Deduction in respect of income of co-operative societies
(1)
If the gross total income of an assessee, being a co-operative society, includes any income referred to in sub-section (2), the sums specified in the said sub-section shall, in accordance with and subject to the provisions of this section, be allowed as deduction in computing the total income of such assessee.
(2)
The sums referred to in sub-section (1) shall be the following:— (a) in the case of a co-operative society engaged in— (i) carrying on the business of banking or providing credit facilities to its members; or (ii) a cottage industry; or (iii) the marketing of agricultural produce grown by its members; or (iv) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; or (v) the processing, without the aid of power, of the agricultural produce of its members; or (vi) the collective disposal of the labour of its members; or (vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members, the whole of the amount of profits and gains of business attributable to any one or more of such activities;
(b)
in the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, fruits, or vegetables raised or grown by its members to–– (i) a federal co-operative society, engaged in the business of supplying milk, oilseeds, fruits or vegetables; or (ii) the Government or a local authority; or (iii) a Government company, as defined in (45) of the Companies Act, 2013, or a corporation established by or under a Central Act or State Act or Provincial Act, engaged in supplying milk, oilseeds, fruits or vegetables, as the case may be, to the public, the whole of the amount of profits and gains of such business;