TMI Blog2019 (7) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... in 1991 and Central Government recommended the state governments to adopt this. Accordingly, in 1997 a bill on parallel cooperative act was tabled in the state legislature of Karnataka. Demanding an early approval of this bill by both the houses of Karnataka Legislature, a committee Souharda Samvardhana Samithi under the chairmanship of Justice Rama Jois came into existence. It was due to the combined efforts of Sahakara Bharathi Karnataka and Souharda Samvardhana Samithi, The Karnataka Souharda Sahakari Act 1997 (KSSA, 1997) was passed in the legislature. The Souharda Cooperatives enjoy functional autonomy in design and implementation of their Business plans, customer service activities, etc., based on the needs of their members. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y providing a credit facilities to its member. In the return of income is filed for the asst. year 2016-17, the assessee claimed deduction of sum of Rs. ₹ 27,60,585/- u/s 80P(2)(a)(i) of the Income Tax Act, 1961 (Act). 3. Under Sec.80P(2)(a)(i) of the Act, where the gross total income of a co-operative society includes income from carrying on the business of banking or providing credit facilities to its members, the same is allowed deduction. According to the AO, the benefit of deduction u/s.80P(2)(a)(i) of the Act was available only to a co-operative society and since the Assessee is only a Souharda Sahakari registered under the Karnataka Souharda Sahakari Act, 1997 and since under the said Act, Co-operative Societie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n eligible to claim deduction under section 80P(2) of the Act. 4. On appeal by the Assessee, the CIT(A) concurred with the view of the AO. Aggrieved by the order of the CIT(A), the Assessee is in appeal before the Tribunal. 5. I have heard the rival submissions. The learned counsel for the Assessee submitted that Souharda Sahakari registered under the Karnataka Souharda Sahakari Act, 1997 are also co-operative societies within the meaning of Sec.2(19) of the Act and therefore the revenue authorities were not justified in denying the benefit of deduction to the Assessee. The learned DR relied on a decision of the ITAT Bangalore Bench in the case of M/s. Millennium Credit Co-operative Society Ltd. Vs. ITO ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also operate on the principle of co-operation and adopt the principles of co-operation. Cooperative Societies and Co-opertives are all founded on the principle of cooperation. 8. Since the beginning of mankind the concept of co-operation has been the foundation for harmonious existence In India, the Co-operative Societies Act 1912 regulated formation, management, winding up and other supervision by the Government etc. This Act became the model for the provincial governments to form their own Cooperative Acts. Post- Independence, various state governments framed their own independent Cooperative Acts and the Central Government its Multi-State Cooperative Act. Accordingly, Karnataka State Cooperative Societies Act, 1959 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent recommended the state governments to adopt this. Accordingly, in 1997 a bill on parallel cooperative act was tabled in the state legislature of Karnataka. Demanding an early approval of this bill by both the houses of Karnataka Legislature, a committee Souharda Samvardhana Samithi under the chairmanship of Justice Rama Jois came into existence. It was due to the combined efforts of Sahakara Bharathi Karnataka and Souharda Samvardhana Samithi, The Karnataka Souharda Sahakari Act 1997 (KSSA, 1997) was passed in the legislature. With the consent of The President of India, it was enforced from January 2001. Preamble to the Act reads thus:- An Act to provide for recognition, encouragement and voluntary formation of Co-o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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