1)(1) Publication Pvt. Ltd. Room No. 534/579A 3Rd Floor, Centre Point Aayakar Bhavan 18Th Road, Chembur M.K. Road Mumbai-400 070. Mumbai-400 020. Pan : Aaaca3569K (Appellant) (Respondent) Assessee By Shri S.G. Goyal & Shri Harsh S. Goyal Department By Shri Manoj Kumar Sinha Date Of Hearing 16.04.2024 Date Of Pronouncement 03.05.2024 O R D E R Per Renu Jauhri (Am) :-

Section 127Section 133(6)Section 143(2)Section 148Section 148(1)Section 151

appellant vide notice dated 27.03.2017 to furnish copy of ledger account alongwith supporting documents. (ii) The ACIT had received information regarding income escaping assessment of ₹65,00,000/- and for the relevant year, returned income was ₹53,77,300/- as such the notice issued u/s 7 M/s. Aishwarya Publications

Anil Chothmal Patodia HUF, Mumbai vs. National Faceless Appeal Centre (NFAC)- Delhi, Delhi

In the result, appeal of the assessee is allowed on legal grounds

ITA 4060/MUM/2023[2015-16]Status: DisposedITAT Mumbai30 Apr 2024AY 2015-16

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

Section 143(1)Section 143(3)Section 147Section 148Section 69

Thus, very premise on which ld. AO has assumed the jurisdiction and material information on record has no live link nexus with the income escaping assessment. The reasons mentions trading in EINS Edutech Ltd., for a consideration of Rs.3,35,51,000/- on which assessee has earned long term capital ... escaped assessment and such reason to belief should be based on material and information having live link nexus or direct nexus with the income escaping assessment, 9 Anil Chothmal Patodia HUF which here in this case is purely lacking. In fact the reasons have been recorded on a wrong premise

Arvind Dada Kolekar, Mumbai vs. Income Tax Officer Ward 16(2)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 4137/MUM/2023[2017-18]Status: DisposedITAT Mumbai23 Apr 2024AY 2017-18

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

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

Assessing officer, National Faceless Assessment Centre has erred in initiating reassessment beyond 3 years, since the alleged taxable income escaping assessment does not exceed the threshold of Rs. 50,00,000/- as per section 149(1)(b) of the Act, thereby rendering the reopening time barred. 3. In the facts ... Assessing Officer in view of Notification S.O. 1466(E) (NO. 18/2022/F. NO. 370142/16/2022-TPL(Part 1)]. Dated 29-3-2022 titled E Assessment Of Income Escaping Assessment Scheme, 2022" passed /s.151A of the Act. Thus, even on this ground the Notice u/s 148(b) is bad in law and needs

Rakesh Kumar Aggarwal, Delhi vs. ACIT, Delhi

In the result, the appeal of the assessee is allowed

ITA 1912/DEL/2021[2012-13]Status: DisposedITAT Delhi23 Apr 2024AY 2012-13

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Amit Goel, CA &For Respondent: Sh. Amit Katoch, Sr. DR
Section 143(3)Section 147Section 148

addition of Rs. 14,34,750/- (Rs.13,87,500 + Rs.47,250) made by the assessing officer without appreciating that there was no income escaping assessment of Rs. 13,34,750/-. 6. On the facts and circumstances of the case and in law, the CIT(A) erred in confirming addition ... been duly examined. There is no unexplained investment. There is no case of any unexplained credit. Hence, there is no case of any income escaping assessment. 8. Ergo, the appeal of the assessee is allowed on account of wrong reasons recorded for reopening of assessment as well as on merits

Neera Dhupar, Delhi vs. I T O, Uttar Pradesh

In the result, the appeal is allowed for statistical purposes

ITA 3051/DEL/2023[2011-12]Status: DisposedITAT Delhi22 Apr 2024AY 2011-12

Bench: Shri Challa Nagendra Prasad:Assessment Year: 2011-12 Neera Dhupar, Vs. Ito, Ward-2(3), 1E/15, Jhandewalan Noida (Up) Extension, Delhi-1100 55

Section 139Section 144Section 147Section 148Section 250

assessee raised a ground before the learned CIT(A) contending that under the provisions of section 147 of the Act, the notice of income escaping assessment under Section 148 of the Act has to be communicated to the assessee which was never done by the Assessing Officer. The learned counsel

