“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

Nitaben Rasikbhai Patel, Anand vs. The ITO, Ward- 1(3)(2) Now Ward-1(3)(1), Petlad

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

ITA 687/AHD/2023[2011-12]Status: DisposedITAT Ahmedabad09 Feb 2024AY 2011-12

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकरअपीलसं./Ita No.687/Ahd/2023 धििाधरणवरध/Asstt. Year: 2011-2012 Nitaben Rasikbhai Patel, Income Tax Officer, Moti Khadki At Sisva, Vs. Ward-1(3)(2), Ta Borsad, Now Ward 1(3)(1), Anand-388540. Petlad.

For Appellant: Shri B.T Thakkar, A.RFor Respondent: Shri Ashok Kumar Suthar, Sr.D.R

Section 144Section 147Section 50C

gain” on the sale of agricultural land. 3. In the present case the proceedings were initiated u/s 147 of the Act, for the income escaping assessment on account of non-disclosure of income on the sale of immovable property for Rs. 10,00,000/- only. Furthermore

P.L. Goenka HUF, Kolkata vs. ITO, Ward 29/4, Kolkata

In the result, appeal of the assessee is allowed

ITA 412/KOL/2023[2013-14]Status: DisposedITAT Kolkata09 Feb 2024AY 2013-14

Bench: Shri Rajpal Yadav, Hon’Ble & Dr. Manish Borad, Hon’Ble

For Appellant: Shri K.M. Roy, C.AFor Respondent: Shri Gautam Patra, Addl. CIT, D/R

Section 143(1)Section 147Section 250

follow up enquiries made by the AO. 5th 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

Sheetal Impex P.Ltd, New Delhi vs. DCIT, Central Circle-26, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2053/DEL/2023[2010-11]Status: DisposedITAT Delhi09 Feb 2024AY 2010-11

Bench: Dr. B. R. R. Kumar

For Appellant: Sh. Ashok Jain, CAFor Respondent: Sh. Atiq Ahmed, Sr. DR

Section 139Section 142Section 143Section 143(3)Section 147Section 148Section 153ASection 271(1)(c)

examination of same transactions mentioned above. 3 Sheetal Impex P Ltd. 4. The provisions of section 147 are as under: “[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 8 for any assessment year

Lovely Promoters Private Limited, Kolkata vs. ACIT, Central Circle, Ajmer

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

ITA 770/JPR/2023[2013-14]Status: DisposedITAT Jaipur08 Feb 2024AY 2013-14

Bench: him regarding non mentioning of Document Identification Number (DIN) in the body of the order u/s. 127 of the Act dated 08-09-2021 and various other technical pleas raised in grounds of appeal regarding validity of notice u/s. 148 of the Act, thereby appellate order passed by the CIT(A) is non-speaking order and deserves to be quashed. 4. On the facts and in circumstances of the case and in law, the AO erred in issuing notice u/s. 148 of the Act as it was a search related case u/s. 132 r/w

For Appellant: Shri Mayank Taparia (Adv.)For Respondent: Shri A.S. Nehra (Addl.CIT) a

Section 127Section 127(1)Section 132Section 147Section 148Section 148ASection 151Section 153C

Income-Tax Act, 1961 and section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 - Income escaping assessment - Conducting inquiry, providing opportunity before issue of notice (Reassessment) - Assessment year 2013-14 - Whether a notice under section 148 cannot be issued in order to reopen ... conclusion that there is an escapement of income. There is no new material which has come in the possession of the A.O. indicating income escaping assessment. There is no independent enquiry done or material found against the appellant. This further goes to prove that the reasons recorded for reopening

Sanyukta Developers Pvt. Ltd., New Delhi vs. ITO Ward 22(3), New Delhi

In the result, the appeal of the assessee is allowed

ITA 2455/DEL/2019[2010-11]Status: DisposedITAT Delhi06 Feb 2024AY 2010-11

Bench: Shri Challa Nagendra Prasad & Dr. B. R. R. Kumar

For Appellant: Ms. Gunjan Jain, CAFor Respondent: Sh. Vivek Vardhan, Sr.DR

Section 143Section 143(3)Section 147Section 148Section 68Section 69C

same entities have been subject matter of order dated 29.01.2014 u/s 143(3)/147. 7. The provisions of Section 147 are as under: “[Income escaping assessment. 147. If the [Assessing] Officer [has reason to believe 8] that any income chargeable to tax has escaped assessment 8 for any assessment year

