Old Girtonians Association Property Fund vs. Income Tax Officer (E)-2(2)

Parties Involved

Facts Summary

This appeal is filed by the appellant/assessee against the order dated 02.07.2024 of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, passed under section 250 of the Income Tax Act, 1961 for the Assessment Year 2016-17. The department has raised grounds of appeal questioning the CIT(A)'s decision to quash proceedings under section 148 of the Act. The appellant submitted that the appeal has become infructuous due to a circular dated 17.09.2024, which raised the monetary limit for tax effect for filing an appeal to Rs. 60 lacs. The tax effect in this appeal is Rs. 57,92,897/-.…

Legal Issues

• 1. Whether the Hon’ble CIT(A) was justified in quashing the proceedings u/s 148 of the Act in view of the case being re-opened in light of the assessee's activities in the 7th limb which attracts the proviso to section 2(15) and the assessee is not entitled to exemption u/s 11 of the Act?
• 2. Whether the Hon’ble CIT(A) was justified in giving relief and quashing the proceedings u/s 148 of the Act on the basis that the assessee would have to suffer double taxation in view of the exempt amount offered for taxation in view of failure to utilize the exempt proceeds accumulated within the statutory time limit required by law?
• 3. Whether the Hon’ble CIT(A) was justified in quashing the proceedings u/s 148 of the Act considering them as a change of opinion when on facts and circumstances the case has been re-opened on the basis of fresh interpretation of law with respect to the proviso to section 2(15) of the Act in the judgement by the Hon’ble Supreme Court in ACIT (Exemptions) Vs. Ahmedabad Urban Development Authority [2022] 143 taxmnn.com 278(SC)?

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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