Vividoddhesha Prathamik Grameen Krushi Sahakar Sangh Niyamit Vs ITO (ITAT Panaji)
Panaji ITAT Admits Jurisdictional Challenge to Section 148 Approval and Restores ₹15.76 Lakh Section 80P Claim
The assessee, a primary agricultural cooperative credit society, had not filed its original return under section 139. Based on information regarding cash deposits of ₹2.99 crore, reassessment proceedings were initiated by issuing notice under section 148 on 6 April 2022.
In response, the society filed a return declaring nil income after claiming deduction of ₹15,75,509 under section 80P(2)(a)(i). The AO denied the deduction by invoking section 80AC, holding that the return had not been filed within the prescribed time under section 139. The CIT(A) confirmed the disallowance.
Before the ITAT, the assessee raised an additional jurisdictional ground contending that the section 148 notice was issued after three years from the end of AY 2018-19. Therefore, approval under section 151(ii) ought to have been obtained from the Principal Chief Commissioner or Chief Commissioner, whereas sanction had been granted by the Principal Commissioner of Income Tax, Hubli.
The Tribunal held that this additional ground was purely legal and went to the root of the reassessment’s validity. It was therefore admitted, despite not having been raised before the CIT(A).
