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TMI Blog2018 (10) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... ard to denial of deduction claimed u/s 80P(2) of the Act. 3. During the course of hearing our attention was invited to the fact that the assessee was registered under Souhardha Sahakari Act as co-operative but the assessee claimed it to be co-operative society registered under Karnataka Souhardha Sahakari Act 1977 for claiming deduction u/s 80P of the Act. 4. The ld DR further contended that in the case of M/s Udaya Souharda Credit Co-operative Society Limited Vs. ITO in ITA No.2831/Bang/2017, the Tribunal has restored the matter to the AO for verification of the impact of registration under Karnataka Souhardha Sahakari Act, 1977 as co-operative. Since in the instant case, the assessee is registered under Karnataka Souhardha Sahakari Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and thus it is a primary co-operative bank and does not form the second category of co-operative credit societies. When the matter travelled to CIT(A), the CIT(A) has also examined the claim of the assessee in the light of judgment of the Apex Court in the case of Citizen Co-operative Society Ltd., Vs. ACIT (supra), wherein it was held that where the assessee being a co-operative society advances loan to members of general public without any approval from the Registrar of Societies, the activity of the Co-operative Society is in violation of co-operative societies Act and the co-operative credit society was not entitled to deduction under section 80P(2)(i)(a) of the Act. 8. Now, during the course of hearing of the appeals, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various amendments, the scope of Souharda Sahakari Act was expanded but no where the co-operative societies are converted into the co-operatives. In both the Acts, cooperatives and co-operative societies are defined independently. In the Souharda Sahakari Act, the word co-operative and co-operative societies are defined in clause 2(c) and 2(g) which are extracted hereunder for the sake of reference: "(e) "Co-operative" means a co-operative including a Co-operative bank doing the business of banking registered or deemed to be registered under section 5 and which ahs the words 'Souharda Sahakari' in its name. ........ ......... (g) "Co-operative Society" means a Co-operative society registered under the Karnataka Co-operative Soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the Co-operatives has also been defined under section 2(c) and 2 (d)(2), according to which co-operative society means a society registered or deemed to be registered under the co-operative societies Act and the co-operative means co-operative registered under the Karnataka Souharda Sahakari Act, 1997. Therefore, from careful reading of both the sections, it is abundantly clear that the co-operative and the cooperative societies are 2 different entities though their conversion from one to other is possible as per provisions of the respective Act. 12. We have also carefully examined the certificate of registration granted to the assessee and we find that assessee was registered as a co-operative under the name Udaya Souhardha Pattina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the co8 operative societies Act is doubtful. Thus the claim of deduction under section 80P cannot be allowed. As per the provisions of section 80P of the Act, deduction can only be allowed to the co-operative societies registered under the co-operative societies Act. Without a proper registration under co-operative societies Act, nobody can claim it to be co-operative society as the activities of the co-operative societies are to be controlled under the co-operative societies Act through Registrar of the Co-operative Societies. Since all these new points have been raised during the course of hearing before us and according to us all these points goes to the root of the case, we are of the view that proper adjudication of the issues is r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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