Hasan Basir Aliabba, Mangalore vs. Income Tax Officer, Ward-2(1), Mangalore

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

ITA 474/BANG/2024[2013-24]Status: DisposedITAT Bangalore19 Apr 2024AY 2013-24

Bench: Smt. Beena Pillai & Shri Waseem Ahmedassessment Year : 2013-14

For Appellant: Smt. Sunaiana Bhatia, AdvocateFor Respondent: Shri D.K Mishra, CIT (DR)
Section 147Section 148

when it came to be concluded, the COVID 19 was at its peak. The case was selected for income escaping assessment by issuing notice u/s 148 of the Act dated 20/12/2020 and the assessment was completed vide order dated 28/09/2021. 2) The appeal was instituted before

Kalyanasundaram Bharath Hari, Chittlapakkam, Chennai vs. ITO, Int. Tax Ward 1(1), Chennai

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

ITA 307/CHNY/2023[2013-14]Status: DisposedITAT Chennai18 Apr 2024AY 2013-14

Bench: Shri Mahavir Singhand Shri S.R. Raghunatha

For Appellant: Shri N. Arjun Raj, AdvocateFor Respondent: Shri V. Nandakumar, CIT
Section 143(3)Section 144CSection 147Section 148Section 149(1)(b)Section 50CSection 54

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

Rohit Kumar Yadav, Indore vs. Income Tax Officer 5(5), Indore

In the result, appeal of the assessee is allowed

ITA 442/IND/2023[2013-14]Status: DisposedITAT Indore15 Apr 2024AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanirohit Kumar Yadav Ito 5(5) Hig-Dx-2Manishmati Arvind Indore Vihar, Mahishmati Vs. Bhopal (Appellant / Assessee) (Respondent/ Revenue) Pan: Aaupy5015 F Assessee By Shri Pankaj Shah & Soumya Bumb Ars Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 09.04.2024 Date Of Pronouncement 15.04.2024

Section 50C

basis of an item of income or disallowance, which has already been made in block assessment of the assessee, thereby leaving no income escaping assessment. Under these circumstances we are satisfied that having made addition of Rs. 527.85 lakhs in the block assessment, the Assessing Officer was not justified

Akunuri Sai Avinash, Visakhapatnam vs. Assistant Commissioner of Income Tax, Circle (International Taxation), Visakhapatnam

In the result, appeal of the assessee is partly allowed for statistical purposes as indicated herein above

ITA 42/VIZ/2023[2016-17]Status: DisposedITAT Visakhapatnam12 Apr 2024AY 2016-17

Bench: Shri Duvvuru Rl Reddy, Hon‟Ble & Shri S Balakrishnan, Hon‟Bleआयकरअपीलसं./ I.T.A. No.42/Viz/2023 (धनधाारणिर्ा/ Assessment Year : 2016-17) Akunuri Sai Avinash, Vs. The Asst. Commissioner Of Rep. By Gpa Holder Dr. Akunuri Income Tax, Sai Babu, Circle (International Taxation), Visakhapatnam. Visakhapatnam. Pan: (अपीलाथी/ Appellant) (प्रत्यथी/ Respondent) अपीलाथीकीओरसे/ Assessee By : Sri Gvn Hari, Ar प्रत्याथीकीओरसे/ Revenue By : Dr. Satyasai Rath, Cit-Dr सुनिाईकीतारीख/ Date Of Hearing : 26/03/2024 घोर्णाकीतारीख/Date Of : 12/04/2024 Pronouncement O R D E R Per S. Balakrishnan:

For Appellant: Sri GVN Hari, ARFor Respondent: Dr. Satyasai Rath, CIT-DR
Section 144CSection 147Section 148Section 50C

material before the Ld. AO warranting the reopening of assessment U/s. 147 of the Act. The Ld. AR argued that there is no income escaping assessment and hence the reopening of the case is void-ab-initio. Per contra, the Ld. DR relied on the directions

Seaside Projects Pvt. Ltd., Kolkata vs. ITO, Ward-5(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 172/KOL/2024[2012-13]Status: DisposedITAT Kolkata10 Apr 2024AY 2012-13

