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2020 (11) TMI 738 - ITAT BANGALOREReopening of assessment u/s 147 - assessment after 4 years - reason to suspect OR reason to believe - violation of the provisions of section 13(1)(c) r.w.s. 13(2)(g) - A.O. has not disposed off the objections filed by the appellant by passing a separate speaking order - HELD THAT:- In the present case, the original assessment for the assessment year 2009-10 was completed u/s. 143(3) of the I.T. Act on 25/11/2011 and notice for re-opening of assessment was issued to the assessee on 13/04/2015. As per the provisions of section 147 of the I.T. Act if in any assessment year and if after expiry of four years from the end of the relevant assessment year, action sought to be taken u/s. 147 of the I.T. Act, such action can be only in cases where income chargeable to tax has escaped assessment in such assessment year by reason of failure on the part of the assessee to disclose truly and fully all material facts necessary for his assessment in such assessment year. It is seen from the reasons recorded for re-opening of assessment that it does not show that there was escapement of income due to failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment of income of the assessee for the assessment year 2009-10. Under the circumstances, the conditions stipulated under first proviso to section 147 are not satisfied and therefore, on the aforesaid ground alone, the impugned notice deserves to be quashed and set aside. Reopening of assessment which is already concluded under Section 143(3) of the Act of the assessment cannot be reopened without any allegation by the Assessing Officer that there was non-disclosure of true and correct facts by the assessee while framing the original assessment. Hence, we are inclined to annul the assessment. - Decided in favour of assessee. Assessment of trust - Exemption u/s 11 - method of computation of the income and application followed by the A.O., excluding the loans recovered by the appellant from Self Help Groups [SHG] that was regarded as income - Repayment of debt incurred for purposes of trust/loans advanced by educational trusts to students for higher studies - Whether amounts to application of income - HELD THAT:- The assessee’s case on hand is squarely covered by theCBDT Circular No.100 Dt.24.01.1973. Accordingly, the assessee's claim that extending loan to Self Help Groups (SHGs) is in application of income and direct the Assessing Officer to grant the benefit as claimed by the assessee in this ground. The assessee's appeal is allowed.
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