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2016 (2) TMI 466 - AT - Income TaxLegality of reopening of assessment - non issue of notice under section 142(1) - Held that:- In the present case, as noted earlier, law itself does not oblige the Assessing Officer to issue notice u/s 143(2) in the absence of return u/s 139 or u/s 142(1). Concurrently, we notice that the impugned assessment was framed after proper opportunity were afforded to the Assessee by issuing notice under section 142(1) in sync with principles of natural justice. Therefore, we do not find any force in the contention of the Ld. Authorized Representative for the assessee that non issuance of notice under section 143(2) is fatal and has vitiated the re-assessment order and rendered it bad in law. To reiterate, we take note of the fact that the assessee has appeared before the Assessing Officer and was in acquiescence and privy to the re-assessment proceedings. Thus, interest of the Assessee is not jeopardized in any manner. Omission to serve or any defect in the service of the notice not statutorily required in the facts of the case will not, in our view, impinge upon the legality of impugned re-assessment order. we are of the considered view that in the absence of return filed in accordance with law or any valid return being on record, the objections raised by the assessee is not sustainable in law and is thus without any merit. - Decided against assessee Addition on advances to sister concern instead of using the fund on the object of the Trust - Held that:- The assessee trust has correctly utilized the funds for the purpose of the object of trust. When the amount has been spent by the assessee for the construction of the building that was for its stated education purpose, then the amount claimed can be considered as utilized for the purpose of the object of trust and the requirements of section 11(2) r.w.s. 11(3)(a) of the Act stands fulfilled. Thus, the relief claimed under section 11(2) of the Act has been rightly allowed by the CIT(A) as noted above. The advance of ₹ 13,00,000/- made to VISEA Trust therefore can be said to be out of surplus accumulated and remained at the disposal of the assessee and does not offend provisions of section 11(2) of the Act in any manner. Hence, we are not inclined to interfere with the order of the CIT(A) - Decided in favour of assessee
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