Supreme Court remands case for reassessment on tax deductions for co-operative societies u/ss 80P(2)(a)(i) and 80P(2)(d).

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....Deduction u/s 80P(2)(a)(i) was denied by the Assessing Officer on grounds that the assessee society cannot be termed a mutual concern and principles of mutuality cannot apply since transactions with associate/nominal members result in income/advantages benefiting regular members. However, the Supreme Court in Mavilayi Service Co-operative Bank Ltd. case held that co-operative societies providing credit facilities to members are entitled to deduction u/s 80P(2)(a)(i), clarifying that section 80P(4) excludes only co-operative banks engaged in lending to the public. Following this precedent, the issue was remanded for fresh consideration by the Assessing Officer. Regarding deduction u/s 80P(2)(d), the Assessing Officer was directed to verify i.........