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2016 (12) TMI 1198 - HC - Income TaxReopening of assessment - entitlement to exemptions under Section 11 [1] - Held that:- It appears that according to the Assessing Officer, activities of the assessee cannot be said to be for charitable purpose, as defined in Section 2 (15) of the Act, as by charging fees from the members for effluent treatment, the activities can be said to be commercial activities. However, it is required to be noted that during the scrutiny assessment, the assessee produced all necessary materials asked by the Assessing Officer, more particularly, the list of persons from whom the assessee received donation and contribution from members for effluent treatment and it was only thereafter that the Assessing Officer finalized scrutiny assessment. Thus, it cannot be said that there was any failure on the part of petitioner-assessee in not disclosing true and correct facts necessary for assessment. It is required to be noted that even in the reasons recorded, there is no allegation whatsoever that the assessee has failed to disclose true and correct facts necessary for the assessment. Under the circumstances and considering the decision in case of CIT v. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA], the impugned Notice under Section 148 of the Act to reopen the assessment for AY 2009-2010, issued beyond four years, cannot be sustained and the same deserves to be quashed and set-aside on the aforesaid ground alone. - Decided in favour of assessee.
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