VED PARKASH PRABHUDAYAL AGARWAL Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) The petitioners are the trustees of Bhoruka Charitable Trust and the trust was created under a trust deed dated April 2, 1962. The trust was duly registered on May 23, 1962, with the Charity Commissioner.

(2.) The petitioners are entitled to exemption of its income from the properties under s. 11 of the I.T. Act, 1961. The petitioners filed return for the assessment years 1972-73 and 1973-74, and the assessments were completed by an order dated March 12, 1973, and September 22, 1976, respectively, passed by the 1st ITO, Bombay Refund Circle, Bombay. It is required to be stated that it was found by the I.T authorities while passing the two orders that the entire income of the trust was exempted from liability to pay tax under s. 11 of the said Act. These two order for the relevant years were passed after the ITO made the requisite enquiries and the proceedings were completed after notice under s. 143(3) of the said Act.

(3.) On March 28, 1977, respondent No. 1. ITO served the petitioner with notices under s. 148 of the I.T. Act, 1961, for the assessment years 1972-73 and 1973-74. By the impugned notices respondent No. 1 informed the petitioners that the income of the trust had escaped assessment with in the meaning of s. 147 of the said Act, and therefore, respondent No. 1 proposed to reopen the assessment. In answer to these notices, the petitioners requested respondent No. 1 to furnish the reasons and the material in his possession for reopening the assessment. Respondent No. 1 failed to furnish any grounds in spite of repeated reminders. The petitioners thereafter filed the present petitioner on this court on February 10, 1979, and it was duly admitted after notice was given to respondent No. 1.