How many judgments are there on Section 80P(2)?

BharatTax indexes 139 ITAT, High Court and Supreme Court judgments that turn on Section 80P(2) of the Income Tax Act, 1961.

Section 80P(2) of the Income Tax Act

Q: What is the leading case on Section 80P(2) of the Income Tax Act?

Mantola Co-operative Thrift & Credit Society Ltd. v. CIT (50 Taxmann.com 278) is the decision most relied on for Section 80P(2), cited in 242 judgments. A cooperative society is not entitled to deduction under Section 80P(2)(a)(i) for interest income earned from investments and deposits which are not attributable to its primary business. An assessment order erroneously allowing such a deduction is revisable under Section 263 as being erroneous and prejudicial to the revenue, or subject to reassessment under Section 147.

Q: Which cases are most cited on Section 80P(2)?

Mantola Co-operative Thrift & Credit Society Ltd. v. CIT (50 Taxmann.com 278) — 242 citing judgments; CIT v. Punjab State Cooperative Agricultural Development Bank Ltd. (389 ITR 68) — 192 citing judgments; CIT v. Southern Eastern Employees Cooperative Credit Society Ltd. (390 ITR 524) — 170 citing judgments; Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. v. ITO (120 Taxmann.com 10) — 135 citing judgments; CIT v. Ankita Electronics Pvt. Ltd. (379 ITR 50) — 45 citing judgments.

The decision most relied on for Section 80P(2) is Mantola Co-operative Thrift & Credit Society Ltd. v. CIT (50 Taxmann.com 278), cited in 242 of the 139 judgments on BharatTax that turn on this section.

Leading authorities on Section 80P(2)

Mantola Co-operative Thrift & Credit Society Ltd. v. CIT

50 Taxmann.com 278 · 2014 · High Court

242

citing judgments

A cooperative society is not entitled to deduction under Section 80P(2)(a)(i) for interest income earned from investments and deposits which are not attributable to its primary business. An assessment order erroneously allowing such a deduction is revisable under Section 263 as being erroneous and prejudicial to the revenue, or subject to reassessment under Section 147.

CIT v. Punjab State Cooperative Agricultural Development Bank Ltd.

389 ITR 68 · 2016 · High Court

192

citing judgments

Income earned by a cooperative society from investing its surplus funds in short-term deposits and securities is not attributable to its core activities and therefore not eligible for deduction under Section 80P(2)(a)(i) of the Income-tax Act.

CIT v. Southern Eastern Employees Cooperative Credit Society Ltd.

390 ITR 524 · 2017 · High Court

170

citing judgments

Income from surplus funds invested in short-term deposits and securities by a cooperative credit society is not attributable to its activities and is therefore not eligible for exemption under section 80P(2)(a)(i) of the Income-tax Act.

Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. v. ITO

120 Taxmann.com 10 · 2020 · ITAT

135

citing judgments

Interest earned by a Cooperative credit Society from deposits with a Cooperative bank is eligible for deduction under Section 80P(2) of the Income-tax Act. Revisional orders under Section 263 disallowing such deduction are invalid if the original allowance was correct.

CIT v. Ankita Electronics Pvt. Ltd.

379 ITR 50 · 2015 · High Court

citing judgments

When the High Court admits a substantial question of law concerning an assessee's claim or alleged default, it indicates the assessee's bona fides, thereby preventing the imposition of penalties under sections 271(1)(c) or 271C. The mere disallowance of a claim or an addition by revenue authorities does not automatically lead to a penalty if the issue is debatable and pending appeal.

CIT v. Jay Kumar B. Patil

236 ITR 469 · 1999 · Supreme Court

citing judgments

PCIT v. Kundrathur Finance and Chit Co.

283 ITR 329 · 2006 · High Court

citing judgments

ITO v. Shri Bhairavnath Multistate Cooperative Credit Society Ltd.

