TMI Blog2019 (1) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed. 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 required by the AO - Matter remanded back. - Decided in favour of assessee for statistical purposes. - ITA No.206/Bang/2018 - - - Dated:- 11-1-2019 - Shri N. V. Vasudevan, Vice President And Shri Jason P. Boaz, Accountant Member For the Assessee : Shri. S. V. Ravishankar, Advocate For the Revenue : Shri. R. N. Siddappaji, Addl. CIT ORDER PER JASON P BOAZ, ACCOUNTANT MEMBER This appeal is preferred by the assessee against the order of the CIT(A)-5, Bangalore, dated 15.11.2017 for Assessment Year 2014-15, inter alia, on the following grounds: 1. The order of the learned Commissioner of Income-tax [Appeals] - 5, in so far it is against the appellant is opposed to law, weight of evidence, facts and circumstances of the Appellant's case. 2. The appellant denies itself liable to be assessed on total income of ₹ 3,02,67,590/-, as against the returned income by the appellant of Rs.NIL/- after claiming eligible deduction und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponding expenditures proportionately on income earned by the appellant from investments which was claimed as deduction under section 80 P [2][d] of the Act, on the facts and circumstances of the case. 10. Without prejudice the learned authorities below did not give the appellant a reasonable opportunity of hearing and produce the documents in support of the case of the appellant which is against the principles of natural justice and consequently the impugned orders passed requires to be cancelled on the facts and circumstances of the case. 11. Without prejudice to the right to seek waiver as per the parity of reasoning of the decision of the Hon'ble Apex Court in the case of Karanvir Singh 349 ITR 692, the Appellant denies itself liable to be charged to interest under section 234 A 234 B of the Income Tax Act under the facts and circumstances of the case. Further the levy of interest under section 234 A Et 234 B of the Act is also bad in law as the period, rate, quantum and method of calculation adopted on which interest is levied are all not discernible and are wrong on the facts of the case. 12. The appellant craves leave to add, alter, substitute and delete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2831/Bang/2017 dated 17.08.2018, the Co-ordinate Bench of the Tribunal has considered and decided the matter at paras 5 to 13, which are extracted hereunder: 5. Aggrieved, the assessee preferred an appeal before the Tribunal. During the course of hearing of the appeal, the learned DR Dr. P. V. Pradeep Kumar has raised the serious objection questioning the basis of entitlement of deduction under section 80P of the Act on the ground that assessee registered under the Karnataka Souharda Sahakari Act, 1997 and under the said Act, Co-operative Societies are not being registered. He has also invited our attention to the Registration Certificate issued by the Registrar of Co-operative Societies with the submission that as per the Certificate also, assessee was registered as Uday Souharda Pattina Co-operative Ltd., and not as Udaya Souharda Credit Co-operative Society Ltd. Therefore, assessee has wrongly re-presented himself as a co-operative society for claiming deduction under section 80P of the Act. The learned DR further contended that the deduction under section 80P is only allowed to the Co-operative Societies and not the Co-operative Registered under the Karnataka Sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue cannot question the identity of the assessee. The learned Counsel for the assessee further contended that the scope and object of the Karnataka Souharda Sahakari Act and the Karnataka Cooperative Societies Act are almost similar. Therefore, even if the assessee is registered under the Karnataka Souharda Societies Act as a co-operative Society, it is eligible for deduction under section 80P of the Act. It was further contended that in the Act, no separate rate of tax has been prescribed in the statute for the co-operatives. Therefore, all co-operatives are to be assessed under the category of co-operative societies. It was further contended that as per the Karnataka Souharda Sahakari Act, assessee is required to enroll the nominal members and Associate society members without having any voting rights, besides regular members. Therefore, assessee is entitled for deduction under section 80P with respect to the interest income earned from the nominal and associate members on advances given to them. 7. Having carefully examined the orders of authroites below in the light of rival submissions, we find that while adjudicating the issue of claim of deduction under section 80P(2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending Act 8/2017. Through various amendments, the scope of Souharda Sahakari Act was expanded but no where the co-operative societies are converted into the cooperatives. In both the Acts, co-operatives and co-operative societies are defined independently. In the Souharda Sahakari Act, the word cooperative 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 Societies Act, 1959 (Karnataka Act 11 of 1959); 10. Section 4 of Souharda Sahakari Act deal with the formation of co-operatives and its members and as per section 4(2) clause b, cooperative societies can be converted into co-operative by passing a resolution and once it is converted, the registration under the Societies Act shall be cancelled by the Registrar w.e.f. the date of certificate of registration given unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Region, Bangalore register Udaya Souhardha Pattina Co-operative Ltd.,No.735, 5th Cross, 9th Main, 2nd Phase, BSK 1st Stage, Bangalore-50, under section-5 of the Karnataka Souhardha Sahakari Act-1997 and certificate of Registration is issued on 13.02.2004 as per sec 6(2) of the said Act. Sd. Joint.Registrar of Co-operative Society, Bangalore Region, Bangalore. 13. We have also carefully perused the cause title in the assessment order and in the cause title of the assessment order, we find that assessment order was passed in the name of Udaya Souharda Credit Cooperative Society Ltd., whereas no certificate of registration was placed before us in the name of Udaya Souhardha Credit Co-operative Society ltd. Therefore, we are unable to understand how the assessee can claim it to be the co-operative society in the absence of proper registration under the Karnataka Co-operative Societies Act. Creation of Cooperative Society under the co-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 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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