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TMI Blog2020 (1) TMI 1692X X X X Extracts X X X X X X X X Extracts X X X X ..... see and hold that the assessee is not eligible for deduction under section 80P of the IT Act in the facts of the present case because it is an undisputed fact in the present case that the assessee has violated the provisions of Karnataka Co-operative Societies Act, 1959 and therefore the judgment rendered in the case of Citizen Co-operative Society Ltd. [ 2017 (8) TMI 536 - SUPREME COURT ] is squarely applicable and hence decide the issue by respectfully following the judgment of the Hon ble Apex Court. Appeal of the assessee is dismissed. - SHRI A. K. GARODIA, ACCOUNTANT MEMBER For the Assessee : Shri. Ashok G. Mudnur, CA For the Revenue : Shri. Ganesh G. R, Standing Counsel to Department ORDER This is an appeal filed by the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Co-operatives are also one form of Co-operative Societies registered under law in force in the State of Karnataka for registration of co-operative societies and therefore the authorities below were not justified in denying the claim of the assessee only for this reason that the assessee is a Souharda Sahakari Niyamita. He pointed out that in this Tribunal order, the Tribunal has restored back the matter to the file of the AO for fresh decision on merit. At this juncture, the Bench pointed out that as per assessment order, it is noted by the AO on page 6 that the assessee was having 610 Associate Members out of total 1559 members and the percentage of associate members is 40% and as per the provisions of Karnataka Co-operative Societies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther Tribunal order rendered in the case of M/s. Vikasha Vividhoddesha Sahakara Sangha Niyamitha Vs. ITO in ITA No.1424(Bang)2019 dated 01.11.2019. He submitted a copy of this Tribunal order also and pointed out that in this case, the Tribunal has followed earlier Tribunal order rendered in the case of /s. Athmashakthi Multipurpose Co-operative Society Ltd., Vs. ITO (supra) and decided similar issue in favour of the Revenue and in this regard our attention was drawn to para No.5 of this Tribunal order. 3. I have considered the rival submissions. I find that it is an undisputed fact that in the present case, the assessee has violated the provisions of Karnataka Co-operative Societies Act, 1959 because it is noted by the AO in para Nos.6.0 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te members in excess of 15% of regular members and still eligible for deduction u/s 80P of I. T. Act as in the present case and in the case cited by learned DR of the revenue and because of this vital difference in facts, these judicial pronouncements are not applicable in the present case. 4. Respectfully following this Tribunal order, I decide the issue against the assessee and hold that the assessee is not eligible for deduction under section 80P of the IT Act in the facts of the present case because it is an undisputed fact in the present case that the assessee has violated the provisions of Karnataka Co-operative Societies Act, 1959 and therefore the judgment of Hon ble Apex Court rendered in the case of Citizen Co-operative Society Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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