9911796707
TMI Blog1996 (5) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 of the Income-tax Act, 1961, was justified ?" The brief facts giving rise to this reference are thus : The assessee is an association of rice millers. The objects of the association are advancement of common interests of the members of the association in accordance with the Government policies formulated from time to time. The objects do not mention carrying on any activity for profit. According to the assessee, the object of the association was advancement of charitable purposes as defined in section 2(15) of the Act. The Assessing Officer, however, found that the association indulged in various activities whereby it had not only realised fees regularly from its members but also realised large amounts by way of donations, etc. He furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under the provisions of section 28(iii), the income of the association would be assessable for various assessment years. For the assessment year 1963-64, the books of account were not made available to the Income-tax Officer and the Income-tax Officer observed that enquiries were made about the activities of the association and it was gathered that the same has been active ever since the calendar year 1961 and was participating in the activities as discussed above. On the basis of the enquiries made and for reasons recorded in the earlier year and for the assessment year 1978-79, the total income of the assessee for various years was assessed as below after allowing the expenditure : Assessment Taxable income years (Rs.) 1962-63 60,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding mutuality. The assessment for 1966-67 was also completed and set aside in appeal. It was contended that the sanction of the higher authorities for initiation of proceedings under section 148 of the Act was taken and every year had to be judged separately. It was contended that the assessment made was not in accordance with the circulars. However, the Tribunal found that for the assessment year 1965-66, there was no material on record to prove that the gross receipts of the assessee were above Rs. 50,000. From the books available, the receipts were shown at Rs. 10,033 only. Therefore, the assessment for the same year cannot be upheld as there was no material before the Board to come to the conclusion that the escapement of income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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