Section 80P(1) of the Income Tax Act

Income-tax Act, 2025: s.149

Section 80P(1) falls under section 80P of the Income-tax Act, 1961, which corresponds to section 149 (Deduction in respect of income of co-operative societies) of the Income-tax Act, 2025.

Read section 149 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 80P(1) is CIT v. Andhra Pradesh State (200 Taxmann 220), cited in 348 of the 65 judgments on BharatTax that turn on this section.

Leading authorities on Section 80P(1)

CIT v. Andhra Pradesh State
200 Taxmann 220 · 2011 · High Court
348
citing judgments

Interest earned by a Co-operative Society from investing fixed deposits in banks is entitled to a deduction under Section 80P(2)(a)(i) of the Income-tax Act.

Bangalore Club v. CIT
350 ITR 509 · 2013 · Supreme Court
247
citing judgments

The Supreme Court affirmed the doctrine of mutuality, holding that contributions received from and returned to members for a common purpose do not constitute taxable profits. However, income from transactions with non-members or interest earned from investments in external entities (like cooperative banks) may break the mutuality chain and be taxable under Section 56, falling outside the scope of Section 80P deductions.

CIT v. ABG Heavy Industries Ltd.
322 ITR 323 · 2010 · High Court
229
citing judgments

The Assessing Officer cannot deny a Section 80IA deduction by merely asserting that the assessee is not a "developer" without considering the relevant agreements and facts. Entitlement to Section 80IA deduction requires a thorough examination of the assessee's role as a developer.

Pathare Prabhu Cooperative Housing Society Ltd. v. ITO
153 Taxmann.com 714 · 2023 · ITAT
71
citing judgments

Co-operative housing societies are entitled to a deduction under Section 80P(2)(d) of the Income Tax Act for interest income earned from investments made in co-operative banks.

Surendranagar District Co-op. Milk Producers Union Ltd. v. Deputy Ld. CIT(A)
111 Taxmann.com 69 · 2019 · ITAT
40
citing judgments

The Assessing Officer (AO) must provide a deduction to the assessee respondent. This deduction relates to cooperative society income, as the CIT(A) has relied on case laws supporting such deductions.

08th February 2010, in Totgar's Co-operative Sale Society Limited v. Income Tax Officer
3 SCC 223 · 2010 · Reported
39
citing judgments

Interest income earned by a co-operative society from its surplus funds invested in banks is taxable under the head 'Income from Other Sources' and is not eligible for deduction under Section 80P(2)(a)(i). Such income is not derived from the primary business activity of the society.

CIT v. Punjab State Co-operative Agricultural Development Bank Ltd.
389 ITR 607 · 2016 · High Court
31
citing judgments

Interest income earned by a co-operative bank from surplus funds invested in scheduled banks (not co-operative societies) is taxable as income from other sources under section 56, and is not eligible for deduction under section 80P(2)(a)(i). This applies to any surplus funds not immediately required for business purposes, not just sale proceeds of members' produce.

Totgars, Co-operative Sale Society Ltd. v. Income-tax Officer, Karnataka
229 CTR 209 · 2010 · Supreme Court
15
citing judgments

The Supreme Court decision in Totgars Co-operative Sale Society Ltd. v. Income-tax Officer clarifies the eligibility for deduction under Section 80P of the Income Tax Act, specifically concerning interest income earned by cooperative societies from their investments or deposits, distinguishing between deductions under Section 80P(2)(a)(i) and 80P(2)(d).

CIT v. Baroda Peoples Co-operative Bank Ltd.
280 ITR 282 · 2006 · High Court
9
citing judgments
Jaoli Taluka Sahakari Patpedhi Maryadit v. ITO
83 Taxmann.com 247 · 2017 · Reported
9
citing judgments

Judgments on Section 80P(1)

Belda Samabay Krishi Unnayan Samity Ltd., Belda, Paschim Medinipur vs. I.T.O., Ward - 39(1), Midnapur

In the result, appeal of assessee is allowed and that of revenue is dismissed

ITA 3000/KOL/2025[2015-2016]Status: DisposedITAT Kolkata05 May 2026AY 2015-2016

Bench: Shri George Mathanbelda Samabay Krishi Unnayan Vs Ito, Ward-39(1), Midnapur Samity Ltd. Belda Chanda Market, P.O Belda, District-Paschim Medinipur, Wb- 721424. Pan No. : Aaaab7359J (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee By : Shri Soumitra Choudhary, Advocate रधजस्व की ओर से /Revenue By : Shri Manas Mondal, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 05/05/2026 घोषणा की तारीख/Date Of Pronouncement : 05/05/2026

