M/S.Prabhulingeshwar Souudhard ... vs The Commissioner Of Income Tax ...
2022 Latest Caselaw 3132 Kant

         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.100064 OF 2018

BETWEEN:

M/S. PRABHULINGESHWAR SOUHARDA CREDIT
CO-OPERATIVE LIMITED
MUDHOL ROAD, A/P SIDDAPUR,
TALUK JAMAKHANDI, DIST:BAGALKOT,
REP. BY ITS GENERAL MANAGER,
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.229/BANG/2018 ALSO
SET-ASIDE THE ORDER DATED 2.11.2017 PASSED BY THE
COMMISSIONER OF INCOME TAX (APPEALS), BELGAUM IN
ITA NO.19/BGM/2014-15 AND SO ALSO SET-ASIDE THE
ASSESSMENT ORDER PASSED BY THE INCOME TAX OFFICER
WARD 2, BIJAPUR, DATED 10.3.2014 FOR A.Y. 2011-12.
     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.229/BANG/2018, order dated

2.11.2017 passed by the Commissioner of Income Tax

(Appeals), Belagavi in ITA No.19/BGM/2014-15 and also

assessment order dated 10.3.2014 passed by the Income

Tax Officer, Ward 2, Bijapur for the Assessment Year

2011-12.

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

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.

b) The impugned orders dated 7.9.2018 passed by the Income Tax Appellate Tribunal, Bengaluru in ITA No.229/BANG/2018, order dated 2.11.2017 passed by the Commissioner of Income Tax (Appeals), Belagavi in ITA No.19/BGM/2014-15 and also the assessment order dated 10.3.2014 passed by the Income Tax Officer, Ward 2, Bijapur for the Assessment Year 2011-12, 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 dated 21.12.2021 rendered by the co- ordinate Bench of this Court in WA No.378/2020 and connected matters.

SD JUDGE

SD JUDGE

JTR