“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

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 93/RJT/2019[2014-15]Status: DisposedITAT Rajkot29 Nov 2023AY 2014-15

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

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 92/RJT/2019[2012-13]Status: DisposedITAT Rajkot29 Nov 2023AY 2012-13

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

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

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 91/RJT/2019[2011-12]Status: DisposedITAT Rajkot29 Nov 2023AY 2011-12

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

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

M/S. Fortune Credit Capital Limited, Mumbai vs. DCIT, Circle -(1)(2), Mumbai

In the result, appeal filed by the Assessee stands allowed for statistical purposes

ITA 2194/MUM/2023[2012-13]Status: DisposedITAT Mumbai24 Nov 2023AY 2012-13

Bench: Shri.Narender Kumar Choudhry () & Shri S Rifaur Rahman ()

For Appellant: Present for the Shri Ujjawal KumarFor Respondent: Chavhan SR. AR

Section 131Section 147Section 148Section 250Section 68

evidence of loss/income actually derived by the sale is available nor the purchase cost of the shares, the entire sale proceeds become the income escaping assessment and same is rightly brought to tax by the AO.” 4. The Assessee being aggrieved is in appeal before us. 5. Heard the parties

Fr. Sauter Ag, New Delhi vs. ITO Ward International Tax 1(3)(2), New Delhi

In the result, the Appeal in ITA No

ITA 831/DEL/2023[2012-13]Status: DisposedITAT Delhi22 Nov 2023AY 2012-13

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2012-13]

Section 112Section 234ASection 234BSection 48

erred in initiating the re-assessment proceedings under the Act in respect of AY 2012-13, in the absence of any income escaping assessment. 1.2. On the facts and circumstances of the case & in law, the order passed by the Ld. AO is bad in law and void ab initio

Parasuram Kesari, Visakhapatnam vs. Income Tax Officer, Ward-5(4), Visakhapatnam

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

ITA 189/VIZ/2023[2012-13]Status: DisposedITAT Visakhapatnam22 Nov 2023AY 2012-13

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri C. Subrahmanyam, ARFor Respondent: Sri Madhukar Aves, Sr. AR

Section 142(1)Section 143(3)Section 147Section 148Section 40A(3)

when the statute contemplates the AO to apply himself in forming his own belief with reasons of the income escaping assessment so much so his predecessor while completing the assessment U/s. 143(3) of the Act has examined the subject issue. 4. The Ld. AO is not correct in making

Shri Saroop Hari, Hoshiarpur vs. Income Tax Officer Ward- 4, Hoshiarpur

In the result, the appeal of the assessee bearing no

ITA 10/ASR/2021[2011-12]Status: DisposedITAT Amritsar09 Nov 2023AY 2011-12

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 147Section 148Section 250Section 44ASection 69Section 69A

Haryana in the case of CIT vs Rajvir Singh 243 CTR 0185 (P & H), held “Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General - Assessment year 1977-78 - Where pursuant to notice issued under section 148 assessee had filed its return of income, impugned notice could

Vijay Ramsingh Goyal, Surat vs. I.T.O., Ward 2(2)(5), Surat.

In the result, the ground No

ITA 591/SRT/2023[2012-13]Status: DisposedITAT Surat06 Nov 2023AY 2012-13

Bench: Shri Pawan Singh(Hybrid Hearing) Vijay Ramsingh Goyal, I.T.O., A-201, Surya Prakash Residency, Ward-2(2)(5), Vs. Beside Agrasen Bhavan, City Light, Surat. Surat-395007 (Gujarat). Pan No. Acupk 0294 Q Appellant/ Assessee Respondent/ Revenue

Section 133(6)Section 143(2)Section 147Section 148Section 254(1)

dated 23/05/2007 held that the Assessing Officer on the basis of material available with him which has direct nexus with the factum of income escaping assessment was justified in reopening the assessment. 5. On addition of deposit in cash and investment in property, the ld. CIT(A) held that

Ratnashri Infrastructure Pvt. Ltd., Delhi vs. ACIT, Central Circle- 4, New Delhi

ITA 1607/DEL/2019[2010-11]Status: DisposedITAT Delhi31 Oct 2023AY 2010-11

Bench: Sh. M. Balaganesh & Sh.Anubhav Sharma

Section 131Section 133(6)Section 141(1)Section 142(1)Section 143(2)Section 148Section 68

recorded qua subject transaction and thirdly merely because said amount is not credited to P&L account by assessee same is treated as income escaping assessment which is totally incorrect as same is evident from admitted /undisputed fact that same is in nature share capital/share premium in hands of assessee

Chheda Specialities Foods Pvt Ltd, Mumbai vs. Income Tax Officer-12(1)-4, Mumbai

In the result the appeal of the assessee is allowed

ITA 2305/MUM/2023[2010-2011]Status: DisposedITAT Mumbai30 Oct 2023AY 2010-2011

Bench: Kuldip Singh & Shri Amarjit Singhchheda Specialities Vs. Ito-12(1)(4) Foods Pvt. Ltd. 145A, Aayakar Bhavan, Plot No. 7, Bmc Ind M. K. Road, Estate, Sai Nagar, Churchgate, Mg Road No. 1, Mumbai-400020 Kandivali (W), Mumbai-400067 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaccc6221G Appellant .. Respondent

