9911796707
TMI Blog2023 (12) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and enjoys exemptions under Section 11 of the Act. 2. For Assessment Year ("AY") 2007-08, Petitioner filed its return of income. The assessment under Section 143(3) of the Act was completed on 11th December 2009 assessing Petitioner's income at Rs. 63,51,467/-. 3. Petitioner thereafter received a notice dated 29th March 2014 issued under Section 148 of the Act stating that the Assessing Officer ("AO") has reason to believe that Petitioner's income for AY 2007-08 has escaped assessment within the meaning of Section 147 of the Act. Petitioner was also provided a copy of the reasons for re-opening. Reasons read as under: "Reasons for reopening the assessment u/s 147 of the I.T. Act, 1961 M/s Sri Shanmukhanand fine Arts & Sangeet Sabha As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclose fully and truly material facts for the assessment as far as the aforesaid issue is concerned, which has entitled into escapement of income to that extent. In view of the above facts and circumstances of the case, I have reasons to believe that income to the tune of Rs. 2,84,19,039/- has escaped within the meaning of Section 147 of the I.T. Act, 1961 in this case and accordingly the case needs to be reopened u/s 147 of the I.T. Act, 1961." 4. Petitioner filed objections and the objections came to be disposed by an order dated 4th January 2015. 5. Mr. Agrawal for Petitioner submitted that re-opening notice having been issued four years after expiry of the relevant Assessment Year, proviso to Section 147 of the Act shall be appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t any break and these were not brought to the notice during the assessment proceedings. The fact that assessee was carrying on commercial activity came to light later and hence, the AO was justified in invoking provisions of Section 147 of the Act. These submissions have to be rejected. 7. We would agree with Mr. Agrawal on the aspect of commercial activities alleged by the AO that AO has presupposed that assessee is indulged in commercial activity. Just because assessee has been earning a regular income from letting out its auditorium does not mean Petitioner was indulging in commercial activities. Mr. Agrawal submitted that the Income Tax Department initiated proceedings under Section 12AA(3) of the Act to withdraw the exemption granted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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