ITAT quashed the entire re-assessment proceedings holding it to be barred by limitation as the escaped income was less than 50 Lakhs and the reassessment was initiated after the expiry of 3 years.
Recently, ITAT quashed the entire re-assessment proceedings holding it to be barred by limitation as the escaped income was less than 50 Lakhs and the reassessment was initiated after the expiry of 3 years. The case was reopened on the purported information that income of 11+Cr. had escaped assessment. However, while making an assessment addition of approx. 25L were made.
During hearing, it was argued that the crystalised escaped income as per the AO was less than 50L and thus, the proceedings were barred by limitation, which the bench accepted.
The copy of the order is as under:
