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Shri Vitthalray Souharda Pattin Sahakari Niyamit v. UOI (2020)426 ITR 457 / 121 taxmann.com 300/ 277 Taxman 276(Karn)(HC)

S. 80P : Co-operative societies – Society Registered Under Karnataka Act of 1997 falls within definition of Co-operative society- Entitled to [ S.2(19) Art. 14, 19(1) (c ), Karnataka Souharda Sahakari Act, 1997 , Karnataka Co-operative Societies Act, 1959 )

The assessee, a society registered under the Karnataka Souharda Sahakari Act, 1997 was in banking business and provided credit facilities to its members. On a writ petition to declare that the assessee registered under the 1997 Act was on par with a co-operative society registered under the Karnataka Co-operative Societies Act, 1959 and was entitled to claim the benefit under section 80P of the Income-tax Act, 1961 and to defreeze the assessee’s bank accounts . Allowing the petition the Court held that

the assessee registered under the 1997 Act was a co-operative society within the definition of co-operative society under S. 2(19) of the Act and should be extended the benefit under S. 80P of the Act. Consequently, the order of assessment and order to freeze the assessee’s bank account were to be quashed. Swabhimani Souharda Credit Co-Operative Ltd. v. government of India( 2020) 421 ITR 670 (Karn) (HC), applied.