Reassessment Beyond 3 Years Invalid if Escapement Below ₹50 Lakh: ITAT Ahmedabad

Prakash Babulal Bhandari Vs ITO (ITAT Ahmedabad) In a significant decision concerning reassessment proceedings, the Income Tax Appellate Tribunal (ITAT) Ahmedabad Bench has ruled that a reassessment notice issued beyond the three-year limitation period is invalid if the income genuinely “likely to escape assessment,” after a preliminary analysis, is below the Rs. 50 lakh threshold stipulated under Section 149(1)(b) of the Income Tax Act, 1961. This ruling came in the case of Prakash Babulal Bhandari vs. ITO, pertaining to Assessment Year 2015-16, where the ITAT allowed the assessee...