“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

Vankar Dayabhai, Vadodara vs. The ITO, Ward-3(1)(4), Vadodara

ITA 2257/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad29 Jan 2026AY 2018-19

Bench: Ms. Suchitra Kamble

For Appellant: Shri Akshay M. Modi, A.RFor Respondent: Shri Umesh Kumar Agrawal, Sr. D.R

Section 144BSection 147Section 148Section 151ASection 270ASection 271ASection 272A(1)(d)Section 69

vide notice dtd. 05-04-2022 after introduction of e- I.T.A Nos. 2254 to 2261/Ahd/2025 VankarDayabhai, A.Y. 2018-19 & 2019-20 Assessment/Faceless Income Escaping Assessment Scheme, 2022 under Section 151A of the Act and hence, the notice issued by the JAO is without jurisdiction and illegal and also in violation ... under Section 148 of the Act has been initiated by the JAO vide notice dtd. 13-03-2023 after introduction of e- Assessment/Faceless Income Escaping Assessment Scheme, 2022 under Section 151A of the Act and hence, the notice issued by the JAO is without jurisdiction and illegal and also

Vankar Dayabhai, Vadodara vs. The ITO, Ward-3(1)(4), Vadodara

ITA 2256/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad29 Jan 2026AY 2018-19

Bench: Ms. Suchitra Kamble

For Appellant: Shri Akshay M. Modi, A.RFor Respondent: Shri Umesh Kumar Agrawal, Sr. D.R

Section 144BSection 147Section 148Section 151ASection 270ASection 271ASection 272A(1)(d)Section 69

Vankar Dayabhai, Vadodara vs. The ITO, Ward-3(1)(4), Vadodara

ITA 2255/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad29 Jan 2026AY 2018-19

Bench: Ms. Suchitra Kamble

For Appellant: Shri Akshay M. Modi, A.RFor Respondent: Shri Umesh Kumar Agrawal, Sr. D.R

Section 144BSection 147Section 148Section 151ASection 270ASection 271ASection 272A(1)(d)Section 69

Vankar Dayabhai, Vadodara vs. The ITO, Ward-3(1)(4), Vadodara

ITA 2254/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad29 Jan 2026AY 2018-19

Bench: Ms. Suchitra Kamble

For Appellant: Shri Akshay M. Modi, A.RFor Respondent: Shri Umesh Kumar Agrawal, Sr. D.R

Section 144BSection 147Section 148Section 151ASection 270ASection 271ASection 272A(1)(d)Section 69

Janakee Petrolium, Satara vs. ITO WD-4, Satara

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

ITA 2327/PUN/2025[2015-16]Status: DisposedITAT Pune29 Jan 2026AY 2015-16

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita Nos.2322 & 2327/Pun/2025 निर्धारण वषा / Assessment Year: 2015-16 Janakee Petrolium, V Income Tax Officer, Gat No.1041/B, Wai Surru S Ward-4, Satara. Roadk Kavathe Wai, Satara – 415516 Pan: Aajfj9486C Appellant/ Assessee Respondent /Revenue Assessee By Shri Tanzil Padvekar Revenue By Smt Neha Thakur (Virtual) Date Of Hearing 21/01/2026 Date Of Pronouncement 29/01/2026 आदेश/ Order Per Bench : These Two Appeals Filed By The Assessee Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 For The A.Y.2015-16 Both Dated 20.08.2025 Emanating From The Assessment Order Passed Under Section 147 R.W.S 144 Of The Act, Dated 22.02.2023 & Penalty Order Under Section 271(1)(C) Of The Act, 10.08.2023

Section 144Section 147Section 148Section 148ASection 151ASection 250Section 271(1)(c)Section 69A

under Section 148A(d) of the Act ought to have been issued incompliance to Section 151A of the Act r.w. E Assessment of Income Escaping Assessment Scheme, 2022 dated 29th March, 2022 as held in the decision of Kairos Properties Private Limited (Supra). 8. On the facts ... impugned Notice under Section 148 of the Act ought to have been issued in faceless manner as stipulated by the E-Assessment of income Escaping Assessment Scheme, 2022 (Notified on 29th March, 2022). After the notification of the said Scheme dated 29/03/2022, Respondent No.1 was ceased of the jurisdiction

