Dismissal of Writ Petition on Income Tax Notices to Co-operative Societies

The court dismissed the writ petition challenging notices issued under Section 142(1) of the Income Tax Act to Co-operative Societies. It held that Co-operative Societies are considered "persons" under the Act, based on the definitions in Section 2(31). The court emphasized the distinction between Sections 133(6) and 142(1), stating that previous judgments and pending proceedings under Section 133(6) are not relevant. The impugned notices were deemed valid and within jurisdiction, following a Division Bench judgment clarifying the legal position.

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Issues:
1. Challenge to notices issued under Section 142(1) of the Income Tax Act.
2. Interpretation of the term "person" as defined in Section 2(31) of the Act.
3. Comparison between Sections 133(6) and 142(1) of the Income Tax Act.
4. Relevance of previous judgments and pending proceedings before the Apex Court.

The judgment addresses the challenge to notices issued under Section 142(1) of the Income Tax Act to Co-operative Societies. The petitioners contended that they are not "persons" as per Section 142(1) and hence the notices are without jurisdiction and illegal. The counsel argued that previous notices under Section 133(6) to Co-operative Societies were upheld by the court, but the current notices under Section 142(1) are distinct. The court observed that Section 142(1) empowers the Assessing Officer to require information from the persons mentioned in the section, with the term "person" defined in Section 2(31) of the Act.

The court concluded that Co-operative Societies like the petitioners are considered "persons" under the Income Tax Act, based on a combined reading of Section 142(1) and Section 2(31). Therefore, the impugned notices cannot be deemed as issued without jurisdiction. The court highlighted the incomparability between Sections 133(6) and 142(1) and clarified that the pending proceedings before the Apex Court under Section 133(6) are not relevant to the current case under Section 142(1). The court emphasized that being bound by the Division Bench judgment, the stay by the Apex Court does not warrant entertaining the writ petition.

In conclusion, the court dismissed the writ petition, stating that the legal position has been clarified by a Division Bench judgment, emphasizing that Co-operative Societies are considered "persons" under the Income Tax Act, and the notices under Section 142(1) are valid and within jurisdiction.

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