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TMI Blog2020 (2) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. The assessee is a Souharda Cooperative registered under Karnataka Souharda Sahakari Act 1997. It provides credit facilities to its members. In the return of income, the assessee claimed deduction u/s 80P of the Act. The AO took the view that the deduction u/s 80P is available only to cooperative societies and not to Souharda co-operative. According to AO, the cooperative and cooperative societies are two different entities. Since the assessee is a cooperative, the AO held that it is not entitled to deduction u/s 80P of the Act. Accordingly he rejected the claim of the assessee. The ld CIT(A) also took the view that the deduction u/s 80P shall be available only to cooperative society registered u/s Cooperative societies Act. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c.80P of the 1961 Act provides for deduction in respect of income of Co-operative Societies is obvious going by its very text; subsection (1) of said section reads 'as under: 80P. (1) Where, in the case of an assessee being a cooperative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the stuns specified in sub-section (2) in computing the total income of the assessee." The other provisions of this section being not of much relevance to the c1uestion being treated, are not although they too have been looked into. See. 2(19) which finds a place in the Clause of the 1961 Act reads as under; Co-operative so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c.80P r/w sec.2(19) of the 1961 Act; (c) in the State of Karnataka, there have been two statutes enacted by the State Legislature that relate to registration & regulation of co-operative societies viz., the Karnataka Co-operative Societies Act, 1959 ie., Karnataka Act No. 17 of 1959 and the Karnataka Souharda Sahakari Act, 1997 i.e Karnataka Act No. 17 of 2000; both these Acts are enacted pursuant to Article 246(3) r/w Entry 32, List-11 of Schedule Vii of the Constitution of India; there is no other Entry to which this Act is relatable; the Legislative Entries- being only the fields of legislation need to be very broadly interpreted, is the settled position of constitutional jurisprudence wide UJAGAR PRINTS. ETC. vs. UNION OF INDIA, AIR 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Republic of India as follows-" Similarly, the preamble to the 1997 Act reads as follows: Whereas it is expedient 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, selfreliant and economic enterprises guided by cooperative 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- ". A perusal of these two preambles and various provisions of these two Acts leads one to an irresistible conclusion that both these Acts are cognate statutes that deal with cooperative societies, regardless of some diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he entity registered as a 'co-operative' shall be a body corporate, notwithstanding the conspicuous absence of the word 'society' as a postfix; sec.9 of the 1959 Act makes the entity once registered u/s thereof a body corporate; both the entities have perpetual Succession by operation of law; thus on registration be it under the 1959 Act or the 1997 Act, a legal personality is donned by them, so that inter alia they can own and possess the property: (f) the employment of the word 'Sahakari in the very title of the 1997 Act is also not sans any significance; 'Sahakaar' in Sanskrit is the equivalent of sahakaara' in Kannada which means co-operation'; as already mentioned above both the 1959 Act and the 1997 A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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