TMI Blog2020 (7) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee s consolidation of accounts was done at Mumbai and assessment was completed. After examining the submissions, made by the assessee, the proceeding under Section 147 of the Act were dropped. Director of Income Tax (Exemptions) in its order has found that the assessee for the Assessment year 1997-98 had disclosed an opening balance as corpus fund. The finding recorded by the Director of Income Tax (Exemptions) that the proceedings were dropped without proper enquiry and appreciation, cannot be sustained as from perusal of the record, it is evident that an enquiry was conducted and confirmation was sought from Deputy Director, Income Tax (Exemptions), Mumbai who confirmed that consolidation was done at Mumbai and assessment w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer was justifying in dropping the reopened assessments under an order dated 15.03.2005 without recording any reasons by recording its own reasons for the first time in its order presuming the reasons on which the Assessing Officer would have passed an order? 2. Facts giving rise to filing of this appeal briefly stated are that the assessee is a society registered under Section 12A of the Act. During the course of the proceedings for grant of registration under Section 80G of the Act, the assessee had filed copies of statement of accounts for year ending 31.03.1997. As per the aforesaid accounts, the income before granting exemption under Section 11 and 12 was ₹ 12,60,9195/-. The assessee was therefore required to fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id fact finds place in the order passed by the Director of Income Tax (Exemptions) under Section 263 of the Act. It was further held that assessee was registered under Section 12A of the Act and accounts were being submitted along with ISKON, Mumbai. It was further held that Director of Income Tax (Exemptions) has not found anything wrong with the accounts for the financial year 1996-97. 4. It was further held that the assessing officer applied his mind on the basis of the facts and found that no income has escaped assessment for the Assessment year 1997-98. It was further held that the view taken by the assessing officer is one of the possible views and therefore, in view of law laid by the Supreme Court in the case of MALABAR INDUST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income was filed for the first time in the year 2000-01 showing opening corpus fund of ₹ 39.59 Crores in the balance sheet. It is also urged that corpus fund is not taxable. In this connection, our attention has been invited to the order passed by the Commissioner of Income Tax (Appeals) as well as Section 11(1)(d) of the Act where the finding has been recorded that amount in question is part of corpus fund. It is also submitted that proceeding under Section 263 of the Act were ab initio void and the tribunal has passed a reasoned order, which does not call for any interference. 7. By way of rejoinder reply, learned counsel for the revenue has invited our attention to paragraphs 7 8 of the order passed by the division bench in W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the order under Section 263 passed by the Director of Income Tax (Exemptions), Mumbai. The relevant extract has been reproduced by the tribunal in para 4.5 of the order, which is reproduced below for facility of reference: Up to the asst. year 2000-01, the assessee have included complete accounts of its Bangalore Branch functioning from Hare Krishna Hill in Rajajinagar, Bangalore in its final audited accounts. 9. Thus, the accounts were being submitted along with ISKON, Mumbai. The Director of Income Tax (Exemptions) has not found anything wrong in the accounts for the Assessment year 1997-98. It is pertinent to mention here that view taken by the assessing officer is one of the two plausible views and therefore, in view of l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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