| Question And Answer | |
|---|---|
| Subject: | Co-operative Society |
| Category: | Income-Tax |
| Querist: | Pawan Singla |
| Answered by: | Law Intern |
| Tags: | section 80P(2)(a)(iii) |
| Date: | June 20, 2026 |
A co operative society running PDS as per TN govt regulations.Claimed education u/s 80P(2)(a)(iii) as marketing of agri produce. AO denied saying it is consumer society. TN govt is a member along with 73 society and 1000 + individual members. Any citation other than ITAT chennai will be useful
You may consider relying on the Supreme Court judgement in Mavilayi Service Co-operative Bank Ltd. v. CIT (2021) 431 ITR 1 (SC) where the Court emphasized a liberal, beneficial interpretation of Section 80P. It was held that the exemption for marketing agricultural produce grown by members under 80P(2)(a)(iii) covers cases where the society engages in such marketing. It does not strictly limit to produce raised only by members in all contexts and promotes the co-operative sector. in your case, the TN Govt membership aligns with the proviso allowing State Government as a member class in certain activities.