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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

M/S. Ravi Foundation, Mumbai vs. Pr. CIT-17, Mumbai

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

ITA 884/MUM/2021[2010-11]Status: DisposedITAT Mumbai26 Apr 2022AY 2010-11
For Appellant: Ms. Arati AggarwalFor Respondent: Shri T. Shankar (Sr. AR)
Section 133ASection 143(3)Section 263Section 263(2)

whole assessment proceeding became reopened, which was negatived by the court opining: "Section 147, which is subject to Section 148, divides cases of income escaping assessment into two clauses i.e. viz. (a) those due to the non- submission of return of income or non-disclosure of true and full facts

M/S. Nitesh Estates Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 5(1)(2), Bangalore

In the result appeal filed by assessee stands allowed on legal issue raised in ground no

ITA 1486/BANG/2019[2009-10]Status: DisposedITAT Bangalore20 Apr 2022AY 2009-10

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2009-10 M/S. Nitesh Estates The Deputy Ltd., Commissioner Of Nitesh Time Square, Income Tax, 7Th Floor, #8, M.G. Road, Circle – 5 [1][2], Bangalore – 560 001. Vs. Bangalore. Pan: Aabcn9267C Appellant Respondent Assessee By : Shri V. Srinivasan, Advocate : Shri Sankar Ganesh K, Jcit Revenue By (Dr) Date Of Hearing : 04-02-2022 Date Of Pronouncement : 20-04-2022 Order Per Beena Pillaipresent Appeal Has Been Filed By Assessee Against Order Dated 28/03/2019 Passed By The Ld. Cit(A)-5, Bangalore For Assessment Year 2009-10 On Following Grounds Of Appeal: “1. The Orders Of The Authorities Below In So Far As They Are Against The Appellant Are Opposed To Law, Equity, Weight Of Evidence, Probabilities, Facts & Circumstances Of The Case. 2. The Order Of Re-Assessment Is Bad In Law & Void-Ab- Initio For Want Of Requisite Jurisdiction Especially, The Mandatory Requirements To Assume Jurisdiction U/S 148 Of The Act Did Not Exist & Have Not Been Complied With & Consequently, The Re-Assessment Requires To Be Cancelled. 3. The Learned Cit[A] Ought To Have Appreciated That There Was No Fresh Material To Show That Income Had Escaped Assessment Especially When There Was A Scrutiny

For Appellant: Shri V. Srinivasan, Advocate
Section 143Section 143(3)Section 147Section 148Section 234

reasons inducing the said belief must always be objective. The objective reasons should lead to the formation of the subjective belief that, income escaped assessment. Thus Ld.AR submitted that, there must be a live link between the reasons recorded and material, based on which the reassessment proceedings ... justified. This could be ascertained only by application of mind to the materials to conclude that, the Ld.AO has ‘reasons to believe’, that income escaped assessment. Unless this basic jurisdictional requirement is satisfied issuance of notice under section 148 cannot be validated. 12. In the present facts of the case

Tech Mahindra Ltd., Mumbai vs. ACIT, Circle - 2(3)(1), Mumbai

In the result, appeal by the assessee is allowed

ITA 6573/MUM/2019[2012-13]Status: DisposedITAT Mumbai17 Mar 2022AY 2012-13

Bench: Shri Vikas Awasthy & Shri Prashant Maharishiआअसं. 6573/मुं/2019 ("न. व. 2012-13 ) Tech Mahindra Limited, Gateway Building, Apollo Bunder, Mumbai – 400 001 Pan: Aaacm-3484-F ...... अपीलाथ" /Appellant बनाम Vs. Acit, Cir. 2(3)(1), Aaykar Bhavan, M.K.Road, Mumbai 400 020 ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri J.D.Mistri, Sr. Advocate ""तवाद" "वारा/Respondent By : Shri Rajesh Damor सुनवाई क" "त"थ/ Date Of Hearing : 20/12/2021 घोषणा क" "त"थ/ Date Of Pronouncement : 17/03/2022 आदेश/ Order Per Vikas Awasthy, Jm: 6573/Mum/2019 This Appeal By The Assessee Is Directed Against The Order Of Commissioner Of Income Tax(Appeals)-6, Mumbai [In Short 'The Cit(A)’] Dated 04/09/2019 For The Assessment Year 2012-13. 2. Shri J.D.Mistri, Sr.Advocate Appearing On Behalf Of The Assessee Submitted At The Outset That The Assessee Has Raised Additional Grounds Of 2 Appeal Assailing Jurisdiction Assumed By The Assessing Officer U/S. 147 Of The Income Tax Act,1961 ( In Short 'The Act') & Validity Of The Order Passed U/S. 143(3) R.W.S. 147 Of The Act. At This Stage He Would Be Confirning His Submissions On The Additional Grounds Raised.

