TaxTMI 
TaxTMI 
TaxTMI 
2021 (9) TMI 898
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....circumstances of the case and in law by confirming the Assessment order passed by the learned Assessing Officer (AO). 2. The learned CIT(A) has erred in confirming the order of the learned AO who had held that the Appellant is not eligible for deduction under section 80P of the Income Tax Act since it is registered under the Karnataka Souhardha Sahakari Act, 1997. 3. The learned CIT(A) has erred in disallowing the appeal of the Appellant by holding that the Appellant is a co-operative bank (though the Appellant is only a co-operative society) and therefore, it is not entitled for deduction under section 80P of the Income Tax Act. 4. The learned CIT(A) has erred in confirming the order of the learned AO who has levied interest under se....
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.... Counsel for the assessee submitted that the assessee is entitled to the benefit of deduction u/s 80P of the I.T.Act and relied on the judgment of the Hon'ble jurisdictional High Court in the case of Swabhimani Souharda Credit Cooperative Limited v. Government of India reported in (2020) 421 ITR 670 (Kar.). 6. The learned Departmental Representative supported the orders of the Income Tax Authorities. 7. I have heard rival submissions and perused the material on record. The sole reason for the Assessing Officer to hold that the assessee is not entitled to the benefit of deduction u/s 80P of the I.T.Act was that, the assessee was only registered under the Karnataka Souhardha Sahakari Act, 1997, and therefore, was not a co-operative society ....
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....eties Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies ;" 7. As can be seen from the aforesaid definition of 'Co-operative society' under the Act, any co-operative society registered under any other law of any State for registration of co-operative society is also regarded as cooperative society under the Act. Souhardas' also operate on the principle of co-operation and adopt the principles of co-operation. Cooperative Societies and Co-operatives are all founded on the principle of cooperation. 8. Since the beginning of mankind the concept of 'co-operation' has been the foundation for harmonious existence In India, the Co-operative Societies Act 1912 re....
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....l Planning Commission set up a committee by appointing Shri Chaudari Brahmaprakash as its head & with a task of drafting a 'Model Cooperative Act' which will prevent interference of the governments. This committee, after a detailed study of the Cooperative Acts of various states, drafted a 'Model Cooperative Act' in 1991 and Central Government recommended the state governments to adopt this. Accordingly, in 1997 a bill on parallel cooperative act was tabled in the state legislature of Karnataka. Demanding an early approval of this bill by both the houses of Karnataka Legislature, a committee 'Souharda Samvardhana Samithi' under the chairmanship of Justice Rama Jois came into existence. It was due to the combined efforts of Sahakara Bharathi....
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....n of co-operative societies. Therefore the conclusion of the revenue authorities that co-operative societies and cooperatives are different and that co-operative registered as Souharda Sahakari cannot be regarded as co-operative societies is unsustainable. We therefore hold that the Assessee should be allowed deduction u/s.80P(2)(a)(i) of the Act, as the ground on which the same was denied to the Assessee is held to be incorrect. However, the other conditions for allowing deduction u/s. 80P(2)(a)(i) of the Act needs to be examined by the AO. I, therefore, remand the question of allowing deduction u/s. 80P(2)(a)(i) of the Act to the AO, except the issue already decided above. 12. In the result, appeal by the Assessee is allowed for statist....