IN HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS 7TH DAY OF FEBRUARY, 2020 BEFORE HONBLE MR. JUSTICE S. G. PANDIT WRIT PETITION NO.101003/2020 (T-IT) BETWEEN: SHRI. SHANKARLING CO-OPERATIVE CREDIT SOUHARDA SAHAKARI, NIYAMIT, SANKESHWAR, SUBHAS ROAD, SANKESHWAR, DIST : BELAGAVI REPRESENTED BY ITS, CEO, SHRI. RAMU S/O. APPA KAPASE AGE : 78 YEARS. PETITIONER (BY SRI. H R KAMBIYAVAR, ADV. FOR SMT. PATIRI SHASHIKALA K, SMT. ROOPA S CHINIVAR, ADVOCATES) AND 1. INCOME TAX OFFICER, WARD 1, GOKAK. 2. CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK, NEW DELHI-110001 REP. BY ITS CHAIRPERSON. 3. MINISTRY OF FINANCE REVENUE DEPARTMENT NORTH BLOCK, NEW DELHI-110001 REP. BY ITS UNDER SECRETARY 2 4. 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 5. 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 TO R3) (SMT. VEENA HEGDE, ADV. FOR R4 AND R5) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING 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 AND CONSEQUENTLY ISSUE WRIT OF CERTIORARI TO QUASH IMPUGNED ORDER BEARING NO. PAN:AADAS3568D, ITBA/AST/S/143(3)2019-20/1021758486(1), DT; 05/12/2019, VIDE ANNEXURE-'D', WAS PASSED BY 1ST RESPONDENT. 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 praying 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 notice of demand issued under Section 156 and Section 274 of 1961 Act as well as to quash Annexure-D, assessment order dated 05.12.2019. 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 4 WP No.48414/2018 and connected writ petition, 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, 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 5 said Act; Writ of Certiorari issues quashing 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 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 Societies 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. Annexure-D, assessment order bearing No.ITBA/AST/S/143(3)/2019-20/1021758301(1) dated 6 05.12.2019 is quashed. respondent No.1 to pass 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 Sh Shri Shankarling Co-Operative Credit Souharda Sahakari, Niyamit v. ITO, Ward-1, Gokak / CBDT, New Delhi / Ministry of Finance, New Delhi / Govt. of Karnataka, Bangalore / Registrar of Co-Op. Societies, Bengaluru