Shri Shivajirao R.Chavan, Ahmedabad vs. The Income Tax Officer, Ward-13(2), Ahmedabad

The appeals of the assessee are allowed

ITA 435/AHD/2005[1996-1997]Status: DisposedITAT Ahmedabad05 Feb 2024AY 1996-1997

Bench: Smt.Annapurna Gupta & Smt. Madhumita Roy

For Appellant: Shri Sakar Sharma, A.RFor Respondent: Ms. Saumya Pandey Jain, Sr.DR

Section 147Section 148Section 148(2)Section 250(6)Section 271(1)(c)

permit reopening basis a consolidated belief of escapement of income for several years together, particularly which does not specify AO’s belief of income escaping assessment for the different years concerned. AO u/s 147 of the Act can reassess income only when he forms a belief of income of that ... consolidated figure of disproportionate assets found by the CBI pertaining to all the impugned years before us. There is no recording of income escaping assessment for each particular assessment year being sought to be reassessed. The reasons are clearly vague mentioning income escaping assessment exceeding Rs. 1 lacs that

The ITO, Ward-13(2), Ahmedabad vs. Shri Shivajirao R.Chavan, Ahmedabad

The appeals of the assessee are allowed

ITA 332/AHD/2005[1996-1997]Status: DisposedITAT Ahmedabad05 Feb 2024AY 1996-1997

Bench: Smt.Annapurna Gupta & Smt. Madhumita Roy

For Appellant: Shri Sakar Sharma, A.RFor Respondent: Ms. Saumya Pandey Jain, Sr.DR

Section 147Section 148Section 148(2)Section 250(6)Section 271(1)(c)

ITO Ward - 4, Rohtak vs. Surender Dalal, Rohtak

In the result, appeal of the Assessee is partly allowed as

ITA 7714/DEL/2019[2009-10]Status: DisposedITAT Delhi30 Jan 2024AY 2009-10

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.7714/Del/2019 िनधा"रणवष"/Assessment Year: 2009-10 बनाम Ito, Surender Dalal, Ward-4, Vs. Dalal Bhawan, Aayakar Bhawan, Rohtak, Haryana Near Petrol Pump, Gohana Road, Rohtak, Haryana. Pan No.Aqlps2166C अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.7490/Del/2019 िनधा"रणवष"/Assessment Year: 2009-10 बनाम Surender Dalal, Ito, Dalal Bhawan, Vs. Ward-4, Near Petrol Pump, Aayakar Bhawan, Gohana Road, Rohtak, Haryana Rohtak, Haryana. Pan No.Aqlps2166C अपीलाथ" Appellant ""यथ"/Respondent

Section 147Section 148Section 151Section 69

Therefore, I.T.A.Nos.7714 & 7490/Del/2019 without going to the contents of the entries in the bank accounts merely deposits cannot be treated as income escaping assessment. 14. On going through the reasons recorded by the AO, I find that there is no nexus between the prima facie inferences arrived ... reopening the assessment that the assessee has not filed any return of income. Secondly, in the reasons stated the AO believed that the income escaped assessment only based on the report of the DDIT(Inv.) that the income had escaped more than 15 crores. However, we observe that what

Surender Dalal, Rohtak vs. ITO Ward - 4, Rohtak

In the result, appeal of the Assessee is partly allowed as

ITA 7490/DEL/2019[2009-10]Status: DisposedITAT Delhi30 Jan 2024AY 2009-10

Section 147Section 148Section 151Section 69

Vayoo Nandan Finance Company Pvt Ltd, New Delhi vs. ITO Ward 26(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 3097/DEL/2019[2009-10]Status: DisposedITAT Delhi23 Jan 2024AY 2009-10

Bench: Shri M. Balaganeshm/S. Vayoo Nandan Finance Vs. Ito, Company Pvt. Ltd, Ward-26(2), B-6, Ganpati Apartment, 6, New Delhi Alipur Road, Civil Lines, New Delhi Pan: Aaavc0737F Assessee By : Dr. Rakesh Gupta, Adv Shri Shrey Jain, Adv Revenue By: Ms. Kirti Sankratyayan, Sr. Dr Date Of Hearing 04/01/2024 Date Of Pronouncement 23/01/2024

