| The Tax Publishers2020 TaxPub(DT) 5557 (Bang-Trib) INCOME TAX ACT, 1961
Section 80P(2)(a)(i)
Entities registered under Karnataka Souharda Sahakari Act, 1997 fit into the definition of 'co-operative society' as enacted in section 2(19) of IT Act, 1961 and therefore, assessee was entitled to claim benefit of section 80P.
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Deduction under section 80P(2)(a)(i) - Co-operative society - Allowability in the hands of assessee, a souharda sahakari, registered under Karnataka Souharda Sahakari Act, 1997 -
Assessee, a Souharda Sahakari, registered under Karnataka Souharda Sahakari Act, 1997, claimed deduction under section 80P(2)(a)(i). AO held that Souharda registered under the Karnataka Souharda Sahakari Act, 1997 could not be regarded as co-operative society entitled to benefit of deduction under section 80P(2)(a)(i). Held: A perusal of two preambles and various provisions of Karnataka Co-operative Societies Act, 1959 and Karnataka Souharda Sahakari Act, 1997, leads one to an irresistible conclusion that both these Acts are cognate statutes that deal with co-operative societies, regardless of some difference in their nomenclature and functionality, the subject-matter being same. Accordingly, entities registered under Karnataka Souharda Sahakari Act, 1997 fit into the definition of 'co-operative society' as enacted in section 2(19) of IT Act, 1961 and therefore, assessee was entitled to claim benefit of section 80P.
Followed:Swabhimani Souharda Credit Co-operative Ltd. v. Government of India & Ors. W.P.No.48414 of 2018 Judgment dated 16-1-2020 : 2020 TaxPub(DT) 504 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2016-17
IN THE ITAT, BANGALORE BENCH
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