TMI Blog2022 (4) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... the purposes specified of accumulation. It is also stated in the show cause notice that from the audit report filed in Form 10B it is seen that an amount of ₹ 70,00,000/- has been accumulated as per Explanation 2 to Section 11(1) of the Act and there is no accumulation under Section 11(2) of the Act. Instead of filing Form 9A, the Trust had filed Form 10 with no specific purposes as required mandatorily. Petitioner was called upon to show cause why the application be not denied since necessary requirements have not been fulfilled. Petitioner replied to the show cause notice vide its Chartered Accountants letter dated 14th November 2018 and showed cause as to why petitioner s claim to accumulation should be allowed. Petitioner exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of income as per clause (2) of Explanation to section 11(1) of the Act as shown in return of income does not arise . In the circumstances, it is quite clear that the entire reopening is based on change of opinion. Consequently, the mere formation of another view in the course of assessment proceedings for subsequent years would not justify the Revenue in reopening the assessment for Assessment Year 2016-2017. Therefore, in the present case, there was no tangible material, no new information and no fresh material which came before the Revenue in the course of assessment of subsequent years which can justify the reopening of the Assessment Year 2016-2017 - Decided in favour of assessee. - WRIT PETITION NO.1224 OF 2022 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 28th December 2021. It is this notice and the order which are impugned in the petition. 3. We have considered the petition, the documents annexed thereto and the affidavit in reply and we are satisfied that the proposed reopening is based on change of opinion which the law does not permit. 4. We say this because the reasons for reopening pertains to a sum of ₹ 70,00,000/- accumulated in the relevant year. In the reasons, the Assessing Officer states that it is not ascertainable whether the amount of ₹ 70,00,000/- is accumulation of income under Section 11(2) or deemed application of income as per clause (2) of Explanation to Section 11(1) of the Act. It is also alleged that petitioner has not disclosed the true and cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils on record show that the Trust has been accumulating continuously as per provisions of Section 11(2) of the Act and it is also noticed that the accumulated amount is not utilised for the purposes specified of accumulation. It is also stated in the show cause notice that from the audit report filed in Form 10B it is seen that an amount of ₹ 70,00,000/- has been accumulated as per Explanation 2 to Section 11(1) of the Act and there is no accumulation under Section 11(2) of the Act. Instead of filing Form 9A, the Trust had filed Form 10 with no specific purposes as required mandatorily. Petitioner was called upon to show cause why the application be not denied since necessary requirements have not been fulfilled. Petitioner replied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated in the affidavit in reply that therefore, the question in reason recorded that it is not ascertainable whether the amount of ₹ 70,00,000/- is accumulation of income u/s 11(2) or deemed application of income as per clause (2) of Explanation to section 11(1) of the Act as shown in return of income does not arise . 6. In the circumstances, it is quite clear that the entire reopening is based on change of opinion. 7. Mr. Gandhi relies on a judgment of this Court in Commissioner of Income Tax 15 V/s. Srusti Diam 2015 (57) taxmann.com 392 (Bombay) to submit that though there is no bar to form an opinion based on tangible material obtained from the assessment of subsequent years, if the material obtained during the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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