By K. B. Bhujle, Advocate
69. CIT(Exemption) vs. B. P. Poddar Foundation for
Education
[2022] 448 ITR 695 (Cal.)
A.Y.: 2009-10
Date of order: 13th September, 2022
Sections: 147 and 148 of ITA, 1961
Reassessment — Powers of AO — Power to assess other income not mentioned in notice of reassessment — Power can be exercised only if notice is valid — Notice found to be invalid on basis of reasons given in it — Other income cannot be assessed on basis of invalid notice.For the A.Y. 2009-10, the scrutiny assessment order u/s 143(3) of the Income-tax Act, 1961 was passed on 1st March, 2011. Subsequently, pursuant to a survey u/s 133A, the assessment was reopened by issuing notice u/s 148 dated 13th March, 2016 for the reasons recorded that certain deposits of Rs. 59,42,709 represented income escaping assessment. In the reassessment order, the said amount was added as undisclosed income. Also, an amount of Rs. 3,65,97,000 was added as undisclosed income. Further, after taking into consideration the statements recorded from various persons who are said to have given donations for securing admission to professional colleges, the AO held that the assessee is not carrying out its activities as per the objects of the trust. Accordingly, the amount said to have been received as donation was added back to the income of the assessee u/s 69A.
The Commissioner (Appeals) deleted the addition of Rs. 59,42,709 but upheld the other additions. After t
