ACIT Vs Kutch District Cooperative Milk Producers Union Limited (Supreme Court of India)
The matter originated from reassessment proceedings initiated against a cooperative society engaged in procuring milk from its members and supplying it to Gujarat Cooperative Milk Marketing Federation Limited. The assessee had filed its return of income claiming deduction under section 80P of the Income Tax Act, 1961 amounting to ₹4.34 crore. The case was selected for scrutiny, and after examining the details and submissions, the Assessing Officer completed the assessment under section 143(3), determining the total income at ₹3.30 crore.
Also Read HC Judgment in this case: No Reassessment on Section 80P Deduction Covered by Binding Precedent: Gujarat HC
Subsequently, a notice under section 148 was issued alleging escapement of income. The assessee challenged the jurisdiction of reopening under the old reassessment regime after the enactment of the Finance Act, 2021, and approached the Gujarat 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 further proceedings were undertaken. The assessee filed a detailed reply stating that the deduction under section 80P(2)(d) had already been examined during the original assessment and that all relevant details were disclosed. It was also pointed out that certain expenses had already been disallowed in the original return.