For Appellant: Shri. Rahul HakaniFor Respondent: Shri. Ajay Singh

Section 143(1)Section 147Section 148Section 151Section 250Section 37

erred in confirming the validity of reopening of assessment u/s 148 without appreciating that the Assessing Officer wrongly assumed jurisdiction to reopen as income escaping assessment did not exceed Rs 1,00,000/- as alleged bogus purchase of Rs 2,00,000/- was not claimed as a deduction

Mrs. Renu Tikamdas Tharani, Mumbai vs. DCIT (It)-4(2)(1), Mumbai

ITA 2334/MUM/2018[2007-08]Status: DisposedITAT Mumbai30 Oct 2023AY 2007-08

For Appellant: Shri Mukesh AdvaniFor Respondent: Shri Anil Sant

Section 143(3)Section 147Section 148

assessee herself had claimed the residential status as "resident" in the income tax return. The Assessing Officer has to record his satisfaction about income escaping assessment as on the basis of material in his possession and on record as on the time of recording the reasons for reopening the assessment ... case which some general and vague information is received about the assessee, which may or may not lead to an income escaping assessment in the hands of the assessee, and which is thus required to be examined on merits, but of a very specific cogent information regarding a bank account

Shree Gopal Landcraft P.Ltd, New Delhi vs. ACIT, Central Circle-13, New Delhi

In the result, the appeals of the assessee are allowed in the manner as indicated above

ITA 1661/DEL/2022[2016-17]Status: DisposedITAT Delhi19 Oct 2023AY 2016-17

Bench: Shri Chandra Mohan Garg & Girish Agrawal

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri H K Choudhary, CIT(DR)

Section 143(3)Section 153Section 153C

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

Shree Gopal Landcraft P.Ltd, New Delhi vs. ACIT, Central Circle-13, New Delhi

In the result, the appeals of the assessee are allowed in the manner as indicated above

ITA 1660/DEL/2022[2015-16]Status: DisposedITAT Delhi19 Oct 2023AY 2015-16

Bench: Shri Chandra Mohan Garg & Girish Agrawal

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri H K Choudhary, CIT(DR)

Section 143(3)Section 153Section 153C

Shree Gopal Landcraft P.Ltd, New Delhi vs. ACIT, Central Circle-13, New Delhi

In the result, the appeals of the assessee are allowed in the manner as indicated above

ITA 1659/DEL/2022[2013-14]Status: DisposedITAT Delhi19 Oct 2023AY 2013-14

Bench: Shri Chandra Mohan Garg & Girish Agrawal

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri H K Choudhary, CIT(DR)

Section 143(3)Section 153Section 153C

Shree Gopal Landcraft (P) Ltd., Delhi vs. ACIT, Central Circle-13, New Delhi

In the result, the appeals of the assessee are allowed in the manner as indicated above

ITA 1658/DEL/2022[2012-13]Status: DisposedITAT Delhi19 Oct 2023AY 2012-13

Bench: Shri Chandra Mohan Garg & Girish Agrawal

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri H K Choudhary, CIT(DR)

Section 143(3)Section 153Section 153C

Shree Gopal Landcraft (P) Ltd., New Delhi vs. ACIT, Central Circle-13, New Delhi

In the result, the appeals of the assessee are allowed in the manner as indicated above

ITA 1657/DEL/2022[2011-12]Status: DisposedITAT Delhi19 Oct 2023AY 2011-12

Bench: Shri Chandra Mohan Garg & Girish Agrawal

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri H K Choudhary, CIT(DR)

Section 143(3)Section 153Section 153C

Hi-Shine Inks Pvt. Ltd., Na vs. Arivs.the Principal Commissioner of Income Tax, Valsad

In the result, appeal filed by the Assessee is allowed

ITA 358/SRT/2023[2018-19]Status: DisposedITAT Surat16 Oct 2023AY 2018-19

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.358/Srt/2023 Assessment Year: (2018-19) (Physical Hearing) Hi-Shine Inks Pvt. Ltd., Vs. The Pcit, 208, Gidc Estate, Antalia, Valsad Tal: Gandevi, Dist: Navsari – 396325. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacu2926J (Appellant) (Respondent) Appellant By Shri Sujesh C. Suratwala, Ca Respondent By Shri S. M. Keshkamat, Cit(Dr) 14/09/2023 Date Of Hearing Date Of Pronouncement 16/10/2023

Section 139(1)Section 143Section 143(3)Section 263

deal with orders of assessment passed by the primary authority. While Section 147 confers power on the Assessing Authority itself to proceed against income escaping assessment, Section 154 of the Act empowers such authority to correct a mistake apparent on the face of the record. The power of appeal

