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TMI Blog2023 (3) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... The respondent has re-opened the assessment of the petitioner for the Assessment Year 2015-16 on the alleged ground that the income for the said Assessment Year has "escaped assessment". A notice under Section 148A(b) of the Act, was sent to the petitioner and the same was replied by the petitioner and thereafter an order dated 30.03.2022 was passed by the respondent as per the provisions of Section 148A(d) of the Act, which is the subject matter of challenge in this writ petition. 3. The petitioner is a Society registered under the Tamil Nadu Societies Registration Act, 1975 and is a Deemed University, approved by the University Grants Commission. The petitioner claims that being a Deemed University and an educational institution, they fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 148 of the Act, the impugned order has been passed under Section 148A(d) of the Act. According to them huge fixed deposits are maintained by the petitioner institution. According to them, the impugned order was passed only after duly verifying all the financial statements and the submissions made by the petitioner. It is their case that the petitioner failed to prove that it is substantially financed by the Government and it is covered by the provisions of Section 10(23C)(iiiab) of the Act. According to them only based on materials available on record, they have found the income chargeable to tax as "escaped assessment" and only for the said reason, notice under Section 148 of the Act has been issued to the petitioner for the Assessment Ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for the petitioner drew the attention of this Court to the following : a) Section 10(23C)(iiiab) of the Income Tax Act which enables an educational institution running without profit to claim exemption. b) Section 139(4C) (e) of the Income Tax Act, which came into the existence only with effect from 01.04.2016 and would submit that only from the Assessment Year 2016-17 there was a requirement to file Annual Return for Section 10(23C)(iiiab) institution. c) the Assessment Orders passed in favour of the petitioner for the subsequent Assessment Years viz., Assessment Year 2016-17, 2017-2018 and 2018-19, where the respondent has accepted that the petitioner is a Section 10(23C)(iiiab) institution entitled for exemption. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Assessment Order could be passed, the petitioner has challenged the impugned order passed under Section 148A(d) of the Act, which is not maintainable. In support of the said submissions, the learned Senior Standing Counsel appearing for the respondent drew the attention of this Court to a judgment of the Hon'ble Supreme Court in the case of Anshul Jain v. Principal Commissioner of Income Tax reported in 2022 143 taxmann.com 38 (SC) and would submit that the present writ petition is not maintainable as no Assessment Order has been passed pursuant to the re-opening of assessment made by the respondent, whereas the petitioner has challenged only an order passed under Section 148A(d) of the Act. Discussion : 12. The petitioner is an ed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n disputed by the respondents in the counter affidavit filed by the respondent before this Court. The only allegation levelled against the petitioner is that they are holding huge amount of Fixed Deposits for which they have not a given proper explanation to the respondent and only in those circumstances, the respondent was constrained to pass the impugned order under Section 148(A)(d) of the Act. Any educational institution for that matter will hold Fixed Deposits. Further as seen from the subsequent Assessment Years, the same Fixed Deposits running to several crores of Rupees held by the petitioner was also considered and the petitioner institution was also granted an exemption. When in the subsequent Assessment Years viz., Assessment Yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars 2016-17, 2017-18 and 2018-19, they cannot now contend that the petitioner has not been able to establish that they are an educational institution solely for the purpose of education and not for the purpose of making profits. 15. Admittedly, the petitioner is a Deemed University in existence from 1957 onwards which is catering to the needs of several lakhs of students and is having a huge infrastructure. Therefore, the reasons given by the respondent for passing the order under Section 148A(d) of the Act are arbitrary and illegal and has been passed by total non application of mind. 16. The learned Senior Standing Counsel appearing for the respondent has relied upon a judgment of the Hon'ble Supreme Court in the case of Anshul Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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