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Section 147, read with section 4, of the Income-tax Act, 1961 and article 226 of the Constitution of India - Income escaping assessment - Illustrations (Proviso) - Earlier assessee-club had been granted exemption on ground of mutuality - During reassessment proceedings for assessment year 1992-93 information was received that assessee's Hall was given on rent to non- members also in relevant and earlier previous years - Assessing Officer issued notice for reopening assessment under section 147 - Assessee filed writ challenging reassessment proceedings - Whether it was impermissible for Court to consider sufficiency of reasons for reassessment under article 226 or 227 at notice stage and, hence, writ was to be dismissed - Held, yes CASES REFERRED TO CIT v. Trivandrum Club [1989] 177 ITR 550/[1990] 49 Taxman 243 (Ker.), ITO v. Lakhmani Mewal Das [1976] 103 ITR 437(SC), Phool Chand Bajrang Lal v. ITO [1993] 203 ITR 456/ 69 Taxman 627 (SC) and Dhanaraj Singh & Co. v. CIT [1996] 218 ITR 312 (Pat.). C. Kochunni Nair and M.C. Madhavan for the Petitioner. P.K.R. Menon for the Respondent. JUDGMENT 1. The petitioner is questioning exhibits P1 to P3 notices issued by the Income-tax Department for reopening the assessment under section 147 of the Income-tax Act, 1961 ('the Act'). The petitioner is an assessee to income-tax since 1972-73. The petitioner claimed exemption from payment of tax on the basis of the doctrine of mutuality. It is the contention of the petitioner that the petitioner was giving the facilities to members and their families only. The petitioner's contention was upheld by this Court in CIT v. Trivandrum Club [1989] 177 ITR 5501in respect of the year 1974-75. During the course of reassessment proceedings for the assessment year 1992-93, the Income-tax Department found that there is a hall which is used for marriage purposes and the hall is booked by non-members also. The department came to the conclusion that it is hired out to non-members also and there are separate forms for booking the hall for members and non-members with separate rates of fees. That is called "Rules and conditions for hiring Sree Subramanya Hall, Trivandrum, by non-members of…

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