1985 (8) TMI 120

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....ssment for the asst. yr. 1973-74 was complete under s. 143 (3) on 12th March 1976 and the case was declared as not assessable. Subsequently, a notice under s. 148 was served on the assessee on 14th April, 1978 for reopening the assessment, the ITO complete the assessment under s. 144 r/w s. 147 on a total income of Rs. 20,210. In appeal, the AAC set aside the assessment. The IAC (Assessment) then made fresh assessment on a total income of Rs. 2,10,510. 3. Before the CIT (A) the assessee contended that there was no omission or failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment and that the assessment was properly made after examining the books of account and after consideration ....

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....ld that there was no force in the observation made in the assessment order regarding the loans advanced to various business concerns. 4. The CIT (A) further found that gross receipts of the trust during the year were Rs. 4,60,282 out of which the trust spent Rs. 4,12,089 in carrying out its primary objects. Thus, the trust was left with the surplus of Rs. 48,193 which is very much within the limit prescribed under s. 11(1)(a). It was further found that the assessee trust fulfilled other requirements laid down by the IT Act. For all these reasons, it was held that the income of the assessee was not taxable during the year. 5. For the asst. yr. 1977-78, the IAC determined the total income of the assessee at Rs. 22,610 charging tax there....

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....sment order the IAC did not point out any defect but he proceeded to make the assessment taking the status of the assessee as AOP. The CIT (A) held that the assessee is a public charitable trust and it has fulfilled the requirements of law and the assessment has to be made treating the Gaushala as a public charitable trust. The IAC was directed to modify the assessment in the light of this finding. 8. While passing the appeal for the asst. yr. 1973-74, ld. Departmental Representative submitted before us that the original retune submitted by the assessee on 31st Jan., 1974 was not accompanied by required annexure and statements. During the assessment proceedings for the asst. yr. 1975-76 it came to the notice of the assessing officer that....

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....1. 11. The arguments advanced by ld. Departmental Representative in the appeal for the asst. yr. 1973-74 were adopted by him for the remaining two appeals also and no fresh submissions were made by him in respect of the appeal which related to the asst. yrs. 1977-78 and 1978-79 12. Learned authorised representative for the assessee has, on the other hand, fully supported the order of the CIT (A) for all the assessment yeaRs. It was submitted that the condition necessary for the applicability of s. 147 (a) was completely missing in this case and that the decision of the CIT (A) is in accordance with the law enunciated by the Supreme Court in ITO vs. Lakhmani Mewal Das 1976 CTR (SC) 220 : (1976) 103 ITR 437 (SC). It was pointed out that....

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....o the asst. yr. 1973-74, it will be seen that the CIT (A) had recorded a categorical finding all that the necessary particulars were filed by the assessee before the assessing officer and after going through the details the assessment was completed under s. 143(3) by him. It could not be established as to what was the basis for the assessing officer for entertaining a belief that for failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment, income chargeable to tax has escaped assessment. On the other hand, from the facts found by the CIT (A) it is conclusively proved that all necessary particulars and details were already before the assessing officer when he completed that original ass....