Janakee Petrolium, Satara vs. ITO WD-4, Satara

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

ITA 2322/PUN/2025[2015-16]Status: DisposedITAT Pune29 Jan 2026AY 2015-16

Section 144Section 147Section 148Section 148ASection 151ASection 250Section 271(1)(c)Section 69A

ITO 13(2)(1), Mumbai vs. Ska Sales Private Limited, Mumbai

In the result, the appeal filed by the revenue stands dismissed

ITA 5966/MUM/2025[2016-17]Status: DisposedITAT Mumbai29 Jan 2026AY 2016-17

Bench: Shri Sandeep Gosain & Shri Bijayananda Pruseth

Section 148Section 151Section 250

time when the notice is issued. This plays out as follows under the old regime: M/s. SKA Sales Pvt Ltd, Mumbai (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under Section 148 within four years after obtaining the approval ... appropriate authorities specified under Section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal

Bysol Enterprises Private Limited, Mumbai vs. ACIT, Circle 4(1)(1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 5898/MUM/2025[2017-18]Status: DisposedITAT Mumbai29 Jan 2026AY 2017-18

Bench: Amit Shukla & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Kapil Hirani, AdvocateFor Respondent: Shri Leyaqat Ali Aafaqui, Sr. AR

Section 139(1)Section 147Section 148Section 148ASection 151Section 151A

directly co- related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under Section 148 within four years after obtaining the approval ... appropriate authorities specified under Section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal

M/S Sheetal Clothing Company Pvt Ltd, Mumbai vs. DCIT-Circle 5(3)(1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 5825/MUM/2025[2017-18]Status: DisposedITAT Mumbai29 Jan 2026AY 2017-18

Bench: Smt. Beena Pillai & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Hitesh Jain, CAFor Respondent: Shri Arun Kanti Datta, CIT DR

Section 143(3)Section 147Section 148Section 148ASection 149(1)Section 151Section 68

Assistant Commissioner of Income Tax 32(1), Mumbai vs. Suman Gandhi, Mumbai

In the result, the appeal and the cross objection both are dismissed

ITA 3415/MUM/2025[2014-15]Status: DisposedITAT Mumbai29 Jan 2026AY 2014-15

Bench: Shri Saktijit Dey & Shri Arun Khodpiaasst. Cit-32(1) Suman Gandhi Room No. 252, Kautilya Bhavan, 2204/2205, Montereal Building, Bkc Bandra E, Vs. Shastri Nagar, Andheri (W), Mumbai-400 051 Mumbai-400 058 Pan/Gir No. Amzps 3507 P (Revenue) : (Assessee) Co No. 268/Mum/2025 (Arising Out Of Ita No. 3415/Mum/2025) (Assessment Year: 2014-15) Suman Gandhi Asst. Cit-32(1) 2204/2205, Montereal Building, Room No. 252, Kautilya Bhavan, Shastri Nagar, Andheri (W), Vs. Bkc Bandra E, Mumbai-400 058 Mumbai-400 051 Pan/Gir No. Amzps 3507 P (Assessee) : (Revenue) Assessee By : Shri K. Shivaram, Sr. Advocate & Shri Sashi Bekal Revenue By : Shri Swapnil Choudhary – Sr. Ar Date Of Hearing : 28.01.2026 Date Of Pronouncement : 29.01.2026 O R D E R Per Saktijit Dey: Captioned Appeal By The Department & Cross Objection By The Assessee, Arise Out Of Order Dated 20.03.2025, Passed By National Faceless Appeal Centre (‘Nfac’ For Short), Delhi For The Assessment Year (A.Y. For Short) 2014-15. 2

