Kutch District Co-Operative Milk Producers Union Ltd. Vs ACIT (Gujarat High Court)
The petition was filed before the Gujarat High Court under Article 226 of the Constitution of India seeking quashing of the order passed under section 148A(d) and the consequent notice issued under section 148 of the Income Tax Act, 1961. The petitioner, a cooperative society engaged in procuring milk from its members and supplying it to Gujarat Cooperative Milk Marketing Federation Limited, had filed its return of income for the relevant assessment year claiming deduction under section 80P amounting to ₹4.34 crore. The case was selected for scrutiny, and after considering the details and submissions furnished by the petitioner, the Assessing Officer completed the assessment under section 143(3), determining the total income at ₹3.30 crore.
Also Read SC Judgment in this case: SC Dismisses SLP Due to Delay, Upholds Quashing of Reassessment on Settled Section 80P Issue
Subsequently, a notice under section 148 was issued alleging that income had escaped assessment. The petitioner objected to the jurisdiction of the Assessing Officer to issue such notice under the old reassessment regime after the enactment of the Finance Act, 2021, and initially approached the High Court. In light of the decision of the Union of India vs Ashish Agarwal, the earlier notice was treated as a notice under section 148A(b), and the Assessing Officer provided information suggesting escapement of income. The petitioner filed a detailed reply, contending that the claim for deduction under section 80P(2)(d) had already been examined during the original assessment proceedings and that all relevant details had been disclosed. It was also submitted that certain expenses had already been disallowed in the original return.
