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TMI Blog2020 (11) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... ned above both the 1959 Act and the 1997 Act employ this terminology; the 1997 Act is woven with the principles of co-operation; sec.4 of this Act bars registration of an entity unless its main objects are to serve the interest of the members in the area of co-operation and its bye-laws provide for economic and social betterment of its members through self-help mutual aid in accordance with the cooperative principles; this apart, even sub-section (2) of sec.4 is heavily loaded with co-operative substance. 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 co-operative society as enacted in sec.2(19) of the Income Tax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a)(i) of the Act on the reason that the assessee is in the business of Banking. The CIT (Appeals) has confirmed the order of the Assessing Officer. Hence the assessee is in appeal before us. 4. I have heard both the parties and perused the material on record. Similar issue has been dealt by the Hon ble High Court in Writ Petition No.48414 of 2018 in the case of M/s. Swabhimani Souharda Credit Co-operative Ltd. Vs. Govt. of India, Min. of Finance and Others Dt.16.01.2020 observed as under : 5. Having heard the learned counsel for the parties and having perused the petition papers, this Court is of a considered opinion that the answer to the above question needs to be in the affirmative for the following reasons: (a) sec.80P of the 1961 Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Article 19(1)(i) by virtue of 97th Amendment to the Constitution of India w.e.f. 15.10.2013; (b) the object of enacting sec.80P of the 1961 Act may be defeated if a restrictive meaning is assigned to the definition of co-operative society as given u/s.2(19) inasmuch as the invokability of the provisions of sec.80P is dependent upon the entity seeking the benefit thereunder being a co-operative society; going by the text and context of these provisions, one can safely conclude that all entities that are registered under the enactments relating to co-operative societies, regardless of their varying nomenclatures need to be treated as co-operative societies; this view accords with the purposive construction of sec.80P r/w sec.2(19) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p between co-operatives and also collaboration between co-operatives and other institutions; 4. registration of co-operatives, union cooperatives and Federal Co-operative in furtherence of the objectives specified above; 5. Conversion of co-operative societies registered under the Karnataka Co-operative Societies Act, 1959 as a co-operative under the proposed legislation. Hence the Bill. (e) the preamble to the 1959 Act reads as under: Whereas it is expedient (to promote voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies) in the State of Karnataka; Be it enacted by the Karnataka State Legislature in the Tenth Year of the Republic of India as follows- Similarly, the preamble t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Guarantee Corporation Act, 1961 (Central Act 47 of 1961) and the National Bank for Agriculture and Rural Development Act, 1981 (Central Act 67 of 1981), it shall be deemed to be a Co-operative Society . A close examination of these two definitions shows that they have abundant proximity with each other in terms of content and contours; it hardly needs to be stated that in both these definitions the word co-operative is employed not as an adjective but as a noun; the definition of other relative concepts in the dictionary clauses of these Acts strengthens this view; this apart, sec.7 of the 1997 Act provides that the entity registered as a co-operative shall be a body corporate, notwithstanding the conspicuous absence of the word society as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned notice dated 30.03.2018 at Annexure-D in W.P.No.48414/2018; other legal consequences accordingly do follow. It is needless to mention that the other provisions of sec. 80P of 1961 Act and their effect on the claim of the petitioner-like-societies have been left to be addressed by the concerned authorities. Therefore respectfully following the above judgment, I remit the issue in dispute to the file of Assessing Officer to decide afresh in the light of above judgement after giving an opportunity of hearing to the assessee. Further we make it clear that the assessee is at liberty to raise any other issue as deem it fit if so advised. Similarly, in the other two appeals in ITA Nos.264 265/Bang/2020 shall equally apply the above decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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