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2019 (4) TMI 207 - AT - Income TaxDeduction u/s 80P(2)(a)(i) - assessee is involved into giving funds to the non-members - whether the assessee is a co-operative society meant for its members only and whether any income was earned by way of investment/loans etc to non-members? - HELD THAT:- In a recent order in the matter of M/s. Udaya Souharda Credit Co operative Society Ltd [2018 (8) TMI 1063 - ITAT BANGALORE], it was noted by the Tribunal that Karnataka State has notified Karnataka Co – Operative Societies Act, 1959 as well as the Karnataka Souharda Sahakari Act, 1997 and both Acts are in force. Therefore, conversion from one into another is possible. Thereafter the Tribunal held that the deduction u/s.80P can only be applied to a cooperative society registered under the Karnataka Co- Operative Societies Act, 1959 and thereafter the matter was restored back to the AO for fresh decision after making necessary enquiry and investigation. In the present case, the facts are identical and one more plea was raised pertaining to mutuality. Thus following the decision of Citizen Cooperative Society (2017 (8) TMI 536 - SUPREME COURT) and Udaya Souharda Cooperative Society (supra), we remand the appeal to the file of the CIT (A) to decide the issue afresh in the light of the observations made hereinabove - Appeal of the Revenue allowed for statistical purpose.
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