For Appellant: Shri J.D.Mistri, Sr. AdvocateFor Respondent: Shri Rajesh Damor
Section 115JSection 143(3)Section 147Section 148Section 68

Assessing Officer (Ld. AO) erred in assuming the jurisdiction under Section 147 of the Act and there is no income escaping assessment as per the provisions of the Act. 2. On the facts of the case and under the circumstances and in law, the order passed

Jsw Steel Limited, Mumbai vs. Addlcit, Bangalore

858/M/2011

ITA 858/BANG/2011[2007-08]Status: DisposedITAT Mumbai16 Mar 2022AY 2007-08

Bench: Shri Om Prakash Kant () & Shri Amarjit Singh () Assessment Year: 2007-08 Jsw Steel Limited, The Addl. Cit, Range 11, Jindal Mansion, 5A, Vs. Bangalore. Dr. G. Deshmukh Marg, Mumbai-400026. Pan No. Aaacj 4323 N Appellant Respondent Assessment Year: 2007-08 Dc. Cc.46, M/S Jsw Steel Ltd., R.No. 659, 6Th Floor, Aayakar Vs. Jindal Mansion, 5-A, Dr. G Bhavan, M.K. Road, Deshmukh Marg, Mumbai-20. Mumbai-400026. Pan No. Aaacj 4323 N Appellant Respondent Assessment Year: 2007-08 M/S Jsw Steel Ltd., Dcit, Central Circle 46, Jsw Centre, Bandra Kurla Vs. 6Th Flr., Aayakar Bhavan, M.K. Complex, Road, Mumbai-400051. Mumbai-400020. Pan No. Aaacj 4323 N Appellant Respondent

For Appellant: Mr. Danesh Bafna &For Respondent: Mr. Achal Sharma, CIT-DR
Section 14ASection 37(1)

further innings for the A and/ or assessee beyond provisions of Sections 139 (return of income), 139(5) (revised return of income), 147 (income escaping assessment) and 263 (revision of orders) of the Act. The search assessment proceedings in cases where original assessments have achieved finality cannot be left open

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Deputy Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 465/BANG/2020[2014-15]Status: DisposedITAT Bangalore07 Mar 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 147Section 148

opinion on the issues raised in reopening the assessment, as such he issued notice u/s. 148 of the Act so as to bring income escaping assessment into the tax net. He relied on the orders of lower authorities. 6. We have heard both the parties and perused the material ... enactment of Direct Tax Laws (Amendment) Act, 1987, i.e., prior to 1-4-1989, section 147 of the Act, reads as under: "147. Income escaping assessment.- If the Assessing Officer, for reasons to be recorded by him in writing, is of the opinion that any income chargeable

Mysore Minerals Limited (Now Known As Karnataka State Minerals Corporation Limited), Bengaluru vs. Assistant Commissioner of Income Tax, Circle- 4(1)(2), Bengaluru

In the result, both the appeals are allowed

ITA 464/BANG/2020[2013-14]Status: DisposedITAT Bangalore07 Mar 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 147Section 148

opinion on the issues raised in reopening the assessment, as such he issued notice u/s. 148 of the Act so as to bring income escaping assessment into the tax net. He relied on the orders of lower authorities. 6. We have heard both the parties and perused the material ... enactment of Direct Tax Laws (Amendment) Act, 1987, i.e., prior to 1-4-1989, section 147 of the Act, reads as under: "147. Income escaping assessment.- If the Assessing Officer, for reasons to be recorded by him in writing, is of the opinion that any income chargeable

Mr.M J Aravind, Bangalore vs. Assistant Commissioner of Income Tax Circle-2(3)(1), Bangalore

