TaxTMI 
TaxTMI 
2014 (9) TMI 829
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....y. 2. The impugned notice dated 28 March 2013 in respect of Assessment Year 2006-07 is beyond the period of 4 years from the end of the Assessment Year 2006-07. While the impugned notice dated 28 March 2013 for Assessment Year 2008-09 is within a period of 4years from the end of the relevant Assessment Year. Save the above difference the facts are identical. For the purposes of this order we refer to the facts for Assessment Year 2006-07. 3. For the Assessment Year 2006-07 the petitioner had filed its Return of Income on 28 October 2006 declaring a deficit of Rs. 12.48 crores. This was on the basis of claiming exemption under Section 11 of the Act. At that time petitioner's application for approval under Section 10(23G)(via) of th....
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....tients meaning which are not registered at hospital as patients indoor or OPD trust deed of assessee does not bar hospital from selling medicines to outsiders. Nevertheless its sells medicines to its indoor and outdoor patients. 5. It can be seen that turnover of pharmacy store is around 14% of total hospital collections. Thus seeing its turnover it cannot be said to be minor, accidental and mere accompanying activity as is expected when the words used in the law are "incidental to charitable purpose". 6. Further profit out of this pharmacy store is not minor and is around 34% of pharmacy store turnover. 7. The nature, volume, frequency and surplus of these transactions clearly shows that it is systematic business activity of the a....
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....ue for AY 2006-07 as well. Assessee has to submitted any separate balance sheet and income and expenditure statement in respect of pharmacy store as a result of separate books of accounts if any, which has resulted into failure on the part of assessee to disclose these facts on this issue for AY 2006-07. In view of this, I have reason to believe that income of more than Rs. 1000.00 chargeable to be taxed as business income u/s. 11 (4A) for AY 2006-07 has escaped assessment. In view of this the approval for reopening assessee's case for AY 2006-07 on this ground is sought." 5. The petitioner filed its objection to the reasons in support of the impugned notices for Assessment Year 2006-07 and Assessment Year 2008-09. However, the Asses....
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....d require factual determination. The reasons in support of the impugned notices states that the activity of pharmacy came to the notice of the Assessing Officer only during the assessment proceedings for Assessment Year 2010-11. The petitioner were not able to point out that the revenue was aware of its above activity at the time of passing the order under Section 143(3) of the Act for Assessment Year 2006-07 or 2007-08. The reliance by the petitioner upon the approval under Section 10(23C) (via) of the Act dated 7 April 2011 for Assessment Year 2009-10 granted by the Chief Commissioner of Income Tax is of no assistance to the petitioner as it deals with an application for a subsequent assessment year and the facts to be examined are those ....