M/S.PRABHULINGESHWAR SOUUDHARD CREDIT V. THE COMMISSIONER OF INCOME TAX (APPEALS)

ITA/100066/2018

AI Insights

The case involves M/s. Prabhulingeshwar Souharda Credit Co-operative Limited, which appealed against the decisions of the Income Tax Appellate Tribunal, Commissioner of Income Tax (Appeals), and the Income Tax Officer, which denied them the benefits under Section 80P(2)(a)(i) of the Income Tax Act, 1961. The primary legal question was whether this section's benefits extend to cooperatives registered under the Karnataka Souharda Sahakari Act, 1997. The High Court of Karnataka, referencing a previous judgment (WA No.378/2020), ruled in favor of the appellant, confirming their eligibility for the tax benefits in question.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 764612 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-02-2022
• Assessment Year: misc
• Other Referred Cases: WA No.378/2020
• Laws Referred To: Income Tax Act, 1961, Karnataka Souharda Sahakari Act, 1997
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ
• Assessee Lawyers: SANGRAM KULKARNI
• Keywords: Assessment Year 2013-14; Income Tax; Section 80P; Co-operative
• Section: 260A; 80P(2)(a)(i)

Judgement Text

"IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 23RD DAY OF FEBRUARY 2022 PRESENT THE HON’BLE MR. JUSTICE S.G. PANDIT AND THE HON’BLE MR. JUSTICE ANANT RAMANATH HEGDE ITA No.100066 OF 2018 BETWEEN: M/S. PRABHULINGESHWAR SOUHARDA CREDIT CO-OPERATIVE LIMITED MUDHOL ROAD, A/P SIDDAPUR, TALUK JAMAKHANDI, DIST:BAGALKOT, REP. BY ITS CHIEF EXECUTIVE OFFICER, SHRI. MAHALINGAPPA A JALAWADI, AGE ABOUT YEARS, OCC:SERVICE, MUDHOL ROAD, A/P SIDDAPUR, TALUKA:JAMKHANDI, DIST:BAGALKOT-587301. ...APPELLANT (BY SRI.SANGRAM S KULKARNI, ADVOCATE) AND 1. THE COMMISSIONER OF INCOME TAX (APPEALS) 3RD FLOOR, PHIROZ KHIMJIBAI COMPLEX, OPP. CIVIL HOSPITAL, DR. AMBEDKAR ROAD, BELGAUM-590001. 2. THE INCOME TAX OFFICER WARD NO.2, BAGALKOT, BELGAUM-587301. ...RESPONDENTS (BY SRI. Y.V. RAVIRAJ, ADV.) 2 THIS APPEAL IS FILED UNDER SECTION 260(A) OF THE INCOME TAX ACT, 1961 PRAYING TO ALLOW THE APPEAL BY ANSWERING THE SUBSTANTIAL QUESTION OF LAW IN FAVOUR OF THE APPELLANT AND SET-ASIDE THE ORDER DATED 7.9.2018 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.231/BANG/2018 ALSO SET-ASIDE THE ORDER DATED 15.11.2017 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS), BELGAUM IN ITA NO.11184/BGM/2015-16 AND SO ALSO SET-ASIDE THE ASSESSMENT ORDER PASSED BY THE INCOME TAX OFFICER WARD 2, BAGALKOT, DATED 16.2.2016 FOR A.Y. 2013-14. THIS APPEAL COMING ON FOR FINAL HEARING, THIS DAY, ANANT RAMANATH HEGDE J., PASSED THE FOLLOWING: ORDER This appeal is filed impugning the orders dated 7.9.2018 passed by the Income Tax Appellate Tribunal, Bengaluru in ITA No.231/BANG/2018, order dated 15.11.2017 passed by the Commissioner of Income Tax (Appeals), Belagavi in ITA No.11184/BGM/2015-16 and also assessment order dated 16.2.2016 passed by the Income Tax Officer, Ward 2, Bagalkot for the Assessment Year 2013-14. 2. The question that arises for consideration in this appeal is, whether the benefit of Section 80P(2)(a)(i) of the Income Tax Act, 1961 (for short, ‘IT Act’) can be 3 extended to the Co-operatives registered under the Karnataka Souharda Sahakari Act, 1997 (for short, ‘Souharda Act’). 3. The aforesaid question was answered by the co-ordinate Bench of this Court in WA No.378/2020 and connected matters in terms of the judgement dated 20.12.2021. 4. In terms of the aforesaid judgment, the benefit of Section 80P(2)(a)(i) of the IT Act is extended to the co-operatives registered under the Souharda Act. In the impugned orders, the benefit of aforementioned provision of law is not extended to the appellant. Since declaration of law is in favour of the present appellant in terms of the judgment rendered in WA No.378/2020 and connected matters referred to supra. Appeal deserves to be allowed and the benefit of Section 80P(2)(a)(i) of the IT Act has to be extended to the present appellant. 5. Hence, the following: ORDER a) The appeal is allowed. 4 b) The impugned orders dated 7.9.2018 passed by the Income Tax Appellate Tribunal, Bengaluru in ITA No.231/BANG/2018, order dated 15.11.2017 passed by the Commissioner of Income Tax (Appeals), Belagavi in ITA No.11184/BGM/2015-16 and also assessment order dated 16.2.2016 passed by the Income Tax Officer, Ward 2, Bagalkot for the Assessment Year 2013-14, are set-aside. c) The benefit of Section 80P(2)(a)(i) of the IT Act is extended to the appellant in terms of the judgment of the co- ordinate Bench of this Court in WA No.378/2020 and connected matters, dated 20.12.2021. SD JUDGE SD JUDGE JTR "