Claim for deduction u/s. 80P(2)(a)(i) of Income Tax Act cannot be disallowed solely on ground of lending money to non-members : ITAT Allows Appeal of Cooperative society

The ITAT allowed a cooperative society’s claim for deduction under Section 80P(2)(a)(i), stating it cannot be denied solely because the society lent funds to non-members. The Tribunal emphasized that unless lending is the predominant activity, incidental transactions with non-members don’t invalidate eligibility. The ruling supports a broader interpretation of deduction criteria and benefits societies serving mixed clientele, as long as the primary intent remains cooperative.