2013 (5) TMI 666

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....oth the appeals were admitted by a Coordinate Bench on the following substantial question of law:- "Whether on the facts and in the circumstances of the case the learned Income Tax Appellate Tribunal was right in holding the proceeding initiated u/s 147 were invalid only on the basis of the fact that the AO had not recorded his satisfaction that he has reason to believe that the income chargeable to tax escaped assessment and notice u/s 148 be issued for reopening the case for A.Y. 1994-95 while the basis of belief that income had escaped assessment was duly brought on record." The brief facts of the case are that the assessee is a registered society under the Societies Registration Act, 1860 since 1934-35. By examining the objects, i....

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....ble income was shown at Rs.74,202 and Rs.1,67,450/- respectively for both the assessment years under consideration. He submits that during the assessment years under consideration, no exemption was available to the assessee. For this purpose, he has relied on the ratio laid down in the case of Raymond Woolen Mills Ltd. vs. ITO; 236 ITR 34, where it was observed that : "In determining whether commencement of reassessment proceedings were valid it has only to be seen whether there was prima facie some material on the basis of which the department could reopen the case. The sufficiency or correctness of the material is not a thing to be considered at this stage." Learned counsel also relied on the ratio laid down on the following cases :....