TMI Blog2019 (8) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... - Shri Jason P Boaz, Accountant Member For the Assessee : None For the Revenue : Shri. Ganesh R. G, Standing Counsel ORDER PER JASON P. BOAZ, ACCOUNTANT MEMBER These 4 appeals by the assessee are directed against the orders of Commissioner of Income-tax (A)-5, Bangalore, for Assessment Years 2011-12, 2013-14, 2015-16 and 2016-17, all dated 26.03.2019. When the case was called for hearing, none was present for the assessee and therefore these appeals are disposed off with the assistance of Standing Counsel for Revenue and the material on record. 2.1 The grounds raised in these appeals are elaborate and argumentative in nature; but, however, the issue involved in this appeal is with regard to denial of deduction claimed by the assessee under section 80P(2) of the Income Tax Act, 1961 (in short the Act ). 3. At the outset, the learned Standing Counsel for Revenue submitted that the issue of the assessee s claim for deduction under section 80P(2) of the Act, for the 4 Assessment Years involved in these appeal, is covered by the decision of the Co-ordinate Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is entitled for deduction u/s 80P and in the similar circumstance, the Tribunal has restored the matter back to the file of the AO in the case of Udaya Souharda Credit Co-operative Society Limited (Supra) in which the undersigned is the party. Relevant portion of that order is extracted hereunder for the sake of reference. 7. Having carefully examined the orders of authorities below in the light of rival submissions, we find that while adjudicating the issue of claim of deduction under section 80P(2) of the Act, the AO confined himself to the claim of entitlement and has denied the same having observed that the assessee was engaged in transacting in banking business and thus it is a primary cooperative 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. ACTT (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 activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ahakari' 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, co-operative 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 under Souharda Act. Relevant provisions of section 6 of Souharda. Act is extracted hereunder for the sake of reference: 6. Certificate of registration.- (1) Where a Cooperative is registered or deemed to be registered, the certificate of registration duly signed and sealed by the Registrar shall be conclusive evidence that the Co-operative mentioned therein, is a Co-operative registered or deemed to be registered under this Act. (2) Notwithstanding anything contained in the Karnataka Cooperative Societies Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egion, 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 Co-operative 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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