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TMI Blog2022 (1) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... 14-15 on 29.11.2014 declaring Nil income after claiming deduction u/s. 80P(2)(a)(i) of the Income Tax Act, 1961 (Act) to the extent of Rs. 28,65,269/-. Vide order dated 09.11.2016, the assessment was completed by the AO u/s. 143(3) of the Act accepting the income returned by the assessee. 3. Thereafter the Pr.CIT, Bangalore in exercise of his powers u/s. 263 of the Act set aside the order of AO dated 09.11.2016, directed the AO to examine the claim of the assessee u/s. 80P of the Act afresh. Pursuant to the order of CIT(A) u/s. 263 of the Act, the AO passed an order dated 28.12.2019 u/s. 143(3) r.w.s. 263 of the Act wherein he took the view that the assessee is a souharda and therefore not entitled to deduction u/s. 80P of the Act. In doin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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/2019 (order dated 26.07.2019). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Government setup a committee under the Chairmanship of Shri Ardhanar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naged 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 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 of their Business plans, customer service activities, etc., based o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a society registered under the Karnataka Souharda Sahakari Act, 1997 is also entitled to the benefit of section 80P of the I.T.Act, the matter is restored to the files of the A.O. The A.O. is directed to examine the claim of deduction u/s 80P of the I.T.Act afresh and decide the issue in accordance with law. It is ordered accordingly. 10. In the result, the appeal filed by the assessee is allowed for statistical purposes." 5. Respectfully following the decision of the Tribunal referred above, we set aside the order of CIT(A) and restore the issue to AO to examine the claim u/s. 80P of the Act as directed by the Tribunal in the order referred to above. 6. In the result, the appeal filed by the assessee is treated as allowed for statisti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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