SHREERAMA CREDIT CO-OPERATIVE SOCIETY LTD V. COMMISSIONER OF INCOME TAX (APPEALS)

WP/2444/2020

AI Insights

The case involves Shreerama Credit Co-operative Society Ltd., which filed a writ petition against the Commissioner of Income Tax (Appeals) and the Assistant Commissioner of Income Tax, challenging an assessment order dated 06.12.2019. The petitioner sought relief under Articles 226 & 227 of the Constitution of India, arguing for parity with a similar case (W.P.No.48414/2018) where it was held that entities under the Karnataka Souharda Sahakari Act, 1997 are entitled to benefits under section 80P of the Income Tax Act, 1961. The court agreed with the petitioner's stance, referencing the previous judgment and quashing the assessment order.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 754894 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 05-02-2020
• Assessment Year: misc
• Other Referred Cases: M/S Swabhimani Souharda Credit Co-operative Ltd. vs. Government of India and Others
• Laws Referred To: Income Tax Act, 1961, Karnataka Souharda Sahakari Act, 1997
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JEEVAN NEERALGI
• Assessee Lawyers: MAHESH UPPIN
• Keywords: Assessment Order; Co-operative Society; Income Tax; Legal relief; Writ petition
• Section: 80P; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF FEBRUARY, 2020 BEFORE THE HON’BLE MR. JUSTICE KRISHNA S.DIXIT WRIT PETITION NO. 2444 OF 2020 (T-IT) BETWEEN: SHREERAMA CREDIT CO-OPERATIVE SOCIETY LTD., SHANKER SHET BUILDING, MAIN ROAD, KUNDAPURA-576 201. REPRESENTED BY ITS SECRETARY, MR.NAGARAJ NAIK. ... PETITIONER (BY SRI. MAHESH R UPPIN, ADVOCATE) AND: 1. COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, C.R.BUILDING, N.G.ROAD, ATTAVARA, MANGALURU-575 001. 2. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-1, AAYAKAR BHAVAN, ADI-UDUPI MALPE ROAD, UDUPI-576 103. ... RESPONDENTS (BY SRI. JEEVAN J NEERALGI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED 06.12.2019 PASSED IN ORDER PASSED BY THE R-2 MARKED AS ANNEXURE-A OR IN THE ALTERNATIVE AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: 2 ORDER The subject matter of this Writ Petition being substantially similar to the one treated in W.P.No.48414 /2018 (T-IT) between M/S SWABHIMANI SOUHARDA CREDIT CO-OPERATIVE LTD. VS. GOVERNMENT OF INDIA AND OTHERS, disposed off vide judgment dated 16.01.2020, counsel for the petitioner submits, same relief needs to be extended to the similarly circumstanced litigant herein on the principle of parity, there being no repugnant factors, disentitling him to an equal treatment. 2. Learned Senior Panel Counsel on request having accepted notice for the Revenue fairly submits that as yet, the said judgment is not put in challenge or review; however, he seeks liberty to the respondents to seek restoration of this Writ Petition for consideration on merits, by filing a Memo if the version of the petitioner emerging from the records is discovered to be untrue; the stand of the Panel Counsel is fair and reasonable. 3. In the above judgment, this Court having held the entities registered under the provisions of Karnataka Souharda Sahakari Act, 1997, are also Co-operative Societies and therefore, they are entitled to seek benefit under Section 3 80P of the Income Tax Act, 1961. The operative portion of the judgment reads as under: “In the above circumstances, these writ petitions succeed; a declaration is made to the effect that the entities registered under the Karnataka Souharda Sahakari Act, 1997 fit into the definition of “co- operative society” as enacted in sec.2(19) of the Income Tax Act, 1961 and therefore subject to all just exceptions, petitioners are entitled to stake their claim for the benefit of sec.80P of the said Act; a Writ of Certiorari issues quashing the impugned notice dated 30.03.2018 at Annexure-D in W.P.No.48414/2018; other legal consequences accordingly do follow. It is needless to mention that the other provisions of sec. 80P of 1961 Act and their effect on the claim of the petitioner-like-societies have been left to be addressed by the concerned authorities.” In the above circumstances, the Writ Petition is disposed off granting same relief as has been granted to the litigant in the aforesaid judgment, of course reserving liberty to the Revenue for seeking revival of the Writ Petition, if version of the petitioner is discovered to be untrue. No costs. Sd/- JUDGE CBC "