Section 80P(2)(a)(i) of the Income Tax Act

Income-tax Act, 2025: s.149

Section 80P(2)(a)(i) 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(2)(a)(i) is Totgars Co-operative Sale Society Ltd. v. ITO (322 ITR 283), cited in 1,283 of the 2,347 judgments on BharatTax that turn on this section.

Leading authorities on Section 80P(2)(a)(i)

Totgars Co-operative Sale Society Ltd. v. ITO
322 ITR 283 · 2010 · Supreme Court
1,283
citing judgments

The interest income earned by a cooperative society from investing its surplus funds in fixed deposits with banks is not "derived from" its eligible business activities and is taxable as "income from other sources" under Section 56, thus not qualifying for deduction under Section 80P.

Pr. CIT v. Totagars
395 ITR 611 · 2017 · High Court
1,074
citing judgments

Interest income earned by a cooperative society from surplus deposits or investments held with a cooperative bank is not eligible for deduction under Section 80P(2)(d) of the Act.

Mavilayi Service Co-operative Bank Ltd. v. CIT
431 ITR 1 · 2021 · Supreme Court
999
citing judgments

Section 80P(4) serves as a proviso to Section 80P(1) and (2), excluding only cooperative banks that are cooperative societies and possess an RBI license for banking business. Its purpose is to exclude cooperative banks operating like commercial banks that lend money to the public.

State Bank Of India v. CIT
389 ITR 578 · 2016 · High Court
817
citing judgments

Income arising from a cooperative society's surplus funds invested in short-term deposits and securities is not attributable to the society's core activities and, therefore, is not eligible for exemption under Section 80P(2)(a)(i) of the Income-tax Act.

Pr. Commissioner of Income Tax and Anr. v. Totagars Cooperative Sale Society
392 ITR 74 · 2017 · High Court
762
citing judgments

Interest income earned by a cooperative society from its investments or surplus deposits with a cooperative bank is eligible for deduction under Section 80P(2)(d) of the Income-tax Act, 1961.

Subramanian and Anr. v. Siemens India Ltd. and Anr.
156 ITR 11 · 1985 · High Court
541
citing judgments

When there is a conflict between the decisions of non-jurisdictional High Courts, the view that favors the assessee should be preferred.

Tumkur Merchants Souharda Credit Cooperative Ltd. v. ITO
230 Taxmann 309 · 2015 · High Court
527
citing judgments

A cooperative society is eligible for deduction under Section 80P(2)(a)(i) if it is engaged in cooperative activities. It also clarifies the allowability of deduction under Section 80P(2)(d) for interest income received from investments made in cooperative banks, after duly considering the Supreme Court's decision in Totgars Co-operative Sale Society Ltd.

Citizen Co-operative Society Ltd. v. ACIT
397 ITR 1 · 2017 · Supreme Court
499
citing judgments

A co-operative credit society engaged in banking business with the general public, accepting deposits from non-members and advancing loans to non-members, is treated as a co-operative bank. Such a society falls under the exclusionary clause of Section 80P(4) and is not eligible for deduction under Section 80P(2)(a)(i).

Totgar's Co-operative Sale Society Ltd. v. ITO
188 Taxmann 282 · 2010 · Supreme Court
486
citing judgments

Interest income earned by a co-operative society from investments, particularly with co-operative banks, is not eligible for deduction under Section 80P as it is not attributable to the core business activities of the society and constitutes "other income", not "profits and gains of business".

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.

Judgments on Section 80P(2)(a)(i)

Duddukuru Primary Agricultural Cooperative Credit Society Limited, Duddukuru vs. ITO, Ward - 1, Tadepalligudem

In the result, the appeal of the assessee is allowed

ITA 258/VIZ/2026[2015-16]Status: DisposedITAT Visakhapatnam16 Oct 2026AY 2015-16

Bench: Shri Vijay Pal Rao & Shri Manjunatha Gिनधा"रण वष"/Assessment Year: 2015-2016 Duddukuru Primary Agricultural Cooperative Credit Ito, Ward - 1 Society Limited Tadepalligudem 1, Duddukuru Tadepalligudem- Vs. Devarapalli 534101, Andhra Mandalam, Pradesh Devarapalli-534313, Andhra Pradesh अपीलाथ" Appellant ""थ" Respondent

