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2014 (6) TMI 403 - AT - Income TaxValidity of reopening of assessment u/s 147 of the Act – Sufficient reason for reopening of assessment - Denial of exemption u/s 11 of the Act - Held that:- Following East Point Education Society Versus ADIT [2011 (12) TMI 364 - ITAT, New Delhi] - The proceedings u/s 10(23C) were taken up only in AY 2007-08 and the factum of a loan disputed conversion of donation of one of the Governing Body members, Mohinder Singh was effected in the books of account in AY 2005-06 and not in 2006- 07 - mere note about the audit being on the basis of test check voucher and auditor's audit does become the basis of reopening of assessment of 2006-07 as the same is the standard auditing practice - the theory of change of opinion may not be applicable but the nexus of reasons and application of mind are still imperative for upholding the action to reopen the assessment - There is mention of 2nd reason in the assessment order about any member having taken any building loan - In the order only exemption u/s 11 is denied - Following RANBAXY LABORATORIES LIMITED Versus COMMISSIONER OF INCOME TAX [2011 (6) TMI 4 - DELHI HIGH COURT] - as far as the AY 2006-07 is concerned, the reopening of assessment is invalid – Decided in favour of Assessee.
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