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TMI Blog2023 (12) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the Income Tax Department initiated proceedings u/s 12AA(3) of the Act to withdraw the exemption granted to Petitioner u/s 11 of the Act which proceedings have been quashed and set aside. Thus in view of the proviso to Section 147 of the Act, which squarely applies to the case at hand, re-opening of the assessment is permissible only if there was failure to disclose fully and truly material facts. Reason to believe itself indicates that amount of Rs. 2,84,19,039/- which the AO claims to have escaped assessment has been obtained from the return of income filed by Petitioner. Return of income, copy whereof is annexed to the Petition, itself indicates that income from hall charge, other charges recovered from auditorium users an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sangeet Sabha Assessment Year 2007-08 In this case assessment u/s. 143(3) was completed on 11.12.2009 assessing the Income at Rs. 63,51,407/-. It is noticed the return of income filed for the A.Y. 2007-08 that that assessee trust is engaged in commercial activity and is in receipt of income from the said commercial activities as enumerated under: (I) Hall charges Rs. 2,29,49,250/- (ii) Other charges received from Auditorium users Rs. 8,17,216/- (iii) Compensation received from use of premises Rs. 46,52,573/- It is noticed that the above receipts are commercial in nature and cannot be considered under the head charitable activities of the trust. In view of the decision of Hon'ble Delhi High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Year, proviso to Section 147 of the Act shall be applicable particularly in view of the fact that assessment under Section 143(3) of the Act has been completed. Mr. Agrawal submitted that there is a bar to reopen after the expiry of four years unless there has been failure on the part of Assessee to truly and fully disclose material facts for completion of assessment. Mr. Agrawal submitted that the reason for re-opening itself indicates that there has been no failure to disclose even though a bald statement has been made that Assessee has failed to truly and fully disclose material facts. Mr. Agrawal submitted reasons provide it is noticed from the return of income filed . Therefore, material, i.e., hall charges, other charges received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of the Act to withdraw the exemption granted to Petitioner under Section 11 of the Act which proceedings have been quashed and set aside. 8. Be that as it may, in view of the proviso to Section 147 of the Act, which squarely applies to the case at hand, re-opening of the assessment is permissible only if there was failure to disclose fully and truly material facts. Reason to believe itself indicates that amount of Rs. 2,84,19,039/- which the AO claims to have escaped assessment has been obtained from the return of income filed by Petitioner. Return of income, copy whereof is annexed to the Petition, itself indicates that income from hall charges is Rs. 2,29,49,250/-, other charges recovered from auditorium users is Rs. 8,17,216/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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