C 2062 KAVERIPAKKAM PRIMARY AGRICULTURAL COOP CRDEIT SOCIETY,VELLORE vs. ITO, WARD-1, VELLORE, VELLORE

1. For that the Ld. CIT(A) erred in not allowing deduction claimed by the appellant u/s 80P of the Income-Tax Act, 1961. 3.1. For that the Ld. CIT(A) erred in confirming the addition of Rs.98,68,162/-made u/s 69A of the Act.

1. For that the Ld. CIT(A) erred in confirming the addition of Rs.70,836/-made under 'income from other sources'.

1. Without prejudice to the above grounds of appeal, for that the Ld. CIT(A) ought to have noted that the issue of notice u/s 148 of the Act by the Juri ictional Assessing Officer (JAO) after 29.03.2022, are invalid, and consequentially the whole reassessment proceedings are liable to be quashed.

For these and other additional grounds that may be adduced before or at the time of hearing, the appellant prays that the appeal be allowed.”

Briefly the facts of the case are that the assessee is a cooperative society registered under the provisions of The Tamilnadu Co.operative Societies Act, 1983. It is formed with the objects of providing credit facilities to its members accepting deposits from the members. It is classified as a primary agricultural cooperative society. The appellant

The assessee cooperative society neither complied with the notice issued u/s.148 of the Act, nor the notices issued u/s.142(1) of the Act. In the circumstances, the Assessing Officer proceeded with framing best judgment assessment u/s.144 vide order dated 11.03.2024 passed u/s.147 r.w.s 144 read with section 144B of ITA No.3998/CHNY/2025 [A]

Being aggrieved, the appellant preferred appeal before the ld.CIT(A) challenging the additions made by the Assessing Officer. The ld.CIT(A) after condoning the delay dismissed appeal by holding that the appellant was not entitled the deduction u/s.80P of the Act, placing reliance on the provisions of section 80AC of the I.T.Act.

Being aggrieved, the appellant is in appeal before us in the present appeal. The ld.AR contends that the Assessment Order is void ab initio, as the Juri ictional Assessing Officer(JAO) have no juri iction to issue notice u/s.148 of the Act, in view of the provisions of section 151A of the Income Tax Act, 1961. ITA No.3998/CHNY/2025 [A]

We shall take up this ground no.5 at first instance as it goes to very root of the matter. In this case, we find that the appellant cooperative society raised juri ictional issue that the Juri ictional Assessing Officer(JAO) have no juri iction to issue notice u/s.148 of the Act. The Juri iction to issue the above notice vests with the Faceless Assessing Officer(FAO) in accordance with the provisions of explanation inserted to Section 151A read with CBDT Notification dated 29.03.2022. The appellant cooperative society relied on the following decisions of Hon’ble Bombay High Court in Hexaware Technologies Ltd. Vs. ACIT [2023] 149 taxmann.com 451, Hon’ble No.14255 of 2023, 22.04.2025 and Hon’ble Telangana High Court in Kings Pride Infra Projects Pvt. Ltd. vs. DCIT [2024] 157 taxmann.com 134, wherein, it was held that the issuing notice u/s.148 by the Juri ictional Assessing Officer(JAO) is ultra vires the ITA No.3998/CHNY/2025 [A]

In view of the proposed amendment in the Finance Bill 2026 introduced in the Parliament on 01.02.2026 and also in the light of orders passed by the Hon’ble Supreme Court in bunch of cases involving identical issue in Special Leave Petition (Civil) Diary No(s).57403/2025 vide order dated 03.02.2026 setting aside the orders passed by the Hon’ble Bombay High Court and Hon’ble Telangana High Court for fresh consideration before the Hon’ble High Courts. The matter requires remand to the file of ld.CIT(A)[NFAC] for fresh consideration and disposal in accordance with law after affording opportunity of being heard to the assessee.

In view of the above circumstances, we are of the considered opinion that in order to meet the ends of justice, the matter requires remand to the file of ld.CIT(A)[NFAC] for denovo disposal of appeal keeping in view the proposed amendments in the Finance Bill 2026. ITA No.3998/CHNY/2025 [A]

All the contentions raised by the appellant are left open for consideration before the ld.CIT(Appeals).

Accordingly, the appeal filed by the Assessee stands Partly Allowed for statistical purpose. Order pronounced in the open Court on 13th March, 2026. (MANU KUMAR GIRI) (INTURI RAMA RAO) JUDICIAL MEMBER

गाडᭅ फ़ाइल / Guard File.