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

ITA 222/BANG/2019[2011-12]Status: DisposedITAT Bangalore25 Feb 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2011-12

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 147Section 148Section 14ASection 48Section 57

provisions of section 147 of the Act and issued notice u/s. 148 of the Act so as to bring Page 9 of 24 income escaping assessment into the tax net. He relied on the orders of lower authorities. 7. We have heard both the parties and perused the material ... enactment of Direct Tax Laws (Amendment) Act, 1987, i.e., prior to 1-4-1989, section 147 of the Act, reads as under: "147. Income escaping assessment.- If the Assessing Officer, for reasons to be recorded by him in writing, is of the opinion that any income chargeable

Dy CIT CC 6(4), Mumbai vs. Shri. Dilip J Thakkar, Mumbai

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

ITA 966/MUM/2020[1999-2000]Status: DisposedITAT Mumbai16 Feb 2022AY 1999-2000
Section 132Section 143(3)Section 147Section 149Section 149(1)(c)

escaped assessment”, for our consideration. While the stand of the Assessing Officer is that the time limit for reopening the assessments involving income escaping assessment in relation of any asset outside India is sixteen years from the end of the assessment year which is being sought to be reopened ... provision enabling the Assessing Officer to reopen cases up to sixteen years from the end of the relevant assessment year in respect of income escaping assessment with respect to any asset located outside India. The Assessing Officer is aggrieved by this finding, and is in appeal before

DCIT, Central Circle-1, Noida vs. Golf Link Hospitality P.Ltd, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 6413/DEL/2018[2011-12]Status: DisposedITAT Delhi31 Jan 2022AY 2011-12

Bench: Shri Rama Kanta Panda & Shri N. K. Choudhry(Through Video Conferencing) Dcit, Vs. Golf Link Hospitality Pvt. Ltd, Central Circle-1, F-302, Aditya Commercial, Noida Plot No. 12, Preetvihar Community Centre, New Delhi Pan: Aadcg5239R (Appellant) (Respondent)

For Appellant: ShriMayankPatawari, CAFor Respondent: ShriGovindSinghal, Sr. DR
Section 132Section 153CSection 250(6)

However, it is open for AO to take remedial action in accordance with the: provisions of income tax Act, to assess/reassess the income escaping assessment, if any. Therefore- assessment framed u/s 153C of the Act on the basis of legally unsustainable notice is hereby quashed and annulled. Thus, these legal

Ferani Hotels Pvt Ltd., Mumbai vs. Dy CIT CC 4 (1), Mumbai

In the result, this appeal is allowed

ITA 7610/MUM/2019[2011-12]Status: DisposedITAT Mumbai11 Jan 2022AY 2011-12
Section 143Section 143(3)Section 147Section 148Section 80Section 80I

bogus purchase aspect was thoroughly scrutinized during the original assessment proceedings. A disallowance per se cannot result is income escaping assessment when the entire amount is to be capitalized nevertheless. Given these peculiar facts, the lapses of the assessee, even if that be so, were tax neutral in the present

Krishna Devi, New Delhi vs. ITO, Ward- 38(3), New Delhi

ITA 6356/DEL/2019[2014-15]Status: DisposedITAT Delhi04 Jan 2022AY 2014-15

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 6356/Del/2019 : Asstt. Year : 2014-15 Krishna Devi, Vs Income Tax Officer, F-26/124, Sector-7, Rohini, Ward-38(3), New Delhi-110085 New Delhi-110002 (Appellant) (Respondent) Pan No. Abrpd0875E Assessee By : Sh. Kapil Goel, Adv. Revenue By : Sh. Umesh Takyar, Sr. Dr Date Of Hearing: 08.10.2021 Date Of Pronouncement: 04.01.2022

For Appellant: Sh. Kapil Goel, AdvFor Respondent: Sh. Umesh Takyar, Sr. DR
Section 115BSection 143(2)Section 147Section 148Section 68

what he found when he went through the information. In other words, what in such information led him to form the belief that income escaped assessment. But this is absent. He straightaway records the conclusion that "the above said instruments are in the nature of accommodation entry which the assessee ... provisions of Section 147, Section 148 and Section 151 of the Act are perused which are as under: “Section 147: 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

