Vagad Visha Oswal Chovisi Mahajan Charitable Vs ADIT (ITAT Mumbai)
The case concerns an appeal filed by the assessee, a trust, against an order dated 31.07.2025 passed by the National Faceless Appeal Centre (NFAC), Delhi for Assessment Year (AY) 2010–11. The primary issue raised in Ground Nos. 1 and 2 relates to the validity of reopening the assessment under Section 147 of the Income Tax Act, 1961, while the remaining grounds pertain to the merits of the additions made.
The assessee had originally filed its return of income on 29.09.2010, declaring NIL income after claiming exemption. Subsequently, the Assessing Officer (AO) received information that the assessee had deposited cash amounting to Rs. 73,29,684 in its savings bank account with Cosmos Cooperative Bank Ltd., Malad Branch, which had not been offered to tax. Based on this information, the AO reopened the assessment under Section 147. The reassessment was completed on 28.03.2013 under Section 147(3) read with Section 147, determining total income at Rs. 1,03,54,997. This included disallowance of exemption claimed under Section 11 and an addition of Rs. 33,71,151 as unexplained cash deposits.
The assessee challenged the reassessment order before the First Appellate Authority, including the legality of reopening under Section 147. However, the authority rejected the legal challenge while granting partial relief on merits.
