9911796707
TMI Blog2013 (7) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... s business at Sagar is established with the object of assisting formers in selling their produce so as to secure a good price. The audit of its accounts for the assessment years 1999-00 and 2000-01 by the Co-operative Society Audit Department though concluded and an audit report submitted was called in question in a writ proceeding in which, there was an interim order of stay and by a final order the second Audit report was set aside. Hence the petitioner was unable to submit its returns under Section 139 of the Income Tax Act, 1961, for short the 'Act', within the time stipulated. 3. Having secured the opinion of experts in the field of income tax who opined that the petitioner is entitled to exemption from tax under Section 80P (2)(iii), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act provides for deduction of the income of Co-operative Societies from the marketing of agricultural produce grown by its members. Section 139 in chapter XIV relating to procedure for assessment provides for filing return of income, also prescribes limitation. Section 119(2)(b) reads thus: "if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorize [any income tax authority, not being a Commissioner (Appeals)] to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the same on meri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under such other law and a further report [by an accountant] in the form prescribed under this section. 9. In the circumstances the finding of the 1st respondent, in the order impugned, Annexure-G, that petitioner ought to have filed the return within time on the basis of the unaudited books and in accordance with law, is without application of mind. In other words, after the petitioner's books of account were audited and Statutory Auditor submitted two reports, subject matter of challenge before this Court which were stayed by an interim order, therefore, petitioner could not comply with the proviso to Section 44AB of the Act. 10. It is no doubt true that the petitioner submitted returns for the assessment years 1994-95 through to 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness of the petitioner and the persons managing the Co-operative Institution, the Explanation offered cannot, but be said to constitute sufficient cause to condone the delay and therefore, its rejection is perverse. 13. It is the case of the petitioner that the sale of agricultural produce of its members is the only source of income, entitled to a deduction under Section 80P (2)(iii) of the Act, but it is for the respondent to process the return filed by the petitioner and effect refund, if the petitioner is entitled to in law. If in the processing of the return, it is found that the petitioner is liable to be charged to tax and a demand raised, it is needless to state that the petitioner cannot advance the plea of limitation in the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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