AI Drafter 
TaxTMI 
TaxTMI 
2020 (3) TMI 1027
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....r appropriate writ, orders or directions quashing and setting aside the impugned order dated 11/02/2014 [Exhibit-B] passed by the Respondent rejecting the objections of the Petitioner and upholding the validity of the impugned reassessment proceedings u/s 147 of the Act for A.Y. 2006-07. (c) to call for the records of the proceedings, look into them and be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing the impugned notice and order. (d) Pending the hearing and final disposal of this petition to maintain status quo in the matter and ask the Respondent and its subordinates not to take any action or to do anything in furtherance and pursuance of this impugned notice. (e) To allow this Petition with cost. (f) To pass any further or other orders as the Hon'ble Court may deem proper in the interest of justice and in the circumstances of the case. 2. The facts in brief giving rise to this petition are that the petitioner is a charitable institution registered under the provisions of the Bombay Public Trust Act, 1950. The petitioner is imparting education by running School/Educational Institution. ....
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.... were recorded, i.e. 18.8.2012, the order for cancellation of registration dated 17.3.2011 was not in force because appellate tribunal vide its order dated 3.2.2012 had already restored the registration w.e.f. 21.3.1990. Therefore, no reasonable man could have formed a belief that the assessee was not registered and the exemption u/s. 11 was not admissible. (ii) Secondly, it will also be appreciated that the registration u/s.12(a) or 12AA is not sine qua non for allowing exemption u/s. 11 or 12. The said exemptions are admissible once the conditions provided therein are fulfilled. (iii) Thirdly, the present case falls under the proviso to Section 147 and as such twin conditions required to be fulfilled for reopening the asstt. validly or legally, (a) there has to be a reason to believe on the part of the AO (b) the said belief should have been formed either for non-filling of return or failure to furnish fully and truly all material facts necessary for assessment. But, in the present case, the perusal of reasons shows that no such failure has been alleged by AO for resorting to reopening of assessment. In view of above, we have to request you to ....
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.... for the petitioner submitted that there is no failure on the part of the assessee to declare truly and fully all the material facts at the time of scrutiny of assessment. 9.1. It was submitted that the proviso to Section 147 of the Act would be applicable in the facts of the case as notice for re-opening was issued beyond the period of 4 years from the end of relevant assessment year. 9.2. Learned advocate for the petitioner further invited the attention of the Court to the replies given by the petitioner pursuant to the Notice under Section 142(1) of the Act and Notice under Section 143 (2) of the Act, 1961 during the course of the regular assessment proceedings. It was pointed out that the assessee has furnished the details with regard to the donation received from hundred of the guardians, by Cheques only, and the receipt are issued to them. The said funds are received as the corpus of Trust and therefore, the same was reflected in Schedule VII in Audited Accounts under the Title of "Other Earmarked Funds" in the balance-sheet of the petitioner. 9.3. It was also pointed out that the reply submitted on 24.01.2008 during the course of regular assessment with regard to sc....
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....er under Section 143(3) of the Act, 1961 was passed. 12. In such circumstances, it cannot be said that there is any failure on the part of the petitioner to disclose truly and fully all material facts during the course of assessment. 13. The co-ordinate Bench of this Court in the case of Ganesh Housing Corporation Ltd vs. Dy. Commissioner of Income-Tax, Circle 4 & Anr. in SCA No.15067 of 2011 rendered on 12.03.2012 has held as under : "14. At this stage, we may rather aptly refer to a latest three-judge-bench decision of the Supreme Court in the case of Commissioner Of Income Tax VS. Kelvinator Of India Ltd. reported in (2010) 2 SCC 723 where the said court after taking into consideration the effect of Direct Tax Laws (Amendment) Act, 1987 on section 147 made the following observations while dismissing the appeals preferred by the Revenue: "5. On going through the changes, quoted above, made to Section 147 of the Act, we find that, prior to the Direct Tax Laws (Amendment) Act, 1987, reopening could be done under the above two conditions and fulfilment of the said conditions alone conferred jurisdiction on the assessing officer to make a back assessment, but ....
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....ing of the expression, 'reason to believe' had been explained in a number of court rulings in the past and was well settled and its omission from Section 147 would give arbitrary powers to the Assessing Officer to reopen past assessments on mere change of opinion. To allay these fears, the Amending Act, 1989, has again amended Section 147 to reintroduce the expression 'has reason to believe' in the place of the words 'for reasons to be recorded by him in writing, is of the opinion'. Other provisions of the new Section 147, however, remain the same." (emphasis supplied) 9. For the aforestated reasons, we see no merit in these civil appeals filed by the Department, hence, dismissed with no order as to costs." (Emphasis given by us). 20. In the case of CIT VS. EICHER LTD. reported in (2007) 294 ITR 310(DELHI), which was also the subject-matter of appeal before the Supreme Court in the case of Commissioner of Income tax vs. Kelvinator of India Ltd. (supra), Delhi High Court dealt with the similar point as would appear from the following observations quoted below: "Applying the principles laid down by the Full Bench of this court as well as the obs....