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)

Baglan Prathmik Shikshak Sahkari Patsanstha Maryadit, Nampur vs. Income Tax Officer, Malegaon

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

ITA 358/PUN/2025[2017-18]Status: DisposedITAT Pune17 Sept 2025AY 2017-18

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.358/Pun/2025 िनधा"रण वष" / Assessment Year : 2017-18 Baglan Prathmik Shikshak Vs. Ito, Ward-2, Malegaon. Sahkari Patsanstha Maryadit, Nampur, Baglan, Nashik- 423204. Pan : Aadab1392C Appellant Respondent Assessee By : Shri Pramod Shingte Revenue By : Shri Ramnath P. Murkunde Date Of Hearing : 05.08.2025 Date Of Pronouncement : 17.09.2025 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 13.12.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Year 2017-18. 2. The Appellant Has Raised The Following Grounds Of Appeal :- “1. On The Facts & In Circumstances Of The Case & In Law, Ld. Ao Erred In Making Various Additions Other Than The Reasons For Which The Case Was Reopened, I.E. Cash Deposited In Bank During Demonetization Period, As He Was Satisfied With Explanation Offered During The Course Of Reassessment Proceedings, Other Additions Are Not Permissible As Per The Provisions Of Section 147, In View Of The Judgment Of Hon'Ble Jurisdictional High Court In The Case Of Cit Vs. Jet Airways (1) Ltd. 331 Itr 236 (Bom).

For Appellant: Shri Pramod ShingteFor Respondent: Shri Ramnath P. Murkunde
Section 142(1)Section 147Section 80ASection 80A(5)Section 80PSection 80P(2)(a)

Kamadhenu Vivid Udheshagala Souhard Sahakari Niyamit, Athani vs. Income Tax Officer, Ward - 1, Belagavi

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

ITA 207/PAN/2025[2015-16]Status: DisposedITAT Panaji16 Sept 2025AY 2015-16

Bench: Shri Pavan Kumar Gadalei T A. Nos. 207/Pan/2025 (A.Y. 2015-16 ) Kamadhenu Vivid Vs I T O, Udheshagala Souhard National E Assessment . Sahakari Niyamita, Centre, Siddeshwar Road, Near Sbi, Delhi. Atheni,Belagavi-591304, . Karnataka. Pan .No.Aabak0473B (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent)

Section 80P

Yedamangala Vyavasaya Seva Sahakari Bank Niyamitha, Yedamangala, Sullia vs. Income Tax Officer Ward 1 Puttur, Puttur, Dakshina Kannada

ITA 580/BANG/2025[2018-19]Status: DisposedITAT Bangalore16 Sept 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Prasanna Shenoy, CAFor Respondent: Shri Ganesh R Ghale, Advocate – Standing
Section 56Section 57Section 80P(2)(a)Section 80P(2)(d)

Sullia Primary Co-Operative Agricultural & Rural Development Bank, Sullia vs. Income Tax Officer, Ward-1, Puttur

Accordingly, the entire claim of deduction was disallowed

ITA 460/BANG/2025[2018-19]Status: DisposedITAT Bangalore16 Sept 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Shiv Rao, CAFor Respondent: Shri Subramanian S, JCIT
Section 80P

Sullia Primary Co-Operative Agricultural & Rural Development Bank, Sullia vs. Income Tax Officer, Ward-1, Puttur

Accordingly, the entire claim of deduction was disallowed

ITA 459/BANG/2025[2017-18]Status: DisposedITAT Bangalore16 Sept 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Shiv Rao, CAFor Respondent: Shri Subramanian S, JCIT
Section 80P

Shri. Biluru Gurubasava Sahakari Pattina Sangh Niyamit, Bagalkot vs. Income Tax Officer, Ward-1, Bagalkot

ITA 418/BANG/2025[2022-23]Status: DisposedITAT Bangalore16 Sept 2025AY 2022-23

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri Sandeep Chalapathy, A.RFor Respondent: Sri Subramanian S., D.R
Section 139(1)Section 143(2)Section 250Section 80P(2)(a)

Shri Biluru Gurubasava Sahakari Pattina Sangh Niyamit, Bagalkot vs. Income Tax Officer, Ward-1, Bagalkot

ITA 417/BANG/2025[2020-21]Status: DisposedITAT Bangalore16 Sept 2025AY 2020-21

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri Sandeep Chalapathy, A.RFor Respondent: Sri Subramanian S., D.R
Section 139(1)Section 143(2)Section 250Section 80P(2)(a)

Shri Venkateshwar Urban Credit Souhard Sahakari Limited, 1210, Athani H.O, Athni, Belgaum, 591304, Karnatak vs. Income Tax Officer, Belgaum

