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)

DCIT, Bangalore vs. M/S Iti Employees Union Co-Op Credit Society, Bangalore

In the result, the appeal of the revenue is dismissed

ITA 1207/BANG/2016[2009-10]Status: DisposedITAT Bangalore19 May 2017AY 2009-10

Bench: Shri Vijay Pal Rao

For Appellant: Shri H.L. Soumya Achar,Addl.CIT (D.R)For Respondent: Shri Sandeep C, C.A
Section 263Section 80P(2)(a)

ITO, Namakkal vs. S.A.63, Kolli Hills Powerkadu Hill Tribes Lamp Co-Operative Society Ltd., Rasipuram

In the result, the appeal of the Revenue stands dismissed

ITA 3364/CHNY/2016[2012-13]Status: DisposedITAT Chennai17 May 2017AY 2012-13

Bench: Shri George Mathan] आयकर अपील सं./I.T.A. No.3364/Mds/2016 "नधा"रण वष" /Assessment Year : 2012-2013. Income Tax Officer, Vs. M/S. S.A. 63, Kolli Hills Powerkadu Hill Ward 3, Tribes Lamp Cs Ltd, Namakkal. Power Kadu Post, Rasipuram Tk, Namakkal Dist.

For Appellant: Shri. V. Nandakumar, IRS, JCITFor Respondent: 17-05-2017
Section 80P(2)(a)

The Thane Zilla Madhyamik Shikshak Sangh Sahakari Patpedhi, Thane vs. ACIT Palghar Cir, Palghar, Mumbai

ITA 1249/MUM/2017[2008-09]Status: DisposedITAT Mumbai17 May 2017AY 2008-09

Bench: S/Sh.Rajendra & Amarjit Singhआयकर अपील सं./I.T.A./1249/Mum/2017,िनधा"रण िनधा"रण वष" वष" /Ay.: 2008-09 िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./1250/Mum/2017,िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Ay.: 2012-13 वष" The Thane Zilla Madhyamik Shikshak Acit Palghar Circle Sangh Sahakari Patpedhi Maryadit Palghar. At.Saphale Post,Umbarpada, Taluka Vs. Palghar, Dist. Thane-401 102. Pan:Aaaat 9514 H (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Dr. A.K. Nayak-Dr अपीलाथ" क" ओर से /Assessee By: Shri Bhupendra Shah . सुनवाई क" तारीख / Date Of Hearing: 23/03/2017 घोषणा क" तारीख / Date Of Pronouncement: 17/05/2017 लेखा लेखा सद"य लेखा लेखा सद"य सद"य राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार/ Per Rajendra, Am- अनुसार Challenging The Orders Dated 02.01.2017 Of The Cit(A)- 3,Mumbai,The Assessee Has Filed Appeals For The Above Mentioned Ay.S.It Is Engaged In The Business Of Providing Credit Facilities To Its Members.The Details Of Dates Of Filing Of Returns, Returned Incomes,Dates Of Assessment Etc. Can Be Summarised As Under: Ay. Roi Filed On Returned Income Assessment Date Assessed Income 2008-09 29.09.2008 Nil 04.12.2015 Rs.97,80P,811/- 2012-13 28.09.2012 Nil 20.03.2015 Rs.1,57,72,930/-

For Appellant: Shri Bhupendra ShahFor Respondent: Dr. A.K. Nayak-DR
Section 143Section 148Section 269SSection 271DSection 80P

Deputy Commissioner of Income Tax, Bangalore vs. Sri. Biluru Gurubasava Sahakari Pattin Sangh Niyamit, Bagalkot

In the result, both the appeals of revenue stand dismissed

ITA 1407/BANG/2016[2012-13]Status: DisposedITAT Bangalore21 Apr 2017AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri S. Jayaraman

For Appellant: ShriFor Respondent: Shri S. Ramasubramanian, CA
Section 2Section 24Section 80P(2)(a)Section 80P(4)

ITO 21(3)(3), Mumbai vs. Shree Vishveshwar Sahakari Pathpedhi Maryadit, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 3929/MUM/2016[2012-13]Status: DisposedITAT Mumbai19 Apr 2017AY 2012-13

Bench: Shri D. Karunakara Raoफनाभ/ Ito-21(3)(3), Shri Vishweshwar Sahakari Mumbai. Patpedhi Maryadit, Vs. Telli Sewa Samaj, Shankar Rao Naram Path, Lower Parel, Mumbai-400013. स्थामी रेखा सं./ Pan : Aabas5610G (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) अऩीराथी की ओय से / Appellant By : Ms. Beena Santosh, Dr प्रत्मथी की ओय से/ Respondent By : Shri Vikas Agarwal

