2024 (12) TMI 327 - SCH - Income Tax

Validity of reopening of assessment - whether the Trust fulfilled the condition laid down in Section 13 r.w.s.11 and whether the income earned from the business is exempt from Tax as it has been utilized for the beneficiaries and by keeping separate accounts? - As decided by HC 2013 (7) TMI 224 - PUNJAB HARYANA HIGH COURT return was finalized in terms of Section 143(3) of the Act. The Assessing Officer was within its jurisdiction to issue a show cause notice for re-assessment. The order of assessment, as reproduced above, shows that the Assessing Officer has returned a finding that income has been applied for the purpose of the Trust in view of the noting of the assessee in the return filed. The reason for re-assessment is that the AO has not examined; the question whether the Trust fulfilled the condition laid down in Section 13 read with Section 11 of the Act and whether the income earned from the business is exempt from Tax as it has been utilized for the beneficiaries and by keeping separate accounts. Since the question was not examined by the Assessing Officer while framing assessment under Section 143(3) of the Act, and that the assessment framed was in ignorance of the statutory provisions and thus, the test that the income has escaped assessment on the basis of return filed stands satisfied. HELD THAT - These appeals may be dismissed as withdrawn.

Summary

The Supreme Court dismissed the appeals as withdrawn after the appellant's counsel requested it. Ms. Kavita Jha, who was designated as Senior Counsel, had received instructions to have the appeals dismissed before her designation. The appeals were dismissed as withdrawn based on the counsel's submission.