https://www.taxtmi.com/caselaws?id=756411 The Bombay HC quashed the reopening of assessment under section 147 where exemption under section 11 was denied. The revenue alleged the petitioner trust engaged in commercial activities making it ineligible for exemption. The court held that mere receipts from charitable activities do not constitute commercial income. Following Yogiraj Charity Trust precedent, only trusts with uncontrolled discretion to spend on non-charitable objects lose exemption. The assessment officer's reasons to believe were formed mechanically without proper application of mind, incorrectly citing court precedents and assessment provisions. The reopening was unsustainable due to lack of tangible material showing income escapement. en-us Thu, 25 Jan 2024 00:00:00 +0530 Thu, 01 Aug 2024 17:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756411 The Bombay HC quashed the reopening of assessment under section 147 where exemption under section 11 was denied. The revenue alleged the petitioner trust engaged in commercial activities making it ineligible for exemption. The court held that mere receipts from charitable activities do not constitute commercial income. Following Yogiraj Charity Trust precedent, only trusts with uncontrolled discretion to spend on non-charitable objects lose exemption. The assessment officer's reasons to believe were formed mechanically without proper application of mind, incorrectly citing court precedents and assessment provisions. The reopening was unsustainable due to lack of tangible material showing income escapement. Case-Laws Income Tax Thu, 25 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756411