TaxTMI 
TaxTMI 
2019 (1) TMI 463
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....es of the case. 2) That the Learned CIT (Appeals) Davangere is not justified in rejecting grounds summarily which is opposed to the principles of Natural Justice. 3) That the Learned CIT (Appeals) Davangere has erred in upholding the disallowance of Rs. 19,24,014/- U/s 80(2)(A)(1) without appreciating the legal provisions as applicable. 4) That the Learned CIT (Appeals) Davangere has erred in confirming an addition of Rs. 20,77,789/- being income earned from liquid deposit made in nationalised banks without perusing the case and the same is opposed to the principles of Natural Justice. 5) That the Learned CIT (Appeals) Davangere has erred in sustaining and addition of Rs. 39,830/- being Rental income." 2. During the course of....
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....arda Credit Co-operative Society Limited (Supra) in which the undersigned is the party. Relevant portion of that order is extracted hereunder for the sake of reference. "7. Having carefully examined the orders of authroites below in the light of rival submissions, we find that while adjudicating the issue of claim of deduction under section 80P(2) of the Act, the AO confined himself to the claim of entitlement and has denied the same having observed that the assessee was engaged in transacting in banking business and thus it is a primary co-operative bank and does not form the second category of co-operative credit societies. When the matter travelled to CIT(A), the CIT(A) has also examined the claim of the assessee in the light of judgm....
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....s well as the Karnataka Souharda Sahakari Act, 1997 and even at present both the Acts are in force simultaneously. Under the Karnataka Cooperative Societies Act, the Co-operative Societies are registered and under the Karnataka Souharda Sahakari Act, only Co-operatives are registered. The object of introducing the Karnataka Souharda Sahakari Act has been given in Act 17/2000, Amending Act 21/2004, Amending Act 16/2005, Amending Act 4/2013, Amending Act 34/2014, Amending Act 24/2016 and Amending Act 8/2017. Through various amendments, the scope of Souharda Sahakari Act was expanded but no where the cooperative societies are converted into the co-operatives. In both the Acts, co-operatives and co-operative societies are defined independ....
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....tration is issued to a Co-operative after conversion of a Co-operative society into a Co-operative, the registration of such Co-operative society under the Karnataka Co-operative Societies Act, 1959, shall be cancelled by the Registrar with effect from the date of issue of certificate of registration under this Act." 11. Similarly, if the co-operatives intend to convert into co-operative societies, conversion is also possible as per Amending Act 13/2004. In the co-operative societies Act, the word co-operative societies and the Cooperatives has also been defined under section 2(c) and 2 (d)(2), according to which co-operative society means a society registered or deemed to be registered under the co-operative societies Act and the co-ope....
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....." 13. We have also carefully perused the cause title in the assessment order and in the cause title of the assessment order, we find that assessment order was passed in the name of Udaya Souharda Credit Cooperative Society Ltd., whereas no certificate of registration was placed before us in the name of Udaya Souhardha Credit Co-operative Society ltd. Therefore, we are unable to understand how the assessee can claim it to be the cooperative society in the absence of proper registration under the Karnataka Co-operative Societies Act. Creation of Co-operative Society under the co-operative societies Act is doubtful. Thus the claim of deduction under section 80P cannot be allowed. As per the provisions of section 80P of the Act, deductio....