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Is a co-operative society eligible to claim deduction u/s 80P of the Income Tax Act?


Court :
ITAT Bangalore

Brief :
This appeal at the instance of the assessee is directed against the CIT(A)�s order dated 26.03.2021. The relevant assessment year is 2015-2016.

Citation :
ITA No.193/Bang/2021: Asst.Year 2015-2016

Before Shri George George K, Judicial Member
ITA No.193/Bang/2021: Asst.Year 2015-2016

 Shri Mathaji Vividoddesha
Souharda Sahakari Niyamitha
No.126, I Main, Sheshadripuram
Bangalore – 560 020.


The Income Tax Officer
Ward 2(2)(1)

Appellant by : Sri.Prakash Hegde, CA
Respondent by : Sri.Ganesh R.Ghale, Standing Counsel
Date of Hearing : 14.09.2021
Date of Pronouncement : 20.09.2021

The brief facts of the case are as follows:-
The assessee is a credit co-operative society engaged in providing credit facilities to its members. For the assessment year 2015-2016, the return of income was filed after claiming deduction of Rs.25,17,420 u/s 80P of the I.T.Act. Later on the assessee filed revised return on 28.12.2015 declaring total income at Rs.11,94,000 after claiming the amount of Rs.25,10,956 u/s 80P of the I.T.Act. The assessment was completed u/s 143(3) of the I.T.Act vide order dated 18.12.2017.

2. Aggrieved, the assessee preferred an appeal to the ITAT. The learned AR submitted that the assessee though it is registered under the Karnataka Souhardha Sahakari Act, 1997, it is still a co-operative society entitled to the benefit of section 80P of the I.T.Act. In this context, the learned AR relied on the judgment of the Hon’ble jurisdictional High Court in the case of Swabhimani Souharda Credit Cooperative Limited v. Government of India reported in (2020)
421 ITR 670 (Kar.).

3. I have heard rival submissions and perused the material on record. The primary reason for the Assessing Officer to deny the benefit of deduction u/s 80P of the I.T.Act was that the assessee was only registered under the Karnataka Souhardha Sahakari Act, 1997, and therefore, was not a cooperative society within the purview of section 2(19) of the I.T.Act. The Hon’ble Karnataka High Court in the case of M/s.Swabhimani Souharda Credit Co-operative Ltd. (supra) had decided an identical issue and held that the entities registered under the Karnataka Souharda Sahakari Act, 1997, fit into the definite term “Co-operative Society”.

4.In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 20th day of September, 2021.

Please find attached the enclosed file for the full judgement


Poojitha Raam
on 02 October 2021
Published in Income Tax
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