For Appellant: Ms. Beena Santosh, DRFor Respondent: Shri Vikas Agarwal
Section 2Section 5Section 80PSection 80P(2)(a)Section 80P(4)

ITO 17(2)(1), Mumbai vs. Jansasgar Kamgar Sahakari Patpedhi Ltd., Mumbai

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

ITA 4994/MUM/2016[2012-13]Status: DisposedITAT Mumbai11 Apr 2017AY 2012-13

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2012-13

For Appellant: Mr. V.G. Ginde, ARFor Respondent: Mr. Swapan Kumar Bepari, DR
Section 143(3)Section 2(24)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

The Painkulam Primary Agri. Co-Operative Bank Ltd., Kanyakumari vs. CIT(A), Madurai

In the result, the appeal of the assessee is dismissed

ITA 3214/CHNY/2016[2006-07]Status: DisposedITAT Chennai29 Mar 2017AY 2006-07

Bench: Shri Abraham P. George]

For Appellant: Shri. R.Anjalose, C.A
Section 80P(2)Section 80P(2)(a)Section 80P(2)(c)Section 80P(2)(d)

ITO 21(2)(4), Mumbai vs. Navsandesh Sahakari Patpedhi Maryadit, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3954/MUM/2016[2012-13]Status: DisposedITAT Mumbai29 Mar 2017AY 2012-13

Bench: Shri D. Karunakara Raoफनाभ/ Ito-21(2)(4), M/S. Navsandesh Sahakari Mumbai. Patpedhi Maryadit, Vs. 13/2 & 4, N.M. Joshi Marg, Lower Parel, Mumbai-13. स्थामी रेखा सं./ Pan : Aadfn6130H (अऩीराथी /Appellant) (प्रत्मथी / Respondent) ..

For Appellant: Ms. Beena Santosh, DRFor Respondent: Shri Ramesh S. Iyer
Section 80P(2)(a)Section 80P(4)

ITO, Salem vs. M/S. S-1236 Valapadi Primary Agricultural Co-Op. Credit Society Ltd., Salem

In the result, the appeal of the Revenue is dismissed

ITA 2607/CHNY/2016[2013-14]Status: DisposedITAT Chennai27 Mar 2017AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singhआयकर अपील सं./Ita No.2607/Mds/2016 "नधा"रण वष" /Assessment Year: 2013-14

Section 260ASection 80PSection 80P(2)(a)Section 80P(2)(c)Section 80P(2)(d)

The ITO, Malappuram vs. The Karuvarakundu Service Co-Op Bank Ltd, Malappuram

ITA 404/COCH/2016[2011-12]Status: DisposedITAT Cochin22 Mar 2017AY 2011-12

Bench: S/Shri Abraham P. George, Am & George George K., Jm

Section 80P(2)Section 80P(2)(a)Section 80P(4)

The ITO, Malappuram vs. The Karuvarakundu Service Co-Op Bank Ltd, Malappuram

ITA 403/COCH/2016[2010-11]Status: DisposedITAT Cochin22 Mar 2017AY 2010-11

Bench: S/Shri Abraham P. George, Am & George George K., Jm

Section 80P(2)Section 80P(2)(a)Section 80P(4)

The ITO, Malappuram vs. The Karuvarakundu Service Co-Op Bank Ltd, Malappuram

ITA 402/COCH/2016[2009-10]Status: DisposedITAT Cochin22 Mar 2017AY 2009-10

Bench: S/Shri Abraham P. George, Am & George George K., Jm

Section 80P(2)Section 80P(2)(a)Section 80P(4)

Mutholy Service Co-Operative Bank Ltd, Kottayam vs. The ITO, Kottayam

ITA 11/COCH/2014[2010-11]Status: DisposedITAT Cochin22 Mar 2017AY 2010-11

Bench: Shri Abraham P. George & Shri George George. K.] आयकर अपील सं./I.T.A. No. 11/Coch/2014. िनधा"रण वष" /Assessment Year : 2010-2011. Vs. M/S. Mutholy Service Co- The Income Tax Officer, Operative Bank Ltd, Ward 4 Puliyannor P.O. Kottayam. Kottayam Dist. 686 573 [Pan Aaajm 0328H] (अपीलाथ" अपीलाथ" अपीलाथ"/Appellant) अपीलाथ" (ू"यथ" ू"यथ" ू"यथ"/Respondent) ू"यथ"

For Respondent: Shri. A. Dhanaraj, Sr. D.R
Section 80PSection 80P(2)(a)