164 Taxmann.com 382 · 2024 · ITAT

citing judgments

Liberty India v. CIT (

288 ITR 494 · 2007 · High Court

citing judgments

Bhagyalaxmi Co-op. Hsg. Soc. Ltd. v. DCIT

170 Taxmann.com 336 · 2025 · High Court

citing judgments

Judgments on Section 80P(2)

SHARADCHANDRA NAGARI SAHAKARI PATSANSTHA MARYADIT,PUNE vs. ITO WARD -10(1), PUNE

In the result, the appeals filed by the assessee vide ITA Nos

ITA 44/PUN/2026[2022-23]Status: DisposedITAT Pune26 Mar 2026AY 2022-23

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri Abhay AvachatFor Respondent: Shri Gaurav K Singh, JCIT

Section 142(1)Section 143(2)Section 144Section 270ASection 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

SHRI BEERESHWAR CO-OP CREDIT SOCIETY LTD MADABHAVI,BELAGAVI vs. ITO WARD-2, BELAGAVI, BELAGAVI

ITA 487/PAN/2025[2020-21]Status: DisposedITAT Panaji10 Mar 2026AY 2020-21

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 487/Pan/2025 Assessment Year : 2020-21

For Appellant: Mr Shivanand Halbhavi [‘Ld. AR’]For Respondent: Ms Rijula Uniyal [‘Ld. DR’]

Section 143(3)Section 250Section 270ASection 80P(2)

ODISHA STATE HANDLOOM WEAVERS CO-OPERATIVE SOCIETY LTD,BHUBANESWAR vs. DCIT, CIR-1(1), BHUBANESWAR

In the result, appeals of the assessee are allowed for statistical purposes

ITA 126/CTK/2026[2022-23]Status: DisposedITAT Cuttack25 Feb 2026AY 2022-23

Bench: Shri George Mathan & Shri Madhusudan Sawdiaआयकर अपील सं/Ita Nos.123 To 126 /Ctk/2026 ("नधा"रण वष" / Assessment Years : 2016-17, 2018-19, 2020-21 & 2022-23) Odisha State Handloom Weavers Vs Dcit, Circle-1(1), Co-Operative Society Ltd., Bayan Bhubaneswar Bhawan Pt J.N. Marg, Bhubaneswar Pan No. : Aaaao 0474 F (अपीलाथ" /Appellant) .. (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee By : Shri Nihar Ranjan Biswal, Ca राज"व क" ओर से /Revenue By : Shri Ashim Kr Chakraborty, Ld Cit Dr सुनवाई क" तार"ख / Date Of Hearing : 25/02/2026 घोषणा क" तार"ख/Date Of Pronouncement : 25/02/2026

For Appellant: Shri Nihar Ranjan Biswal, CAFor Respondent: Shri Ashim Kr Chakraborty, ld CIT DR

Section 80P(2)

ODISHA STATE HANDLOOM WEAVERS CO-OPERATIVE SOCIETY LTD,BHUBANESWAR vs. DCIT, CIR-1(1), BHUBANESWAR

In the result, appeals of the assessee are allowed for statistical purposes

ITA 125/CTK/2026[2020-21]Status: DisposedITAT Cuttack25 Feb 2026AY 2020-21

For Appellant: Shri Nihar Ranjan Biswal, CAFor Respondent: Shri Ashim Kr Chakraborty, ld CIT DR

Section 80P(2)

ODISHA STATE HANDLOOM WEAVERS CO-OPERATIVE SOCIETY LTD,BHUBANESWAR vs. DCIT, CIR-1(1), BHUBANESWAR

In the result, appeals of the assessee are allowed for statistical purposes

ITA 124/CTK/2026[2018-19]Status: DisposedITAT Cuttack25 Feb 2026AY 2018-19

For Appellant: Shri Nihar Ranjan Biswal, CAFor Respondent: Shri Ashim Kr Chakraborty, ld CIT DR

Section 80P(2)

ODISHA STATE HANDLOOM WEAVERS CO-OPERATIVE SOCIETY LTD,BHUBANESWAR vs. DCIT, CIR-1(1), BHUBANESWAR

In the result, appeals of the assessee are allowed for statistical purposes

ITA 123/CTK/2026[2016-17]Status: DisposedITAT Cuttack25 Feb 2026AY 2016-17

For Appellant: Shri Nihar Ranjan Biswal, CAFor Respondent: Shri Ashim Kr Chakraborty, ld CIT DR

Section 80P(2)

