Primary co-operative credit society which is registered under Co-operative Societies Act, must be treated as juristic person capable of exercising all rights of a natural person
In the instant case the appellants were Primary Co-operative Credit Societies registered under the Kerala Co-operative Societies Act. Notices were issued to the appellants under section 142 for submitting returns. The appellants challenged said notices contending that they were not persons as contemplated under section 142(1). The Single Judge took the view that a combined reading of section 142(1) and section 2(31) would show that co-operative societies like the appellants were also 'persons' as defined in the Act and it could not be held that the notices issued were without jurisdiction.
The High Court held as under:
A perusal of the definition of the word 'person' showed that it included within its sweep all juridical persons. Appellants were cooperative societies. Indisputably they were registered under the Co-operative Societies Act. On a reading of section 9 of the Kerala Co-operative Societies Act it showed that the appellants were co-operative societies which had been registered and which were to be treated as body Corporates vide section 9 of the Kerala Co-operative Societies Act. Under section 2(31) a person comprehends juristic entity. Having regard to the fact that appellants were registered under the Co-operative Societies Act, the appellants had to be treated as body corporate and, therefore, juristic persons capable of exercising all the rights of natural persons as provided in the Act - Mangalam Service Co-operative Bank Ltd. V. ITO [2013] 35 taxmann.com 381 (Kerala)
In the instant case the appellants were Primary Co-operative Credit Societies registered under the Kerala Co-operative Societies Act. Notices were issued to the appellants under section 142 for submitting returns. The appellants challenged said notices contending that they were not persons as contemplated under section 142(1). The Single Judge took the view that a combined reading of section 142(1) and section 2(31) would show that co-operative societies like the appellants were also 'persons' as defined in the Act and it could not be held that the notices issued were without jurisdiction.
The High Court held as under:
A perusal of the definition of the word 'person' showed that it included within its sweep all juridical persons. Appellants were cooperative societies. Indisputably they were registered under the Co-operative Societies Act. On a reading of section 9 of the Kerala Co-operative Societies Act it showed that the appellants were co-operative societies which had been registered and which were to be treated as body Corporates vide section 9 of the Kerala Co-operative Societies Act. Under section 2(31) a person comprehends juristic entity. Having regard to the fact that appellants were registered under the Co-operative Societies Act, the appellants had to be treated as body corporate and, therefore, juristic persons capable of exercising all the rights of natural persons as provided in the Act - Mangalam Service Co-operative Bank Ltd. V. ITO [2013] 35 taxmann.com 381 (Kerala)
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