Section 80P relief for Souharda Sahakari entities confirmed where registration qualifies as a co-operative society.

Entities registered under the Karnataka Souharda Sahakari Act, 1997 are to be treated as a "co-operative society" within Section 2(19) of the Income-tax Act, 1961 for Section 80P purposes. The High Court followed its earlier ruling on the interaction between the 1997 Act, the Karnataka Cooperative Societies Act, 1959, and Section 80P, and held that the petitioner remained entitled to the deduction benefit. The assessment order denying Section 80P relief was quashed, and fresh assessment was directed on that basis.

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Issues: Whether an entity registered under the Karnataka Souharda Sahakari Act, 1997 is to be treated as a "co-operative society" within Section 2(19) of the Income-tax Act, 1961 for claiming the benefit of Section 80P of that Act.

Analysis: The issue was covered by an earlier decision of the High Court which had examined Section 80P of the Income-tax Act, 1961, the Karnataka Souharda Sahakari Act, 1997, and the Karnataka Cooperative Societies Act, 1959, and had declared that entities registered under the 1997 Act fall within the definition of "co-operative society" under Section 2(19) for the purpose of Section 80P. The present petition raised the same question and sought quashing of the assessment order denying that benefit.

Conclusion: The petitioner is entitled to be treated as a co-operative society for the purpose of Section 80P of the Income-tax Act, 1961, and the impugned assessment order was quashed with a direction for fresh assessment accordingly.

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