AI Drafter 
TaxTMI 
TaxTMI 
2020 (2) TMI 615
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....n claimed by the assessee u/s 80P of the Act. 3. The assessee is a Souharda Cooperative registered under Karnataka Souharda Sahakari Act 1997. It provides credit facilities to its members. In the return of income, the assessee claimed deduction u/s 80P of the Act. The AO took the view that the deduction u/s 80P is available only to cooperative societies and not to Souharda co-operative. According to AO, the cooperative and cooperative societies are two different entities. Since the assessee is a cooperative, the AO held that it is not entitled to deduction u/s 80P of the Act. Accordingly he rejected the claim of the assessee. The ld CIT(A) also took the view that the deduction u/s 80P shall be available only to cooperative society reg....
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....eds to be in the affirmative for the, following reasons: (a) sec.80P of the 1961 Act provides for deduction in respect of income of Co-operative Societies is obvious going by its very text; subsection (1) of said section reads 'as under: 80P. (1) Where, in the case of an assessee being a cooperative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the stuns specified in sub-section (2) in computing the total income of the assessee." The other provisions of this section being not of much relevance to the c1uestion being treated, are not although they too have been looked into. S....
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....nomenclatures need to be treated as cooperative societies; this view accords with the purposive construction of sec.80P r/w sec.2(19) of the 1961 Act; (c) in the State of Karnataka, there have been two statutes enacted by the State Legislature that relate to registration & regulation of co-operative societies viz., the Karnataka Co-operative Societies Act, 1959 ie., Karnataka Act No. 17 of 1959 and the Karnataka Souharda Sahakari Act, 1997 i.e Karnataka Act No. 17 of 2000; both these Acts are enacted pursuant to Article 246(3) r/w Entry 32, List-11 of Schedule Vii of the Constitution of India; there is no other Entry to which this Act is relatable; the Legislative Entries- being only the fields of legislation need to be very broadl....
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.... democratic control and professional management of cooperative societies) in the State of Karnataka Be it enacted by the Karnataka State Legislature in the Tenth 'ear of the Republic of India as follows-" Similarly, the preamble to the 1997 Act reads as follows: Whereas it is expedient to provide for recognition, encouragement and voluntary formation of co-operatives based on self-help, mutual aid, wholly owned, managed and controlled by members as accountable, competitive, selfreliant and economic enterprises guided by cooperative principles and for matters connected therewith; Be it enacted by the Karnataka State Legislature in the Forty-eighth Year of Republic of India as follows- ". A per....
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....e definitions the word 'co-operative' is employed not as an adjective but as a noun; the definition of other relative concepts in the dictionary clauses of these Acts strengthens this view; this apart, sec.7 of the 1997 Act provides that the entity registered as a 'co-operative' shall be a body corporate, notwithstanding the conspicuous absence of the word 'society' as a postfix; sec.9 of the 1959 Act makes the entity once registered u/s thereof a body corporate; both the entities have perpetual Succession by operation of law; thus on registration be it under the 1959 Act or the 1997 Act, a legal personality is donned by them, so that inter alia they can own and possess the property: (f) the employment of th....