Section 148 reassessment notices kept in abeyance pending Supreme Court review of Section 80P applicability to cooperative societies.

The Madras HC noted that earlier Division Bench orders on the applicability of Section 80P to cooperative societies continued to govern the matter. In view of the Revenue's statement that Special Leave Petitions were pending before the Supreme Court, and considering limitation concerns arising from notices under Sections 147, 148 and 149, the Court adopted the same approach as in the earlier batch and deferred coercive action. The impugned Section 148 notices were directed to remain in abeyance, and no further proceedings were to be taken pursuant to them until disposal of the pending Special Leave Petitions. The Court expressed no opinion on the petitioner's limitation plea.

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Issues: Whether the impugned notices under Section 148 of the Income-tax Act, 1961 should be kept in abeyance and further proceedings deferred pending the outcome of the Special Leave Petitions filed against the earlier binding orders on the applicability of Section 80P to cooperative societies.

Analysis: The order proceeds on the undisputed position that the earlier Division Bench orders, which had held the field on the applicability of Section 80P, governed the present writ petition as well. In view of the Revenue's statement that Special Leave Petitions were pending before the Supreme Court, and having regard to the limitation concerns associated with fresh notices under Sections 147, 148 and 149 of the Income-tax Act, 1961, the Court adopted the same course as in the earlier batch and deferred coercive action on the notices. No opinion was expressed on the plea of limitation raised by the petitioner.

Conclusion: The impugned notices were directed to remain in abeyance and no further proceedings were to be taken pursuant to them until disposal of the pending Special Leave Petitions; the writ petition was disposed of on those terms.

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