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Ms. Kirti Sankratyayan, Sr. DR

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

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

M/S Ayush Ajay Construction Pvt. Ltd., Indore vs. The DCIT Central-(1), Indore

The appeal is dismissed

ITA 174/IND/2023[2018-19]Status: DisposedITAT Indore12 Jan 2024AY 2018-19

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year: 2018-19 Ayushajay Construction Pr.Cit-1, Private Limited, Indore. बनाम/ 3/3, South Tukoganj, Vs. Indore (Assessee / Appellant) (Revenue / Respondent) Pan: Aacca 5523 B Assessee By Shri Prakash Jain & Ms. Shreya Jain, Cas Revenue By Ms. Simran Bhullar, Cit Dr Date Of Hearing 22.11.2023 Date Of Pronouncement 12.01.2024

Section 143(3)Section 263

amount - Rs. 3,52,21,375/-) but ultimately identified only ‘Nardana Claim-1’ of Rs. 29,02,76,211/- as the item of income escaping assessment rendering the assessment-order as erroneous-cum-prejudicial to the interest of revenue. Thereafter, in Para No. 3.2 of revision-order, the PCIT

Anuj Chaudhary, Ghaziabad vs. ITO, Ward- 1(1), Ghaziabad

ITA 3453/DEL/2018[2009-10]Status: DisposedITAT Delhi12 Jan 2024AY 2009-10

Bench: Shri M. Balaganesh & Shri Anubhav Sharma

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Date of Hearing

Section 139Section 144Section 147Section 148Section 69

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

Akik Marketing India Pvt Ltd, New Delhi vs. ITO Ward - 2(1), New Delhi

ITA 4559/DEL/2019[2010-11]Status: DisposedITAT Delhi11 Jan 2024AY 2010-11

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaassessment Year : 2010-11 Akik Marketing India Pvt. Ltd. Vs. Ito, N-39, Ground Floor, Ward 2(1), Greater Kailash-I, New Delhi New Delhi-110048 Pan : Aaaca6579K (Appellant) (Respondent) Assessee By : Shri Gurjeet Singh, Ca & Shri Shantanu Jain, Adv. Revenue By : Shri Kanav Bali, Sr. Dr

For Appellant: Shri Gurjeet Singh, CA &For Respondent: Shri Kanav Bali, Sr. DR

Section 147Section 68

material that too which is not found from assessee's possession is relied and that cannot be made as valid basis to infer income escaping assessment u/s 148 of the Act. Ld. AR placed reliance upon following mentioned judgments: - i) Hon/ble Delhi High Court in G & G Pharma

Karamshi Jethabhai Somaiya Trust, Mumbai vs. Income Tax Officer(Exemption), Mumbai

The appeal of the assessee is allowed

ITA 2608/MUM/2023[2009-10]Status: DisposedITAT Mumbai08 Jan 2024AY 2009-10

Bench: Kuldip Singh, Jm & Ms Padmavathy S, Am

For Appellant: Shri. K. Gopal a/w Ms. NehaFor Respondent: Shri P.D. Chougule , Sr. DR

Section 12ASection 139Section 142Section 143Section 143(3)Section 147Section 148

years. The Ld. AR further submitted that in assessee’s case therefore the proviso to section 147 which reads as under is applicable :- 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 ... other spheres of human activity. So far as income-tax assessment orders are concerned, they cannot be reopened on the scope of income escaping assessment under section 147 of the Act of 1961 after the expiry of four years from the end of the assessment year unless there be omission

