9911796707
TMI Blog1985 (8) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... and the case was declared as not assessable. Subsequently, a notice under s. 148 was served on the assessee on 14th April, 1978 for reopening the assessment, the ITO complete the assessment under s. 144 r/w s. 147 on a total income of Rs. 20,210. In appeal, the AAC set aside the assessment. The IAC (Assessment) then made fresh assessment on a total income of Rs. 2,10,510. 3. Before the CIT (A) the assessee contended that there was no omission or failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment and that the assessment was properly made after examining the books of account and after consideration of all the relevant facts and circumstances of the case. On this ground that initia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the loans advanced to various business concerns. 4. The CIT (A) further found that gross receipts of the trust during the year were Rs. 4,60,282 out of which the trust spent Rs. 4,12,089 in carrying out its primary objects. Thus, the trust was left with the surplus of Rs. 48,193 which is very much within the limit prescribed under s. 11(1)(a). It was further found that the assessee trust fulfilled other requirements laid down by the IT Act. For all these reasons, it was held that the income of the assessee was not taxable during the year. 5. For the asst. yr. 1977-78, the IAC determined the total income of the assessee at Rs. 22,610 charging tax thereon. Before the CIT (A) the contention put forth on behalf of the assessee was during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taking the status of the assessee as AOP. The CIT (A) held that the assessee is a public charitable trust and it has fulfilled the requirements of law and the assessment has to be made treating the Gaushala as a public charitable trust. The IAC was directed to modify the assessment in the light of this finding. 8. While passing the appeal for the asst. yr. 1973-74, ld. Departmental Representative submitted before us that the original retune submitted by the assessee on 31st Jan., 1974 was not accompanied by required annexure and statements. During the assessment proceedings for the asst. yr. 1975-76 it came to the notice of the assessing officer that the trust has income from various sources and that it is not a charitable trust. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sst. yr. 1973-74 were adopted by him for the remaining two appeals also and no fresh submissions were made by him in respect of the appeal which related to the asst. yrs. 1977-78 and 1978-79 12. Learned authorised representative for the assessee has, on the other hand, fully supported the order of the CIT (A) for all the assessment yeaRs. It was submitted that the condition necessary for the applicability of s. 147 (a) was completely missing in this case and that the decision of the CIT (A) is in accordance with the law enunciated by the Supreme Court in ITO vs. Lakhmani Mewal Das 1976 CTR (SC) 220 : (1976) 103 ITR 437 (SC). It was pointed out that the reasons for reopening the assessment have not been spelt out either in the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l that the necessary particulars were filed by the assessee before the assessing officer and after going through the details the assessment was completed under s. 143(3) by him. It could not be established as to what was the basis for the assessing officer for entertaining a belief that for failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment, income chargeable to tax has escaped assessment. On the other hand, from the facts found by the CIT (A) it is conclusively proved that all necessary particulars and details were already before the assessing officer when he completed that original assessment under s. 143(3). Learned Departmental Representative has not been able to show that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT (A) shows that for the asst. yr. 1977-78 the surplus was less than 25 per cent of the income of the trust. The CIT (A) further found that the trust fulfilled the obligation laid down under the IT Act, and so for the asst. yr. 1977-78, the income is not chargeable to tax. For the asst. yr. 1978-79, it was held that the assessee is a public charitable trust and has fulfilled the requirements of law and so, the assessment has to be made on the assessee as a public charitable trust. No attempt was made to assail these findings recorded by the CIT (A) for the asst. yrs. 1977-78 and 1978-79 and we, therefore, confirm the same. 18. In the result, all the three Departmental appeals fail and are hereby dismissed. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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