https://www.taxtmi.com/caselaws?id=793999 Section 80P(2)(a)(i) must be applied by reference to the co-operative law under which the society is registered, and deduction cannot be denied in full merely because the society has nominal or associate members with restricted rights if they remain recognised members under State law. On the facts, blanket denial was unwarranted. A disallowance that only increases the profits of an otherwise eligible credit facility business does not alter the character of the income, so deduction is allowable on the enhanced profit as well. The assessee's claim under section 80P(2)(a)(i) was therefore upheld on both grounds. en-us Wed, 13 May 2026 00:00:00 +0530 Sat, 27 Jun 2026 08:33:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793999 Section 80P(2)(a)(i) must be applied by reference to the co-operative law under which the society is registered, and deduction cannot be denied in full merely because the society has nominal or associate members with restricted rights if they remain recognised members under State law. On the facts, blanket denial was unwarranted. A disallowance that only increases the profits of an otherwise eligible credit facility business does not alter the character of the income, so deduction is allowable on the enhanced profit as well. The assessee's claim under section 80P(2)(a)(i) was therefore upheld on both grounds. Case-Laws Income Tax Wed, 13 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793999