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)

Shree Revanasiddeshwara Pattina Sahakari Sangh Niyamit Rampur, Bagalkot vs. Income Tax Officer, Ward-1 & Tps, Bagalkot

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

ITA 1740/BANG/2024[2019-20]Status: DisposedITAT Bangalore24 Jan 2025AY 2019-20

Bench: Shri Waseem Ahmedassessment Years: 2019-20

For Appellant: Shri Pranav Krishna, AdvocateFor Respondent: Shri Ganesh R Gale, Standing Counsel for Dept
Section 119(2)(b)Section 139(1)Section 143(1)Section 80ASection 80PSection 80P(2)(a)

Mannam Service Co-Operative Bank Ltd, Ernakulam vs. ITO, Ernakulam

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

ITA 667/COCH/2024[2020-21]Status: DisposedITAT Cochin22 Jan 2025AY 2020-21

Bench: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

For Appellant: --- None ---For Respondent: Smt.Leena Lal, Sr.AR
Section 56Section 80HSection 80PSection 80P(2)(a)

Ayyanad Service Cooperative Bank Limited No 2565, Ernakulam vs. DCIT Corporate Cir 1(1), Ernakulam

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

ITA 48/COCH/2024[2018-19]Status: DisposedITAT Cochin22 Jan 2025AY 2018-19

Bench: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

For Appellant: Sri.Amaljit CAFor Respondent: Smt.Leenalal, Sr.AR
Section 56Section 80HSection 80PSection 80P(2)(a)Section 80P(2)(d)

Koodali Public Servants Co-Op Society Limited No C 924, Mattanur vs. Income Tax Officer, Assessment Unit

In the result, the appeals filed by the assessee are allowed

ITA 290/COCH/2024[2020-21]Status: DisposedITAT Cochin22 Jan 2025AY 2020-21

Bench: Shri Inturi Rama Rao, Am

For Appellant: Shri George Thomas, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 80PSection 80P(2)(a)Section 80P(2)(d)

Koodali Public Servants Co-Op Society Limited No C 924, Mattanur vs. ITO, Ward 3, Kannur

In the result, the appeals filed by the assessee are allowed

ITA 289/COCH/2024[2018-19]Status: DisposedITAT Cochin22 Jan 2025AY 2018-19

Bench: Shri Inturi Rama Rao, Am

For Appellant: Shri George Thomas, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 80PSection 80P(2)(a)Section 80P(2)(d)

Shri Vitthal Nagari Sahakari Pat Sanstha Maryadit Kolhapur, Kolhapur vs. Income Tax Office Ward 1(1), Kolhapur

ITA 2648/PUN/2024[2016-17]Status: DisposedITAT Pune22 Jan 2025AY 2016-17

Bench: DR.DIPAK P. RIPOTE (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)

Section 250Section 80P(2)(a)Section 80P(2)(d)

Sundar Ram Shetty Nagar Credit Souharda Sahakari Limited, Bangalore vs. ITO, Ward-4(3)(1), Bengaluru

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

ITA 2392/BANG/2024[2018-19]Status: DisposedITAT Bangalore22 Jan 2025AY 2018-19

Bench: Shri Waseem Ahmed

For Appellant: Shri Gireesha T.L, C.AFor Respondent: Shri Ganesh R Gale, Standing Counsel for Dept
Section 57Section 80PSection 80P(2)(a)

Sundar Ram Shetty Nagar Credit Souharda Sahakari Limited, Bangalore vs. ITO, Ward-4(3)(1), Bangalore

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

ITA 2391/BANG/2024[2017-18]Status: DisposedITAT Bangalore22 Jan 2025AY 2017-18

Bench: Shri Waseem Ahmed

For Appellant: Shri Gireesha T.L, C.AFor Respondent: Shri Ganesh R Gale, Standing Counsel for Dept
Section 57Section 80PSection 80P(2)(a)

The Kannur District Merchants Co-Operative Society Limited, Kannur vs. ITO, Ward 1 and Tps, Kannur

In the result, the appeals filed by the assessee are allowed

ITA 670/COCH/2024[2017-18]Status: DisposedITAT Cochin21 Jan 2025AY 2017-18

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm

For Appellant: Shri Jaikrishna, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 80Section 80PSection 80P(2)(a)Section 80P(2)(d)

The Kannur District Merchants Co-Operative Society Limited, Kannur vs. ITO, Ward 1 and Tps, Kannur

