SRI BHUVANESHWARI VIVIDODDHESHA SOUHARDA SAHAKARI SANGHA NIYAMITHA ,GANGAVATHI vs. INCOME TAX OFFICER, WARD-1 , KOPPAL
Income Tax Appellate Tribunal, ‘SMC’ BENCH, BANGALORE
Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEYAssessment Year: 2018-19
PER WASEEM AHMED, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee against the order passed by the NFAC, Delhi vide order dated 18/02/2025 in DIN No. ITBA/NFAC/
S/250/2024-25/1073401339(1) for the assessment year 2018-19. 2. This appeal is filed by the assessee against the order of the Learned CIT(A) dated 18-02-2025. The appeal is delayed by 9 days.
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3. We have considered the petition for condonation of delay. The delay is only 9 days. The assessee explained the reasons, which are genuine and not deliberate. Following the decision of the Hon’ble
4. Coming to the issue on merits, the assessee is a co-operative society registered under the Karnataka Souharda Sahakari Act, 1997. The Assessing Officer denied the deduction u/s 80P of the Act on the ground that such societies are not covered by section 2(19) of the Act.
The ld. CIT(A) also confirmed the denial of the deduction under section 80P of the Act.
We note that the Hon’ble Karnataka High Court in Swabhimani Souharda Credit Co-operative Ltd. vs. Government of India & Others [2020] 122 taxmann.com 37 has held that societies registered under the Karnataka Souharda Sahakari Act, 1997 also fall within the meaning of "co-operative society" under section 2(19) of the Income-tax Act. Therefore, they are eligible to claim deduction u/s 80P of the Act. This judgment is binding on the tax authorities.
1 Following the binding judgment, we hold that the assessee is entitled in law to claim deduction u/s 80P of the Act. However, we also observe that the Assessing Officer has not verified whether the assessee satisfies the other conditions prescribed under section 80P of the Act, such as the nature of income and activities carried on. These conditions are factual and must be verified before granting the deduction at the level of the AO. Therefore, while allowing the appeal in favour of the Page 3 of 3
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assessee, we direct the Assessing Officer to verify these other factual aspects in accordance with law and grant deduction u/s 80P if the assessee is found eligible on facts. Hence, the appeal of the assessee is allowed with above directions.
In the result, the appeal of the assessee is hereby allowed.
Order pronounced in court on 9th day of September, 2025
Bangalore
Dated, 9th September, 2025
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Copy to:
The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file
By order
Asst.