2016 (6) TMI 650

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.... Akil Kureshi ) 1. Revenue has challenged the judgment of Income Tax Appellate Tribunal dated 03.12.2015, raising following question for our consideration. "Whether on facts and in the circumstances of the case the Appellate Tribunal is correct in law on quashing the order passed u/s 143(3) r.w.s. 147 of the Act, particularly when the assessee has wrongly claimed exemption u/s 11(1)(a)....

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....658/- under section 11(3) to be treated as deemed income for A. Y. 2006-07. This deemed income was related to A.Y. 1996-97 in which fund/income accumulated u/s. 11(2) of the Act. In the statement of the income for A.Y. 2006-07 the assessee claimed statutory exemption under section 11(l)(a) of the Act amounting to Rs. 1,74,77,343/- (i.e. 15% of Rs. 11,65,16,622/-) and the same was allowed in scruti....

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....n view of the above, I have reason to believe that, income chargeable to tax has escaped assessment and hence it is fit case for re-opening the assessment within the meaning of Sec. 147 of the Act." 3. The assessee questioned the very validity of the notice for reopening before the Revenue Authorities and lastly before the Tribunal. The Tribunal held that the proceedings of reopening were inval....