DCIT, Central Circle-1, Noida vs. Golf Link Hospitality P.Ltd, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 6414/DEL/2018[2012-13]Status: DisposedITAT Delhi07 Dec 2021AY 2012-13
Section 132Section 153C

However, it is open for AO to take remedial action in accordance with the: provisions of income tax Act, to assess/reassess the income escaping assessment, if any. Therefore- assessment framed u/s 153C of the Act on the basis of legally unsustainable notice is hereby quashed and annulled. Thus, these legal

Ghanshyam, Ghaziabad vs. ITO, Ward-1(2), Ghaziabad

In the result, the appeal of the assessee is allowed

ITA 3692/DEL/2018[2008-09]Status: DisposedITAT Delhi30 Nov 2021AY 2008-09

Bench: Sh. A. D. Jaindr. B. R. R. Kumarita No. 3692/Del/2018 : Asstt. Year : 2008-09 Ghanshyam, Vs Income Tax Officer, S/O Late Shri Hari Singh, Ward-1(2), R/O Village-Saddique Nagar, Ghaziabad Sehani, Ghaziabad (Appellant) (Respondent) Pan No. Aqhpg9011C Assessee By : Sh. Amit Goel, Adv. Revenue By : Sh. Umesh Takyar, Sr. Dr Date Of Hearing: 25.10.2021 Date Of Pronouncement: 30.11.2021

For Appellant: Sh. Amit Goel, AdvFor Respondent: Sh. Umesh Takyar, Sr. DR
Section 147Section 148

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 ... conclusion and the evidence.” 13. Merely because investigations 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. 14. The Hon'ble Supreme Court in the case

ITO, New Delhi vs. M/S. Sunlight Tour and Travels Pvt. Ltd., Sahibabad

In the result, the appeal filed by the Revenue in ITA No

ITA 5739/DEL/2016[2007-08]Status: DisposedITAT Delhi15 Nov 2021AY 2007-08

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastava[A.Y 2007-08]

For Appellant: Shri S.K. Tulsian, AdvFor Respondent: Shri H.K. Chaudhary, CIT- DR
Section 133(6)Section 143(3)Section 147Section 148Section 68

respect of an issue which is totally unconnected to the basis on which the Assessing Officer formed a reason to believe that income escaped assessment and issued a notice under section 148, it was open to him to issue a fresh notice by following sub-section (2) of section ... under section 148(2) onthe basis of which he had initiated proceedings under section 147. [Para 11] The heading of section 147 is "income escaping assessment" and that of section 148 is "issue of notice where income escaped assessment". Section 148 is supplementary and complimentary to section 147. Sub- section

M/S Bhartiya Samruddhi Finance Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the Assessee is allowed

ITA 6022/DEL/2016[2007-08]Status: DisposedITAT Delhi10 Nov 2021AY 2007-08

Bench: Shri R.K. Panda & Shri Mahavir Prasad

For Appellant: Shri KVSR. Krishna, C.AFor Respondent: Shri Sanjay Tripathi, Sr. DR
Section 143(3)Section 147Section 148

belief. The relevant observation of the Hon’ble Supreme Court reads as under : “After the Amending Act, 1989, Section 147 reads 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

S.N. Arora/Sapra, New Delhi vs. ITO, Ward- 23(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 5748/DEL/2018[2008-09]Status: DisposedITAT Delhi27 Oct 2021AY 2008-09

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 5748/Del/2018 : Asstt. Year : 2008-09 S. N. Arora/Sapra, Vs Income Tax Officer, H-1481, 1St Floor, C.R. Park, Ward-23(2), New Delhi-110019 New Delhi-110002 (Appellant) (Respondent) Pan No. Arqps5550E Assessee By : Sh. R. S. Singhvi, Ca Revenue By : Sh. Ratan Singh, Sr. Dr Date Of Hearing: 21.10.2021 Date Of Pronouncement: 27.10.2021

For Appellant: Sh. R. S. Singhvi, CAFor Respondent: Sh. Ratan Singh, Sr. DR
Section 147Section 148Section 151Section 151(2)Section 68Section 69

satisfaction and requisite approval in terms of provisions of sec. 151 of the Act. (ii) That there is no case of any income escaping assessment and whole basis of reassessment is illegal and without jurisdiction. 2(i) That on the facts and circumstances of the case ... Note: The Assessing Officer is requested to go through the bank statement and other documents forwarded herewith to arrive at the income escaping assessment before issuing notice u/s 148.” 4. The first issue pertains to deposit of cash in the bank. The Assessing Officer reopened the case holding that