NAVATHARANGINI MAHILA PODUPU PARASPARA SAHAKARA PARIMITHA SAMITHI,WARANGAL vs. ITO, WARD-2, WARANGAL

In the result, appeal of the Assessee is dismissed

ITA 991/HYD/2024[2017-18]Status: DisposedITAT Hyderabad25 Feb 2026AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G.आ.अपी.सं /Ita No.991/Hyd/2024 Assessment Year 2017-2018 Navatharangini Mahila Podupu Paraspara The Income Tax Sahakara Parimitha Officer, Ward-2, Vs. Samithi, Warangal. Warangal. Pin – 506 132. Telangana. Telangana. Pan Aaecn6799N Telangana. (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: -None- राज" व "ारा /Revenue By: Ms V Koteswaramma, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 18.02.2026 घोषणा की तारीख/Pronouncement: 25.02.2026 आदेश/Order

For Appellant: -None-For Respondent: MS V Koteswaramma, Sr. AR

Section 140Section 253

INCOME TAX OFFICER WARD-2 AHMEDNAGAR, AHMEDNAGAR vs. KANIFNATH GRMAIN BIGAR SHETI SAHAKARI PATSANSTHA MARYADIT, MALDAD

In the result, the appeal of the Revenue is dismissed

ITA 2247/PUN/2025[2022-23]Status: DisposedITAT Pune13 Feb 2026AY 2022-23

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri Madhan Thirmanpalli

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

SHI vs. HAKTI NAGARI SAHAKARI PATSANSTHA ,PUNEVS.INCOME TAX OFFICER WARD 10(1), PUNE

In the result, the appeal of the assessee is allowed

ITA 2816/PUN/2025[2018-19]Status: DisposedITAT Pune12 Feb 2026AY 2018-19

Bench: Shri Manish Borad & Ms. Astha Chandra

For Appellant: Shri A.V. IyerFor Respondent: Shri Aviyogi Ambadkar

Section 142(1)Section 143(3)Section 263Section 56Section 80P(2)

MAHESH NAGARI SAHAKARI PATSANSTHA MARYADIT,AHILYANAGAR vs. PR CIT, PUNE-1, PUNE

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

ITA 1300/PUN/2025[2020-21]Status: DisposedITAT Pune09 Feb 2026AY 2020-21

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1300/Pun/2025 िनधा"रण वष" / Assessment Year : 2020-21 Mahesh Nagari Sahakari Vs. Pr. Cit, Pune-1. Patsanstha Maryadit, At Post Bhingar, Ahmednagar Camp, S.O. Burhanagar, Ahilyanagar- 414002. Pan : Aadam4172H Appellant Respondent Assessee By : Shri Prasad S. Bhandari (Virtual) Revenue By : Shri Amol Khairnar Date Of Hearing : 02.12.2025 Date Of Pronouncement : 09.02.2026 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 28.03.2025 Passed U/S 263 Of The It Act By Ld. Pr. Cit, Pune-1 [‘Ld. Pcit’] For The Assessment Year 2020-21. 2. The Appellant Has Raised The Following Grounds Of Appeal :- “1. On The Facts & In The Prevailing Circumstances Of The Case, Respected Pcit Pune 1 Erred Passing The Impugned Revision Order Under Section 263 Without Appreciating The Fact That Interest On The Deposits Made By A Assessee Co-Operative Society Out Of Its Business Proceeds With The Co-Operative Bank Is Eligible

For Appellant: Shri Prasad S. Bhandari (Virtual)For Respondent: Shri Amol Khairnar

Section 143(3)Section 263Section 80PSection 80P(2)Section 80P(2)(d)Section 80P(2)(f)

CHAULI SINGHAPUR SAMABAY KRISHI UNNAYAN SAMITY LTD.,,PASHCHIM MEDINIPUR vs. ACIT, CIRCLE 38,, MIDNAPORE

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 1204/KOL/2025[2017-2018]Status: DisposedITAT Kolkata05 Feb 2026AY 2017-2018

