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2016 (8) TMI 680 - AT - Income TaxReopening of assessment - non-registration of the trust - Held that:- It is admitted case that the assessee was incorporated in the year 1986 and thereafter has been continued to discharge its function as registered trust and was looking after the affairs of Khatu Shyamji. By virtue of order of the Tribunal dated January 28, 2010, the registration was granted with effect from April 1, 2008, however have held that the assessee, though was not registered and the application was not processed but the benefit of being the registered trust were required to be extended to the assessee under sections 11 and 12 of the Income-tax Act. In view thereof, the assessee is required to be treated as registered trust with effect from April 1, 2007. Since we have already held that the assessee is required to be treated as registered trust with effect from April 1, 2007, therefore, in our view, if we read the second proviso to sub-section (2) of section 12A, then it is clear that the reopening under section 147/148 is not permitted. No reopening can be made on account of non-registration of the trust. In view thereof, we hold that the reopening made by the Assessing Officer under section 147/148 of the Act was ill founded and was not in accordance with law. In view thereof this ground is decided in favour of the assessee and against the Revenue.
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