COMMISSIONER OF INCOME-TAX, GORAKHPUR Vs. M/S ALL INDIA CHILDREN CARE & EDUCATIONAL DEVELOPMENT SOCIETY, AZAMGARH

JUDGEMENT

(1.) Present appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as ''the Act') by the department against the order dated 26th June, 2002 passed by the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad (hereinafter referred to as ''the Tribunal') in I.T.A. Nos. 21, 22, 23 & 24(Alld)/2002 for the assessment years 1993-94, 1994-95, 1995-96 and 1997-98.

(2.) The assessee-respondent did not file returns of its income voluntarily for the assessment years 1993-94 to 1995-96. The Income Tax Officer, Azamgarh issued notice under Section 142(1) dated 31st July, 1997 and notices issued under Section 148 for the assessment years 1993-94 to 1995-96. In response, the assessee-respondent filed returns for all these assessment years. The cases were transferred to the Deputy/Joint Commissioner of Income Tax (Asstt.) Special Range Varanasi who was having jurisdiction as the return of loss for the assessment year 1997-98 was more than Rs.10 Lakhs. The assessee participated in the assessment and reassessment proceedings and claimed exemption initially under Section 11 and subsequently under Section 10(22) of the Act. The claim of exemption was denied by the Assessing Authority for the reasons recorded in the assessment order and the assessment was completed by determining the positive income for all these assessment years. The matter was carried in appeal before the Commissioner of Income Tax (Appeal), Varanasi. All of them were dismissed by a common order dated 10th January, 2002. The assessee carried the matter in further appeal before the Tribunal who allowed all these appeals by the order under appeal holding that the Assessing Officer who framed the assessment/reassessment proceedings was not the competent authority and the reasons recorded for initiating the reassessment proceedings are bad. Hence, the present appeal.

(3.) Present appeal has been admitted on the following substantial questions of law as framed in the memo of appeal :-