Shri Saibaba Sansthan Trust (Shirdi) Vs Union of India (Bombay High Court)
Bombay High Court held that reopening of assessment u/s. 147 in absence of any fresh material, based on material already available during assessment proceedings, tantamount to mere change of opinion and the same is not permissible in law.
Facts- The petitioner is a Public Trust deemed to be constituted and governed under the State Legislation namely under the provisions of the “Shri Saibaba Sansthan Trust (Shirdi) Act, 2004”. Despite past assessments, the petitioner was issued a show cause notice as to why the income of the petitioner received by way of anonymous donations in the Hundi Boxes, should not be taxed under the provisions of Section 115BBC of the IT Act. The petitioner in its reply to the show cause notice inter alia contended that Section 115BBC of the IT Act was not applicable to a mixed purpose trust i.e. charitable as well as religious and therefore, the petitioner was exempted under sub-section 2(b) of Section 115BBC.
On 27 March 2018, the petitioner was served with a notice dated 23 March 2018 u/s. 147 and 148 of the IT Act for the assessment year 2013-14. By such notice, respondent no.4/Deputy Commissioner of Income Tax (Exemption) 2(1) sought to re-open assessment for the AY 2013-14. The only reason as furnished to the petitioner for reopening of the assessment was that the anonymous donations received by the petitioner had escaped assessment.
