TMI Blog2016 (12) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 sustain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer called for various details, accounts and documents which were provided by the assessee from time to time. Vide letter dated 12th October 2011, the assessee also produced before the Assessing Officer, list of persons from whom the assessee received donation and contribution from members for effluent treatment. That thereafter, the Assessing Officer completed the regular assessment under Section 143 [3] of the Act on 20th December 2011. That thereafter, beyond the period of four years, the Assessing Officer has issued notice under Section 148 of the Act for A.Y 2009-2010 ie ., on 21st March 2016. That, vide communication dated 8th August 2016, the assessee informed the Assessing Officer to treat the original return as in pursuance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no allegation that there was any failure on the part of the assessee in not disclosing true and correct facts. It is submitted that therefore, the assumption of jurisdiction by the Assessing Officer to invoke Section 147 of the I.T Act is bad in law. 4.2 It is further submitted by Shri Divatia that even otherwise in the scrutiny assessment, the assessee did furnish all necessary material/information/particulars asked by the Assessing Officer; including the list of persons from whom the assessee received donation and contribution from members for effluent treatment. It is submitted that thereafter having satisfied that the activity of the assessee is charitable within the definition of Section 2 (15) of the Act, the Assessing Officer p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 147 of the Act. It is submitted that as it was found that the activities of the assessee can be said to be commercial activities, as they have recovered fees/charged fees for effluent treatment/providing facilities for effluent treatment, and therefore, considering the definition of Section 2 (15) of the Act for charitable purpose contained in the said section, and more particularly, proviso to Section 2 (15) of the Act, the activities of the assessee cannot be said to be for charitable purpose, and therefore, the Assessing Officer is justified in reopening the assessment. 5.1 Making the above submissions, it is requested to dismissed the present petition. 6. Heard learned advocates appearing for the respective parties a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 12AA of the IT Act as charitable institute. The activities as per object of the trust implementation and management of time planning scheme in urban development town planning. It is, therefore, carrying out the activities of advancement of general public utility. 3. During the year under reference, assessee was doing the work of water treatment and effluent services for the industries situated in the Nandesari Area, so assessee was rendering services in relation to trade, commerce or business. The association was charging fees for these services from various industries. The total receipts are far beyond 25 lakhs. 4. Since, the activities of the assessee are of advancement of any other objects of general utility, this cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption claimed of ₹ 3,58,08,339/= under section 11 to 13 of the IT Act requires to be disallowed and added to the total income of the assessee. Therefore, I have reason to believe that [in this case the income claimed as exempt requires to be taxed]. Thus, there is escapement of income of ₹ 3,58,08,339/= for AY 2009-2010. Accordingly, this is a fit case for reopening of the assessment u/s. 147 of the IT Act. 9. From the reasons recorded, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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