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TMI Blog2019 (12) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... 0P(2)(a)(i) of Income Tax Act, 1961. - 4. The assessee craves leave to add / alter any of the grounds of appeal before or at the time of hearing. - Total tax effect (see note below) Rs. 10,94,809/- 3. It was submitted by ld. AR of assessee that as per para no. 4.4 of the order of ld. CIT(A), the issue was decided by ld. CIT(A) on this basis that in preference to the order of the SMC bench of the Tribunal rendered in the case of Siddartha Pattina and Halapur, the Tribunal order by the Division Bench of the Tribunal rendered in the case of Udaya Souharda Credit Co-operative Society should be followed. He submitted a copy of the Tribunal order by the SMC bench of the Tribunal rendered in the case of Siddartha Pattina Souharda Sahakari Niyamitha Vs. ITO in ITA No. 1234/Bang/2019 dated 26.07.2019 and he pointed out that in para no. 5 of this Tribunal order, the Tribunal has duly considered the said decision of the Division Bench of the Tribunal rendered in the case of M/s. Udaya Souharda Credit Co-operative Society Ltd. in ITA No. 2831/Bang/2017 dated 17.08.2018 and it is observed by the Tribunal in this para that in the case of M/s. Udaya Souharda Credit Co-operative So ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT as reported in 397 ITR 1. 4. I have considered the rival submissions. Regarding the judgment of Hon'ble Karnataka High Court rendered in the case of Pr. CIT Vs. Vijay Souharda Credit Sahakari Ltd. (supra) on which reliance was placed by ld. DR of revenue as per which the matter was restored back to AO to examine the applicability of the judgment of Hon'ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd. Vs. ACIT (supra), I find that in the present case, this is not the case of the AO as per the assessment order that this judgment of Hon'ble Apex Court rendered in the case of The Citizen Co-operative Society Ltd. Vs. ACIT (supra) is applicable in the present case. As per the impugned order of ld. CIT(A) also, no finding of ld. CIT(A) is there that this judgment rendered in the case of The Citizen Co-operative Society Ltd. Vs. ACIT (supra) is applicable in the present case. Hence, I hold that this judgment of Hon'ble Karnataka High Court has no applicability in the present case in view of the facts discussed above. Regarding the argument of ld. DR of revenue that the earlier Tribunal order rendered by the Division Bench of the Tribunal in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the State of Karnataka for registration of co-operative societies and therefore, the conclusion of the revenue authorities that co-operative societies and co-operatives are different and that co-operative registered as Souharda Sahakari cannot be regarded as co-operative societies is unsustainable. After holding so, the Tribunal restored back the matter to the AO for fresh decision regarding allowability of deduction u/s. 80P of the IT Act after examining the fulfilment of other conditions in that regard. For ready reference, we reproduce para nos. 5 to 11 of this Tribunal order rendered in the case of Siddartha Pattina Souharda Sahakari Niyamitha Vs. ITO (supra) by SMC bench of the Tribunal on 26.07.2019. These paras are as under. "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 Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... integrated community development. As time passed by, other aspects were included into the Cooperative act thus heralding the resurgence of a new era in cooperative movement. The state and the central governments were investing millions of rupees in the form of shares, grants, subsidy, contributions, government support, etc., but the expected results couldn't be achieved in cooperative movements. This condition continued almost until early 1980s. 9. Keeping this in mind, the Central Government setup a committee under the Chairmanship of Shri Ardhanarishwaran, which submitted its report in 1987. It attributed the failure of the cooperative movement to the excessive interference of the governments. It is also true that the unabated party politics in the co-operative movement is also a big hindrance to its progress. Realizing the vital role of the cooperative movement in the progress of the society, the Central Planning Commission set up a committee by appointing Shri Chaudari Brahmaprakash as its head & with a task of drafting a 'Model Cooperative Act' which will prevent interference of the governments. This committee, after a detailed study of the Cooperative Acts of various states ..... X X X X Extracts X X X X X X X X Extracts X X X X
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