Juristic person status of co-operative society supports valid income-tax notice and inquiry proceedings

A registered co-operative society under the Kerala Co-operative Societies Act is a juristic person and falls within the wide definition of "person" in section 2(31) of the Income-tax Act, 1961. On that basis, notice and inquiry proceedings under section 142(1) were validly issued and were not without jurisdiction. The challenge based on proceedings under section 133(6) in other matters did not affect that conclusion. The writ appeal therefore failed and the income-tax proceedings were sustained.

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Issues: Whether a co-operative society registered under the Kerala Co-operative Societies Act is a "person" within section 2(31) of the Income-tax Act, 1961, so as to sustain notice under section 142(1) and related proceedings.

Analysis: Section 2(31) of the Income-tax Act, 1961, is of wide amplitude and includes juristic entities. A co-operative society registered under section 9 of the Kerala Co-operative Societies Act is a body corporate with perpetual succession and a common seal, and therefore answers the description of a juristic person. The notices were issued under section 142(1) in the course of inquiry before assessment, and the challenge based on section 133(6) proceedings in other matters did not assist the appellants.

Conclusion: The appellants are persons within the meaning of section 2(31), and the notice and proceedings under section 142(1) were not without jurisdiction.

Final Conclusion: The writ appeal failed, and the challenge to the income-tax proceedings was rejected.

Ratio Decidendi: A registered co-operative society, being a body corporate and juristic person, falls within the definition of "person" under section 2(31) of the Income-tax Act, 1961, and is amenable to notice under section 142(1).

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