Section 139(1)Section 143(3)Section 147Section 148Section 80Section 80ASection 80PSection 80P(2)(a)

Parthasaradhi Mutually Aided Co-Operative Thrift Society Limited, Hyderabad vs. Income-Tax Officer, Ward-17(1), Hyderabad

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2322/HYD/2026[AY 2016-17]Status: DisposedITAT Hyderabad16 Oct 2026

Bench: Shri Ravish Sooda N D Shri Madhusudan Sawdiaआ.अपी.सं /Ita No. 2322/Hyd/2026 (िनधा"रण वष"/Assessment Year: 2016-17) Parthasaradhi Mutually Vs. Income Tax Officer Aided Co-Operative Thrift Ward 17(1) Society Ltd, Hyderabad Hyderabad Pan:Aacap2696N (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Abhiroop Bhargav, Ca राज" व "ारा/Revenue By: Shri P Sai Krishna, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 12/10/2026 घोषणा की तारीख/Pronouncement: 16/10/2026 Order Per Madhusudhan Sawdia, A.M.: This Appeal Is Filed By Parthasaradhi Mutually Aided Co-Operative Thrift Society Ltd (“The Assessee”), Feeling Aggrieved By The Order Passed By The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac) Delhi (“Ld. Cit(A)”) Dated 18.11.2025 For The A.Y. 2016-17. Page 1 Of 8

For Appellant: Shri Abhiroop Bhargav, CAFor Respondent: Shri P Sai Krishna, Sr. AR
Section 147Section 250Section 80PSection 80P(2)(a)

The Development Multipurpose Credit & Consumers Co-Op So Ltd, Porbandar, Gujarat vs. ITO Ward 2 (4), Porbandar, Gujarat

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 458/RJT/2026[2017-18]Status: DisposedITAT Rajkot15 Oct 2026AY 2017-18

Bench: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Chetan Agarwal, Ld. ARFor Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Section 143(2)Section 143(3)Section 250Section 80P(2)(a)

Hislop College Employees Cooperative Credit Society Limited, Nagpur vs. ITO Ward 2(3), Nagpur

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

ITA 184/NAG/2026[2018-19]Status: DisposedITAT Nagpur14 Oct 2026AY 2018-19

Bench: Shri Pavan Kumar Gadale

For Appellant: NoneFor Respondent: Shri Shiva Shankar Yadav.Sr.DR
Section 143(2)Section 143(3)Section 80PSection 80P(2)(a)

Jijamata Mahila Gramin Bigar Sheti Sahakari Pat Sanstha, Sakoli vs. ITO Ward -1, Bhandra

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

ITA 102/NAG/2026[2020-21]Status: DisposedITAT Nagpur12 Oct 2026AY 2020-21

Bench: Shri Pavan Kumar Gadale

For Appellant: Shri K.K. Thakkar, CA. ARFor Respondent: Shri Shiva Shankar Yadav
Section 13Section 80ASection 80PSection 80P(2)(a)

Suvarnakarara Co-Operative Society Limited, Kumta vs. Income Tax Officer, Ward - 2, Karwar

In the result, all the three appeals of the assessee are allowed

ITA 210/PAN/2025[2020-21]Status: DisposedITAT Panaji07 Oct 2026AY 2020-21

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.208 To 210/Pan/2025 Assessment Years : 2017-18, 2018-19 & 2020-21 Suvarnakarara Cooperative Vs. Income Tax Officer, Society Limited, Ward-2, Karwar 2, Court Road, Kumta, Uttara Kannada District-581343 Karnataka Pan : Aafas0384M Appellant Respondent

For Appellant: Shri Raghavendra (virtual)For Respondent: Shri Mayur Kamble, Sr. DR
Section 143(3)Section 2(19)Section 80PSection 80P(2)(a)Section 80P(2)(d)

Suvarnakarara Co-Operative Society Limited, Kumta vs. Income Tax Officer, Ward - 2, Karawar

In the result, all the three appeals of the assessee are allowed

ITA 209/PAN/2025[2018-19]Status: DisposedITAT Panaji07 Oct 2026AY 2018-19

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.208 To 210/Pan/2025 Assessment Years : 2017-18, 2018-19 & 2020-21 Suvarnakarara Cooperative Vs. Income Tax Officer, Society Limited, Ward-2, Karwar 2, Court Road, Kumta, Uttara Kannada District-581343 Karnataka Pan : Aafas0384M Appellant Respondent

For Appellant: Shri Raghavendra (virtual)For Respondent: Shri Mayur Kamble, Sr. DR
Section 143(3)Section 2(19)Section 80PSection 80P(2)(a)Section 80P(2)(d)

Suvarnakarara Co-Operative Society Limited, Kumta vs. Income Tax Officer, Ward - 2, Karwar

In the result, all the three appeals of the assessee are allowed

ITA 208/PAN/2025[2017-18]Status: DisposedITAT Panaji07 Oct 2026AY 2017-18

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.208 To 210/Pan/2025 Assessment Years : 2017-18, 2018-19 & 2020-21 Suvarnakarara Cooperative Vs. Income Tax Officer, Society Limited, Ward-2, Karwar 2, Court Road, Kumta, Uttara Kannada District-581343 Karnataka Pan : Aafas0384M Appellant Respondent

For Appellant: Shri Raghavendra (virtual)For Respondent: Shri Mayur Kamble, Sr. DR
Section 143(3)Section 2(19)Section 80PSection 80P(2)(a)Section 80P(2)(d)

Lokmanya Nagari Sahakari Path Sanstha Maryadit Yelur, Kolhapur vs. ITO Ward 1(1), Kolhapur

In the result, appeal of the assessee is allowed

ITA 3409/PUN/2026[2016-17]Status: DisposedITAT Pune06 Oct 2026AY 2016-17

Bench: Shri Dr. Dipak P. Ripote & Shri Vinay Bhamoreassessment Year : 2016-17 Lokmanya Nagari Sahakari Path Sanstha Income Tax Officer, Maryadit Yelur, Ward-1(1), Kolhapur 205 B Malakpur, Near Warage Bol, Vs. Ratnagiri Road, Shahuwadi, Kolhapur-415101 Pan : Aaaal5209R (Appellant) (Respondent)

For Appellant: N O N EFor Respondent: Smt. Sonal L Sonkavde, Addl. CIT
Section 147Section 148Section 250Section 56Section 80P(2)Section 80P(2)(a)

Neha Hiranand Motwani, Nashik vs. ITO International Tax, Nashik

In the result, the appeal of the assessee is allowed as per terms indicated hereinabove

ITA 1570/PUN/2026[2020-21]Status: DisposedITAT Pune05 Oct 2026AY 2020-21

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.1570/Pun/2026 Assessment Year : 2020-21 Neha Hiranand Motwani, Vs. Income Tax Officer, 1037, Jamshed Villa, International Taxation, Sansan Lane, Davlali Camp, Nashik Devlali Bazar, S.O. Nashik, Nashik – 422401, Maharashtra Pan : Bgnpm0810N Appellant Respondent

For Appellant: Shri Pradeep Lodha, CAFor Respondent: Dr. Amit Munde
Section 147Section 148Section 148A

Dhanashri Multi State Cooperative Credit Society Ltd, Mangalvedha vs. ITO Ward 1, Pandharpur

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

ITA 2753/PUN/2026[2017-18]Status: DisposedITAT Pune30 Sept 2026AY 2017-18

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2753/Pun/2026 िनधा"रण वष" / Assessment Year : 2017-18 Dhanashri Multi State Vs. Ito, Ward-1, Solapur. Cooperative Credit Society Ltd., Damaji Road, Murlidhar Chowk, Mangalvedhe, Maharashtra- 413305. Pan : Aabad1879N Appellant Respondent Assessee By : Shri Pramod S. Shingte Revenue By : Shri Sandeep Jumale Date Of Hearing : 04.08.2026 Date Of Pronouncement : 30.09.2026 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 19.03.2026 Passed By Ld. Addl./Jcit(A), Jodhpur [‘Ld. Cit(A)’] For The Assessment Year 2017-18. 2. The Appellant Has Raised The Following Grounds Of Appeal :- “1. On The Facts & The Circumstances Of The Case & In Law, The Learned Assessing Officer Erred In Rejecting Deduction U/S 80P(2)(A)(I) For A Sum Of Rs. 20,59,465/- Being Part Of The Book

