“Section 5(1)(ii)(b)”
The decision most relied on for Section 5(1)(ii)(b) is Tranvancore Cements Ltd. v. Asst. CIT (305 ITR 170), cited in 37 judgments on BharatTax.
Leading authorities on Section 5(1)(ii)(b)
Once an Assessing Officer forms a reason to believe that income has escaped assessment and issues a notice under section 148, they can assess or reassess income related to other issues not originally included in the reasons recorded.
The cancellation of registration under section 12AA(3) is limited to circumstances specified in the section. Income and application of funds issues are matters of assessment, not grounds for cancellation under section 12AA(3).
An institution is disentitled from approval under section 80G(5) if its trust deed contains even a single religious object, as it is not established wholly for charitable purposes. This applies even if the trust also has charitable objects or if section 80G(5B) is considered.
A reassessment order is invalid if the Assessing Officer initiates proceedings based on an alleged transaction but makes no addition to income in respect of that specific transaction in the final assessment order. The reassessment order must be based on actual findings, not merely on initial suspicions that are not substantiated.
