TaxTMI 
TaxTMI 
2024 (8) TMI 115
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....28th March 2014 issued under Section 148 of the Act. The reason for reopening states, (a) that on perusal of return of income, it is noticed that petitioner is engaged in commercial activity having earned income of Rs.1,83,99,069/- from commercial activities; (b) the receipt of this sum indicates that petitioner's activities are commercial in nature and cannot be considered under the head charitable activities of the trust, and (c) in view of the decision of the Apex Court in M/s. Yogiraj Charity Trust Vs. Commissioner of Income Tax, New Delhi 103 ITR 777, wherein it is held that assessee trust being engaged in commercial activity was not eligible for exemption under Section 11 of the Act and the facts in the present case is similar to the ....
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....m-25. 13. It is also trite that the Assessing Officer cannot reopen an assessment even within a period of four years merely on the basis of a change of opinion. The Assessing Officer has no power to review an assessment which has been concluded. Certainly where he has tangible material to come to the conclusion that there is an escapement of income from assessment, the power to reopen can be exercised. What is tangible is something which is not illusory, hypothetical or a matter of conjecture. In Export Credit Guarantee Corporation of India Ltd. (Supra), the Court held that even a single ground on the basis of which the assessment is sought to be reopened is valid and within jurisdiction, the notice for reopening of the assessment ....
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....eats the mistake that the order in Yogiraj Charity Trust (supra) was passed by the Delhi High Court and not the Apex Court. In the affidavit in reply, of course, it is stated that Yogiraj Charity Trust (supra) relied upon, was passed by the Apex Court. The AO also does not deal with the objections raised by petitioner on the ground of no order having been passed under Section 143(3) of the Act. The AO had come to the conclusion that in view of the commercial activities of petitioner, petitioner was not entitled to exemption under Section 11 of the Act. Mr. Singh submits that the matter was finally decided by the ITAT by its order pronounced on 4th July 2018 holding that petitioner was entitled to the benefit of Section 11 for AY-2011-12. ....
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.... a finding to that effect. Just because there are certain receipts received by petitioner while conducting its charitable activities, would not make those receipts whatever may be the quantum, to be income from commercial activities. 4. Therefore, there has to be a tangible material to come to the conclusion that there is an escapement of income from assessment to exercise the power to reopen. But if the reasons to believe indicate non application of mind as submitted by Mr. Singh, with whom we concur, the reasons to believe itself cannot be sustained. The reasons to believe proceeds on the basis that an assessment order under Section 143(3) of the Act has been passed when the assessment has been processed only under Section 143(1) of th....