“Assistant Director”

An educational institution that collects money over and above the prescribed rates, essentially acting as a vendor of education for profit, may not be considered a charitable institution under Section 2(15) and may be viewed as operating with a profit motive.

Reassessment proceedings under Section 148 cannot be initiated if the original assessment proceedings, initiated based on a filed return, are still pending. This includes situations where the time for issuing a notice under Section 143(2) has not expired.

The principle of consistency requires that the Assessing Officer or First Appellate Authority must follow decisions made in earlier years, unless there are good and sufficient reasons to deviate. An assessee's status should not be altered arbitrarily without assigning reasons or distinguishing facts.

Information from the Enforcement Directorate indicating inflated purchases can serve as a valid basis for issuing a notice under Section 148 of the Income Tax Act, initiating reassessment proceedings.

The amendment to Section 36(1)(va) of the Income-tax Act made by the Finance Act, 2021, is prospective in nature, meaning payments made before the amendment are not affected by its retrospective application.

Cases cited by this decision often involve assessment years 2018-19 and 2019-20.

A trust engaged in activities that constitute trade, commerce, or business is not entitled to claim its object as charitable if those activities fall foul of the proviso to section 2(15). Running a petrol outlet may not be considered a business incidental to the main object of a trust.

Income of a non-resident is deemed to accrue or arise in India if it falls under clauses (v), (vi), or (vii) of section 9(1), irrespective of whether the non-resident has a place of business or connection in India or has rendered services in India, due to the retrospective amendment of Section 9 by the Finance Act, 2010.