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2020 (5) TMI 376 - AT - Income TaxDeduction u/s.80P(2)(a)(i) - co-operative registered as Souharda Sahakari cannot be regarded as co-operative societies - HELD THAT:- As decided in SIDDARTHA PATTINA SOUHARDA SAHAKARI NIYAMITHA VERSUS THE INCOME TAX OFFICER, WARD 5, RAICHUR. [2019 (7) TMI 1390 - ITAT BANGALORE] Souharda Cooperatives enjoy functional autonomy in design and implementation of their Business plans, customer service activities, etc., based on the needs of their members. Unlike other forms of cooperatives in India, the interference of State / Central in day-to-day operations of Souharda Cooperatives is almost minimal. The above discussion would show that souharda co-operatives are also one form of co-operative societies registered under a law in force in the State of Karnataka for registration of co-operative societies. Therefore the conclusion of the revenue authorities that co-operative societies and co-operatives are different and that co-operative registered as Souharda Sahakari cannot be regarded as co-operative societies is unsustainable. 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. Other conditions for allowing deduction u/s. 80P(2)(a)(i) needs to be examined by the AO. Remand the question of allowing deduction u/s. 80P(2)(a)(i) to the AO, except the issue already decided above. - Decided in favour of assessee for statistical purposes.
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