Suksham Finlease & Investment P.Ltd, New Delhi vs. ITO, Ward-24(3), New Delhi

In the result, appeal of the assessee is allowed

ITA 8321/DEL/2018[2009-10]Status: DisposedITAT Delhi08 Jan 2024AY 2009-10

Section 147Section 151Section 234BSection 69C

Panasonic Life Solutions India Pvt Ltd, Thane vs. Asst CIT CC 7(2), Mumbai

In the result, Appeal of assessee is partly allowed

ITA 7861/MUM/2019[2012-13]Status: DisposedITAT Mumbai19 Dec 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm Panasonic Life Solutions India Asst. Commissioner Of Private Limited Income-Tax (Formerly Known As Anchor Central Circle 7(2) Electricals Private Limited) 3Rd Floor, B Wing, 655, 6Th Floor, Aaykar Bhavan Vs. I – Think Techno Campus, M.K. Road, Pokhran Road No.2, Thane Mumbai-400 020 (West) (Appellant) (Respondent) Pan No. Aaeca2190C Assessee By : Shri M.P. Lohia Shri Nikhil Tiwari, Ar Revenue By : Shri Manoj Kumar, Cit Dr Date Of Hearing: 08-12-2023 Date Of Pronouncement : 19.12.2023

For Appellant: Shri M.P. LohiaFor Respondent: Shri Manoj Kumar, CIT DR

Section 143(2)Section 143(3)Section 144C(13)Section 147Section 153Section 80ISection 92C

erred in not appreciating that the reassessment proceedings initiated are bad in law in the absence of any fresh tangible material to satisfy income escaping assessment & ought to be quashed: 8. erred in not appreciating the fact that reassessment proceedings have been initiated only with a view to revive original

Paramjit Singh, Delhi vs. AO Ward-1, Karnal, Haryana

In the result the appeal of the assessee in ITA No

ITA 446/DEL/2022[2012-13]Status: DisposedITAT Delhi01 Dec 2023AY 2012-13

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Somil Agarwal, AdvFor Respondent: Shri P.N. Barnwal, CIT-DR

Section 147Section 151Section 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

ACIT, Ernakulam vs. Appolo Tyres Ltd, Cochin

In the result, the Revenue’s appeals as well as the Assessee’s COs, are allowed

ITA 140/COCH/2020[2011-12]Status: DisposedITAT Cochin30 Nov 2023AY 2011-12

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri Joseph Markose, AdvocateFor Respondent: Sh. Sanjit K. Das, CIT-DR and Smt

Section 147

assessment for AY 2009-10. We shall proceed by delineating the law in the matter, reproducing s.147in its relevant part to start with: Income escaping assessment 147. Income escaping assessment-If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment ... instant case, with the assumption of jurisdiction u/s.147 being hinged by a further condition of the income escaping assessment being so due to failure, inter alia, on the part of the assessee to disclose – fully and truly – all material facts necessary for assessment of his income for the relevant year

ACIT, Ernakulam vs. Appolo Tyres Ltd, Cochin

In the result, the Revenue’s appeals as well as the Assessee’s COs, are allowed

ITA 139/COCH/2020[2009-10]Status: DisposedITAT Cochin30 Nov 2023AY 2009-10

Bench: Shri Sanjay Arora & Shri Manomohan Das

For Appellant: Shri Joseph Markose, AdvocateFor Respondent: Sh. Sanjit K. Das, CIT-DR and Smt

Section 147

Shri Ramnikgiri Maharajgiri Gauswami, Rajkot vs. The DCIT, Central Circle, Rajkot

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

ITA 94/RJT/2019[2015-16]Status: DisposedITAT Rajkot29 Nov 2023AY 2015-16

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकरअपीलसं./Ita Nos.91 & 92/Rjt/2019 निर्धररवरध/Asstt. Years: 2011-12 & 2012-13 & आयकरअपीलसं./Ita Nos.93 & 94/Rjt/2019 निर्धररवरध/Asstt. Years: 2014-15 & 2015-16 Shri Ramnikgiri Maharajgiri D.C.I.T, Gauswami, Vs. Circle-1, 403, Prince Tower, Rajkot. 16, Panchnath Plot, Rajkot-360001. Pan: Acbpg1256B

For Appellant: Shri Mehul Ranpura, A.RFor Respondent: Shri Ashish Kumar Pandey, Sr. D.R

Section 131(1)Section 132Section 139Section 148Section 44A

payment to M/s Amidhara Developers Pvt Ltd against the purchases of Imlo of old constructed buildings. 5.1 Subsequently, a notice for making the income escaping assessment under section 148 of the Act was issued and the assessee was also summoned under section 131(1) of the Act and his statement