TMI Blog2020 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ect regarding the source of funds deposited on bank on which interest income was earned, the issue should go back to the file of CIT(A) for fresh decision. The Bench also proposed that regarding the applicability of Hon ble Apex Court rendered in the case of The Citizen Co Operative Society Ltd., vs. ACIT [ 2017 (8) TMI 536 - SUPREME COURT] also, the Ld. CIT(A) should pass speaking and reasoned order after comparing facts of present case with that of The Citizen Co Operative Society Ltd., vs. ACIT (supra) under co operative society Act, applicable in State of Karnataka. Set aside order of CIT(A) and restore the matter back to his file for fresh decision in light of above discussion, by way of a speaking and reasoned order after pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extending credit facilities to its members as given under section 80P(2). (b) He failed to appreciate that co-operative society defined under section 2(19) of the Income Tax Act also includes entities registered under Karnataka Souharda Sahakari Act, 1997 inasmuch as they also operate and adopt the principle of co-operation as required under the Act. (c) He misdirected himself in not following the decision of the jurisdictional ITAT in case of Siddartha Patina Souharda Sahakari Niyamitha (ITA No.1234/ Bang/2019) and failed to appreciate that the said decision was given after considering all other decisions on the subject and it currently hold the filed on the eligibility of Souhardas for claiming benefit under section 80P of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed by CIT(A). He submitted that basis of decision of authorities below is by following decision of Hon ble Karnataka High Court rendered in the case of PCIT and Another Vs. Totagtarts Co Opertaive Sale Society as reported in 395 ITR 611 (Karn). He also submitted that another decision on which reliance has been placed by authorities below, is the judgement of Hon ble Apex Court rendered in the case of The Citizen Co Operative Society Ltd., Vs. ACIT as reported in 397 ITR 1. Aggrieved by order passed by Ld. CIT (A) assessee is in appeal before us now. 4. Ld. AR submitted that the word 'co-operative' is defined by sec.2(e) of 1959 Act as under: 2(e): Co-operative means a co-operative including a co-operative bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P of 1961 Act and their effect on the claim of the petitioner-like-societies have been left to be addressed by the concerned authorities. 7. Ld. DR submitted that keeping in view above observation of Hon ble Karnataka High Court, the issue may kindly be set aside and restored back to the file of Ld.AO for fresh assessment as per provisions of section 80P of the I.T.Act, 1961, in the light of decision of Hon ble Apex Court in case of The Citizen Co-operative Society Ltd., and decision of Hon ble Karnataka High Court and Hon ble Apex Court in the case of Totgars Co-operative Sale Society. We have perused submissions advanced by both sides in light of records placed before us 8. At this juncture, this proposition was put forward by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of authorities below on this factual aspect regarding the source of funds deposited on bank on which interest income was earned, the issue should go back to the file of CIT(A) for fresh decision. The Bench also proposed that regarding the applicability of Hon ble Apex Court rendered in the case of The Citizen Co Operative Society Ltd., vs. ACIT (supra) also, the Ld. CIT(A) should pass speaking and reasoned order after comparing facts of present case with that of The Citizen Co Operative Society Ltd., vs. ACIT (supra) under co operative society Act, applicable in State of Karnataka. 11. We thus set aside order of CIT(A) and restore the matter back to his file for fresh decision in light of above discussion, by way of a speaking a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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