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2019 (4) TMI 291 - HC - Income TaxReopening of assessment u/s 147 - breach of section 11(3)(d) - eligibility of reason to believe - misuse or abuse of funds by the trustees of the trust - violation of section 11(2) read with section 11(3)(d) of the Act as payment was made to CIMS Hospital Pvt. Ltd. for Linac machine - HELD THAT:- There is a general allegation of breach of sections 11 to 13, without stating as to why such violation is alleged. Thus, AO seeks to disallow for violation of section 11(3)(d) and section 11(2). As discussed hereinabove, considering the reasons recorded by the Assessing Officer for reopening the assessment, there was no material with him on the basis of which he could have formed the belief that on account of donation of ₹ 3,00,00,000/- to CIMS Hospital Pvt. Ltd., the petitioner had violated the provisions of section 11(3)(d) of the Act. Insofar as violation of section 11(2) is concerned, such violation has been alleged only as a consequence of violation of the provisions of section 11(3)(d) of the Act. Therefore, on the reasons recorded, the Assessing Officer could not have formed the belief that income chargeable to tax has escaped assessment. from the reasons recorded it is evident that the Assessing Officer has consciously decided that there was violation of section 11(3)(d) of the Act, and since on the reasons recorded, the Assessing Officer could not have formed the belief that income chargeable to tax has escaped assessment, the impugned notice under section 148 of the Act lacks validity and cannot be sustained. - Decided in favour of assessee
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