https://www.taxtmi.com/highlights?id=95210 Reassessment initiated beyond three years was tested against the statutory precondition in section 149(1)(b) that the AO must have material to form a reasonable belief that income escaping assessment was likely to be Rs.50 lakh or more. The tribunal held that "likely to amount" cannot be inferred merely from gross bank transactions without a preliminary analysis of the nature of entries and the taxable component. On the facts, even treating the credits as receipts yielding commission income, the taxable income could not reasonably exceed Rs.50 lakh, and the ultimately assessed escaped income was far below the threshold. The reopening was therefore barred by limitation and without jurisdiction; the appeal was allowed. - ITAT en-us Fri, 19 Dec 2025 08:30:26 +0530 Fri, 19 Dec 2025 08:30:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=95210 Reassessment initiated beyond three years was tested against the statutory precondition in section 149(1)(b) that the AO must have material to form a reasonable belief that income escaping assessment was likely to be Rs.50 lakh or more. The tribunal held that "likely to amount" cannot be inferred merely from gross bank transactions without a preliminary analysis of the nature of entries and the taxable component. On the facts, even treating the credits as receipts yielding commission income, the taxable income could not reasonably exceed Rs.50 lakh, and the ultimately assessed escaped income was far below the threshold. The reopening was therefore barred by limitation and without jurisdiction; the appeal was allowed. - ITAT Highlights Income Tax Fri, 19 Dec 2025 08:30:26 +0530 https://www.taxtmi.com/highlights?id=95210