| Case ID |
372227e3-2ab3-42e5-a3e6-edb535c0b569 |
| Body |
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| Case Number |
CWP NO. 398 OF 2006 |
| Decision Date |
Oct 18, 2006 |
| Hearing Date |
|
| Decision |
The court held that the notice for reassessment was justified as it was based on subsequent judgments of the Supreme Court and not merely a change of opinion. The Assessing Officer had sufficient reasons to believe that income had escaped assessment due to non-disclosure of primary facts by the assessee. The writ petition was dismissed, affirming the reopening of the assessment under sections 147 and 148 of the Income-tax Act, 1961. |
| Summary |
In the case of Punjab State Co-operative Agricultural Development Bank Ltd. v. Commissioner of Income-tax - I, the Punjab and Haryana High Court addressed the issue of income escaping assessment under the Income-tax Act, 1961. The court examined the legality of the notice issued under section 148 for reopening the assessment for the assessment year 1999-2000. The petitioner, a cooperative bank, claimed exemption under section 80P(2)(a)(i) for its entire income, which had been accepted previously. However, the department contended that the exemption was erroneously granted since the bank was not registered under the Banking Regulation Act, 1949, nor did it provide essential banking facilities. The court emphasized that the reopening was based on the Supreme Court ruling in UP Co-operative Cane Union Federation Ltd. v. CIT, which provided a legal precedent. The ruling clarified the requirements for invoking jurisdiction under section 147 and reiterated that mere change of opinion is insufficient. This case highlights significant aspects of tax law, particularly regarding reassessments and exemptions for cooperative banks, making it a relevant reference for tax practitioners and policymakers. Relevant keywords include 'Income Tax Act', 'tax exemption', 'cooperative banks', 'reassessment', and 'Supreme Court rulings'. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Punjab State Co-operative Agricultural Development Bank Ltd.,
Commissioner of Income-tax - I
|
| Judges |
ADARSH KUMAR GOEL,
RAJESH BINDAL
|
| Lawyers |
M.L. Garg,
S.K. Garg Narwana
|
| Petitioners |
Punjab State Co-operative Agricultural Development Bank Ltd.
|
| Respondents |
Commissioner of Income-tax - I
|
| Citations |
2008 SLD 2557,
(2008) 305 ITR 156,
(2007) 158 TAXMAN 515
|
| Other Citations |
U.P. Co-operative Cane Union Federation Ltd. v. CIT [1999] 237 ITR 574/ 103 Taxman 376,
CIT v. Foramer France [2003] 264 ITR 566/ 129 Taxman 72 (SC),
CIT v. Kelvinator of India Ltd. [2002] 256 ITR 1/ 123 Taxman 433 (SC) (FB),
Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC),
Ganga Saran & Sons (P.) Ltd. v. ITO [1981] 130 ITR 1/ 6 Taxman 14 (SC),
Foramer v. CIT [2001] 247 ITR 436/ 119 Taxman 61 (All.),
Bawa Abhai Singh v. Dy. CIT [2002] 253 ITR 83/ 117 Taxman 12 (Delhi),
Praful Chunilal Patel v. M.J. Makwana, Asstt. CIT [1999] 236 ITR 832 (Guj.),
Swaraj Engine Ltd. v. Asstt. CIT [2003] 260 ITR 202 (Punj. & Har.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
147,
148,
80P(2)(a)(i)
|