Sri. Brhamadev Urban Credit Souharda Sahakari Niyamit v. The ITO, Ward-1, Gokak / CIT, Gokak / CBDT, New Delhi / Ministry Finance, New Delhi / Govt. of Karnataka, Bangalore / Registrar of Co.-Op. Societies, Bengaluru
[Citation -2020-LL-0127-373]

Citation 2020-LL-0127-373
Appellant Name Sri. Brhamadev Urban Credit Souharda Sahakari Niyamit
Respondent Name The ITO, Ward-1, Gokak / CIT, Gokak / CBDT, New Delhi / Ministry Finance, New Delhi / Govt. of Karnataka, Bangalore / Registrar of Co.-Op. Societies, Bengaluru
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 • co-operative society • assessment order • fresh assessment • benefit of deduction
Bot Summary: Identical issue had come-up before the Principal Bench, High Court of Karnataka, Bengaluru in WP No.48414/2018 and connected writ petition, 4 wherein the Court had framed following issue for its consideration: 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 5 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. The question is answered by the Principal Bench in the above writ petitions. 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 respondents to pass 6 fresh assessment order treating the petitioner as Co-operative Society 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.


IN HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS 27th DAY OF JANUARY, 2020 BEFORE HON BLE MR.JUSTICE S.G. PANDIT WRIT PETITION NO.110346/2019 (T-IT) BETWEEN: SRI. BRHAMADEV URBAN CREDIT SOUHARDA SAHAKARI NIYAMIT, YAMAKANAMARADI, MARKET ROAD, YAMAKANAMARADI, TQ:HUKKERI, DIST:BELAGAVI. REP. BY ITS CEO, SRI. ANAND S/O BASAVANNI CHANNAPPGOL, AGED ABOUT 45 YEARS, PETITIONER (BY SRI.H.R. KAMBIYAVAR, ADV. FOR SMT. PATRI SHASHIKALA KALLAYYA, ADVOCATE) AND 1. INCOME TAX OFFICER WARD 1, DR.BHODAGERIS HOSPITAL BUILDING, BELAGAVI ROAD, GOKAK, DIST: BELAGAVI. 2. COMMISSIONER OF INCOME TAX GOKAK, DR. GHODIGERI S HOSPITAL BUILIDING, BELAGAVI ROAD, GOKAK-591307. 3. CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK, NEW DELHI-110001. 4. MINISTRY OF FINANCE GOVERNMENT OF INDIA, REVENUE DEPARTMENT, NORTH BLOCK, NEW DELHI-110001. REP. BY ITS UNDER SECRETARY. 2 5. GOVERNMENT OF KARNATAKA CO-OPERATION DEPARTMENT, KARNATAKA GOVERNMENT SECRETARIAT, ROOM NO.610, 3RD GATE, 6TH FLOOR, M.S. BUILDING, DR. AMBEDKAR VEEDHI, BANGALORE-560001. REP. BY ITS SECRETARY. 6. REGISTRAR OF CO-OPERATIVE SOCIETIES, NO.1, ALI ASKER ROAD, NEAR RAJ BHAVAN, VASANTH NAGAR, BENGALURU-560052. REP. BY ITS REGISTRAR. RESPONDENTS (BY SRI Y V RAVIRAJ, ADV. FOR R1-R4) (SMT. VEENA HEGDE, AGA FOR R5 AND R6) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO (A) TO DECLARE THAT WORD "CO-OPERATIVE" IN SECTION 2(19) OF IT ACT APPLIES TO ALL IDENTITIES REGISTERED UNDER STATE LAW INCLUDING CO-OPERATIVE AS DEFINED UNDER SECTION 2(E) OF KARNATAKA SOUHARDA SAHAKARI ACT, 1997 BY HARMONIOUS CONSTRUCTION OF BOTH ENACTMENTS (B) CONSEQUENTLY ISSUE WRIT OF CERTIORARI TO QUASH ASSESSMENT ORDER BEARING NO.PAN. AAEAS1004R DATED 25.02.2019 PASSED BY 1ST RESPONDENT PRODUCED AS ANNEXURE-D. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING B GROUP THIS DAY, COURT MADE FOLLOWING: 3 ORDER petitioner-Credit Souharda Sahakari Niyamita registered under Karnataka Souharda Sahakari Act, 1997 (for short, 1997, Act ) is before this Court under Article 226 of Constitution to declare that word Co-operative in Section 2(19) of Income Tax Act, 1961 (for short, 1961, Act ) applies to all co-operatives including word co-operative defined under Section 2(e) of 1997 Act and consequently prayer to quash Assessment Order bearing No.PAN. AAEAS1004R, dated 25.02.2019 passed by 1st respondent vide Annexure-D. In other words, petitioner is seeking for prayer to treat it as Co-operative on par with Co-operative registered under Karnataka Co-operative Societies Act, 1959 and to extend benefit of Section 80P of 1961 Act. 2. Identical issue had come-up before Principal Bench, High Court of Karnataka, Bengaluru in WP No.48414/2018 and connected writ petition, 4 wherein Court had framed following issue for its consideration: Whether entity registered under Karnataka Souharda Sahakari Act, 1997 fits into definition of co-operative society as enacted by Section 2(19) of Income Tax Act, 1961 for purpose of Section 80P thereof. 3. After referring to Section 80P of 1961 Act, provisions of 1997 Act and Karnataka Co- operative Societies Act, 1959 (for short, 1959 Act ) Principal Bench in above said writ petitions has held as follows: In above circumstances, these writ petitions succeed; declaration is made to effect that entities registered under Karnataka Souharda Sahakari Act, 1997 fit into definition of co-operative society as enacted in Section 2(19) of Income Tax Act, 1961 and therefore subject to all just exceptions, petitioners are entitled to stake their claim for benefit of Section 80P of said Act; Writ of Certiorari issues quashing impugned notice dated 30.3.2018 at 5 Annexure-D in WP No.48414/2018; other legal consequences accordingly do follow. It is needless to mention that other provisions of Section 80P of 1961 Act and their effect on claim of petitioner-like- societies have been left to be addressed by concerned authorities. 4. question involved in present writ petition is also to effect that whether petitioner- Society registered under 1997 Act is to be treated on par with Co-operative Society registered under 1959 Act and whether petitioner would be entitled for benefit of Section 80P of 1961 Act. question is answered by Principal Bench in above writ petitions. Hence, in terms of order dated 16.1.2020 in WP No.48414/2018 and connected writ petition, present writ petition is disposed of. 5. Annexure-D, assessment order bearing No.PAN. AAEAS1004R, dated 25.02.2019 passed by 1st respondent is set-aside. respondents to pass 6 fresh assessment order treating petitioner as Co-operative Society extending benefit under Section 80P of 1961 Act, with all other exceptions as observed in order dated 16.1.2020 in WP No.48414/2018. SD/- JUDGE JTR Sri. Brhamadev Urban Credit Souharda Sahakari Niyamit v. ITO, Ward-1, Gokak / CIT, Gokak / CBDT, New Delhi / Ministry Finance, New Delhi / Govt. of Karnataka, Bangalore / Registrar of Co.-Op. Societies, Bengaluru
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