Delhi High Court Cancels Reassessment for Income Below Statutory Limit

Deepak Jain Vs ITO (Delhi High Court) Introduction: In a significant judgment, the Delhi High Court, in the case Deepak Jain Vs ITO, has quashed reassessment proceedings for income below the threshold monetary limit. The court ruled that the reassessment proceedings were flawed due to a lack of necessary approval and the amount of escaped income being below the prescribed limit. Analysis: The court established that the escaped income was less than Rs. 50,00,000/-, which falls below the threshold limit specified under Section 149(1)(b) of the Income Tax Act, 1961. Moreover, three years had alre...