Shree Shridarswami Credit Souharda Sahakari Niyamit Ltd. v. The Income-tax Officer, Ward-1(2), Belgaum
[Citation -2020-LL-0127-369]
| Citation | 2020-LL-0127-369 |
|---|---|
| Appellant Name | Shree Shridarswami Credit Souharda Sahakari Niyamit Ltd. |
| Respondent Name | The Income-tax Officer, Ward-1(2), Belgaum |
| Court | HIGH COURT OF KARNATAKA CIRCUIT BENCH AT DHARWAD |
| Relevant Act | Income-tax |
| Date of Order | 27/01/2020 |
| Judgment | View Judgment |
| Keyword Tags | co-operative societies act • show-cause notice • notice issued |
| Bot Summary: | THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING B GROUP THIS DAY, THE COURT MADE THE FOLLOWING: 2 ORDER The petitioner-Credit Souharda Sahakari Niyamita registered under the Karnataka Souharda Sahakari Act, 1997 is before this Court under Article 226 of the Constitution of India praying to quash the show-cause notice issued by the respondent-Income Tax Officer, dated 02.01.2019 bearing No. ITBA/AST/F/142(1)/2018-19/1014684891(1) vide Annexure-C. In other words, the petitioner is seeking for prayer to treat it as Co-operative on par with Co- operative registered under the Karnataka Co-operative Societies Act, 1959 and to extend the benefit of Section 80P of the 1961 Act. Identical issue had come-up before the Principal Bench, High Court of Karnataka, Bengaluru in WP No.48414/2018 and connected writ petition, wherein the Court had framed following issue for its consideration: 3 Whether an entity registered under the Karnataka Souharda Sahakari Act, 1997 fits into the definition of co-operative society as enacted by Section 2(19) of the Income Tax Act, 1961 for the purpose of Section 80P thereof. After referring to Section 80P of the 1961 Act, the provisions of 1997 Act and Karnataka Co- operative Societies Act, 1959, the Principal Bench in the above said writ petitions has held as follows: 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 co-operative society as enacted in Section 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 Section 80P of the said Act; a Writ of Certiorari issues quashing the impugned notice dated 30.3.2018 at Annexure-D in WP No.48414/2018; other legal consequences accordingly do follow. It is needless to mention that the other provisions of Section 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. The question involved in the present writ petition is also to the effect that whether the petitioner- Society registered under the 1997 Act is to be treated on par with Co-operative Society registered under the 1959 Act and whether the petitioner would be entitled for the benefit of Section 80P of the 1961 Act. In terms of the order dated 16.1.2020 in WP No.48414/2018 and connected writ petition, the present writ petition is disposed of. The respondent- Income Tax Officer to pass assessment order treating the petitioner as Co-operative Society and extending the benefit under Section 80P of the 1961 Act with all other exceptions as observed in order dated 16.1.2020 in WP No.48414/2018. |