TaxTMI 
TaxTMI 
2016 (7) TMI 669
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....he assessment order itself passed in consequence thereof. 2. Under the facts and the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), Kota has erred in not quashing/nullifying the ex-parte assessment order passed under section 144 read with section 147 of the Income Tax Act, 1961. 3. Under the facts and the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), Kota has erred in not allowing exemption U/s 10(20) of the Income Tax Act, 1961 while computing the total income of the Appellate Trust. 4. Under the facts and the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), Kota has erred in not allowing the various expenditures incurred by the Appellate Trust in entirety. 5. Under the facts and the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), Kota has erred in not allowing carry forward and set off of losses for computation of the total income of the Appellant Trust. 6. Under the facts and the circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), Kota has erred in sustaining the charging of interest under sect....
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....tances of the case, the ld CIT(A) has erred in:- (i) treating the rental income of Rs. 31.99 lakhs assessed under the head 'income from house property' as 'Income from business'; (ii) allowing the expenses of Rs. 6110.00 lakhs by treating the same as revenue expenditure; (iii) allowing the deduction of Rs. 721.05 lakhs by holding that ground rent, conversion charges, transfer fee etc. collected by the assessee also constituted the shares of State Government and Municipal Bodies and were never part of assessee's income;" 2. Grounds No. 1 and 2 of all the assessee's appeals are the legal grounds. The ITAT vide its order in ITA No. 366 & 367/JP/2010 order dated 18/3/2011 for the assessment year 2003-04 and 2004-05 held that the assessee is not exempted from income tax U/s 10(20) of the Income Tax Act, 1961 (hereinafter referred as the act). Therefore, the income of the assessee is taxable but as the assessee has not filed the return of income for the year under consideration. Therefore, notice was issue to the assessee for the assessment year 2005-06 on 13/10/2011 thereby calling upon it to file reply within 30 days on account of "escaped assessment" within the meaning of Sect....
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....on'ble High Court. As the case may be, the revenue in compliance of the order of the Hon'ble High Court dated 16/10/2012 have forwarded the reasons for issuing the notice U/s 148 of the Act for the AY 2010-11. After receiving the reasons for issuing notice U/s 148, the assessee had filed reply on 13/10/2012 and has submitted that the case of the assessee do not fall within the realm of Section 147 of the Act, therefore, issuance of notice is not permitted and issuance of notice per se illegal and without jurisdiction. 3. The officer of the revenue vide reasoned order dated 12/2/2013 have disposed of the objection with following observations:- "Further, you have made submission on nature of functioning/activities under taken by the UIT by way of various rules of Rajasthan Urban Improvement Trust Rules of 1959 and details of Improvement Fund. But these have no relevance as far as filing of return of income is concerned in view of the order of the Hon'ble ITAT. You have submitted that in absence of exemption, an assessee may not have any income on the basis that none of the provisions of the Act, 1959 permit the assessee trust to generate income. But no exemption is availa....
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....d upon the revenue to supply the order as is available in the assessment year 2010-11, therefore, the revenue has not supplied the reasons as demanded by the assessee. Hence the assessment proceedings carried out by the revenue is in accordance with law. 5. We have heard the rival contentions of both the parties and perused the material available on the record. The assessee vide letter dated 30/08/2012 has specifically asked the revenue to provide the reasons U/s 148 of the Act. The application of the assessee provides as under:- SUB:- Decision of Hon'ble High Court in writ petition filed by UIT Kota for the A.Y. 2010-11 With reference to the above following are our humble submissions. In the matter of notice issued by your goodself dated 07/10/2011 U/s 148 of IT Act 1961 for the A.Y. 2010-11, the Hon'ble Rajasthan High Court has passed order on date 18/8/2012 to follow the Directors as follows:- "* First to supply the Reasons before filing of Return, within a period of four weeks to the UIT, Kota. * Thereupon UIT Kota should file its objections including the objection that its income is not taxable and it not required to file the Return. * Such objections shall be deci....