Denial of Deduction u/s80P(2)(a)(i) to Souharda Cooperative Society citing provision of Banking Facilities to Nominal Members: ITAT Remits for Verification

The Income Tax Appellate Tribunal (ITAT) has remitted a case regarding the denial of deduction under Section 80P(2)(a)(i) for a Souharda Cooperative Society. The denial was based on the provision of banking facilities to nominal members. The ITAT directed the assessing officer to verify whether the cooperative society meets the criteria for such deductions. This ruling sheds light on the criteria for granting deductions to cooperative societies and the importance of meeting the statutory requirements for availing tax benefits under Section 80P.