For Appellant: Shri K. Shivaram, Sr. Advocate &For Respondent: Shri Swapnil Choudhary – Sr. AR

Section 147Section 68

errors in filling of the client code. At any rate, what can be taxed in the hands of the present assessee is the income escaping assessment. Even if the Revenue's theory of the assessee having enabled the clients to claim contrived losses, the Revenue had to bring on record

Saritha Flavina Dsouza, Mangalore vs. Income Tax Officer Ward 1(1), Mangalore

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

ITA 1363/BANG/2025[2018-19]Status: DisposedITAT Bangalore28 Jan 2026AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2018-19

For Appellant: Shri Sanketh S Nayak, CAFor Respondent: Shri Ganesh R Ghale, Advocate – Standing

Section 139Section 147Section 48

individual who has not filed regular return under section 139 of the Act. The case of the assessee was selected for income escaping assessment under section 147 of the Act on account of information received regarding transfer of immovable property by her (the assessee). 7. During the assessment proceedings

Sunil Kumar Singh, New Delhi vs. Income Tax Officer, Ward 60(5), Delhi, New Delhi

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

ITA 3657/DEL/2025[2013-14]Status: DisposedITAT Delhi28 Jan 2026AY 2013-14

Bench: Shris.Rifaur Rahman & Shri Vimal Kumarsunil Kumar Singh, Vs. Income Tax Officer, S-172B, Pandav Nagar, Ward 60 (5), Delhi. Laxmi Nagar, Delhi – 110 092. (Pan : Bbfps2668B) (Appellant) (Respondent) Assessee By : Shri Sumit Lal Chandani, Advocate Revenue By : Ms. Harpreet Kaur Hansra, Sr. Dr Date Of Hearing : 19.01.2025 Date Of Order : 28.01.2026 O R D E R Per S. Rifaur Rahman: 1. The Assessee Has Filed Appeal Against The Order Of The Learned Commissioner Of Income Tax (Appeals)/National Faceless Appeal Centre (Nfac), Delhi [“Ld. Cit(A)”, For Short] Dated 03.03.2025 For The Assessment Year 2013-14 Raising Following Grounds Of Appeal :- 1. That The Notice Issued Under Section 148 Of The Income Tax Act, 1961 (‘The Act’) & The Consequential Proceedings Are Illegal, Bad In Law, Without Jurisdiction & Barred By Time Limitation. 2. That The Commissioner Of Income Tax (Appeals) [‘Cit(A)’] Has Erred In Not Quashing The Reassessment Proceedings, Which Are Ex Facie Bad In Law & In Violation Of The Settled Judicial

For Appellant: Shri Sumit Lal Chandani, AdvocateFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR

Section 115BSection 147Section 148Section 148ASection 149Section 151Section 68

Gujarat HC) has decided the same issue as under :- “Section 149, read with sections 148 and 148A, of the Income-tax Act, 1961 - Income escaping assessment - Time limit for issuance of notice (TOLA) - Assessment year 2016-2017 - Assessing Officer issued impugned notice under section ... ITAT Mumbai) (supra) has decided the issue as under :- “Section 149, read with sections 148 and 148A, of the Income-tax Act, 1961 - Income escaping assessment - Time limit for issuance of notice - Assessment year 2017-18 - Assessee filed its return of income for assessment year 2017-18 - Assessing Officer issued

Jagmohan Singh Bedi, Delhi vs. Income Tax Officer, Ward 70(1), Delhi

In the result, the appeals of the assessee are partly

ITA 5069/DEL/2024[2017-18]Status: DisposedITAT Delhi28 Jan 2026AY 2017-18

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 1Section 139(1)Section 147Section 148Section 69A