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyassessment Year: 2017-18 Chauli Sighapur Samabay Krishi Unnayan Samity Ltd.……….……….……Appellant Singapur, Chauli, Ghatal, Paschim Medinipur 721212.. [Pan: Aacac0960C] Vs. Acit, Circle-38, Midnapore…………………………..…….....……...…..…..Respondent Appearances By: Shri Amit Agarwal, Advocate, Appeared On Behalf Of The Appellant. Shri Santanu Ghosh, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 21, 2026 Date Of Pronouncing The Order : February 05, 2026 Order Per Pradip Kumar Choubey: This Appeal Filed By The Assessee Is Directed Against The Order Dated 03.04.2025 Of The Nfac, Delhi (Hereinafter Referred To As The “Cit(A)”) Passed U/S 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) For The Assessment Year 2010–11. 2. Brief Facts Of The Case Are That The Assessee Is A Primary Agricultural Co-Operative Society, Carrying On Business Of Sales Of Fertilisers, Pesticides, Seeds, Providing Loans To Members & Registered Under West Bengal Co-Operative Society Act, 2006. The Assessee Filed Its Income Tax Return For The Assessment Year 2017-18 By Disclosing A Total Income At Rs Nil. The Case Was Selected For Scrutiny Under Cass & Notice U/S 143(2) Of The Act Was Issued. The Assessing Officer Completed The Assessment U/S 143(3) By Denying Deduction Of Rs.29,43,810/- U/S 80P(2) Of The Act & Also Added Back Cash Deposited Rs.24,86,110/- Out Of Total Cash Deposited Rs.2,10,09,000/- During The Period Of Demonetization From 09-11-2016 To 30-12-2016 As Unexplained Money U/S 69A Of The Act.

Section 143(2)Section 143(3)Section 250Section 69ASection 80P(2)

MAHAVEER NAGARI SAHAKARI PATPEDHI LIMITED,AMALNER vs. ITO WARD 1(4) JALGAON, JALGAON

In the result, appeal of the assessee is allowed

ITA 2228/PUN/2025[2016-17]Status: DisposedITAT Pune30 Jan 2026AY 2016-17

Bench: SHRI VINAY BHAMORE (Judicial Member)

Section 139Section 139(1)Section 143(1)(a)Section 144BSection 147Section 148Section 148ASection 250Section 80PSection 80P(2)(a)

MAHAVEER NAGARI SAHAKARI PATPEDHI LIMITED,AMALNER vs. ITO WARD 1(4) JALGAON, JALGAON

In the result, appeal of the assessee is allowed

ITA 2227/PUN/2025[2015-16]Status: DisposedITAT Pune30 Jan 2026AY 2015-16

Section 139Section 139(1)Section 143(1)(a)Section 144BSection 147Section 148Section 148ASection 250Section 80PSection 80P(2)(a)

MORE MAULI CO-OP CREDIT SOCIETY LIMITED MUMBAI,MUMBAI vs. WARD 22(2)(1), MUMBAI

ITA 5651/MUM/2025[2020-21]Status: DisposedITAT Mumbai30 Jan 2026AY 2020-21

Bench: Shri Vikram Singh Yadav, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: Shri Viraj Mehta, ARFor Respondent: Shri Annavaram Kosuri, Sr. AR

Section 144Section 234ASection 250Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

INCOME TAX OFFICER WARD 1 SATARA, SATARA vs. KARAD PATAN TALUKA PRATHMIK SHIKSHAK SAHAKARI SOCIETY LIMITEDTY , KARAD

In the result, Revenue’s Appeal is dismissed

ITA 2289/PUN/2025[2020]Status: DisposedITAT Pune23 Jan 2026

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.2289/Pun/2025 निर्धारण वषा / Assessment Year: 2020-21 Income Tax Officer, V Karad Patan Taluka Prathmik Ward-1, Satara. S Shikshak Sahakari Society Limited, 190 B Shaniwar Peth, Opp.Shivneri Lodge, Karad, Satara – 415110 Pan: Aaaak0559R Appellant / Assessee Respondent / Revenue Assessee By Shri Satish U Nade Revenue By Smt Neha Thakur (Virtual) Date Of Hearing 21/01/2026 Date Of Pronouncement 23/01/2026 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Revenue Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 For A.Y.2020-21 Dated 21.08.2025 Emanating From The Assessment Order Passed Under Section 143(3) Read With Section 144B Of The I.T .Act, 1961 Dated

Section 143(3)Section 144BSection 250Section 56Section 57Section 80Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

