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2013 (2) TMI 209 - HC - Income TaxReopening of assessment - assessee claimed exemption u/s 10 (22) - whether addition u/s 68 was possible even where the income of the appellant was exempt under Section 10 (22) ? - Held that:- CIT has held that if the AO had reasons to believe that the appellant trust was not being run for its genuine object and was being run for private profit of family members of the trustees, AO should have reported the matter to the CIT, who could have initiated proceedings for withdrawal of exemption. ITAT has upheld the order of AO. The very receipt of money by the appellant for the purpose of running the activities of educational institutions itself has been doubted by the ITAT. Hence the ITAT is justified in going into the facts which was incidental to the question of law raised and no estoppel plea can be raised by the assessee. Further, it was noticed by AO that in a suit filed between Trust members, there was asset sharing compromise was arrived at. Thus from the overall facts and circumstances, it is evident that unless it is proved that the income derived is covered under Section 10(22) of the Income Tax Act, 1961, it cannot be decided as to whether addition of the same under Section 68 of the Income Tax Act, 1961, is possible or not. Therefore, on the facts and circumstances of this case, this court deems it appropriate to remand the matter for consideration of the assessing officer in the light of the legal position and observations to locate the source of income.
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