2010 (11) TMI 51

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.... Act, 1860. The petitioner was running a school, known as "Renaissance School", and imparting the education from Primary label to Class XII. For the assessment year 2001-02, the petitioner filed the return on 28.3.2002 showing a net loss of Rs.1,97,046/-. The return was processed and accepted by the Assessing Officer, Circle Bulandshahar, under Section 143 (1) (a) of the Act. The Additional Commissioner of Income Tax, Range Bulandshahar after recording reasons on 22.5.2008 under Section 147 of the Act, issued the notice under Section 148 of the Act. The proceeding has been initiated on the ground that the assessee has received certain amounts by donation. The inquiry reveals that the donation was not genuine. The assessee participated i....

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....reported in 243 ITR-83 and Commissioner of Income Tax Vs. Max India Ltd., reported in (2007) 295 ITR-282 (SC). He submitted that the assessing authority in its order dated 20.6.2008 assessed the nil total income on the ground that the assessee's income is exempted from tax under Section 10 (23C)(iv) of the Act. In the notice under Section 263 of the Act the exemption of the income under Section 10 (23C)(iv) is not disputed. There is no observation in this regard. If the exemption of income under Section 10 (23C)(iv) of the Act is not disputed, which is the main basis for assessing the total income as a nil income by the assessing authority then both the conditions, namely, that the order is erroneous and prejudicial to the interest of the r....