TaxTMI 
TaxTMI 
TaxTMI 
2017 (9) TMI 747
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....ytechnic college (hereinafter to be referred to as "N.G.Patel polytechnic"). It is not in dispute that the petitioner Trust files regular returns before the Income Tax Authorities and which are scrutinized from time to time by the Assessing Officer for passing orders of assessment. 2. According to the petitioner, the various educational institutions run by the society would receive sizable amounts by way of cash through fees paid by the students. Only in order to maintain the separation of funds, N.G.Patel polytechnic desired to open a bank account. According to the counsel for the petitioner, bank insisted on a separate Permanent Account Number ('PAN' for short) of the customer only upon which a separate account can be opened. N.G....
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....was no response from the account holder. 4. According to the petitioner, N.G.Patel polytechnic did not have any independent legal existence and was merely a college run by the society. The society therefore raised detailed objections before the Assessing Officer under a communication dated 02.07.2016 urging him to drop the notice for reopening. In such objections, the petitioner stressed that it was the society which had maintained the books of accounts and filed the audited accounts along with the return, in which, the said amount of Rs. 2.37 crores was also reflected. Thus, the society had already offered to tax the said amount which is now being separately questioned in the hands of N.G.Patel polytechnic. Along with the objections, the ....
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....f the Act would not make the allottee necessarily a separate entity for the purpose of assessment of tax. The statute recognizes certain eventualities where quite outside the requirement of payment of tax and for filing return of income, the Assessing Officer may allot a PAN to individual. The contention of the Assessing Officer therefore that merely because N.G.Patel polytechnic had obtained the PAN, it was a separate entity for the purpose of filing of the return and assessment of tax was not valid. In the order rejecting the objections, the Assessing Officer did not examine other objections and contentions raised on behalf of the petitioner on his summary conclusion noted above. The requirement of supplying reasons recorded by the Assess....