S.149 IT Act | Additions Made During Reassessment Don't Validate Proceedings Initiated For Income Escapement Below ₹50 Lakh Threshold: Delhi HC

The Delhi High Court ruled that additions made in the course of reassessment proceedings are invalid if the income escapement is below the ₹50 lakh threshold, as per Section 149 of the Income Tax Act. The court considered a case where reassessment was initiated for income below the prescribed limit, finding that such proceedings were not justified. The ruling reinforces the threshold for initiating reassessment and ensures that the revenue department cannot proceed with reassessment for minor income discrepancies, thereby protecting taxpayers from unwarranted tax demands.