TMI Blog2020 (2) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly pointed by ld DR there was no occasion for the AO to examine the claim of the assessee in terms of provisions of sec. 80P of the Act. Accordingly we set aside the order passed by the ld CIT(A) and restore the issue to the file of the AO for examining the same in accordance with the provisions of sec. 80P of the Act. The assessee should be provided adequate opportunity of being heard. - ITA No.2348/Bang/2019 - - - Dated:- 4-2-2020 - Shri N.V Vasudevan, Vice Presidnet And Shri B.R Baskaran, Accountant Member For the Assessee : Shri R.E Balasubramanyam, C.A For the Revenue : Shri Praveen Karanth,, Addl. CIT ORDER PER B.R BASKARAN, ACCOUNTANT MEMBER The appeal filed by the assessee is directed against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the order passed by tax authorities are liable to be set aside. 5. The ld DR, however, submitted that tax authorities have not examined the claim of the assessee in terms of provisions of sec. 80P of the Act. Accordingly he prayed that the matter may be set aside to the file of AO for examining the claim of AO in accordance with the provisions of sec. 80P of the Act. 6. We have heard the rival submissions and perused the record. The Hon ble Karnataka High Court in the case of M/s Swambhimani Souhard Credit Cooperative Society Ltd., (Supra) has examined the issue of applicability of provision of sec. 80P of the Act to the cooperative registered under Karnataka Souhards Sahakari Act 1997 and has decided as under:- 5. Having h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promoting the growth of co-operative movement wide Kanga Palkhivala's The Law and Practice of Income Tax. 101h Edition, LexixNexis at page 1656: it is more so because the right to form a co-operative society itself is made a Fundamental Right, now enshrining in Article 1901(1) by virtue of 97th Amendment to the Constitution of India w.e.f. 15.10.2013; (b) the object of enacting scc.SOP of the 196 1 Act may be defeated if a restrictive meaning is assigned to the definition of co-operative society as given u/s. 2(19) inasmuch as the invokeability; of the provisions of see. 80P is dependent Upon the entity seeking the benefit thereunder being a Cooperative society; going by the text and context of these provisions, one can safely c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uided by cooperative principles specified therein: 2. removing all kinds of restrictions that have come to clog the free-functioning of the cooperatives and the controls and interference by the Government except registration and cancellation; 3. promotion of subsidiary organization, partnership between co-operatives and also collaboration between co-operatives and other institutions; 4. registration of co-operatives, union caoperatives and Federal Co-operative in furtherance of the objectives specified above; 5. Conversion of co-operative societies registered under the Karnataka Co-operative Societies Act, 1959 as a co-operative under the proposed legislation. Hence the Bill (e) the preamble to the 1959 Act reads a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as follows: 2(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 has the words 'Souharda Sahakari' in its name (and for the purposes of the Banking Regulation Act 1949 (Central Act JO of 1949), the Reserve Bank of India Act, 1934 (central Act 2 of 1934), the Deposit Insurance and Credit Guarantee Co7poration Act. 1961 (Central Act 47 of 1961) and the National Bank for Agriculture and Rural Development Act, 1981 (Central Act 67 of 1981), it shall be deemed to be a Co-operative Society . A close examination of these two definitions shows that they have abundant proximity with each other in terms of content and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-operative substance. In the above circumstances, these writ petitions succeed; a declaration is made to the effect that the entities registered under the Karnataka Souharda Sahakari Act, 1997 fit into the definition of co-operative society as enacted in sec.2(19) of the Income Tax Act, 1961 and therefore subject to all just exceptions, petitioners are entitled to stake their claim for the benefit of sec.SOP of the said Act; a Writ of Certiorari issues quashing the impugned notice dated 30.03.2018at Annexure-D in W P No 48414/2018, other legal consequences accordingly. It is needless to mention that the other provisions of sec. 80P of 1961 Act and their effect on the claim of the petitioner-1ikesocieties have been left to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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