Bhavin Arunbhai Patel, Valsad vs. Income Tax Officer, Ward-1, Vapi

In the result, the appeal is allowed in the terms indicated above

ITA 456/SRT/2023[2011-12]Status: DisposedITAT Surat12 Oct 2023AY 2011-12

Bench: Shri Dr. A. L. Sainiआयकर अपील सं./Ita No.456/Srt/2023 Assessment Year: (2011-12) (Physical Hearing) Bhavin Arunbhai Patel, Vs. The Ito, Parvassa Road, Mota Waghchhipa, Ward – 1, Kila Pardi, Valsad – 396001, Vapi Gujarat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Arypp2459F (Appellant) (Respondent)

Section 144Section 147Section 148Section 250Section 69A

doubt on the correctness of this proposition but then, as we have elaborately explained earlier in this order, the material must indicate income escaping assessment rather than desirability of further probe in the matter which may or may not lead to income escaping the assessment. On the basis of reasons ... recorded in this case, such an inference about income escaping assessment, in our humble understanding, cannot be drawn.” 11. So far balance amount of Rs.13,68,110/- (Rs.3,68,000- Rs.17,36,110), I note that the bank statement of the assessee, which is placed at page no.1

Shri Hemrajsinh Kiransinh Rathod, Dadra & Nagar Haveli vs. Principal Commissioner of Income Tax, Valsad

In the result, appeal filed by the Assessee is allowed

ITA 239/SRT/2023[2018-19]Status: DisposedITAT Surat26 Sept 2023AY 2018-19

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.239/Srt/2023 Assessment Year: (2018-19) (Virtual Hearing) Hemrajsinh Kiransinh Rathod, Vs. The Pcit, Krishna Petroleum, Iocl Dealer, Valsad Near Jalaram Temple, Waghdhara Road, Village Dadra - 396193, Ut Of Dadra & Nagar Haveli "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aihpr4957N (Appellant) (Respondent) Appellant By Shri Hardik Vora, Advocate Respondent By Shri Ashok B. Koli, Cit(Dr) 14/08/2023 Date Of Hearing Date Of Pronouncement 26/09/2023

Section 143(3)Section 263

Assistant Commissioner of Income Tax (Central), Bilaspur vs. M/S Jagannathdas Harichandmal Jewellers Pvt. Ltd, Raigarh

In the result appeal of revenue is partly allowed in terms of our observations herein above

ITA 106/RPR/2022[2012-13]Status: DisposedITAT Raipur22 Sept 2023AY 2012-13

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.106/Rpr/2022 िनधा"रण वष" /Assessment Year: 2012-13 The Assistant Commissioner Of Vs M/S. Jagannathdas Harichandmal Income Tax (Central), Bilaspur Jewellers Pvt. Ltd. Sadar Bazar, Raigarh (C.G.) Pan: Aaccj2840G (अपीलाथ" /Appellant) (""यथ" / Respondent) .. िनधा"रती क" ओर से /Assessee By : Shri Sunil Kumar Agrawal, Ca राज"व क" ओर से /Revenue By : Shri Choudhary N.C. Roy, Sr. Dr सुनवाई क" तार"ख / Date Of Hearing : 14/07/2023 घोषणा क" तार"ख/Date Of Pronouncement : 22/09/2023 आदेश / O R D E R Per Arun Khodpia, Am : The Captioned Appeal Is Filed By The Revenue Against The Order Passed By The Ld. Commissioner Of Income Tax (Appeals)-3, Bhopal, Dated 16.03.2022 Which In Turn Arises From The Order By Ld. Assessing Officer U/S 143(3) R.W.S. 147 Dated 30.12.2018 For A.Y.2012-13. The Grounds Of The Appeal Raised By The Revenue Are As Under: “ 1. Whether On The Fact & In The Circumstances Of The Case In Law, While Holding Assessment Passed U/S 147 R.W.S. 143(3) Of Act As Invalid & Void-Ab-Initio, The Ld. Cit(A) Completely Ignored The Fact That During The Course Of Survey, The Assessee Failed To Discharge Its Burden In Establishing 'The Identity, Creditworthiness & Genuineness Of The Transactions As Required U/S 68 Of The Income Tac Act. Ld. Cit(A) Erred In Ignoring That Reassessment Proceeding Are Based On Fresh Facts/Information Rather Than Change Of Opinion. 2. Whether On The Fact & In The Circumstances Of The Case In Law, The Ld.Cit(A) Erred In Ignoring That Confirmation Of Concealment Of Income/Disclosure Made In Statement Recorded During Survey U/S 133A Of Act Is An Information, Though Not Conclusive, Which May Be Used In Regular Assessment Or Reassessment Proceedings.

For Appellant: Shri Sunil Kumar Agrawal, CAFor Respondent: Shri Choudhary N.C. Roy, Sr. DR

Section 133ASection 143(3)Section 147Section 148Section 68

Ashok Manilal Thakkar (2005) (Ahd-Trib). 9. Shri Yogesh Kamat, the ld Jt.CIT appearing for the Revenue defended the income escaping assessment orders. He explained that the survey conducted by the Deptt has brought out materials towards certain items of income escaped in the hands of the assessees. Even