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2020 (11) TMI 899 - ITAT BANGALOREDisallowance u/s 80P(2)(a)(i) - AO disallowed the claim of deduction u/s 80P(2)(a)(i) on the reason that the assessee is in the business of Banking - HELD THAT:- As decided in own case M/s. Swabhimani Souharda Credit Co-operative Ltd [2020 (1) TMI 831 - KARNATAKA HIGH COURT] the employment of the word “Sahakari” in the very title of the 1997 Act is also not sans any significance; ‘Sahakaar’ in Sanskrit is the equivalent of ‘sahakaara’ in Kannada which means ‘co-operation’; as already mentioned above both the 1959 Act and the 1997 Act employ this terminology; the 1997 Act is woven with the principles of co-operation; sec.4 of this Act bars registration of an entity unless its main objects are to serve the interest of the members in the area of co-operation and its bye-laws provide for economic and social betterment of its members through self-help & mutual aid in accordance with the cooperative principles; this apart, even sub-section (2) of sec.4 is heavily loaded with co-operative substance. These writ petitions succeed; a declaration is made to the effect that the entities registered under the Karnataka Souharda Sahakari Act, 1997 fit into the definition of “co-operative society” as enacted in sec.2(19) of the Income Tax Act, 1961 and therefore subject to all just exceptions, petitioners are entitled to stake their claim for the benefit of sec.80P - remit the issue in dispute to the file of Assessing Officer to decide afresh in the light of above judgement after giving an opportunity of hearing to the assessee.
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