TMI Blog2020 (5) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... and that co-operative registered as Souharda Sahakari cannot be regarded as co-operative societies is unsustainable. We therefore hold that the Assessee should be allowed deduction u/s.80P(2)(a)(i) as the ground on which the same was denied to the Assessee is held to be incorrect. Other conditions for allowing deduction u/s. 80P(2)(a)(i) of the Act needs to be examined by the AO. Remand the question of allowing deduction u/s. 80P(2)(a)(i) of the Act to the AO, except the issue already decided above. Appeal filed by the assessee is allowed for statistical purposes - ITA No.2460/Bang/2019 - - - Dated:- 27-4-2020 - Shri Chandra Poojari, Accountant Member For the Appellant : Sri.Narendra Sharma, Advocate For the Respondent : Dr.G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erative Acts in the state to be co-operative societies, thus making them entitled to the benefit of section 80P of the Act, on the facts and circumstances of the case. 6. The authorities below failed to appreciate that the Joint Registrar of Co-operative societies is empowered to register only co-operative societies and hence there could have been no registration of the appellant as a Co-operative , on the facts and circumstances of the case. 7. The authorities below have attempted to narrow the definition of section 2(19) of the Act, to hold that only assessee s registered under the Co-operative Societies Act, 1959, were eligible to claim deduction under section 80P of the Act, which is contrary to the intent of the definition, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substitute any or all the above grounds of appeal as may be necessary at the time of hearing. 13. For these and other grounds that may be urged at the time of hearing of appeal, the appellant prays that the appeal may be allowed for the advancement of substantial cause of justice and equity. 3. The facts of the case in brief are that the assessee is cooperative registered under the Karnataka Souharda Sahakari Act, 1997. It is engaged in providing financial services to its members. For the assessment year 2016-2017, the assessee has filed its return of income on 04.08.2016 electronically declaring a total income of ₹ 4,43,300, after claiming deduction u/s 80P(2)(a)(i) of the I.T.Act to the tune of ₹ 37,34,296. The case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Credit Co-operative Society Ltd. Vs. ITO ITA Nos. 2606 2607/Bang/2017 in which the Tribunal followed the decision of ITAT Bangalore Bench in the case of M/s. Udaya Souharda Credit Co-operative Society Ltd. ITA No.2831/Bang/2017 order dated 17.8.2018 in which the issue whether souharda registered under the Karnataka S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive Societies Act 1912 regulated formation, management, winding up and other supervision by the Government etc. This Act became the model for the provincial governments to form their own Cooperative Acts. Post-Independence, various state governments framed their own independent Cooperative Acts and the Central Government its Multi-State Cooperative Act. Accordingly, Karnataka State Cooperative Societies Act, 1959 (KSCS Act, 1959) regulates Co-operative societies in the state of Karnataka. A Panchayat, a Cooperative society and a School for every village were considered as the three pillars of the integrated community development. As time passed by, other aspects were included into the Cooperative act thus heralding the resurgence of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into existence. It was due to the combined efforts of Sahakara Bharathi Karnataka and Souharda Samvardhana Samithi, The Karnataka Souharda Sahakari Act 1997 (KSSA, 1997) was passed in the legislature. With the consent of The President of India, it was enforced from January 2001. Preamble to the Act reads thus:- An Act to provide for recognition, encouragement and voluntary formation of Co-operatives based on self-help, mutual aid, wholly owned, managed and controlled by members as accountable, competitive, self-reliant and economic enterprises guided by cooperative principles and matters connected therewith; WHEREAS it is expedient to provide for recognition encouragement and voluntary formation of co-operatives based on self-help, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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