NCLAT: Can’t Dismiss Restoration App. if Filed in 30 Days from Date of Dismissal of Original App.  ||  Delhi HC: Communication between Parties through Whatsapp Constitute Valid Agreement  ||  Delhi HC Seeks Response from Govt. Over Penalties on Petrol Pumps Supplying Fuel to Old Vehicles  ||  Centre Notifies "Unified Waqf Management, Empowerment, Efficiency and Development Rules, 2025"  ||  Del. HC: Can’t Reject TM Owner’s Claim Merely because Defendant Could have Sought Removal of Mark  ||  Bombay HC: Cannot Treat Sole Director of OPC, Parallelly with Separate Legal Entity  ||  Delhi HC: Can Apply 'Family of Marks' Concept to Injunct Specific Marks  ||  HP HC: Can’t Set Aside Ex-Parte Decree for Mere Irregularity  ||  Cal. HC: Order by HC Bench Not Conferred With Determination by Roster is Void  ||  Calcutta HC: Purchase Order Including Arbitration Agreement to Prevail Over Tax Invoice Lacking it    

ITO vs. M/s. The Pavagada Souharda Multi Purpose Cooperative Ltd. - (Income Tax Appellate Tribunal) (16 Sep 2021)

Entities registered under the Karnataka SouhardaSahakari Act, 1997 fit into the definition of "co-operative society" as enacted in Section 2(19) of the IT Act

MANU/IL/0328/2021

Direct Taxation

The Assessee, a Co-operative registered under Section 6(1) of the Karnataka Souharda Co-operative Act, 1997 has claimed deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961 (IT Act). According to AO, the benefit of deduction under Section 80P(2)(a)(i) of the Act was available only to a co-operative society and since the Assessee is only a souharda sahakari registered under the Karnataka Souharda Sahakari Act, 1997 and since under the said Act, Co-operative Societies are not being registered, the Assessee should not be allowed the benefit of deduction u/s.80P(2)(a)(i) of the Act.

Being aggrieved, the assessee has approached CIT(A). The CIT(A) reversed the order of the AO by following the decision of the Hon’ble Karnataka High Court in the case of S.SwabhimaniSouhardaCredit Co-operative Ltd., Vs. Government of India & 3 others wherein it was held that the entities registered under the Karnataka SouhardaSahakari Act, 1997 fit into the definition of Cooperative Society as enacted in Section 2(19) of IT Act and therefore subject to all just exceptions, are entitled to stake their claim for the benefit of Section 80(P) of IT Act.

Hence, Revenue has filed present appeal. After considering the definition of Cooperative Society as defined in Section 2(19) of IT Act and the decision of Karnataka High Court in the case of S.SwabhimaniSouhardaCredit Co-operative Ltd., Vs. Government of India & 3 others, it can be held that entities registered under the Karnataka SouhardaSahakari Act, 1997 fit into the definition of "co-operative society" as enacted in Section 2(19) of the IT Act and so, the assessee should be allowed deduction under section 80P(2)(a)(i) of the Act and the CIT(A) was justified in doing so. Except the ground that the Assessee was not a co-operative society entitled to deduction u/s.80P(2)(a)(i) of the Act, no other reasons were given for denying the benefit of the said deduction to the Assessee. Hence, the order of CIT(A) is upheld.

Tags : CO-OPERATIVE SOCIETIES   DEDUCTION  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved