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2020 (5) TMI 336 - AT - Income TaxReopening of assessment u/s 147 - notice beyond the statutory period of four years - Tribunal is of the considered opinion that reopening of the assessment beyond the statutory limit of four years goes to the root of the matter, therefore it is not necessary either for the assessee or to the Department to raise the issue before this Tribunal - HELD THAT:- There was no necessity for raising this issue of limitation, this Tribunal is expected to record a finding whether the assessment was reopened within the period of limitation. In this case, the assessee has taken a specific ground before this Tribunal as 2.1 saying that the assessment was reopened u/s. 147 beyond four years. As rightly submitted by the assessee there was not even a whisper in the assessment order that the assessee failed to disclose the entire details required for completion of the assessment. It is not in dispute that the assessment was reopened beyond four years period. Therefore, this assessment is barred by limitation under proviso to s.147 of the Act. Therefore, the orders of both the authorities below are set aside and the appeal of the assessee stands allowed. Exemption u/s. 11 - charitable activity u/s 2(15) - Establishing Kalyana Mandapam - HELD THAT:- It is purely a commercial activity. Therefore, the assessee is not entitled for exemption u/s. 11 of the Act. The matter would stand different, in case establishing Kalyana Mandapam is an ancillary object for securing funds to carry out charitable activity. In the case on hand, establishing Kalyana Mandapam is one of the main object. Establishing Kalyana Mandapam being one of the main object may not be a charitable activity. Mere registration of u/s. 12A of the Act may not entitle the assessee to claim exemption. At the best, registration u/s. 12A of the Act is only to identify the entity. The assessee apart from registration u/s. 12A has to establish that it is engaged in the charitable activity. Since no charitable activity is carried on by the assessee, this Tribunal is of the considered opinion that the assessee is not eligible for exemption u/s. 11 of the Act. Accordingly, the orders of the lower authorities are confirmed and all the appeals of the assessee are dismissed.
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