Bench: Shri Rajpal Yadav & Shri Girish Agrawalassessment Year: 2012-13

For Appellant: Shri Manoj Kataruka, AdvocateFor Respondent: Smt. Ranu Biswas, Addl. CIT, DR
Section 143(3)Section 147Section 148

would have been involved in such mischievous practice but to make an addition in the hands of the assessee by holding it as income escaping assessment, it is necessary to establish that the assessee and the other parties along with broker are in collusion. 5.1. Considering these observations and facts

Anavya Investments Pvt. Ltd., New Delhi vs. ITO Ward-2(4), New Delhi

In the result, appeal of the assessee is allowed

ITA 4828/DEL/2019[2010-11]Status: DisposedITAT Delhi08 Apr 2024AY 2010-11

Bench: Shri C. N. Prasad & Shri M. Balaganeshm/S. Anavya Investments Pvt. Ltd, Vs. Ito, C/O. Sanjay & Sanjay, A-1-A, 14B, Ward-2(4), Janakpuri, New Delhi New Delhi (Appellant) (Respondent) Pan:Aahc4820A Assessee By : Shri Sanjay Garg, Ca Shri Akarsh Garg, Adv Revenue By: Shri Kanv Bali, Sr. Dr Date Of Hearing 11/01/2024 Date Of Pronouncement 08/04/2024

For Appellant: Shri Sanjay Garg, CAFor Respondent: Shri Kanv Bali, Sr. DR
Section 115JSection 139(1)Section 143(3)Section 147Section 148Section 68

objecting right from the beginning that it is not aware as to how the figure of loss of Rs. 46,07,275/- of income escaping assessment mentioned in the reasons, was even arrived at. This is evident from the reply letter dated 26.12.2016 filed by the assessee before

Golden Weaving Mills Private Limited, Madurai vs. ITO, Corporate Ward-1, Madurai

In the result, appeal filed by the assessee is allowed

ITA 987/CHNY/2023[--]Status: DisposedITAT Chennai05 Apr 2024

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita No.: 987/Chny/2023 िनधा"रण वष" / Assessment Year: 2012-13 Golden Weaving Mills Pvt Ltd., The Income Tax Officer, D.No. 59/11, V. Corporate Ward -1, South Avani Moola Street, Madurai. Madurai – 625 001. [Pan: Aaacg-6671-L] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. M.V. Prasad, Fca By Virtual ""यथ" क" ओर से/Respondent By : Shri. D. Hema Bhupal, Jcit सुनवाई क" तारीख/Date Of Hearing : 27.03.2024 घोषणा क" तारीख/Date Of Pronouncement : 05.04.2024

For Appellant: Shri. M.V. Prasad, FCA by virtualFor Respondent: Shri. D. Hema Bhupal, JCIT
Section 115JSection 143(3)Section 148

account of change of opinion of the Assessing Officer in the absence of any new tangible material coming into his possession indicating income escaping assessment after the completion of the regular assessment u/s 143(3) vide order dated 19.02.2015. This ground may be admitted as an additional ground since

Kunwar Pal Singh, Ghaziabad vs. ITO Ward - 1(3), Ghaziabad

In the result, the impugned notice is quashed

ITA 172/DEL/2020[2010-11]Status: DisposedITAT Delhi04 Apr 2024AY 2010-11

Bench: learned first appellate authority, inter alia, challenging the reopening of the assessment under section 147 of the Act.

Section 139(1)Section 144Section 147

reasons, the AO had come to conclusion that cash deposit of Rs. 13,47,000/- made in the saving bank account would constitute income escaping assessment in the hands of the assessee, warranting reopening u/s 147 of the Act. Once, it is clearly established that the very basis of assumption

Jaswant Singh Yadav, Gurugram vs. ITO, Ward 2(2), Gurgaon

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

ITA 1973/DEL/2021[2010-11]Status: DisposedITAT Delhi03 Apr 2024AY 2010-11

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Sanjay Agarwal, CAFor Respondent: Ms. Sapna Bhatia, CIT- DR
Section 143(3)Section 147Section 148Section 263

Airways (I) Limited [2011] 331 ITR 236 (Bom). 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". Sections 148 is supplementary and complimentary to section 147. Sub-section (2) of section 148 mandates ... accordingly reduced the claim on these accounts. 20. 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 Assessing Officer proceeded to reduce