M/S JAI HANUMAN CREDIT SOUHARDH SAHAKARI LIMITED,INGALI, BELGAVI vs. PRINCIPAL COMMISSIONER OF INCOME TAX, BELAGAVI

PDF · subscribers
ITA 154/PAN/2019Status: DisposedITAT Panaji18 July 2023AY 2014-15Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI G.D. PADMAHSHALI (Accountant Member)3 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a "Souharda" cooperative society registered under state law is indeed a "cooperative society" within the meaning of Section 2(19) of the Act. Therefore, the PCIT's revision directions were incorrect.

What were the facts?

The assessee, a "Souharda" cooperative society, claimed deductions under Section 80P. The PCIT initiated revision proceedings under Section 263, holding that the Assessing Officer's acceptance of the deduction was erroneous because the assessee was not a "cooperative society" as defined under Section 2(19) of the Act.

What were the issues?

Whether a "Souharda" cooperative society qualifies as a "cooperative society" under Section 2(19) for the purpose of claiming deductions under Section 80P. Whether the PCIT's revision under Section 263 was justified.

Which sections of the Income-tax Act were involved?

Section 80P,Section 263,Section 2(19)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, PANAJI BENCH : PANAJI

Before: SHRI SATBEER SINGH GODARA & SHRI G.D. PADMAHSHALI

Hearing: 12.07.2023Pronounced: 18.07.2023

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.154/PAN./2019 Assessment year 2014-2015 M/s. Jai Hanuman Credit The PCIT, Souhardh Sahakari Dr. B.R. Ambedkar Road, Limited, A/p : Ingali, Opp. Civil Hospital, Chikodi Taluka of Belgavi vs. Belagavi. District, State of Karnataka. PIN – 590 001 PIN – 591 201 State of Karnataka. PAN AABAT0857G (Appellant) (Respondent) For Assessee : Shri Sachin Nichale For Revenue : Shri N. Shrikanth Date of Hearing : 12.07.2023 Date of Pronouncement : 18.07.2023 ORDER PER SATBEER SINGH GODARA, J.M. :

This assessee’s appeal for the assessment year 2014- 2015, arise against the PCIT, Belgavi’s order F.No.263/Pr.CIT/ BGV/2018-19/1772 dated 21.02.2019, involving proceedings u/sec.263 of the Income Tax Act, 1961 (in short "the Act").

Heard both the parties. Case files perused.

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;

2 ITA.No.154/PAN./2019 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 an 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 impugned assessment year deserve to be upheld in very terms.

3.

All these Revenue’s arguments fail to evoke our concurrence as the instant issue of assessee; a “Souharda” cooperative society being covered u/sec.2(19) of the Act, is no more res integra in light of the valuable guidance coming from hon’ble jurisdictional high court’s recent decision [2022] 134 taxmann.com 62 (Kar.) Sri Matha Vivododdesha Pathina Souharda Sahakari Niyamitha vs. Union of India. Their 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 3 ITA.No.154/PAN./2019 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.

4.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open court on 18.07.2023.

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →