CONSTITUTION OF INDIA, 1950

Article 226

Writ petition - Deduction under section 80P - Assessee society being registered under State Souharda Sahakari Act whether eligible for deduction under section 80P -

Assessee-society was engaged in the business of banking and providing credit facilities to its members had filed this Writ Petition to quash assessment order and to declare that assessee-Society registered under the Souhardha Act, 1997 being par with the cooperative society registered under Karnataka Cooperative Societies Act, 1959 was entitled to claim the benefit in terms of the scheme under Section 80P. Consequently, to issue a writ of mandamus directing authority to de-freeze the bank accounts of assessee. Held: Interpretation adopted by the authority that assessee registered under the Karnataka Souharda Sahakari Act, 1997 was not a cooperative society within a definition of Cooperative Society under Section 2(19) of Income Tax Act was arbitrary, illegal and ultra vires the constitution and violative of Article 14 and 19(1)(c) of the constitution of India. Authority concerned was directed to pass fresh order treating assessee as a cooperative society extending the benefit under Section 80P. Order issued by authority to freeze the Bank Account of assessee was also quashed.

Followed:Swabhimani Souharda Credit Co. Operative Ltd. v. Government Of India Ministry Of Finance 2020 TaxPub(DT) 0504 (Karn-HC)

REFERRED :

FAVOUR : Petition allowed

A.Y. :

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