TaxTMI 
TaxTMI 
2022 (8) TMI 916
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....x Act, 1961 (hereinafter referred to as 'the Act') and notice issued under Section 148 of the Act for the Assessment Year (AY) 2018-19, both dated 08th April, 2022 to the Citizen Model School, which is run by the petitioner-society. SUBMISSIONS ON BEHALF OF THE PETITIONER. 2. Learned counsel for the petitioner states that the petitioner-society filed its return of income for the AY 2018-19 declaring 'Nil' income and in the column 'details of projects/institutions run by you', the petitioner-society disclosed that the petitioner-society runs the Citizen Model School having aggregate annual receipt of Rs.1,82,03,712/- in the relevant assessment year. 3. He states that the respondents issued a show cause notice dated 22nd March, 2022 under ....
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....writ-application was ordered to be disposed of vide order dated 11th September 2017. The order reads thus : xxx xxx xxx 3. The Assessing Officer noticed that N.G. Patel polytechnic had a separate PAN and in its savings bank account of Bank of Baroda, sizable cash amount of Rs.2.37 crores was deposited, on which, it had also received interest of Rs.2.40 lakhs. Despite this, N.G. Patel polytechnic had not filed return of income for the said assessment year 2009-10. On such basis, N.G. Patel polytechnic was served with an impugned notice dated 22.03.2016 for reopening of the assessment. The only ground recorded by the Assessing Officer in the reasons for issuing the notice was that despite depositing of sizable cash of Rs.2.37 crores in th....
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....der consideration. 9. The case of the respondent is that the objections taken by the writ-applicant will be examined with reference to the books of accounts at the time of carrying out the reassessment proceedings. Thus, the stance of the department is directly contrary to the direction issued by this Court. The respondent failed to appreciate that, when the fundamental facts on which the jurisdiction is assumed, is proved incorrect, then the very assumption of jurisdiction is rendered invalid. In the present case, the Society is able to point out that the assertion of the department that the transaction carried out in the Bank of Baroda by the Polytechnic has already been accounted for by the Society in its books of accounts as the Polyt....
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.... of Direct Taxes and Ors., CWP No.9142/2022, wherein it has been held as under:- "12. Thus, the consistent view is that where the proceedings have not even been concluded by the statutory authority, the writ Court should not interfere at such a pre-mature stage. Moreover, it is not a case where from bare reading of notice it can be axiomatically held that the authority has clutched upon the jurisdiction not vested in it. By now it is well settled that there is vexed distinction between jurisdictional error and error of law/fact within jurisdiction. For rectification of errors statutory remedy has been provided. 13. In the light of aforesaid settled proposition of law, we find that there is no reason to warrant interference by this Court....
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....resent case, the significance of issuance of a show cause notice at a stage prior to issuance of a re-assessment notice under Section 148 of the Act has been lost on the respondents inasmuch as the impugned order under Section 148A(d) of the Act has been passed without considering the detailed reply filed by the petitioner dated 03rd April, 2022. It is pertinent to mention that though the impugned order notes that the Citizen Model School is being run by the petitioner-society, yet it goes on to hold that income had escaped assessment as no return of income had been filed by the school without dealing with the contention of the petitioner-society that all the financial transactions of the school had been accounted for in its return of incom....