Deputy Commissioner of Income-tax Section 148A, read with section 148, of the Income-tax Act, 1961-Conducting inquiry, providing Income escaping assessment opportunity before issue of notice (Illustrations) Assessment year 2019-20 Assessing Officer issued to assessee a notice under section 148(b) and assessee assessee replied to notice ... WRIT_PETITION NO. 2774 OF 2023 SEPTEMBER 29, 2023 Section 151, read with sections 148A and 148, of the Income-tax Act, 1961 Income escaping assessment Sanction for issue of notice (Illustrations) - Assessment year 2019-20 Assessing Officer issued notice under section 148A(b) on 29-3-2023-Assessing Officer

Jagmohan Singh Bedi, Delhi vs. Income Tax Officer, Ward 70(1), Delhi

ITA 5068/DEL/2024[2016-17]Status: DisposedITAT Delhi28 Jan 2026AY 2016-17

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 139(1)Section 147Section 148Section 69A

Deputy Commissioner of Income-tax Section 148A, read with section 148, of the Income-tax Act, 1961-Conducting inquiry, providing Income escaping assessment opportunity before issue of notice (Illustrations) - Assessment year 2019-20 Assessing Officer issued to assessee a notice under section 148(b) and assessee assessee replied to notice ... WRIT PETITION NO. 2774 OF 2023 SEPTEMBER 29, 2023 Section 151, read with sections 148A and 148, of the Income-tax Act, 1961 Income escaping assessment Sanction for issue of notice (Illustrations) - Assessment year 2019-20 Assessing Officer issued notice under section 148A(b) on 29-3-2023-Assessing Officer

Jagmohan Singh Bedi, Delhi vs. Income Tax Officer, Ward 70(1), Delhi

ITA 5067/DEL/2024[2015-16]Status: DisposedITAT Delhi28 Jan 2026AY 2015-16

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 139(1)Section 147Section 148Section 69A

Deputy Commissioner of Income-tax Section 148A, read with section 148, of the Income-tax Act, 1961-Conducting inquiry, providing Income escaping assessment opportunity before issue of notice (Illustrations) - Assessment year 2019-20 Assessing Officer issued to assessee a notice under section 148(b) and assessee assessee replied to notice ... WRIT PETITION NO. 2774 OF 2023 SEPTEMBER 29, 2023 Section 151, read with sections 148A and 148, of the Income-tax Act, 1961 Income escaping assessment Sanction for issue of notice (Illustrations) - Assessment year 2019-20 Assessing Officer issued notice under section 148A(b) on 29-3-2023-Assessing Officer

DCIT Circle 1 Nashik, Nashik vs. Shree Sai Properties, Nashik

In the result, appeal of the Revenue is dismissed

ITA 987/PUN/2025[2014-15]Status: DisposedITAT Pune27 Jan 2026AY 2014-15

Bench: Dr. Manish Borad & Shri Vinay Bhamore

For Appellant: Shri Subodh Ratnaparkhi, CAFor Respondent: Shri Amit Bobde, CIT

Section 132Section 143(2)Section 143(3)Section 147Section 148Section 250

period as specified in the said provision and after compliance of other provisions as mandated. On the other hand, Section 147 provides for "Income escaping assessment", can be invoked when any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year. In such

Babu Lal Patwari, Uttarakhand vs. DCIT Circle-2(1)(), Uttarakhand

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

ITA 60/DDN/2024[2014-15]Status: DisposedITAT Dehradun23 Jan 2026AY 2014-15

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

For Appellant: Shri Somil Agarwal, AdvocateFor Respondent: Shri S.K. Chaterjee, CIT DR

Section 148Section 148ASection 151

directly co-related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under Section 148 within four years after obtaining the approval ... authorities specified under Section 151 of the new regime. The effect of Section 151 of the new regime is thus: 7 (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining PART E the prior approval

Meka Viraj Gopal Apparao, Nuzvid vs. The Income Tax Officer, Ward -3(1), Vijayawada

