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TMI Blog2023 (3) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... expired on 22.09.1972 itself and therefore, the assessee trust cannot be recognised as a charitable trust during the assessment year in question and consequently the donation made to the trust will not qualify for deduction u/s 80G of the Act. It is in those circumstances, the assessing officer re-opened the assessment. The audit party is entitled to point out a factual error or omission in the assessment. reopening of the assessment in the light of factual errors pointed out by the audit party is permissible under law. In the present case, even though the assessment was reopened on the basis of the error pointed out by the revenue audit, the same was done after the period prescribed u/s 147. Tribunal is right in allowing the appeal file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng into a Development Agreement on 30.01.2006 through a power of attorney. According to the assessee, the sale proceeds derived in this transaction have been invested in purchasing an apartment at No.302, Hiranandani Palace Gardens, Devon Phase 1, Senthamangalam Village, Chengalpet Taluk and evidencing such a transaction, documents have been produced by the assessee. On the basis of the above transaction, the assessee filed return of income for the assessment year 2010-2011 on 28.03.2011 admitting the total income of Rs.2,07,540/-. The return filed by the assessee was scrutinised under Section 143 (1) of the Income Tax Act (in short 'the Act') and completed on 31.01.2013 assessing an income of Rs.2,82,540/-. Subsequently, the revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India (2010) 320 ITR 561 (SC) to contend that the action of the assessing officer in re-opening the assessment beyond the period prescribed in the Act is liable to be interfered with. 4. Accepting such submissions made on behalf of the Assessee, the Tribunal allowed the assessee's appeal on 12.10.2022 by holding that the assessment was re-opened beyond four years from the end of the relevant assessment year. The Appellate Authority also placed reliance on the various decisions in support of such conclusion, including the one rendered by this Court in Fenner (India) Limited vs. DCIT reported in 241 ITR 672 and concluded that mere escape of income is insufficient to justify the initiation of action under Section 147 of the Act, af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that for whatever reasons, the re-assessment proceedings initiated by the assessing officer beyond four years from the end of the relevant assessment year in question namely 2010-2011 is legally impermissible. The Tribunal, for arriving at such conclusion, placed reliance on several decisions and ultimately held that the delay in re-opening the assessment is not sanctioned by law. It was also concluded by the Tribunal that mere change of opinion on the part of the assessing officer is not a sufficient ground to re-open the assessment. We are in complete agreement with such a conclusion arrived at by the Tribunal. There is no justifiable reason assigned by the Assessing Officer for not initiating action to re-open the assessment before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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