ORDER

In this petition, petitioner seeks quashing of the impugned show cause notice at Annexure – A dated 11.02.2022 issued by the respondent to the petitioner for the FY 2014-15 and for other reliefs.

2. Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record.

3. In addition to re-iterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned show cause notice issued by the respondent under Section 201(1) and 201(1A) in order to point out that the respondent has come to the erroneous conclusion that since the petitioner is a Co-operative Society registered under The Karnataka Souharda Sahakari Act, 1997, which was not a society as envisaged under Karnataka Cooperative Societies Act, 1959, the exemption available in terms of Section 2(19) of the Income Tax Act exemption available under 194 A(3)(V) of the Income Tax was not admissible for non deductible TDS of the petitioner society. In this context, learned counsel for the petitioner points out that definition clause contained in Section 219 of the IT Act is wide enough to encompass a Co-operative Society including societies registered under Karnataka Cooperative Societies Act, 1959 as well as The Karnataka Souharda Sahakari Act, 1997, as held by the Hon’ble Division Bench in the case of Govt. of India Vs Karnataka State Souharda Federal Co-operative Ltd., WA.No.378/2020 and connected matters dated 20.12.2021 which includes the case of petitioner also in the different Assessment Year. It is therefore submitted that the impugned show cause notice issued by the respondent apart from being illegal and arbitrary was also without jurisdiction or authority of law and contrary to the provisions of the Act as well as the dictum of the Hon’ble Division Bench and the same deserves to be quashed.

4. Per contra, learned counsel for the respondent submits that the petitioner would be entitled to raise all such contentions by submitting suitable reply to the show cause notice and the respondent may be directed to consider all the contentions and pass appropriate orders in accordance with law.

5. It is therefore submitted that there is no merit in the present petition which is premature and the same is liable to be dismissed.

6. I have given my anxious consideration and rival submissions and perused the material on record.

7. Before adverting the claim of the petitioner society in the present petition, it is pertinent to note that Hon’ble Division Bench in Govt. of India’s case supra which included case of the petitioner all being for the different Assessment Year and in the context of examining is to whether Section 219 was wide enough to include the petitioner society which would register under The Karnataka Souharda Sahakari Act, 1997, held as under: “19. Statement of objects and reasons to Karnataka Act No.17/2000 [Souharda Act] reads thus:

“The Karnataka Souhardha Sahakari Bill, 1997 among other things provide for.–

(1) the recognition, encouragement and voluntary formation of co-operatives based on self help, mutual aid, wholly owned, managed and controlled by members as accountable, competitive, self-reliant and economic enterprises guided by co-operative principles specified therein;

(2) removing all kinds of restrictions that have come to clog the free functioning of the co-operatives and the controls and interference by the Government except registration and cancellation;

(3) promotion of subsidiary organisation, partnership between co-operatives and also collaboration between co-operatives and other institutions;

(4) registration of co-operatives, union co-operatives and Federal Co-operative in furtherance of the objectives specified above;

(5) conversion of co-operative societies registered under the Karnataka Co-operative Societies Act, 1959 as a co-operative under the proposed legislation. Hence, the Bill.”

20. The objects and r