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2016 (11) TMI 71 - HC - Income TaxValidity of reopening of assessment - mere registration of a Board under Section 12AA of the Act does not automatically give status of trust and therefore, the exemption which is meant for trust under Section 11(1)(a) of the Act is not available to the petitioner - Held that:- Since this is a case of original non-scrutiny assessment, the concept of change of opinion cannot be applied. Since the return of the assessee is accepted under Section 143(1) of the Act, we feel that there is no question of change of opinion while accepting the return and therefore, in the absence of any formation of opinion, the protest raised by the petitioner is devoid of merits and therefore, cannot be accepted. The statutory provision requiring the petitioner to set apart a particular percentage of income as stated above, whether it is scrupulously observed and whether it is fulfilling the conditions contained in Sections 11 and 12 of the Act or not, are the matters of examination and for that purpose, if the authority looking to the activity of the petitioner Board has come to the conclusion that reopening is necessary, we may deem it proper not to interject the said process. We reiterate that the reasons which are recorded are since forming the belief about escapement of income, we deem it proper not to intercept the process. The aforesaid situation which is prevailing on the record of the case on hand, we deem it proper to refer to and rely upon the decision of the Supreme Court in case of Zauri Estate Development & Investment Company Ltd. (2015 (8) TMI 480 - SUPREME COURT ) and leave it open to the respondent authority to proceed further in response to the notice having been issued. We see no merits in the contentions raised by the learned counsel for the petitioner and therefore, the petition being devoid of merits, the same is dismissed.
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