SHRI PARSHWANATH CREDIT SOUHARDHA SAHAKARI LIMITED,BELGAUM vs. PRINCIPAL COMMISSIONER OF INCOME TAX, BELGAVI

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH : PANAJI (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER ITA.No.155/PAN./2019 Assessment Year 2014-2015 Shri Parshwanath Credit The Principal Souhardha Sahakari Ltd., Commissioner of Income Akol. A/p. Akol Chikodi Tax, Dr. B.R. Ambedkar Taluka of Belagavi District. vs. Road, Opp. Civil Hospital, PIN – 591 211 Belagavi. Karnataka Karnataka PIN – 591 001 PAN AAAAS6860K (Appellant) (Respondent) For Assessee : -None- For Revenue : Shri Prabhakar Anand DJ Date of Hearing : 13.07.2023 Date of Pronouncement : 26.07.2023 ORDER PER SATBEER SINGH GODARA, J.M. :

This assessee’s appeal for assessment year 2014- 2015, arises against the Pr. CIT, Belagavi’s order dated 21.02.2019, in case no.F.No.263/Pr.CIT/BGV/2018-19/1771, in proceedings u/sec.263 of the Income Tax Act, 1961 (in short "the Act").

None appeared at assessee’s behest, despite service of notice. It is accordingly proceeded ex-parte.

2 ITA.No.155/PAN./2019 2. It emerges during the course of hearing that the sole dispute between the parties is that of assessee’s eligibility to claim sec.80P deductions which duly stood accepted by the assessing authority(ies) in the correspondent assessment; framed u/sec.143(3) of the Act. To be more precise, the solitary substantial issue between the parties is regarding correctness of learned PCIT’s revision directions terming the Assessing Officer’s corresponding regular assessment framed hereinabove as erroneous one causing prejudice to interest of the Revenue for having treated this taxpayer as a “cooperative society” registered u/sec.2(19) of the Act. We wish to reiterate once again that the Revenue’s stand before us in light of the PCIT’s revision directions is that the assessee is not a “cooperative society” within the meaning of sec.2(19) of the Act being only a “Souharda” society registered under the state law(s). It therefore, vehemently argued before us that the PCIT’s revision directions in the instant case deserve to be upheld in very terms.

3 ITA.No.155/PAN./2019 lordships’ have settled the law therein that a “Souharda” cooperative society registered under the state cooperative law(s) very well forms “a cooperative society” u/sec.2(19) of the Act. That being the case, we accept the assessee’s contentions challenging correctness of the learned PCIT’s revision directions in the impugned assessment year. The Assessing Officer’s corresponding regular assessment stand restored as a necessary corollary. Ordered accordingly.

Order pronounced in the open court on 26.07.2023.