9911796707
TMI Blog2012 (12) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... 1998-99 to 2000-01. It follows that the assessing officer cannot entertain any reason to believe that income chargeable to tax for those years had escaped assessment. Even assuming that there was breach of any statutory conditions under which the exemption was granted to the petitioner under section 10(21), the entire accumulated income of the earlier years cannot be taxed in those years by reopening the assessments for those years. Section 11(3), which is made applicable to section 10(21), itself provides that the entire accumulated income shall be deemed to be the income of the assessee of the previous year in which the breach of the conditions or the contingency occurs. The statute having thus fixed the assessment year in which the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... research association of the previous year in which the contingency happened. It does not matter that the accumulated income in respect of the earlier years which had hitherto enjoyed exemption from tax, does not relate to the previous year in which the contingency took place. This, in short, is the substance of section 10(21) read with section 11(2) and (3) of the Act. 3. The petitioner is a scientific research society approved by the competent authority under section 35(1)(ii) for research activity in the field of coronary diseases and other connected fields. In this writ petition we are concerned with the validity of the notices issued by the assessing officer under section 148 of the Act seeking to reopen the assessments for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trial research, the approval granted needs to be withdrawn with retrospective effect. On perusal of assessment record, there was an accumulated balance of Rs.17,55,71,699/- pertaining to Assessment Year 1998-99 which has been utilized for other than charitable purpose. As income of Rs.17,55,71,699/- has escaped assessment for the Assessment Year 1998-1999 for which the assessment u/s 143(1) was completed on 25.5.99 at Nil income. In order to tax the escaped income for Assessment Year 1998-99 action u/s 147 is required. Your approval is solicited for issue of notice u/s 148 for which limitation expires on 31.3.2006. ADIT(E) TC-II, New Delhi Approval from the Addl. DIT(E) Range-I, New Delhi vide letter No.76 dated 21.5.04 received fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. The statute having thus fixed the assessment year in which the entire past accumulated income falls to be taxed, it is impermissible in law for the assessing officer to entertain a reason to believe that income chargeable to tax for the assessment years 1998-99 to 2000-01 had escaped assessment. The statute has imposed a fetter on the power of the assessing officer to consider the accumulated income, as the income of the respective earlier years and has mandated it to be the income of the previous year i.e. the previous year commencing on 01.04.2000 and ending on 31.03.2001 relating to the assessment year 2001-02, which is the year in which the petitioner was amalgamated with Escorts Hospital, Chandigarh and transferred all its assets t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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