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri Sandeep Jumale
Section 143(2)Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)

Monarch Co-Op Credit Society Limited, Andheri vs. Income Tax Officer, Ward 41(4)(2), Mumbai, Bandra

In the result, the ground of appeal raised by the assessee is allowed

ITA 5594/MUM/2026[2017-18]Status: DisposedITAT Mumbai30 Sept 2026AY 2017-18

Bench: Shri Pawan Singh & Shri Jagadish(Physicalhearing) Monarch Co-Op Credit Society Ito, Ward – 41(4)(2), Mumbai Limitedshop No. 7, Appolo Arcade, R Vs Kautilya Bhavan Near Videsh K Singh Marg, Andheri (E), Mumbai – Bhavan, G Block Bkc, Bandra 400709. (East), Mumbai – 400051. [Pan: Aaicm3254F] Appellant / Assessee Respondent / Revenue Assessee By Ms. Dinkle Hariya, Advocate Revenue By Ms. Jayshree Thakur, Sr. Dr Date Of Institution 07.05.2026 Date Of Hearing 06.08.2026 Date Of Pronouncement 30.09.2026 Order Under Section 254(1) Of Income Tax Act Per Pawan Singh; 1. This Appeal By Assessee Is Directed Against The Order Of Ld. Cit(A)/Nfac, Delhidated 27.03.2026 For Assessment Year (Ay) 2017-18. The Assessee Has Raised Following Grounds Of Appeal: “1. The Ld. Cit(A), Nfac Has Erred In Affirming With The Ld. Assessing Officer In Disallowing Deduction U/S 80P(2)(A)(I). 2. Your Appellant Further Reserves The Rights To Add, Amend Or Alter The Aforesaid Grounds Of Appeal As They May Think Fit By Themselves Or By Their Representatives.” 2. Rival Submissions Of Both The Parties Have Been Heard & The Record Perused.The Learned Authorised Representative (Ld. Ar) Of The Assessee Submits That The Assessee Is A Cooperative Credit Society. The Assessee Is Engaged In The Business Of Accepting Deposits & Providing Credit Facilities To Its Members. The Case Of The Assessee Was Reopened On The Basis Of Information That The Assessee Has Made Cash Deposits & No Monarch Co-Op Credit Society Limited

Section 144Section 254(1)Section 80ASection 80PSection 80P(2)(a)

Shri Gajanan Nagari Sahakari Pat Sanstha Limited, Kolhapur vs. ITO WD-2(1), Kolhapur

In the result, the appeal filed by the Revenue is dismissed

ITA 2768/PUN/2026[2018-19]Status: DisposedITAT Pune30 Sept 2026AY 2018-19

Bench: Dr. Manish Borad & Shri Pavan Kumar Gadaleआयकर अपील सं. Ita No. 2768/Pun/2026 Assessment Year: 2018-19 Shri Gajanan Nagari Ito, Ward 2(1), Sahakari Pat Sanstha Kolhapur-416005, Ltd., Maharashtra 266 E Ward, Old P B V/S Road, Patolewadi, Kolhapur- 416005 Maharashtra. Pan : Aaaas6695L Appellant Respondent

For Appellant: Shri.Pramod Shingte.ARFor Respondent: Ms.MugdhaSardeshpande.Sr.DR
Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Vakil Nagari Sahakari Patsanstha Limited, Osmanabad vs. ITO, Ward - 1, Latur

In the result, appeal of the assessee is allowed

ITA 2711/PUN/2026[2022 - 2023]Status: DisposedITAT Pune30 Sept 2026

Bench: Shri Dr. Dipak P. Ripote & Shri Vinay Bhamoreassessment Year : 2022-23 Vakil Nagari Sahakari Patsanstha Limited, Income Tax Officer, Yogayog, Adv. Dharashivkar Building, Ward-1, Latur Samrath Nagar, Osmanabad-413501 Vs. Pan : Aahfv2359Q (Appellant) (Respondent)

