TMI Blog1999 (4) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... of the remaining balance of Rs. 1,02,041, the petitioner had transferred an amount of Rs. 90,000 to Upashraya Bhavan Fund Account which was an earmarked fund and claimed the said amount as exempt from income-tax under section 11(2) of the Act. The claim of the assessee was allowed. It appears that thereafter an objection was raised by the audit informing the Department that the trust has not obtained permission of the Assessing Officer under section 11(3A) of the Act and as such exemption under section 12 should not have been allowed. The period for taking remedial action, on receiving the audit objection, under section 263, had expired and the concerned Income-tax Officer and Deputy Commissioner, having not suggested action under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Fund to the corpus fund of the trust. This amount was surplus of donations received for the purpose of construction of Rajendrasuri Mandir and the assessee claimed exemption under section 12 read with section 2(24)(iia). The specific case for which the amount transferred to corpus is not on record. No directions from the donors for the diversion of funds were obtained. The permission of the Income-tax Officer for diversion of donation from the one fund to another as required under section 11(3A) also not obtained. The amount of Rs. 3,23,817 is therefore required to be taxed as the income of the trust. In the circumstances, the assessee has been allowed an excessive relief to the extent of Rs. 3,23,817. I have, therefore, reason to believ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 147, which provides for assessment or reassessment of income or recomputation of the loss or depreciation allowance, as the case may be, for any assessment year subject to the provisions of sections 148 to 153, to the extent relevant for the present purposes, reads as under: "147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r reassessment is not permissible for any year after the expiry of four years from the relevant assessment year. The scope of the assessee's duty to disclose fully and truly all material facts necessary for assessment in the context of the provisions of section 34 of the Indian Income-tax Act, 1922, has been succinctly stated by the Supreme Court by their Lordships in Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191. The court observed: "There can be no doubt that the duty of disclosing all the primary facts relevant to the decision of the question before the assessing authority lies on the assessee." The court further said: "Does the duty, however, extend beyond the full and truthful disclosure of all primary facts? In our opi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of audit objection, the following excerpt is noticeable: "On verification of the record attached with the return of income revealed that the construction work of the Rajendrasuri Mandir has been completed and the surplus amount of Rs. 3,23,817 was transferred to the corpus fund of the trust and claimed exemption under section 12 read with section 2(24)(iia) of the Income-tax Act and was allowed treating the aforesaid amount as the corpus of the trust." This clearly gives out that the primary and material facts necessary for dealing with the said transfer of funds from one fund to another was disclosed to the Assessing Officer during the course of assessment for the assessment year 1985-86. Exemption was claimed on that basis and exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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