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

ITA 206/PAN/2025[2017-2018]Status: DisposedITAT Panaji15 Sept 2025AY 2017-2018

Bench: Shri Pavan Kumar Gadalei T A. Nos.206/Pan/2025 (A.Y. 2017-18 ) Shri Venkateshwar Urban Vs Ito-Ward-3, Credit Souhard Sahakari Ltd, Feroj Khimjibhai Cpx, . 1210,Athani, H.O.Athani, Civil Hospital Road Belagavi-591304, Belagavi-590001. Karnataka. Karnataka. . Pan .No. Aacas1356G (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee By Shri.Jaykumar Patil.Ar Revenue By Smt.Manju Thakur.Sr.Dr सुनवाई की तारीख/Date Of Hearing 10.09.2025 15.09.2025 घोषणा की तारीख/Date Of Pronouncement Order Per Pavan Kumar Gadale, Jm: The Appeal Is Filed By The Assesse Against The Order Of Addl/Jcit (A)-2 Jaipur Passed U/Sec 143(3) & U/Sec 250 Of The Act. The Assessee Has Raised The Grounds Of Appeal Challenging The Ex-Parte Order Of The Cit(A) Sustaining The Denial Of Claim Of Deduction U/Sec80P(2)(A)(I) Of The Act Made By The Assessing Officer. 2. The Brief Facts Of The Case Are That, The Assessee Is A Cooperative Credit Society & Is Engaged In Activities Of Providing Credit Facilities To Its Members. The Assesse Has Filed The Return Of Income For The A.Y 2017-18 On 25.01.2018 Disclosing A Total Income Of Rs.Nil After

Section 80P

Mahatma Phule Nagari Sahakari Patsanstha Maryadit, Ahilyanagar vs. ITO Ward-1, Ahilyanagar

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

ITA 321/PUN/2025[2020-21]Status: DisposedITAT Pune12 Sept 2025AY 2020-21

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.321/Pun/2025 िनधा"रण वष" / Assessment Year : 2020-21 Mahatma Phule Nagari Vs. Ito, Ward-1, Sahakari Patsanstha Ahilyanagar. Maryadit, At Post Bhingar, Nagar – Pathardi Road, Dist. Ahilyanagar- 414002. Pan : Aaaam3703B Appellant Respondent Assessee By : Shri Prasad S. Bhandari Revenue By : Shri Ramnath P. Murkunde Date Of Hearing : 05.08.2025 Date Of Pronouncement : 12.09.2025 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 20.09.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Year 2020-21. 2. There Is Delay Of 79 Days In Filing Of The Present Appeal. We Are Satisfied With The Reasons Mentioned In The Affidavit For Condonation That The Applicant Was Prevented By Sufficient Cause For Not Filing The Appeal Within The Prescribed Time Limit. After Haring

For Appellant: Shri Prasad S. BhandariFor Respondent: Shri Ramnath P. Murkunde
Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer, Non Corporate Ward 1(2), Nungambakkam

In the result, all the four appeals filed by the assessee are allowed for statistical purposes

ITA 1636/CHNY/2025[2018-19]Status: DisposedITAT Chennai12 Sept 2025AY 2018-19

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer, Non Corporate Ward 1(2), Nungambakkam

In the result, all the four appeals filed by the assessee are allowed for statistical purposes

ITA 1635/CHNY/2025[2017-18]Status: DisposedITAT Chennai12 Sept 2025AY 2017-18

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer, Non Corporate Ward 1(2), Nungambakkam

In the result, all the four appeals filed by the assessee are allowed for statistical purposes

ITA 1634/CHNY/2025[2016-17]Status: DisposedITAT Chennai12 Sept 2025AY 2016-17

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

Indian Co-Operative Network for Women Limited, Chennai vs. The Income Tax Officer Non Corp Ward 1(2), Nungambakkam

In the result, all the four appeals filed by the assessee are allowed for statistical purposes

ITA 1633/CHNY/2025[2015-16]Status: DisposedITAT Chennai12 Sept 2025AY 2015-16

Bench: Shri S S Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1633 To 1636/Chny/2025 धनिाारण वर्ा / Assessment Year: 2015-16, 2016-17, 2017-18 & 2018-19 Indian Co-Operative Network For Ito, Women Limited Vs. Non Corporate Ward -1(2), No. 55, Bheemasena Garden Road, Chennai. Chennai – 600 004. Tamil Nadu. [Pan:Aaaai-4488-B] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : None प्रत्यथी की ओर से/Respondent By : Mr. N. Rajakumar, Addl. Cit.

