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TMI Blog2019 (8) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... ssistance 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 of this Tribunal in the assessee's own case for Assessment Year 2012-13. 4.1 I have considered the submissions put forth by the learned Standing Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ardha Act as co-operative and also to decide as to whether the assessee is eligible for deduction u/s 80P of the Act? 5. The Id counsel for the assessee further disputed the submission and contended that this argument is raised first time in this case and the Revenue has never examined this aspect earlier. Therefore, revenue is refrained from taking this new stand. 6. Having carefully examined the orders of the authorities below in the light of the Tribunal order in the case of Udaya Souharda Credit Co-operative Society Limited (Supra), we find that though argument was not raised earlier but it goes to the root of the case as it is to be ascertained whether the assessee is entitled for deduction u/s 80P and in the similar circumstance, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operative registered under the Karnataka State Souharda Sahakari Act. Since the assessee is not a cooperative society, it is not entitled/eligible for deduction under section 80P(2) of the Act. Though this argument was raised first time before the Tribunal at this stage, but when it is a legal argument and goes to the root of the case, it cannot be outrightly ignored. Therefore, we have to examine the argument raised by the learned DR in this regard. Under section 80P, the deduction is to be allowed only to the co-operative societies as per sub section 1 of the Act. In the entire section 80P, the word used is only a "co-operative societies" and no where reference was made to the cooperatives. 9. Presently we are concerned with the Karna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers 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 conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bengaluru but it makes no difference as a Joint Registrar may be same for co-operative societies and co-operatives. For the sake of reference, we extract the certificate of registration granted as under: "GOVT OF KARNATAKA CO-OPERATIVE SOCIETY SL.NO.GRB: RGN: 69:148 2003-04 DATED:13.2.2004 CERTIFICATE OF REGISTRATION I, Basavegowda, Joint.Registrar of Co-operative Society, Bangalore 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and investigation and also by passing a reasoned order in this regard. Since we have restored the matter to the AO, we find no justification to adjudicate the issue raised on merit. Accordingly, order of the CIT(A) is set aside and matter is restored to the AO for adjudication of the impugned issue in terms indicated above." 7.Following the aforesaid order of the Tribunal, we set aside the order of the CIT(A) and restore the matter to the file of the AO to re-adjudicate the claim of the assessee in the light of aforesaid order of the Tribunal to ascertain as to whether the assessee is entitled for deduction uls 80P or not before going on merit." 4.2 Respectfully following the decisions of the Co-ordinate Bench in the assessee's own case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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