Lakshmi Multipurpose Co-operative Society Ltd. Vs ITO (ITAT Bangalore)
The case of Lakshmi Multipurpose Co-operative Society vs ITO before ITAT Bangalore revolves around the jurisdictional limits of income under Section 148 of the Income Tax Act for reassessment. The dispute arose when the AO issued a notice based on deposited amounts, challenging the society’s eligibility under Section 80P(2)(a)(i).
The society contested the AO’s jurisdiction under Section 148, arguing that the income in question (Rs. 48,53,282/-) fell below the Rs. 50 lakh threshold specified in Section 149(1)(b). Citing precedents like Sanath Kumar Murali vs ITO and Pramila Mahadev Tadkase vs ITO from the Karnataka High Court, it argued that no notice should have been issued beyond three years from the end of the assessment year, unless the income exceeded Rs. 50 lakhs.
ITAT Bangalore examined these arguments and upheld the society’s contention. It referenced the High Court’s rulings, emphasizing that unless the escaped income surpasses Rs. 50 lakhs, jurisdictional actions under Section 148 cannot extend beyond three years from the relevant assessment year. Therefore, the ITAT concluded that the AO erred in assuming jurisdiction, leading to the quashing of the proceedings against the society.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
