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2019 (5) TMI 1389 - AT - Income TaxReopening of assessment u/s 147 - disposal of objection by AO - CIT held assessment order is bad in law and quashed the same as A. O. has not passed any speaking order in disposing the assessee’s objections against the notice u/s 148 - HELD THAT:- There is no dispute that the Assessing Officer has not dismissed the objections of the assesssee by any speaking order. This is clearly in violation of the ratio laid down by the Hon’ble Supreme Court in the case of M/s. GKN Drivesharfts [2002 (11) TMI 7 - SUPREME COURT] clearly laid down that where the notice u/s. 148 was issued and the assessee filed objections. The Assessing Officer was bound to dispose of the same by a speaking order. We find that the CIT(A) has rightly considered the decisions of Hon’ble Supreme Court (supra) and the Hon’ble High Court Gujarat [2003 (10) TMI 17 - GUJARAT HIGH COURT] , therefore, no interference is called for Exemption u/s 11 - Application of income by a charitable society - Uttaranchal legislature passed an Act called the ICFAI University Act, 2003, permitting ICFAI to set up a University in Uttaranchal - HELD THAT:- If the objections of the assessee are considered in the light of the factual matrix in their true perspective there remains no doubt that the payment being made to the sponsor society is on account of the MOU entered into between the sponsor society and the university with regard to the creation of infrastructure for the university and its ultimate transfer to the university after clearing of all liabilities in this regard. Therefore, it can be safely concluded that the assessee is right when it says that that all the money expenditure is applied for creation that infrastructure facilities of the university. The sponsor society is also registered u/s. 12AA of the Act which means that contributions by the one society to another having similar objects have to be considered a legitimate application of income by a charitable society. No error or infirmity in the findings of the CIT(A). Ground No. 2 is dismissed.
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