Prathamika Krushi Pathina Sahakara Sangha Niyamitha Banavara Banavara Vs CIT (Karnataka High Court)
The petitioner, a Primary Agricultural Co-operative Society, challenged the Assessment Order dated 14.01.2026, the Demand Notice dated 14.01.2026, and the Bank Attachment Order dated 30.03.2026 relating to Assessment Year 2018-19. The petitioner had not filed its income tax return for the relevant assessment year. It had earlier received a notice under Section 148A(b) of the Income Tax Act on 04.08.2024 alleging escapement of income but did not respond, resulting in an order under Section 148A(d), a notice under Section 148, and a best judgment assessment under Section 144 based on cash deposits and withdrawals in its accounts maintained with the Hassan District Co-operative Central Bank.
The petitioner contended that it functioned as an intermediary institution providing agricultural credit only to its members using funds sourced from the district co-operative bank and claimed that its income would be eligible for deduction under Section 80P. It also submitted that it had not filed its return because its income was only Rs. 3,82,496. The petitioner relied on an earlier High Court decision involving similar facts where the proceedings were restored to the stage of the notice under Section 148A(b). The High Court observed that the respondents had not shown that the earlier decision had been challenged or that the petitioner’s case was distinguishable.