For Appellant: NoneFor Respondent: Mr. N. Rajakumar, Addl. CIT
Section 143(3)Section 147Section 80P(2)(a)

Lanja Nagari Sahakari Patsanstha Maryadit, Ratnagiri vs. Income Tax Officer, Ratnagiri

Appeal of the assessee is allowed

ITA 1819/PUN/2025[2018-19]Status: DisposedITAT Pune11 Sept 2025AY 2018-19

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1819/Pun/2025 निर्धारण वर्ष / Assessment Year: 2018-19 Lanja Nagari Sahakari V The Income Tax Officer, Patsanstha Maryadit, S Ward-1, Ratnagiri. 1923, Satavali Road Lanja, Ratnagiri - 415701. Pan: Aaaal7551N Appellant/ Assessee Respondent / Revenue Assessee By Shri Pramod S. Shingte – Ar Revenue By Shri Ambarnath Khule - Jcit(Dr) Date Of Hearing 01/09/2025 Date Of Pronouncement | 11/09/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax Appeal (Nfac) Passed Under Section 250 Of The Income Tax Act, 1961 For A.Y.2018-19 Dated 30.06.2025 Emanating From The Assessment Order Under Section 143(3) R.W.S 143(3A) & 143(3B) Of The Income Tax Act, 1961. The Grounds Of Appeal Raised By The Assessee Are As Under :

Section 143(3)Section 250Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

West Central Railway Employees Cooperative Credit Society Ltd., Kota vs. ITO, Ward-2(1), Kota

In the results, the appeal of the assessee in ITA no

ITA 1009/JPR/2025[2022-23]Status: DisposedITAT Jaipur10 Sept 2025AY 2022-23
For Appellant: Sh. P. C. Parwal, CAFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 143(3)Section 270ASection 80P

West Central Railway Employees Cooperative Credit Society Ltd., Kota vs. ITO, Ward-2(1), Kota

In the results, the appeal of the assessee in ITA no

ITA 1008/JPR/2025[2020-21]Status: DisposedITAT Jaipur10 Sept 2025AY 2020-21
Section 143(3)Section 270ASection 80P

West Central Railway Employees Cooperative Credit Society Ltd., Kota vs. ITO, Ward-2(1), Kota

In the results, the appeal of the assessee in ITA no

ITA 1007/JPR/2025[2017-18]Status: DisposedITAT Jaipur10 Sept 2025AY 2017-18

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. P. C. Parwal, CAFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 143(3)Section 270ASection 80P

Vishay Jabil and Helvoet Employees Co-Op Cr Soc Ltd, Pune vs. Income Tax Officer Ward 14(3), Pune

In the result, appeal of the Assessee is allowed

ITA 912/PUN/2025[2022-2023]Status: DisposedITAT Pune10 Sept 2025AY 2022-2023

Bench: Dr. Manish Borad

For Appellant: NoneFor Respondent: Shri Manoj Tripathi (Virtual)
Section 139Section 139(1)Section 143(1)(a)Section 250Section 80ASection 80P(2)(a)

Mahatma Gandhi Nagri Sahakari Pat Sanstha Mydt Udgir, Latur vs. Income Tax Officer- Ward 1 -Latur, Latur

In the result, the appeal of the assessee is allowed

ITA 671/PUN/2025[2020-21]Status: DisposedITAT Pune09 Sept 2025AY 2020-21

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.670 & 671/Pun/2025 निर्धारण वर्ष / Assessment Years : 2018-19 & 2020-21 Mahatma Gandhi Nagri Sahakari Pat Sanstha Mydt Udgir, Bidar Road, Near Mahatma Gandhi Udyan, Udgir, Latur-413517 Pan: Aabam7649H अपीलार्थी / Appellant Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Ito, Ward-1, Latur Vs. प्रत्यर्थी / Respondent Miss Sailee Gujarathi (Virtual) Shri Ramnath P. Murkunde 02-07-2025 09-09-2025 आदेश / Order Per Astha Chandra, Jm : The Above Two Appeals Filed By The Assessee Are Directed Against The Two Separate Orders Both Dated 10.01.2025 Of The Ld. Commissioner Of Income Tax (Appeals), Nfac, Delhi [“Cit(A)/Nfac"] Pertaining To

For Appellant: Department byFor Respondent: Date of hearing
Section 142(1)Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

Mahatma Gandhi Nagri Sahakari Pat Sanstha Mydt Udgir, Latur vs. Income Tax Officer- Ward 1 -Latur, Latur

ITA 670/PUN/2025[2018-19]Status: DisposedITAT Pune09 Sept 2025AY 2018-19

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

For Appellant: Miss Sailee Gujarathi (Virtual)For Respondent: Shri Ramnath P. Murkunde
Section 142(1)Section 143(3)Section 80P(2)(a)Section 80P(2)(d)