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TMI Blog2016 (12) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessary for assessment. Under the circumstances, the condition precedent to assume the jurisdiction to reopen the assessment under Section 147 of the IT Act beyond the period of 4 years are not satisfied. Under the circumstances, on the aforesaid ground alone, the impugned / assessment proceedings which are beyond the period of 4 years deserve to be quashed and set aside. - Decided in favour of assessee - SPECIAL CIVIL APPLICATION NO. 9652 of 2010 With SPECIAL CIVIL APPLICATION NO. 9653 of 2010 - - - Dated:- 9-12-2016 - MR. M.R. SHAH AND MR. B.N. KARIA, JJ. FOR THE PETITIONER : MR BS SOPARKAR with MRS SWATI SOPARKAR, ADVOCATE FOR THE RESPONDENT : MR MR BHATT, SR. ADVOCATE with MS MAUNA M BHATT, ADVOCATE COMMON ORAL JUDGME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finalizing the assessment for AY 200304 and 200405. [3.2] That thereafter vide order No.DIT(E)/12AA/386/200910 dated 15.02.2010, the Director of Income Tax (Exemption), Ahmedabad canceled the registration granted under Section 12A(a) of the IT Act retrospectively with effect from 01.04.2002. That thereafter beyond the period of 4 years from the relevant assessment year, the Assessing Officer has reopened the assessment for AY 200304 and 200405 under Section 147 of the IT Act solely on the ground that registration under Section 12A(a) of the IT Act has been withdrawn with effect from 01.04.2002 and therefore, the assessee is not entitled to deduction under Section 11 of the IT Act and therefore, the income of the assessee is to be comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd finalized the assessment. It was submitted that therefore the condition precedent for assuming the jurisdiction under Section 147 of the IT Act to reopen the assessment beyond the period of 4 years are not satisfied. That the Assessing Officer has disposed of the said objections not agreeing with the objections raised by the assessee. Hence, the petitioner has preferred the present Special Civil Applications challenging the reassessment proceedings for AY 200304 and 200405. [4.0] Shri B.S. Soparkar, learned advocate appearing on behalf of the petitioner assessee has vehemently submitted that the impugned notice under Section 148 of the IT Act are bad in law and without jurisdiction. [4.1] It is vehemently submitted by Shri Sopark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2010 withdrawing the registration under Section 12A(a) of the IT Act has been subsequently set aside by the learned Tribunal, however against which the appeal is pending before this Court. [5.0] Shri Manish R. Bhatt, learned Counsel appearing on behalf of the Revenue has tried to oppose the present Special Civil Applications by submitting that as the registration in favour of the assessee under Section 12A(a) of the IT Act has been withdrawn retrospectively with effect from 01.04.2002 and therefore, the assessee is not entitled to the deduction under Section 11 of the IT Act and therefore, the income of the assessee is to be computed in the normal commercial manner. It is submitted that therefore to give effect to the order withdrawing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e period of 4 years. Therefore, the condition precedent for assuming jurisdiction under Section 147 of the IT Act are required to be satisfied before reopening of the assessment beyond the period of 4 years. As per the proviso to section 147 of the IT Act, the assessment beyond 4 years can be reopened provided there is any failure on the part of the assessee in not disclosing the true and correct facts necessary for assessment. The aforesaid is not disputed by Shri Bhatt, learned Counsel appearing on behalf of the Revenue. [6.1] In the present case during the years under consideration i.e. for AY 200304 and 200405, the assessee claimed the deduction under Section 11 of the Act on the basis of the registration under Section 12A(a) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the respective parties in pending appeal being Tax Appeal No.2323/2010 and without further entering into the merits and/or without expressing anything on merits with respect to the legality and validity of the order withdrawing registration under Section 12A(a) of the IT Act, the subject matter of which is at large before this Court in Tax Appeal No.2323/2010. [7.0] In view of the above and for the reasons stated above, both these petitions succeed. Impugned reassessment proceedings for AY 200304 and 200405 are hereby quashed and set aside on the aforesaid ground alone, however without prejudice to the rights and contentions of the respective parties in the pending appeal being Tax Appeal No.2323/2010. Rule is made absolute accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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