GAJULLANKA PRIMARY AGRICULTURE CO OP SOCIETY,GUNTUR vs. INCOME TAX OFFICER, WARD-1, TENALI

In the result, all the four appeals of the Assessee are allowed for statistical purposes

ITA 498/VIZ/2025[2019-20]Status: DisposedITAT Visakhapatnam22 Jan 2026AY 2019-20

Bench: Shri Vijay Pal Rao & Shri Omkareshwar Chidaraआ.अपी.सं /Ita Nos.495 To 498/Viz./2025 Assessment Years 2018-2019 & 2019-2020 Gajullanka Primary The Income Tax Officer, Agriculture Co-Op Ward-1, Tenali. Society,Avulavaripalem, Vs. Pin – 522 201. Kolluru Mandal, Guntur State Of Andhra District – 522 324. Pradesh Pan Bgapm1891G (Appellant) (Respondent) िनधा"रती "ारा /Assessee By: Sri C Subrahmanyam, Ca [Hybrid Mode] राज" व "ारा /Revenue By: Dr. Aparna Villuri, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 22.01.2026 घोषणा की तारीख/Pronouncement: 22.01.2026 आदेश/Order

For Appellant: Sri C Subrahmanyam, CAFor Respondent: Dr. Aparna Villuri, Sr. AR

Section 144Section 147Section 148Section 249(3)Section 250Section 270ASection 271A

GAJULLANKA PRIMARY AGRICULTURE CO OP SOCIETY,GUNTUR vs. INCOME TAX OFFICER, WARD-1, TENALI

In the result, all the four appeals of the Assessee are allowed for statistical purposes

ITA 497/VIZ/2025[2019-20]Status: DisposedITAT Visakhapatnam22 Jan 2026AY 2019-20

For Appellant: Sri C Subrahmanyam, CAFor Respondent: Dr. Aparna Villuri, Sr. AR

Section 144Section 147Section 148Section 249(3)Section 250Section 270ASection 271A

GAJULLANKA PRIMARY AGRICULTURE CO OP SOCIETY,GUNTUR vs. INCOME TAX OFFICER, WARD-1, TENALI

In the result, all the four appeals of the Assessee are allowed for statistical purposes

ITA 496/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam22 Jan 2026AY 2018-19

For Appellant: Sri C Subrahmanyam, CAFor Respondent: Dr. Aparna Villuri, Sr. AR

Section 144Section 147Section 148Section 249(3)Section 250Section 270ASection 271A

GAJULLANKA PRIMARY AGRICULTURE CO OP SOCIETY,GUNTUR vs. INCOME TAX OFFICER, WARD-1, TENALI

In the result, all the four appeals of the Assessee are allowed for statistical purposes

ITA 495/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam22 Jan 2026AY 2018-19

For Appellant: Sri C Subrahmanyam, CAFor Respondent: Dr. Aparna Villuri, Sr. AR

Section 144Section 147Section 148Section 249(3)Section 250Section 270ASection 271A

BANGANGA NAGARI SAHAKARI PAT SANSTHA MARYADIT OJHAR (MIG),NASHIK vs. THE INCOME TAX OFFICER, WARD -1(1), NASHIK., NASHIK

In the result, appeal of the assessee is allowed

ITA 1789/PUN/2025[2018-19]Status: DisposedITAT Pune20 Jan 2026AY 2018-19

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita Nos.1788 & 1789/Pun/2025 निर्धारण वषा / Assessment Year: 2022-23 & 2018-19 Banganga Nagari Sahakari V The Income Tax Officer, Patsanstha Maryadit, S Ward-1(1), Nashik. Ravsaheb, Bhagava, Nashik Chowk, Ojhar Niphad, Ozar Mig, Nashik – 422206. Pan: Aaajb0550G Appellant/ Assessee Respondent / Revenue Assessee By Shri Sanjeev Muttha – Virtual Revenue By Smt Neha Thakkar (Virtual) Date Of Hearing 19/01/2026 Date Of Pronouncement 20/01/2026 आदेश/ Order Per Bench : These Two Appeals Filed By The Assessee Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 For A.Y.2022-23 Dated 22.05.2025 Emanating From The Assessment Order Dated 18.03.2024 Under Section 143(3) R.W.S. 144B Of The Income Tax Act, 1961 & Order Under Section 250 Of The Income Tax Act, 1961

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

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