TMI Blog2024 (1) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation and excess of expenditure over income. The CIT(A) had also relied upon a judgment of this court in the case of CIT vs. Institute of Banking Personnel [ 2003 (7) TMI 52 - BOMBAY HIGH COURT ] Therefore, as stated in the third proviso to Section 147 of the Act, the A.O. has no jurisdiction to assess or reassess any income which was the subject matter of an appeal. Since the grant of benefit of Section 11 of the Act was the subject matter of appeal and has been held in favour of assessee, the matter cannot be reopened. As regards the issue of disallowance of depreciation claim, the Hon ble Apex Court in Rajasthan and Gujarati Charitable Foundation, Poona [ 2017 (12) TMI 1067 - SUPREME COURT ] has held that a Charitable Trust is eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Hall and Premises Rental Income at Rs. 3,34,56,772/-. 4. Petitioner was issued a notice dated 31st January 2011 under Section 142(1) of the Act asking for various information including on the object of the Trust. Petitioner filed detailed note on the object of the Trust as also on the issue of claim of depreciation. 5. In the mean time, the Director of Income Tax (Exemption) passed an order dated 2nd February 2011 withdrawing the registration granted under section 12A of the Act for amendment to objects. Petitioner had filed an appeal before Tribunal against the said order of Director of Income Tax (Exemption). The Tribunal, vide order in ITA No. 1849/Mum/ 2011, dated 9th September 2011, allowed Petitioner s appeal and the 12A regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The department further appealed in Bombay High Court which was dismissed on 31st July 2017 by the High Court on account of low tax effect. 11. Petitioner was issued the impugned notice dated 28th March 2014 under Section 148 of the Act which was received on 1st April 2014. Reasons recorded for reopening are on two issues : a. Allegation of applicability of the proviso to Section 2(15) of the Act and for withdrawing claim of exemption under Section 11 of the Act on the ground that the main activity of giving Hall on rental basis is a commercial activity. b. disallowance of claim of depreciation. 12. Petitioner filed objection to challenge the reopening on 22nd January 2015. Respondent No.1 passed the impugned order rejectin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so guilty of non-disclosure. 16. Mr. Suresh Kumar also submitted that there has to be only a reason to believe and it need not be conclusively demonstrated at the stage of issuance of notice that income had escaped assessment. He also submitted that the assessment order was silent on the issue of commercial nature of receipts which falls under the amendment to first proviso of Section 2(15) of the Act. 17. The third proviso to Section 147 of the Act provides . provided also that the Assessing Officer may assess or re-assess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment . 18. It is not disputed that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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