ACIT, New Delhi vs. M/S. Maharaji Education Trust, Ghaziabad

The appeal are dismissed

ITA 5138/DEL/2016[2007-08]Status: DisposedITAT Delhi13 Oct 2021AY 2007-08

Bench: Shri Kuldip Singh & Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: Shri Suresh Gupta, C. AFor Respondent: Ms. Paramita M. Biswas[CIT]–
Section 11Section 12ASection 132Section 133ASection 143(1)Section 143(2)Section 143(3)Section 68Section 69Section 69C

Omkam Developers Ltd vs ITO ITA No.6862/Del/2018 dt: 11.05.2021. 21. He further submitted that there is a mistake in quantification of income escaping assessment where excess application is of Rs.2,69,34,371/-. Therefore, the income quantified in the reasons is inflated by a sum of Rs.11

Madan Mohan Tiwari, New Delhi vs. ITO, Ward- 29(3), New Delhi

In the result, the appeal of the assessee is stands

ITA 6925/DEL/2018[2008-09]Status: DisposedITAT Delhi06 Oct 2021AY 2008-09

Bench: Shri R.K.Panda & Shri Sanjay Gargassessment Year : 2008-09 Madan Mohan Tiwari, Vs Income Tax Officer, J-145, Kalkaji, Ward-29(3), New Delhi-110019 Room No.1015, 10Th Floor, Block-E2, Dr. S.P. Mukharjee Civic Centre, Minto Road, New Delhi-110002 Pan-Aeqpt1251F Appellant Respondent

Section 147

reassessment of escaped income as incorporated in S 147 of the Income-tax Act, 1961 the relevant parts of which read as follows.- : 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 ... being noticed by him for any reason, it escaped assessment. Accordingly there should be a complete and direct conclusion as to income escaping assessment so as to resort to the reassessment provisions. (v) Section 148 to 151 set out the frame work, procedure and the conditions -governing the reassessment provisions

J.D. Sons Steel Pvt. Ltd., Faridabad vs. ACIT, Faridabad

In the result, the appeal of the assessee is allowed

ITA 1061/DEL/2015[2009-10]Status: DisposedITAT Delhi31 Aug 2021AY 2009-10

Bench: Shri Amit Shukla & Dr. B.R.R. Kumar

For Appellant: Shri Rajesh Jain, CAFor Respondent: Shri Umesh Takiyar, Sr.D.R
Section 139Section 139(1)Section 143(1)Section 143(3)Section 147Section 148Section 148(1)Section 148(2)Section 68

that bogus accommodation entries in garb of share application money were taken by the assessee. In so far as forming a belief of income escaping assessment and subsequently recording of reasons is concerned, it is seen from above that there was more than sufficient material on record to form ... scrutiny proceedings wherein there is no provision of dropping the proceedings, once the case is selected for scrutiny. So, belief of AO regarding income escaping assessment, recording of reasons, application of mind should not be taken to hyper-technical level such that it can work as vehicle to vitiate

R.N. Khemka Enterprises (P) Ltd., Delhi vs. ITO Ward- 20(3), New Delhi

In the result, the appeal filed by the assessee is

ITA 7244/DEL/2019[2011-12]Status: DisposedITAT Delhi12 Aug 2021AY 2011-12

Bench: Shri R.K. Panda & Ms. Suchitra Kamble[Assessment Year: 2011-12]

Section 131Section 139Section 142(1)Section 143(1)Section 143(2)Section 147Section 148Section 68

learned counsel for the assessee also challenged the validity of reassessment proceedings on account of error in quantification of income escaping assessment and mechanically approved by the Pr. CIT by simply stating “Yes, it is a fit case of issue of notice u/s 148 r.w.s ... Referring to various decisions, he submitted that such error in quantification of income escaping assessment and mechanical approval by the Pr. CIT makes such reassessment a nullity. 19. So far as, the merits of the case is concerned, the learned counsel for the assessee submitted that to prove the identity