Co-operators across the country have welcomed the judgment of the Supreme Court giving a big relief to credit co-ops. While some call it a historic Judgment, others say the judgement will unleash fresh energy into the working of credit co-ops, counting more than 99,000 in the country.
Reacting to the judgement, NCUI Chairman Dileepbhai Sanghani said, “It’s a historic judgment. The credit co-ops are working for the benefits of their members and it will help them grow well. Long pending issue gets resolved”, he added with a sense of relief.
Sahakar Bharati’s founder member, Satish Marathe said, “It is a Landmark Judgement. Now Credit Co-Ops should seek Refund of Tax with Interest, which was coercively collected by the Income Tax Dept. Also, CoOperators should Felicitate Adv Chaitanya who also worked hard for the judgment.”
He said, “It’s Goa based Quepem Urban credit society had also filed their petition in this connection in the high court and subsequently in the Supreme Court. Special thanks to Adv Chaitanya who took a lot of pains for us and the whole credit fold”, he added.
Marathe said “Given the GOI’s Policy to promote Co-Ops to achieve Sustainable & Equitable Development and Channelize Credit through Co-Op Institutions, the Finance Ministry now needs to come out with an Income Tax Policy for Co-Ops that generates Growth in both Rural & Urban areas.”
Commenting on this development, Gujarat State Cooperative Credit Societies Federation Chairman G H Amin said, “It’s a welcome decision. Earlier, many courts of respective states had given positive rulings but with the judgment of the Honorable Supreme Court the matter has taken on a new dimension. Now, the Income Tax department should stop sending notices to credit co-ops.
In his reaction, Karnataka State Souharda Federal Cooperative Chairman G Nanjangouda said, “We are very happy with the Judgment. Most of the cooperative societies are getting IT notices. Though, on the technical ground the existing law is in favour of credit co-ops, the IT dept has been interpreting it wrongly. There are around 30k credit co-ops in the state.
Earlier, on Tuesday itself NAFCUB President Jyotindra Mehta and Maharashtra State Cooperative Credit Societies Federation (MAFCOCS) Chairman Kaka Koyate had expressed their happiness at the judgement. Mehta said “we are heaving a sigh of relief”. Even the Ministry of Cooperation lost no time in sharing the news through its twitter wall.
It bears recalling that NCUI, NAFCUB and Sahakar Bharati had written many letters in the past to the Union Finance Minister and other concerned authorities in this regard.
It bears recall that the Supreme Court ruled that Cooperative Credit Societies, under Section 80P (2) of the Income Tax Act, will not be termed as banks and will continue to be eligible for exemption from income tax. The SC passed a judgment in the matter of CIT Vs. Annasaheb Patil Mathadi Kamgar Sahakari Patpedhi Limited (Civil Appeal No. 8719/2022).