Case Law Details
Nagalambika Pattina Souharda Sahakari Niyamita Vs ITO (ITAT Bangalore)
ITAT Bangalore held that deduction under section 80P of the Income Tax Act is duly available to the entities registered under Karnataka Souharda Sahakari Act, 1997.
Facts- Assessee is a Cooperative Society registered under Karnataka Souharda Sahakari Act, 1997. It is involved in the business of providing credit facilities to its members in form of loans for business, housing etc. It also collects funds from its members.
AO noted that as per the Certificate filed by the assessee, it is registered under Karnataka Souharda Sahakari Act, 1997 on 01.10.2014 as a “Cooperative” and is not registered under Karnataka Cooperative Societies Act, 1959 as a “Cooperative Society”. AO held that the assessee is a ‘Cooperative’ and not a “Cooperative Society”. AO held that deductions u/s 80P of the Act are allowed only to Cooperative Societies registered under Karnataka Cooperative Societies Act and not to a Cooperative registered under Karnataka Souharda Sahakari Act.
Hence, deduction claimed u/s 80P of the Act was disallowed and Net profit of Rs.35,37,272/- was taxed as Income in status of AOP. On appeal, the Ld. CIT(A) confirmed the order of AO. Against this assessee has preferred the present appeal.
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