CHANDRIKA EDUCATIONAL TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE two references relate to the situation of reopening of the assessment of the assessee-trust--Chandrika Educational Trust. The assessment year is 1973-74 in both the references. The assessee has brought the following questions in I. T. R. No. 31 of 1990 :

(2.) IN addition the following two questions in I. T. R. No, 145 of 1994 as a result of the judgment dated September 3, 1994, in O. P. No. 7038 of 1990 of this court are also brought before us. They are :

(3.) IN regard thereto the INcome-tax Officer held that the provisions of Section 13(1)(c)(ii) and Section 13(2)(h) read with Section 13(3) are applicable, taking out the case for exemption under Section 11 of the Act. It is further held that the situation came to light only during the assessment proceedings for the assessment year 1976-77. It was further held that the audit report filed in Form No. 10B did not also contain correct information as required therein, especially mention of close relationship of the partners of the two firms was conspicuous by its absence in the audit report.