The Tax Publishers2020 TaxPub(DT) 0504 (Karn-HC) : (2020) 421 ITR 0670

INCOME TAX ACT, 1961

Section 80P

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 IT Act, 1961 for the purpose of section 80P, therefore, appeal of assessee was allowed.

Deduction under section 80P - Allowability - Entity registered under Karnataka Souharda Sahakari Act, 1997 -

Issue arose under consideration as to whether an entity registered under the State Souharda Sahakari Act, 1997 fits into the definition of “co-operative society” as enacted by section 2(19) for the purpose of section 80P thereof. Held: The word 'co-operative' is employed not as an adjective but as a noun and definition of other relative concepts in the dictionary clauses of these Acts strengthens this view. Section 7 of the 1997 Act provides that entity registered as a 'co-operative' shall be a body corporate, notwithstanding the conspicuous absence of the word 'society' as a post-fix. Section 4 of this Act bars registration of an entity unless its main objects are to serve the interest of members in the area of co-operation and its bye-laws provide for economic and social betterment of its members through self-help & mutual aid in accordance with the cooperative principles. Therefore subject to all just exceptions, assessee was entitled to stake their claim for benefit of section 80P.

REFERRED : Ujagar Prints, Etc. v. UOI & Ors. AIR 1989 SC 516 : 1988 TaxPub(EX) 857 (SC).

FAVOUR : In assessee's favour.

A.Y. :



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