Case Law Details
Muvattupuzha Housing Co-Operative Society Ltd Vs ITO (Kerala High Court)
Introduction: In a recent legal development, the Kerala High Court delivered a verdict in the case of Muvattupuzha Housing Co-Operative Society Ltd Vs ITO. The case revolves around notices issued under Section 148 of the Income Tax Act, 1961, and subsequent proceedings for the Assessment Year 2019-20. The key issue in this case is the non-filing of income tax returns by the petitioners based on their belief in exemption under Section 80P of the Income Tax Act.
Detailed Analysis:
Background: The petitioners in this case are cooperative societies registered under the provisions of the Kerala Co-operative Societies Act, 1969, and the corresponding rules. For the Assessment Year 2019-20, the petitioners chose not to file income tax returns, believing that their entire income was exempt under Section 80P of the Income Tax Act. Consequently, they deemed it unnecessary to file their income tax returns.
Assessing Authority’s Action: The assessing authority held a different belief, suspecting that the petitioners had concealed their income and attempted to evade assessment. As a result, notices were issued to the petitioners under Section 148A of the Income Tax Act. Following the petitioners’ responses to these notices, orders were issued (Ext.P3) to initiate proceedings against them. Despite these developments and orders issued under Section 148 of the Income Tax Act, the petitioners did not file their income tax returns.
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