For Appellant: N O N EFor Respondent: Smt. Sonal L Sonkavde, Addl. CIT
Section 143(2)Section 143(3)Section 250Section 270ASection 56Section 80PSection 80P(2)(a)

Yeshwantrao Chavan Nagri Sahakari Patsanstha, Pandharpur vs. Income Tax Officer Ward-2 Pandharpur, Pandharpur

In the result, the appeal filed by the Revenue is dismissed

ITA 2715/PUN/2026[2017-18]Status: HeardITAT Pune29 Sept 2026AY 2017-18

Bench: Dr. Manish Borad & Shri Pavan Kumar Gadaleआयकर अपील सं. Ita No. 2715/Pun/2026 Assessment Year: 2017-18 Yeshwantrao Chavan Ito, Ward 2, Nagri Sahakari Indraprastha Patsanstha, Building, Venunagar Gursale, V/S Station Road, Taluka: Pandharpur, Pandharpur-413304, Solapur-413304, Maharashtra Maharashtra. Pan : Aaaay0103H Appellant Respondent

For Appellant: Shri Pramod Shingte.ARFor Respondent: Ms.MugdhaSardeshpande.Sr.DR
Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Markanja Primary Agricultural Credit Co-Operative Society Limited, Sullia vs. Income Tax Officer, Puttur, Mangaluru

In the result, the assessee’s appeal for assessment year 2017–18 is partly allowed

ITA 678/BANG/2026[2018-19]Status: DisposedITAT Bangalore29 Sept 2026AY 2018-19

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: AADAM7447B
Section 143(3)Section 234BSection 36(1)(iii)Section 80P(2)(a)Section 80P(2)(d)

Markanja Pacs Ltd, Sullia vs. Income Tax Officer, Mangaluru

In the result, the assessee’s appeal for assessment year 2017–18 is partly allowed

ITA 677/BANG/2026[2017-18]Status: DisposedITAT Bangalore29 Sept 2026AY 2017-18

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: AADAM7447B
Section 143(3)Section 234BSection 36(1)(iii)Section 80P(2)(a)Section 80P(2)(d)

Nagini Cooperative Credit Society Limited, Basaveswara Nagar Bangalore vs. ITO, Ward 6(2)(1), Bangalore, Bengaluru

In the result, the assessee’s appeal is allowed to the extent indicated above

ITA 619/BANG/2026[2023-24]Status: DisposedITAT Bangalore28 Sept 2026AY 2023-24

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: AACAN5552H
Section 143(3)Section 144BSection 250Section 56Section 80P(2)(a)Section 80P(2)(d)

Vss Bank Makkandur, Kodagu vs. Income-Tax Officer, Ward -1, Madikeri

In the result, appeal filed by the Assessee is partly allowed

ITA 378/BANG/2026[2020-21]Status: DisposedITAT Bangalore28 Sept 2026AY 2020-21

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhailvss Bank Makkandur Income-Tax Officer, Makkandur Makikeri Tq, Ward -1, Kodagu, Kodagu-571201, Shrivalli Bujilkding, Karnataka Ist Floor, Brahmins Vally, Vs. Near District Health Office, Chickpet, Madikeri - 571 201 Kodagu-571201, Karnataka अपीलधर्थी Appellant प्रत्यर्थी Respondent

For Appellant: AAAAV2060L
Section 143Section 144BSection 234Section 80PSection 80P(2)(a)

Vivekanand Shikshakanchi Sahkari Patsanstha Maryadit Kada, Beed vs. ITO Ward 1(5), Aurangabad

In the result, appeal of the assessee is allowed

ITA 2407/PUN/2026[2020-21]Status: DisposedITAT Pune23 Sept 2026AY 2020-21

Bench: Shri Dr. Dipak P. Ripote & Shri Vinay Bhamoreassessment Year : 2020-21 Vivekanand Shikshakanchi Sahkari Income Tax Officer, Patsanstha Maryadit Kada, Ward-1(5), Aurangabad At Kada, Post Kada, Tq. Ashti, Vs. Dist.- Beed-414202 Pan : Aaaav4287B (Appellant) (Respondent)

For Appellant: N O N EFor Respondent: Shri Sanjiv Kumar Verma, JCIT
Section 143(3)Section 208Section 234BSection 250Section 80PSection 80P(2)(a)