TMI Blog2021 (9) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... DDARTHA PATTINA SOUHARDA SAHAKARI NIYAMITHA [ 2019 (7) TMI 1390 - ITAT BANGALORE] . In the instant case, since the A.O. has decided the issue against the assessee solely for the reason that the assessee is not a Co-operative Society because it is registered under the Karnataka Souhardha Sahakari Act, 1997, thus matter needs to be examined afresh by the A.O. The A.O. is directed to examine afresh the claim of deduction u/s 80P - Appeal filed by the assessee is allowed for statistical purposes. - ITA No.360/Bang/2021 - - - Dated:- 20-9-2021 - Shri George George K, Judicial Member For the Appellant : Sri.Prakash Hegde, CA For the Respondent : Sri.Ganesh R.Ghale, Standing Counsel ORDER This appeal at the insta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Karnataka Souhardha Sahakari Act, 1997. The main object of the assessee-society is to provide credit facilities to its members. For the assessment year 2017-2018, the assessee-society filed return of income on 31.10.2017 declaring total income at `Nil . The assessment was taken up for scrutiny and the assessment was completed u/s 143(3) of the I.T.Act, vide order dated 19.12.2019. In the assessment order, the Assessing Officer assessed the income at ₹ 45,24,811 after disallowing the deduction u/s 80P(2)(a)(i) of the I.T.Act. The solitary reason or the Assessing Officer to deny the benefit of deduction u/s 80P(2)(a)(i) of the I.T.Act was that the assessee-society was not registered under the Co-operative Societies Act but only un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ka High Court reads as follow:- 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 cooperative 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.80P of the said Act, a Writ of Certiorari issues quashing the impugned notice dated 30.03.2018 at Annexure-D in W.P.No.48414/2018; other legal consequences accordingly do follow. 8. Similar view has been taken by the Tribunal in the case of Siddartha Pattina Souharda Sahakari Niyamitha v. ITO in ITA No.1234/Nang/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly, 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 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 Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Co-operatives based on self-help, mutual aid, wholly owned, managed and controlled by members as accountable, competitive, selfreliant and economic enterprises guided by co-operative principles and matters connected therewith; WHEREAS it is expedient to provide for recognition encouragement and voluntary formation of co-operatives based on selfhelp, mutual aid, wholly owned, managed and controlled by members as accountable, competitive self-reliant and economic enterprises guided by co-operative principles and for matters connected therewith; BE it enacted by the Karnataka State Legislature in the Forty-eighth Year of Republic of India as follows:- 10. The Souharda Cooperatives enjoy functional autonomy in design and implementation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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