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2023 (1) TMI 564 - AT - Income TaxExemption u/s 80P(2)(a)(i) - assessee registered under Karnataka Souharda Sahakari Act, 1997 - HELD THAT:- Assessee registered under Karnataka Souharda Sahakari Act, 1997 - HELD THAT:- As in the case of Swabhimani Souharda Credit Cooperative Ltd. vs. Government of India [2020 (1) TMI 831 - KARNATAKA HIGH COURT] that a cooperative society registered under Karnataka Souharda Sahakari Act, 1997 within the meaning of section 2(19) of the Act should be considered a cooperative society placing reliance on the decision in the case of Government of India, Ministry of Finance vs. Karnataka State Souharda Federal Co-operative Ltd. [2022 (1) TMI 540 - KARNATAKA HIGH COURT] Therefore, the reasoning of the CIT(A) that the appellant society is not a cooperative society, cannot be accepted. Therefore, the income earned by the appellant society from its members on the credit is exempt from tax u/s 80P(2)(a)(i) of the Act. As regards income earned on advance income with nominal members, nominal members are treated as “members of co-operative society” in view of decision of the Hon’ble Apex Court in the case of Mavilayi Service Co-operative Bank Ltd. [2021 (1) TMI 488 - SUPREME COURT]. Thus, this ground of appeal nos.2 & 3 stands allowed. Exemption of income earned from another cooperative society - This issue is no longer res integra as the issue was decided by the Co-ordinate Bench of the this Tribunal in the case of The Ugar Sugar Works Kamgar [2021 (11) TMI 1117 - ITAT PANAJI] in favour of the appellant society. -Decided in favour of assessee.
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