Deduction under sec 80p

If it is a co-operative society supplying Milk it can claim exemption under 80P.

The concept of Mutuality requires that the Contributors to the fund of the society and the Participators to surplus are the same. Ie, The members contribute to the common fund of the society / Association and the surplus funds are for the benefit of the members.

There should not be any profit motive and the primary purpose is to be for helping the members.

If the conditions are satisfied then the association would not be subject to tax.