What are the circumstances under which assessment under section 147 of Income Tax Act i.e. income escaping assessment can be carried out? || What is the time limit for making the assessment under section 147 i.e. income escaping assessment?

What are the circumstances under which assessment under section 147 of Income Tax Act i.e. income escaping assessment can be carried out?

​​​In the following cases, it will be deemed that income chargeable to Income tax has escaped assessment:

• • Where no Income tax return has been furnished by the taxpayer, although his total income or the total income of any other person in respect of which he is assessable in Income tax during the year exceeded the maximum Income/amount which is not chargeable to income-tax.

• • Where a return of income has been furnished by the taxpayer but no assessment has been made and it is noticed by the Income tax Assessing Officer that the taxpayer has understated the income or has claimed excessive loss, deduction, allowance or relief in the Income tax return.

• • Where the taxpayer/assesses has failed to furnish a report of any international transaction which he was required to file under section 92E of Income tax Act​.

• • Where an assessment has been made, but:

• • income chargeable to Income tax has been under assessed; or

• • income has been assessed at low rate of Income tax; or

• • income has been made the subject of excessive any relief; or

• • excessive loss or depreciation allowance or any other allowance has been Income tax computed;

• • Where a person is found to have any asset (including financial interest in any entity) located outside India.​

• • Where a Income tax return has not been furnished by the assesses and on the basis of information or document received from the prescribed authority of income-tax, under section 133C(2) of income tax act, it is noticed by the Assessing Officer that the income of the assesses exceeds the maximum amount not chargeable to Income tax.​
• Where a Income tax return has been furnished by the assesses and on the basis of information or document received from the prescribed authority of income-tax, under section 133C(2) of the Income tax act​, it is noticed by the Income tax Assessing Officer that the assesses/taxpayer has understated the income or has claimed excessive loss, allowance, deduction, or any relief in the Income tax return.

What is the time limit for making the assessment under section 147 i.e. income escaping assessment?

​​​As per section 153 of Income Tax Act, the time limit for making assessment under section 147 of Income Tax Act is:-

1. Within 9 months from the end of the financial year in which the notice under section 148 of this act was served (if notice is served before 01-04-2019).
2. 12 months from the end of the financial year in which notice under section 148 of this act is served (if notice is served on or after 01-04-2019). Note: If reference is made to TPO, the period available for assessment shall be extended by 12 months

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