For Appellant: Shri Soumitra Choudhary, AdvocateFor Respondent: Shri Manas Mondal, Sr. DR
Section 139(1)Section 80(1)Section 80PSection 80P(1)Section 80P(2)

La Royal Co-Operative Hsg Soc Ltd, Kandivali vs. Assessing Officer, Kautiliya Bhavan

In the result, the appeal filed by the Assessee stands allowed

ITA 443/MUM/2026[2021-22]Status: DisposedITAT Mumbai11 Mar 2026AY 2021-22

Bench: Shri Narender Kumar Choudhryshri Girish Agrawal

For Appellant: Shri Ganshyamlal Kachhara, LdFor Respondent: Shri Pravin Salunkhe (Sr. DR.)
Section 143(1)Section 2(19)Section 250Section 70Section 80PSection 80P(1)Section 80P(2)(D)Section 80P(2)(d)

Grant Road (W) Omkar Co-Operative Housing Soc Limited, Mumbai vs. ITO 19(1)(1), Mumbai

ITA 260/MUM/2026[2021-22]Status: DisposedITAT Mumbai05 Mar 2026AY 2021-22

Bench: Shri Vikram Singh Yadav & Shri Sandeep Singh Karhail

For Appellant: Shri Ashok MehtaFor Respondent: Shri Pravin Salunkhe, Sr.DR
Section 143(1)Section 80Section 80PSection 80P(1)Section 80P(2)(d)Section 80P(4)

Pune Zilla Sahakari Dudh Utpadak Sangh Maryadit, Pune vs. DCIT, Circle-5, Pune

In the result, appeal of the Assessee for A

ITA 2195/PUN/2025[2018-19]Status: DisposedITAT Pune08 Jan 2026AY 2018-19

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपऩल सं. / Ita Nos.2194 & 2195/Pun/2025 निर्धारण वषा / Assessment Years: 2017-18 & 2018-19 Pune Zilla Sahakari Dudh V Dcit, Utpadak Sangh Maryadit, S. Circle-5, Pune. Katraj Dairy, Pune Satara Road, Katraj, Pune – 411037. Pan: Aaaap0836A Appellant/ Assessee Respondent / Revenue Assessee By Shri M.R.Bhagwat Revenue By Smt. Saumya Pandey Jain – Addl.Cit Date Of Hearing 20/11/2025 Date Of Pronouncement 08/01/2026 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Filed By The Assessee Are Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 Both Dated 30.07.2025 Emanating From The Separate Assessment Orders Under Section 143(3) Of The Act, 1961 Dated 19.12.2019 & 19.01.2021 For The A.Y.2017-18 & 2018-19 Respectively. For The Sake Of Convenience, Both The Appeals Were Heard Together & Decided In A

Section 143(3)Section 250Section 80Section 80P(2)(d)

Pune Zilla Sahakari Dudh Utpadak Sangh Maryadit, Pune vs. DCIT, Circle-5, Pune

In the result, appeal of the Assessee for A

ITA 2194/PUN/2025[2017-18]Status: DisposedITAT Pune08 Jan 2026AY 2017-18

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपऩल सं. / Ita Nos.2194 & 2195/Pun/2025 निर्धारण वषा / Assessment Years: 2017-18 & 2018-19 Pune Zilla Sahakari Dudh V Dcit, Utpadak Sangh Maryadit, S. Circle-5, Pune. Katraj Dairy, Pune Satara Road, Katraj, Pune – 411037. Pan: Aaaap0836A Appellant/ Assessee Respondent / Revenue Assessee By Shri M.R.Bhagwat Revenue By Smt. Saumya Pandey Jain – Addl.Cit Date Of Hearing 20/11/2025 Date Of Pronouncement 08/01/2026 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Filed By The Assessee Are Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 Both Dated 30.07.2025 Emanating From The Separate Assessment Orders Under Section 143(3) Of The Act, 1961 Dated 19.12.2019 & 19.01.2021 For The A.Y.2017-18 & 2018-19 Respectively. For The Sake Of Convenience, Both The Appeals Were Heard Together & Decided In A

