Co-operative Society registered under Karnataka Souharda Sahakari Act eligible for S. 80P Deduction under Income Tax Act: ITAT

The ITAT of Bangalore ruled that cooperative societies registered under the Karnataka Souharda Sahakari Act are eligible for deductions under Section 80P of the Income Tax Act. The case involved the Prathamika Krushi Pattina Sahakari Sangha Niyamitha, which had claimed deductions that the tax authorities initially denied. The authorities argued that societies registered under the Souharda Act differ from those under the Karnataka Cooperative Societies Act, thus disqualifying them from the deduction. However, the ITAT held that the Souharda Act societies are indeed cooperative societies under the Income Tax Act, and therefore, eligible for Section 80P deductions. This ruling clarifies the tax treatment of such societies and reinforces their right to claim the benefits available to cooperative societies under Indian tax law.