SURAT DISTRICT CO OPERATIVE PURCHASE AND SALE UNION LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner is a co -operative purchase and sale union registered under the Indian Co -operative Societies Act, 1960. It has challenged that a notice issued by the ITO under s. 148 of the I. T. Act, 1961 (hereinafter referred to as 'the Act'), seeking to reopen the previously concluded assessment of the petitioner -society for the assessment year 1975 -76. The relevant accounting year is 1974 -75.

(2.) THE petitioner -society contends that the respondent -ITO had no jurisdiction to reopen the proceedings as the condition precedent to the exercise of the power given under s. 147 of the Act does not exist in the present case.

(3.) DURING the course of assessment proceedings it became clear that the loss of prior years may not be allowed and the assessee submitted a revised statement of income working out the net total income at Rs. 1,00,845. Along with this revised total income the assessee also filed a statement showing the proportionate business profits income exempt under s. 80P of the Act because of its dealing with non -members as well. It is pertinent to note at this stage that the petitioner -society had sold during the accounting year some depreciable assets and had filed a statement of profit as per s. 41 (2) of the Act. The society had also made a claim in the revised statement of income under s. 80P(2) (iii) and (iv) of the Act. The ITO passed an assessment order after having considered all the pros and cons and after due discussion with the petitioner -society's representative and having arrived at the assessable income and depreciable income, the ITO computed the net income of the society under the provisions of the Act on March 26, 1976. In para. 3 of the assessment order it had been in terms observed by the ITO that the rice mill which was being run by the assessee had been sold, and the short -term capital gains and profits under s. 41(2) had been reflected in the statement filed. On that basis, he allowed deduction also. The aforesaid assessment order became final.