Co-operative Societies Offering Credit to its Members Eligible for Deductions u/s 80P(2)(a)(i): ITAT

The Income Tax Appellate Tribunal (ITAT) has ruled that co-operative societies providing credit facilities to their members are eligible for tax deductions under Section 80P(2)(a)(i) of the Income Tax Act. This section allows deductions for income derived from providing credit to members. The tribunal’s decision affirms that co-operative societies, which operate primarily to benefit their members and provide them with financial services, should be recognized for tax benefits intended to support their operational activities. This ruling supports the financial viability of such societies and reinforces the legislative intent to encourage co-operative financial services.