Reassessment Beyond 3 Years Invalid if Escaped Income Below ₹50 Lakh: ITAT Chennai

Bannari Amman Fresh Fruit Vs ITO (ITAT Chennai) The ITAT Chennai quashed the reassessment proceedings initiated under Section 148, holding that the notice issued beyond 3 years is invalid where the alleged escaped income is less than ₹50 lakhs. In this case, the assessee, engaged in retail trading of fruits and vegetables, faced reassessment based on cash deposits during the demonetisation period. The Assessing Officer issued notice under Section 148 on 30.07.2022 for AY 2017–18 and made additions under Section 68. However, the assessee challenged the reopening on legal grounds. The Tribun...