Shri Parshwanath Credit Souhardha Sahakari Limited, Belgaum V. Principal Commissioner of Income Tax, Belgavi

ITA 155/PAN/2019

AI Insights

The case involves Shri Parshwanath Credit Souhardha Sahakari Ltd., a 'Souharda' cooperative society, appealing against the revision directions of the PCIT, Belagavi, which termed the regular assessment by the Assessing Officer as erroneous and prejudicial to the interest of the Revenue. The primary contention was whether the assessee qualifies as a 'cooperative society' under section 2(19) of the Income Tax Act, 1961, which affects their eligibility for deductions under section 80P. The Tribunal referenced a decision by the Karnataka High Court, which affirmed that 'Souharda' societies are indeed 'cooperative societies' as per the Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136829 (ITAT-PANAJI)
• Duration Of Justice: 4 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 24-04-2019
• Other Referred Cases: Sri Matha Vivododdesha Pathina Souharda Sahakari Niyamitha vs. Union of India
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

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 Souhardha Sahakari Ltd., Akol. A/p. Akol Chikodi Taluka of Belagavi District. PIN – 591 211 Karnataka PAN AAAAS6860K vs. The Principal Commissioner of Income Tax, Dr. B.R. Ambedkar Road, Opp. Civil Hospital, Belagavi. Karnataka PIN – 591 001 (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. 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 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. 4. This assessee’s appeal is allowed in above terms. Order pronounced in the open court on 26.07.2023. Sd/- Sd/- [G.D. PADMAHSHALI] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 26 th July, 2023 VBP/- Copy to 1. The appellant 2. The respondent 3. The Jt. CIT, Range-2, Belagavi 4. The ITO, Ward-1, Nipani 5. D.R. ITAT, Panaji Bench, Panaji 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.