Section 143(3)Section 250Section 80Section 80P(2)(d)

Sri Vishnu Vilas Souharda Pattina Sahakari Sangha Niyamita, Ballari vs. Income Tax Officer, Ward-1 & Tps, Ballari

ITA 1515/BANG/2025[2020-21]Status: DisposedITAT Bangalore31 Dec 2025AY 2020-21

Bench: Shri Prashant Maharishi, Vice – & Shri Soundararajan K.Assessment Year : 2020-21

For Appellant: Shri H. Siva Prasad Reddy, ITPFor Respondent: Shri Subramanian S, JCIT-DR
Section 142(1)Section 143(2)Section 143(3)Section 263Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Deepalaxmi Nagari Patsanstha Maryadit, Sangamnagar vs. ITO Ward 2, Aurangabad

ITA 2323/PUN/2024[2020-21]Status: DisposedITAT Pune19 Dec 2025AY 2020-21

Bench: Justice (Retd.) C V Bhadang & Shri R. K. Panda

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri A D Kulkarni
Section 142(1)Section 143(2)Section 56Section 80PSection 80P(1)(a)Section 80P(2)Section 80P(2)(a)Section 80P(2)(c)

Deepalaxmi Nagari Patsanstha Maryadit, Sangamnagar vs. ITO Ward 2, Ahmednagar

ITA 2322/PUN/2024[2018-19]Status: DisposedITAT Pune19 Dec 2025AY 2018-19

Bench: Justice (Retd.) C V Bhadang & Shri R. K. Panda

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri A D Kulkarni
Section 142(1)Section 143(2)Section 56Section 80PSection 80P(1)(a)Section 80P(2)Section 80P(2)(a)Section 80P(2)(c)

DCIT, Circle-2(1)(1), Surat vs. The Surat Vankar Sahkari Sangh Limited, Surat

In the result, the appeal of the revenue is dismissed

ITA 77/SRT/2025[2017-18]Status: DisposedITAT Surat31 Oct 2025AY 2017-18

Bench: Ms. Suchitra Raghunath Kamble & Shri Bijayananda Prusethआयकर अपील सं./Ita No.77/Srt/2025 Assessment Year: (2017-18) (Hybrid Hearing) Dcit, Vs. The Surat Vankar Sahkari Sangh Circle – 2(1)(1), Limited, Surat Opp – Reshamwala Market, Ring Road, Surat - 395002 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aaaat3159L (Appellant) (Respondent) Appellant By Shri Ravi Kant Gupta, Cit-Dr Respondent By Shri Hiren Vepari, Ca Date Of Hearing 19/08/2025 Date Of Pronouncement 30/10/2025

Section 143(2)Section 194A(3)(v)Section 250Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Kca Cooperative Credit Society Ltd, Mumbai vs. ITO Ward 22(2)(1), Piramal Chambers

ITA 3368/MUM/2025[2020-21]Status: DisposedITAT Mumbai09 Oct 2025AY 2020-21

Bench: Smt Beena Pillai, Jm & Ms Padmavathy S, Am

Section 143(1)Section 2(19)Section 250Section 80PSection 80P(1)Section 80P(2)(d)

Dadar Avanti Co-Operative Housing Society Limited, Dadar Mumbai vs. Income Tax ITO Ward 22(1)(6), Mumbai

In the result, the appeal filed by the assessee stands allowed

ITA 3429/MUM/2025[2013-2014]Status: DisposedITAT Mumbai22 Sept 2025AY 2013-2014

Bench: Shri Sandeep Gosain

Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

ITO, Pune vs. Thegovernmentserventsmaharastraco-Op Credit Society Limited Pune, Pune

In the result, both the appeals filed by the Revenue are

ITA 714/PUN/2024[2018-19]Status: DisposedITAT Pune08 Sept 2025AY 2018-19

Bench: Dr. Manish Borad & Ms. Astha Chandra

For Respondent: Shri Ramnath P. Murkunde, DR
Section 143(2)Section 250Section 80PSection 80P(2)(a)

ITO, Pune vs. The Government Servents Maharashtra Co-Op Credit Society Limited Pune, Pune

