2013 (1) TMI 484 - HC - Income Tax

Jurisdiction of notice issued u/s 142(1) Validity of notice u/s 142(1) - Information as provided u/s 142(1) is called for from the assessee Assessee contended that the he is not persons as contemplated in Section 142(1) Earlier notice issued u/s 133(6) and proceeding are stayed by Apex court Held that - A combined reading of Section 142(1) and Section 2 (31), leads to the only conclusion that Co-operative Societies like petitioners herein are also persons as defined in the Income Tax Act. If that be so, notices which are impugned in this writ petition cannot be held as issued without jurisdiction Proceedings which are pending before the Apex Court are concerned; those were initiated u/s 133(6). The terms of Section 133(6) and Section 142(1) are incomparable and therefore the pending proceedings before the Apex Court cannot be of any assistance to the petitioners. Following the decision in case of Abdu Rahiman (2009 (9) TMI 709 - KERALA HIGH COURT) that has stayed the judgment is no reason to entertain the writ petition - Decides against assessee or petitioner

Summary

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.