JUDGMENT

Ms. Ritu Bahri, J.

Petitioner is seeking a writ in the nature of certiorari for quashing the notices dated 16.03.2022, 29.03.2022 (Annexures P-3 and P-6) issued under clause (b) of Section 148 A and Section 148 of the INCOME TAX ACT , 1961 along with order dated 29.03.2022 (Annexure P-5) passed under clause (d) of Section 148 A of the Act, being without jurisdiction and against the 3rd proviso to Section 12A(2) of the Act.

2. The petitioner-assessee is a society registered under the Registrar of Societies, Punjab, vide certificate dated 21.06.1993. The assessee is running a college exclusively for girls since 1973 and further a school for plus one and plus two for girls students separate from college, which is an integral part of the college as well. Petitioner-assessee is getting substantial aid from the State Government in the shape of reimbursement of staff salary and therefore, prior to assessment year 2016-17, it was entitled to blanket exemption from income tax in terms of clause (iiiab) of section 10 (23C) of the Act.

3. The petitioner applied for registration under Section 12(a)(a) of the Act in Form No.10A on 28.03.2016 before the competent authority. This step was taken keeping in view the insertion of Rule 2BBB by the Income Tax 13th amendment Rules 2014 w.e.f. 12.12.2014, which prescribed the percentage of Government Grant for considering an institution as substantially financed to be not less than 50% of its total receipts. Apprehending that it may not invariably fulfill this condition, the above said application for registration under Section 12(a)(a) of the Act was made. As per order dated 30.09.2016 (Annexure P-1), applicable from the assessment year 2016-17 onwards, the petitioner became a registered society under Section 12(a)(a) of the Act. This registration was applicable for the assessment year 2016-17 and onwards until withdrawn by CIT (Exemptions), Chandigarh. The petitioner again applied for fresh registration as per clause 12AB of the Act and vide order dated 15.10.2021 (Annexure P-2), the petitioner-society was again registered for a period of five years from assessment year 2022-23 to 2023-27.

4. The petitioner received a notice dated 16.03.2022 (Annexure P- 3) under Section 148 (b) of the Act, for the assessment year 2015-16, along with Annexure A, containing details of information suggesting escapement of income on account of bank interest and cash deposits in two of its bank accounts. On receiving the said notice, petitioner uploaded its reply on 22.03.2022 (Annexure P-4) taking a plea that as per 3rd proviso to Section 12A(2) of the Act, there was a bar to take any action under Section 147 for any preceding year, in which the registration was granted. However, the objections given by the petitioner were dismissed vide order dated 29.03.2022 (Annexure P-5). Thereafter, notice under Section 148 of the Act has been issued to the petitioner.

5. Upon notice of the petition, respondents have filed their reply and contested the claim of the petitioner. Reference has been made to the judgment passed by the Allahabad High Court (Lucknow Bench) in Commissioner of Income-Tax (Exemptions) v. Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan, (2020) 422 ITR 468 (All) (Annexure R-1) and by this Court in Gian Castings Private Limited v. Central Board of Direct Taxes and others, CWP-9142-2022 (decided on 02.06.2022) (Annexure R- 2) and order passed by Hon'ble the Supreme Court in SLP (C) No.10762 of 2022 (Annexure R-3). Further reference has been made to the judgments passed by Hon'ble the Supreme Court in