In the result, appeal of the Assessee is allowed

ITA 232/VIZ/2025[2015-16]Status: DisposedITAT Visakhapatnam23 Jan 2026AY 2015-16

Bench: Shri Vijay Pal Rao & Shri Omkareshwar Chidaraआ.अपी.सं /Ita No.232/Viz./2025 Assessment Year 2015-2016 Meka Viraj Gopal Apparao, Kotapadu Estate, Nuzvid The Income Tax Officer, Vs. Mandal, Krishna Ward-3(1), District. Vijayawada – 520 002. Pin – 521 201. Pan Bgapm1891G (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Sri Mv Prasad, Ca राज" व "ारा /Revenue By: Dr. Aparna Villuri, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 20.01.2026 घोषणा की तारीख/Pronouncement: 23.01.2026 आदेश/Order

For Appellant: Sri MV Prasad, CAFor Respondent: Dr. Aparna Villuri, Sr. AR

Section 142(1)Section 147Section 148Section 148A

present batch of Writ Petitions is no more res integra. (E). Considering the background in notifying the (E- Assessment Scheme of Income Escaping Assessment Scheme, 2022) notified by the Government of India on 29.03.2022, and in the light of the decisions of various High Courts stated supra and upon careful ... faceless mechanism as provided under the provisions of Section 144 (b) read with Section 151 A and the "E-Assessment Scheme of Income Escaping Assessment Scheme, 2022" notified by the Government of India on 29.03.2022 under Section 151 A, is bad and illegal. It is made clear that the Jurisdictional

Jayasankar Natarajan, Chennai vs. ITO, Ncw-1(2), Chennai

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

ITA 3211/CHNY/2025[2017-18]Status: DisposedITAT Chennai23 Jan 2026AY 2017-18

Bench: Shri George George Kand Ms Padmavathy Sआयकर अपील सं./Ita No.: 3211/Chny/2025 िनधा"रण वष"/Assessment Year: 2017-18

For Appellant: Shri Raman Goyal, IRS (Retd.) &For Respondent: Ms. R. Kavitha, Addl.CIT

Section 144BSection 147Section 148Section 148ASection 250

Chennai is lacking jurisdiction in view of Notification issued by the CBDT dated 29.03.2022 which formulated a Scheme called “the e- assessment of Income Escaping Assessment Scheme, 2022”. By relying upon the decision of the Hon’ble High Court of Madras in the case of TVS Credit Services

Ganesh Chand Suresh Kumar, Chennai vs. ITO, Ncw-3(3), Chennai

ITA 3143/CHNY/2025[2017-18]Status: DisposedITAT Chennai23 Jan 2026AY 2017-18

Bench: Shri George George Kand Ms Padmavathy Sआयकर अपील सं./Ita No.: 3143/Chny/2025 निर्धारण वर्ष/Assessment Year: 2017-18 Shri Ganesh Chand Suresh Kumar, A-2, 1St Floor, Ashok Ganapathim, New No.49, 4Th Main Road, R.A. Puram, Chennai - 600 028. Pan: Brtps 0536A (अपीलार्थी/Appellant) अपीलार्थी की ओर से/Appellant By प्रत्यर्थी की ओर से/Respondent By The Income Tax Officer, Vs. Non-Corporate Ward 3(3), Chennai (प्रत्यर्थी/Respondent) : Shri N. Arjun Raj, Advocate : Ms. R. Kavitha, Addl.Cit सुनवाई की तारीख/Date Of Hearing : 22.01.2026 घोषणा की तारीख/Date Of Pronouncement : 23.01.2026 आदेश/ Order Per George George K: This Appeal Filed By The Assessee Is Directed Against The Order Of Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi Dated 18.09.2025, Passed Under Section 250 Of The Income Tax Act, 1961 (Hereinafter Called `The Act'). The Relevant Assessment Year Is 2017-18. :-2 -:

Section 144BSection 147Section 148Section 148ASection 250

Chennai is lacking jurisdiction in view of Notification issued by the CBDT dated 29.03.2022 which formulated a Scheme called "the e-assessment of Income Escaping Assessment Scheme, 2022”. By relying upon the decision of the Hon'ble High Court of Madras in the case of TVS Credit Services