In the result, both the appeals filed by the Revenue are

ITA 713/PUN/2024[2017-18]Status: DisposedITAT Pune08 Sept 2025AY 2017-18

Bench: Dr. Manish Borad & Ms. Astha Chandra

For Respondent: Shri Ramnath P. Murkunde, DR
Section 143(2)Section 250Section 80PSection 80P(2)(a)

Ramjharukha Co-Op Housing Society Limited, Mumbai vs. The Principal Commissioner of Income Tax, PCIT 20, Mumbai

In the result, appeal of the assessee is allowed

ITA 2627/MUM/2025[2020-21]Status: DisposedITAT Mumbai19 Jun 2025AY 2020-21

Bench: Shri Pawan Singh & Shri Prabhash Shankar(Physical Hearing) Ramjharukha Co-Op Housing Society Pr. Commissioner Of Income Limited, Vs Tax -20, Mumbai. 1, S V Road, Andheri (West), Mumbai – 400058. [Pan No. Aaaar1629M] Appellant / Assessee Respondent / Revenue

Section 143(3)Section 2Section 254(1)Section 263Section 80P(2)(d)

Sagar Tech Plaza A Premises Co-Op Society Ltd, Mumbai vs. Income Tax Department, Bandra Mumbai

In the result, the Assessee’s appeals are allowed

ITA 2687/MUM/2025[2022-23]Status: DisposedITAT Mumbai11 Jun 2025AY 2022-23

Bench: Shri Narender Kumar Choudhryassessment Year: 2019-20 & Assessment Year: 2022-23

For Appellant: Shri Virat Doshi, Ld.ARFor Respondent: Shri Kavan Limbasiya, Ld. Sr.D.R
Section 2(19)Section 250Section 80(2)(d)Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(2)(d)

Sagar Tech Plaza A Premises Co Op Society Ltd, Mumbai vs. Income Tax Department, Bandra Mumbai

In the result, the Assessee’s appeals are allowed

ITA 2686/MUM/2025[2019-20]Status: DisposedITAT Mumbai11 Jun 2025AY 2019-20

Bench: Shri Narender Kumar Choudhryassessment Year: 2019-20 & Assessment Year: 2022-23

For Appellant: Shri Virat Doshi, Ld.ARFor Respondent: Shri Kavan Limbasiya, Ld. Sr.D.R
Section 2(19)Section 250Section 80(2)(d)Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(2)(d)

Laxmi Industrial Premises Co-Op Society Ltd, Mumbai vs. ITO Ward 22(2)(1), Mumbai

In the result, the appeal filed by the Assessee stands allowed

ITA 2692/MUM/2025[2020-21]Status: DisposedITAT Mumbai05 Jun 2025AY 2020-21

Bench: Shri Narender Kumar Choudhryassessment Year: 2020-21

For Appellant: Shri Ajay Wadake, Ld. A.RFor Respondent: Shri P D Chougule, Ld. Sr. D.R
Section 2(19)Section 250Section 70Section 80PSection 80P(1)Section 80P(2)(d)

The Bank of Rajasthan Employees Credit & Thirft Cooperative Society Limited, Jaipur vs. ACIT, Circle-1, Jaipur

In the results appeal of the assessee in ITA No

ITA 213/JPR/2025[2010-2011]Status: DisposedITAT Jaipur04 Jun 2025AY 2010-2011
For Appellant: Sh. Mukesh Goyal, CAFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 143(2)Section 143(3)Section 80PSection 80P(2)(a)

ACIT., Circle-9(1), Hyderabad vs. Rangareddy Dist Judl Employee Mutually Aided Cooperative Society, Hyderabad

ITA 1264/HYD/2024[2017-18]Status: DisposedITAT Hyderabad30 Apr 2025AY 2017-18

Bench: Us:

Section 143(2)Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)

Meherina Co-Operative Housing Society, Mumbai vs. Income Tax Officer, Piramal Chamber, Mumbai

The appeal of the assessee is allowed

ITA 1792/MUM/2025[2021-22]Status: DisposedITAT Mumbai29 Apr 2025AY 2021-22

Bench: Shri Vikram Singh Yadav & Shri Anikesh Banerjee

For Appellant: Shri Chaitanya JoshiFor Respondent: Shri Asif Karmali, Sr.DR
Section 143(1)Section 154Section 234BSection 80PSection 80P(1)Section 80P(2)(d)