The ITO, (Exemptions), Bhavnagar V. PNR Society for Relief & Rehabilitation of the Disabled Trust, Bhavnagar

ITA 2370/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8205 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 10-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reopening of assessment; Reassessment proceedings
• Section: 143(3)

Judgement Text

ITA NO. 2370/AHD/2015 DCIT V/S. PNR SOCIETY FOR RELIEF & REHABILITATION OF THE DISABLED TRUST ASSESSMENT YEAR: 2008-09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD [ BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ] ITA NO. 2370/AHD/2015 ASSESSMENT YEAR : 2008-09 DEPUTY COMMISSIONER OF INCOME-TAX (EXEMPTIONS) .... ........APPELLANT CIRCLE-1, AHMEDABAD VS. PNR SOCIETY FOR RELIEF & REHABILITATION OF THE DISABLED TRUST .......................RESPONDENT VIDHYANAGAR, BHAVNAGAR [PAN : AAAPT 1877 E] APPEARANCES BY: VIMAL I MEHTA FOR THE APPELLANT PB PARMAR FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 14.08.2017 DATE OF PRONOUNCING THE ORDER : 27.10.2017 O R D E R 1. THIS APPEAL, FILED BY THE ASSESSING OFFICER, CAL LS INTO QUESTION CORRECTNESS OF THE ORDER DATED 15.05.2015 PASSED BY THE CIT(A) IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME-TAX ACT, 19 61, FOR THE ASSESSMENT YEAR 2008-09. 2. IT IS A CASE OF REOPENED ASSESSMENT AND, BEYOND ANY DISPUTE OR CONTROVERSY, IT IS A CASE OF REOPENING OF ASSESSMENT AFTER FOUR YEARS FROM THE END OF RELEVANT ASSESSMENT YEAR. IT IS THIS BACKDROP THAT THE LEAR NED CIT(A) HAS, IN THE IMPUGNED ORDER, QUASHED THE REASSESSMENT PROCEEDINGS BY OBSE RVING AS FOLLOWS:- 2.7 THE ABOVE DISCUSSION MAKES IT VERY CLEAR THAT FOR VALID REOPENING OF ASSESSMENT, WHICH IS COVERED WITH PROVISO TO SECTIO N 147, AO HAS TO SPECIFICALLY MENTION THE FAILURE OF THE ASSESSEE TO DISCLOSE TRULY AND FULLY ALL MATERIAL FACTS NECESSARY FOR THE ASSESSMENT. IN TH E INSTANT CASE, REASONS RECORDED AS MENTIONED IN PARA NO.2.2 ABOVE, I DO NO T FIND ANY REFERENCE TO SUCH FAILURE ON THE PART OF THE APPELLANT TO DISCLO SE ANY MATERIAL FACTS NECESSARY FOR ASSESSMENT AND IN FACT NARRATION GIVE N IN THE REASONS DO NOT SHOW ANY SUCH FAILURE WHICH COULD BE INFERRED EVEN IF NOT SO MENTIONED SPECIFICALLY IN THE REASONS. PERUSAL OF ASSESS MENT ORDER DATED 25/08/2010 REVEALS THAT THE A.O. HAD ASSESSED A PPELLANT'S INCOME WITHOUT MAKING ANY ADDITION. IT IS ALSO A MATTER OF FACT TH AT THE APPELLANT HAD FURNISHED DETAILS OF TOTAL INCOME AS UNDER:- ITA NO. 2370/AHD/2015 DCIT V/S. PNR SOCIETY FOR RELIEF & REHABILITATION OF THE DISABLED TRUST ASSESSMENT YEAR: 2008-09 PAGE 2 OF 3 GROSS INCOME OF THE TRUST 54738381 ACTUAL APPLICATION OF INCOME 43589035 ALLOWABLE ACCUMULATION OF THE EXTENT 15% OF GROSS INCOME LESS: CORPUS DONATION GROSS INCOME 54738381 LESS: CORPUS DONATION 1427423 -------------- 53310958 15% 7996644 CORPUS DONATION 1427423 5 3013102 -------------- 1725279 OUT OF THIS SURPLUS TRUST HAS MADE ACCUMULATION U/S .11(2) 2000000 LEAVING NET DEFICIT OF 274721 THIS WAY I AM OF THE CONSIDERED VIEW THAT MATERIAL FACT IN RESPECT OF THE INVESTMENT/DEPOSIT MADE DURING THE YEAR WAS VERY MU CH ON RECORD. IN VIEW OF ABOVE, I AM OF THE FIRM VIEW THAT THE APPELLANT HAD ALREADY FILED MATERIAL FACT DURING THE EARLIER ASSESSMENT PROCEEDINGS AND THE A .O. HAD NOT MENTIONED ANYTHING ABOUT NON-FILING OF MATERIAL FACT BY THE A PPELLANT. ACCORDINGLY, IN VIEW OF DISCUSSIONS, I HOLD THAT THE ASSESSMENT HAS NOT BEEN REOPENED VALIDLY. 3. AGGRIEVED BY THE STAND SO TAKEN BY THE CIT(A), T HE ASSESSING OFFICER IS IN APPEAL BEFORE ME. 4. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING PE RUSED THE MATERIAL ON RECORD, I AM NOT INCLINED TO DISTURB WELL REASONED CONCLUSI ONS ARRIVED AT BY THE CIT(A). THE LAW IS WELL SETTLED THAT IN THE CASE OF REOPENING O F ASSESSMENT COVERED BY PROVISO TO SECTION 147, AS IN THE PRESENT CASE, IT IS CONDITIO N PRECEDENT THAT FAILURE ON THE PART OF THE ASSESSEE IN TRUE AND FULL DISCLOSURE, HAS TO BE DEMONSTRATED. THAT HAS NOT BEEN DONE IN THE PRESENT CASE. THERE IS NOTHING BE FORE ME TO SHOW THIS FAILURE. IN VIEW OF THESE DISCUSSIONS, I UPHOLD THE IMPUGNED QU ASHING OF REASSESSMENT. ALL OTHER ISSUES ARE, THEREFORE, RENDERED ACADEMIC. 5. IN THE RESULT, APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 27 TH OCTOBER, 2017. SD/- PRAMOD KUMAR (ACCOUNTANT M EMBER) AHMEDABAD, THE 27 TH DAY OF OCTOBER, 2017 **BT ITA NO. 2370/AHD/2015 DCIT V/S. PNR SOCIETY FOR RELIEF & REHABILITATION OF THE DISABLED TRUST ASSESSMENT YEAR: 2008-09 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ......TWO PAGES MANUSCRIPTS OF HONBLE AM ATTACHED....TYPED ON 27.10.2017 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: ... 27.10.2017........ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: .. 27.10.2017..... . 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: 27.10.2017 ... 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : .. 27.10.2017.... 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: