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)

Moreshwar Krupa Co-Op Housing Society Limited, Mumbai vs. Income Tax Officer Ward 42(1)(3), Mumbai

ITA 1785/MUM/2025[2020-21]Status: DisposedITAT Mumbai29 Apr 2025AY 2020-21

Bench: Shri Vikram Singh Yadav & Shri Anikesh Banerjeeassessment Year : 2020-21 Moreshwar Krupa Co-Op. Income Tax Officer, Ward-42(1)(3), Housing Society Limited, Kautilya Bhavan, D.N. Mathre Road, Vs. Bandra Kurla Complex, Eksar, Bandra East, Mumbai-400103 Mumbai-400051 Pan: Aacam0769P (Appellant) (Respondent) For Assessee : Ms. Poonam Kotkar, Advocate For Revenue : Shri Asif Karmali, Sr.Dr

For Appellant: Ms. Poonam Kotkar, AdvocateFor Respondent: Shri Asif Karmali, Sr.DR
Section 143(1)Section 234BSection 234CSection 80P

Neptune Co Op Housing Society Limited, Mumbai vs. ITO Ward 41(4)(3), Mumbai

The appeal of the assessee is allowed

ITA 1270/MUM/2025[2020-21]Status: DisposedITAT Mumbai23 Apr 2025AY 2020-21

Bench: Shri Vikram Singh Yadav & Shri Sandeep Singh Karhail

For Appellant: Shri Prakash Shah, AdvFor Respondent: Shri Leyaqat Ali, Sr.DR
Section 143(1)Section 154Section 80PSection 80P(1)Section 80P(2)(d)

Mamala Service Cooperative Bank Ltd 2799, Ernakulam vs. Inocme Tax Officer, Ward 2, Aluva, Ernakulam

In the result, the appeal by the assessee is allowed

ITA 801/COCH/2024[2017-18]Status: DisposedITAT Cochin28 Mar 2025AY 2017-18

Bench: Shri Inturi Rama Rao & Shri Sandeep Singh Karhail

For Appellant: --- None ---For Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 250Section 80Section 80PSection 80P(1)Section 80P(4)

Acgl Bbd Employees Coop Credit Society Ltd, Bhuimpal Honda Sattari Goa vs. Income Tax Officer, Ward 1(1), Panaj, Panaji, Goa

The appeal of the assessee stands allowed

ITA 212/PAN/2024[201718]Status: DisposedITAT Panaji12 Feb 2025

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 212/Pan/2024 Assessment Year : 2017-18 Acgl Bbd Employees Co-Op. Credit Society, Ltd. Bhuimpal Honda, Sattari, Bhuimpal, North Goa. Pan : Aaaaa8278M . . . . . . . Applicant V/S Income Tax Officer Ward-1(1), Panaji, Goa. . . . . . . . Respondent Appearances Assessee By : Mr S J Kamat [‘Ld. Ar’] Revenue By : Mr Narendra Reddy [‘Ld. Dr’] Date Of Conclusive Hearing : 06/02/2025 Date Of Pronouncement : 12/02/2025 Order Per G. D. Padmahshali, Am; The Assessee Is In Appeal Against Din & Order No. Itba/Nfac/S/250/2024-25/1066146872(1) Dt. 27/06/2024 Passed U/S 250 Of The Income-Tax Act, 1961 [‘The Act’ Hereinafter] By The National Faceless Appeal Centre, Delhi [‘Ld. Cit(A)/Nfac’ Hereinafter] Which In Turn Arisen Out Of Order Of Assessment Dt. 19/12/2019 Passed U/S 143(3) Of The Act By The Income Tax Officer, Ward-1(1), Panaji [‘Ld. Ao’ Hereinafter] For Assessment Year 2017-18 [‘Ay’ Hereinafter].

For Appellant: Mr S J Kamat [‘Ld. AR’]For Respondent: Mr Narendra Reddy [‘Ld. DR’]
Section 143(1)Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)Section 80P(2)(d)

Pandalapaka Primary Agricultural Co-Op Society Ltd, East Godavari vs. Income-Tax Officer, Ward-1, Kakinada

ITA 438/VIZ/2024[2020-21]Status: DisposedITAT Visakhapatnam28 Jan 2025AY 2020-21

Bench: 29.03.2022 After Obtaining Prior Approval From The Pcit, Visakhapatnam 1. In Response, Assessee Submitted Reply Through E-Mail On 24.03.2022 Stating That Assessee Is Eligible For Deduction Under Section 80P Of The Act & Therefore Issuance Of Notice Under Section 148A(A) Of The Act Is Not Warranted. Ld. Ao Did Not Accept The Reply Of The Assessee & Decided That It Is A Fit Case Of Issue Of Notice Under Section 148 Of The Act For The A.Y. 2018-19 & Thereafter Passed Order Under Section 148A(D) Of The Act On 30.03.2022.

Section 142(1)Section 144Section 148Section 148ASection 80P

Sai Ankur Co-Operative Housing Society Ltd, Mumbai vs. Income Tax Office- Ward 41(3)(4), Mumbai

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

ITA 5989/MUM/2024[2021-22]Status: DisposedITAT Mumbai22 Jan 2025AY 2021-22

Bench: Shri Narender Kumar Choudhryassessment Year: 2021-22

For Appellant: Shri Abhishek Choksy, Ld. A.RFor Respondent: Shri Gotimukul Santosh Kumar, Sr. D.R
Section 143(1)Section 2(19)Section 250Section 70Section 80PSection 80P(1)Section 80P(2)(d)

Dreamland Co Operative Housing Society Limited, Vashi vs. CIT (A), National Faceless Appeal Centre

In the result, the appeal of the Assessee is allowed

ITA 6111/MUM/2024[2019-20]Status: DisposedITAT Mumbai16 Jan 2025AY 2019-20

Bench: Shri Narender Kumar Choudhryassessment Year: 2019-20

For Appellant: Shri Shashikant Joshi, Ld. A.RFor Respondent: Shri Kiran Unavekar, Ld. Sr. D.R
Section 154Section 250Section 80PSection 80P(1)Section 80P(2)(d)

Horizon Co-Oerative Housing Society Limited, Mumbai vs. ITO, 22(1)(7), Mumbai

Appeal of the assessee is allowed

ITA 5750/MUM/2024[2017-18]Status: DisposedITAT Mumbai07 Jan 2025AY 2017-18

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

For Respondent: Shri Hemanshu Joshi, Sr. DR
Section 2(19)Section 80PSection 80P(1)Section 80P(2)(d)

United Shanti Kuteer Co. Op. Housing Society Limited, Mumbai vs. Income Tax Officer-17(2)(1), Kautilya Bhavan

In the result, appeal of the assessee is allowed

ITA 4371/MUM/2024[2020-21]Status: DisposedITAT Mumbai30 Oct 2024AY 2020-21

Bench: SHRI AMIT SHUKLA, JUDICIAL MEMBER SHRI OMKARESHWAR CHIDARA (Accountant Member)

Section 143(1)Section 143(1)(a)Section 2Section 4Section 56Section 80PSection 80P(2)Section 80P(2)(d)

The Jagraon Co-Operative Marketing Cum Processing Society Limited, Punjab vs. The Income Tax Officer Ward-1, Jagraon, Punjab

In the result, the appeal of the assessee is allowed

ITA 315/CHANDI/2024[2020-2021]Status: DisposedITAT Chandigarh25 Sept 2024AY 2020-2021

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Dr. Ranjeet Kaur, Sr. DR
Section 143(3)Section 80Section 80PSection 80P(2)(d)

Dtps Employees Co-Op Credit Society Limited Dahanu, Dahanu vs. Jurisdiction Ward 1, Palghar

ITA 1884/MUM/2024[2018-19]Status: DisposedITAT Mumbai24 Sept 2024AY 2018-19
Section 143(3)Section 80Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Laxmi Co-Operative Housing Society Limited, Mumbai vs. Assessment Unit Income Tax Department, Delhi

In the result appeal of the assessee is allowed

ITA 136/MUM/2024[2020-21]Status: DisposedITAT Mumbai21 Aug 2024AY 2020-21

Bench: Shri Prashant Maharishi & Shri Anikesh Banerjeeassessment Year: 2020-21

For Appellant: Shri Dinesh ShahFor Respondent: Shri Manoj Kumar Sinha, Sr. DR
Section 143Section 144Section 144BSection 2Section 80

Mahim Devida Co-Operative Housing Society Ltd, Mumbai vs. Income Tax Officer Ward 42 1 3, Kautilya Bhawan Mumbai

ITA 2332/MUM/2024[2020-21]Status: DisposedITAT Mumbai29 Jul 2024AY 2020-21

Bench: Shri Prashant Maharishi, Am & Shri Sunil Kumar Singh, Jm

For Appellant: Shri Ajay wadkeFor Respondent: Shri Rajnish Yadav , SR DR
Section 143Section 2Section 5Section 80

Mahim Devida Co-Operative Housing Society Ltd, Mumbai vs. Income Tax Officer Ward 42 1 3, Mumbai

ITA 2331/MUM/2024[2021-22]Status: DisposedITAT Mumbai29 Jul 2024AY 2021-22

Bench: Shri Prashant Maharishi, Am & Shri Sunil Kumar Singh, Jm

For Appellant: Shri Ajay wadkeFor Respondent: Shri Rajnish Yadav , SR DR
Section 143Section 2Section 5Section 80

Aashirwad (1) Co-Operative Housing Society Limited, Mumbai vs. Deputy Director of Income Tax, CPC Bengaluru

In the result, appeal of the assessee is allowed

ITA 729/MUM/2024[2022-23]Status: DisposedITAT Mumbai28 Jun 2024AY 2022-23

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI RATNESH NANDAN SAHAY (Accountant Member)

Section 143(1)Section 2Section 4Section 56Section 80PSection 80P(2)Section 80P(2)(d)

Shah and Nahar Industrial Premises A2Co-Op Society Limited, Mumbai vs. National E-Assessment Centre, New Delhi

ITA 543/MUM/2024[2018-2019]Status: DisposedITAT Mumbai21 Jun 2024AY 2018-2019

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

Section 80PSection 80P(1)Section 80P(2)(d)

Thalore Service Co-Op Bank Ltd No 435, Thrissur vs. ITO Ward 2(1), Thrissur

In the result, the assessee’s appeal is allowed for statistical purposes, and it’s stay petition, dismissed

ITA 226/COCH/2023[2012-13]Status: DisposedITAT Cochin31 May 2024AY 2012-13

Bench: Shri Sanjay Arora & Ms. Kavitha Rajagopal

For Appellant: Shri M. Ramdas, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 147Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(2)(d)

Ceat Employees Co-Operative Credit Society Ltd., Mumbai vs. Income Tax Officer, CPC, Bangalore

In the result, appeal is allowed

ITA 4406/MUM/2023[2014-15]Status: DisposedITAT Mumbai09 May 2024AY 2014-15

Bench: Us : “1. On The Facts & Circumstances Of The Case & Also In Law The Learned Cit Appeals Has Erred In Confirming The Disallowance Of The Deduction Claimed By The Appellant U/S. 80P(2)(A)(I)/ 80P(2)(D) To The Tune Of Rs.15,68,274/- Though The Appellant Is Very Much Entitled For The Same.

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

M/S Ambalapara Service Co-Op Bank, Palakkad vs. ITO Ward 2, Palakkad

In the result, the assessee’s appeals are allowed for statistical purposes, and it’s stay petitions dismissed

ITA 87/COCH/2023[2018-19]Status: DisposedITAT Cochin30 Apr 2024AY 2018-19

Bench: Shri Sanjay Arora & Smt. Kavitha Rajagopal

For Appellant: Ms. Divya Ravindran, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(3)Section 5Section 80P(1)Section 80P(2)(a)Section 80P(4)

M/S Ambalapara Service Co-Op Bank, Palakkad vs. ITO Ward 2, Palakkad

In the result, the assessee’s appeals are allowed for statistical purposes, and it’s stay petitions dismissed

ITA 86/COCH/2023[2017-18]Status: DisposedITAT Cochin30 Apr 2024AY 2017-18

Bench: Shri Sanjay Arora & Smt. Kavitha Rajagopal

For Appellant: Ms. Divya Ravindran, AdvocateFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(3)Section 5Section 80P(1)Section 80P(2)(a)Section 80P(4)