I.T.O., Ward-23(1), Hooghly vs. Boinchipota Samabay Krishi Unnayan Samity Ltd., Hooghly

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

ITA 2084/KOL/2016[2013-14]Status: DisposedITAT Kolkata22 Mar 2017AY 2013-14

Bench: Shri S.S.Viswanethra Ravi, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita No.2084/Kol/2016 ("नधा"रण वष" / Assessment Year :2013-2014) Ito, Ward-23(1), Hooghly, Vs. Boinchipota Samabay Krishi Aayakar Bhawan, G.T.Road, Unnayan Samity Ltd., Khadina More, Chinsurah, Boinchipota, Hooghly-712101 Po: Anandanagar, District:Hooghly, 712409 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaab 2418 A .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Rajat Kumar Kureel, Jcit "नधा"रती क" ओर से /Assessee By : Shri V.N.Purohit, Fca सुनवाई क" तार"ख / Date Of Hearing : 22/02/2017 घोषणा क" तार"ख/Date Of Pronouncement 22/03/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Appeal Filed By The Revenue, Pertaining To The Assessment Year 2013-2014, Is Directed Against The Order Passed By The Ld. Commissioner Of Income Tax (Appeals)-6, Kolkata, In Appeal No.436/Cit(A)-6/Kol/15-16, Dated 08.08.2016, Which In Turn Arises Out Of An Order Passed By The Ao U/S.143(3) Of The Income Tax Act 1961, (Hereinafter Referred To As The ‘Act’), Dated 24.11.2015. 2. Brief Facts Of The Case Qua The Assessee Are That The Assessee Has Submitted His Return Of Income For The Assessment Year 2013-2014 On 28.03.2014, Disclosing Total Income Of Rs.96,710/-. The Assessee’S Case Was Selected For Scrutiny U/S143(3) Of The Act & The Ao Completed The Assessment By Making Addition U/S.80P(A)(I) Of The Act.

For Appellant: Shri V.N.Purohit, FCAFor Respondent: Shri Rajat Kumar Kureel, JCIT
Section 143(3)Section 80PSection 80P(2)(a)

ITO, Shimoga vs. M/S Malenadu Credit Co-Op Society Ltd., Shimoga

In the result the appeals for the three assessment years viz,

ITA 786/BANG/2016[2010-11]Status: DisposedITAT Bangalore03 Mar 2017AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

For Appellant: Shri M.K. Biju, JCIT(DR)(ITAT-3)For Respondent: Shri Sandeep C., CA
Section 2(24)(viia)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

ITO 21(2)(3), Mumbai vs. Mumbai Sidhiwatap Karmachari Cooperative Credit Society Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 5559/MUM/2016[2012-13]Status: DisposedITAT Mumbai02 Feb 2017AY 2012-13

Bench: Shri R.P.Tolanithe Ito -21(2)(3), Room No.105, 1St Floor, Piramal Chambers, Parel, Mumbai -400 012. ...... Appellant Vs. Mumbai Sidhiwatap Karmachari Co-Operative Credit Society Ltd., Ground Floor, Brahaman Sahayak Sang, Road No.3, Shivaji Park, Dadar (W),Mumbai 400028 Pan: Aabmo 189N .... Respondent

For Appellant: Ms Beena SantoshFor Respondent: Shri V.G. Ginde
Section 80P(2)(a)Section 80P(4)

Hry. St. Coop. Housing Fed. Ltd vs. C I T and Ors

The appeal is disposed of accordingly

ITA/285/2008HC Punjab & Haryana30 Jan 2017
Section 260ASection 56Section 57Section 80P

Shriram Sahakari Patpedhi Maryadit, Mumbai vs. ITO 20(3)(3), Mumbai

ITA 4014/MUM/2016[2012-13]Status: DisposedITAT Mumbai11 Jan 2017AY 2012-13

Bench: Shri Mahavir Singh () & Shri Ashwani Taneja ()

Section 147Section 250Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(4)

Shriram Sahakari Patpedhi Maryadit, Mumbai vs. ITO 20(3)(3), Mumbai

ITA 4013/MUM/2016[2009-10]Status: DisposedITAT Mumbai11 Jan 2017AY 2009-10

Bench: Shri Mahavir Singh () & Shri Ashwani Taneja ()

Section 147Section 250Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(4)

ITO 18(2)(4), Mumbai vs. Sanjay Co Op Credit Society Ltd, Mumbai

Appeal of the Revenue is dismissed subject to the aforesaid directions

ITA 7052/MUM/2013[2010-11]Status: DisposedITAT Mumbai11 Jan 2017AY 2010-11

Bench: Shri Mahavir Singh () & Shri Ashwani Taneja ()

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