In the result, the appeals filed by the assessee are allowed

ITA 669/COCH/2024[2015-16]Status: DisposedITAT Cochin21 Jan 2025AY 2015-16

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm

For Appellant: Shri Jaikrishna, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 80Section 80PSection 80P(2)(a)Section 80P(2)(d)

Poothakulam Service Co Opearative Bank Ltd No 2944, Kollam vs. ITO Ward - 2, Kollam

ITA 325/COCH/2024[2020-21]Status: DisposedITAT Cochin21 Jan 2025AY 2020-21

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2020-21 Poothakulam Service Co-Op. Bank Ltd. .......... Appellant Poothakulam P.O., Kollam 691302 [Pan: Aadap3252H] Vs. The Income Tax Officer, Ward-2 .......... Respondent Aayakar Bhavan, Karbala Junction Kollam 691302 Appellant By: Shri Rajagopal, Ca Respondent By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 19.12.2024 Date Of Pronouncement: 21.01.2025

For Appellant: Shri Rajagopal, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 143(3)Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

Vallachira Service Co-Op Bank Ltd, Thrissur vs. The ITO Ward 2(1), Thrissur

In the result, the appeal filed by the assessee stands allowed and the stay application stands dismissed

ITA 542/COCH/2023[2010-11]Status: DisposedITAT Cochin21 Jan 2025AY 2010-11

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm & Sa No. 116/Coch/2023 Assessment Year: 2010-11 Vallachira Service Co-Op. Bank Ltd .......... Appellant Vallachira P.O., Thrissur 680562 [Pan: Aaaav9543J] Vs. The Income Tax Officer .......... Respondent Ward - 2(1), Thrissur Appellant By: Shri Ramdas, Ca Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 19.12.2024 Date Of Pronouncement: 21.01.2025

For Appellant: Shri Ramdas, CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 148Section 80PSection 80P(2)(a)Section 80P(2)(d)

Indocount Employes Co-Op Credit Society, Kolhapur vs. ITO Ward -1(1), Kolhapur

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

ITA 2565/PUN/2024[2018-19]Status: DisposedITAT Pune15 Jan 2025AY 2018-19

Bench: Dr. Manish Borad & Ms. Astha Chandraआयकर अपील सं. / Ita No.2565/Pun/2024 धििाारण वषा / Assessment Year: 2018-2019 Indocount Employees Co-Op Vs Ito, Ward-1(1), Credit Society Ltd., Gokul Kolhapur Shirgaon-416234 Maharashtra Pan-Aaa1798Q Appellant Respondent

For Appellant: Shri Rajat S. PowarFor Respondent: Shri Vishal A Makawane
Section 143(3)Section 234ASection 250Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)Section 8P(2)(a)

Haveli Taluka Veej Kamgar Sahakari Pathsanstha Maryadit, Pune vs. Income Tax Officer Ward 6 (1) Pune, Pmt Building, Swargate

In the result, the appeal of the assessee is allowed

ITA 1428/PUN/2024[2017-18]Status: DisposedITAT Pune15 Jan 2025AY 2017-18

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita No.1428/Pun/2024 निर्धारण वर्ष / Assessment Year : 2017-18 Haveli Taluka Veej Kamgar Sahakari Pathsanstha Maryadit, 415/2 A, Shrine Complex, Somvar Peth, Pune -411011 Vs. Income Tax Officer, Ward - 6(1), Pune Pan : Aaaah2281D अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Shri Deepak S. Sasar Shri Ramnath P. Murkunde 05-11-2024 15-01-2025 आदेश / Order Per Astha Chandra, Jm : The Appeal Filed By The Assessee Is Directed Against The Order Dated 29.04.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)"] Pertaining To Assessment Year (“Ay”) 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal :- *1. The Ld. Cit(A) Has Wrongly Confirmed The Disallowance Of Deduction Of Rs.8,84,993/- Claimed By The Appellant U/S.80P (2)(A)(I) Of The Income Tax Act, 1961 Of Interest Income Earned From Deposit With Pdcc Bank. 2. Alternatively, The Interest Income Earned By The Appellant From The Investments In A Co-Operative Bank Is Also Eligible For Deduction Under Section 80P (2) (D) Of The Income Tax Act, 1961. 3. The Ld. Cit (A) Has Wrongly Confirmed The Disallowance Of Deduction U/S.80P Of Commission Receipts Of Rs.53,52,723/- After Deducting The Salary Expenses Of Rs.3,00,202/- From The Total Commission Receipts Of Rs.56,52,925/-. Being The Same Income Is Received From The Mseb On Account Of Running Cash Counter For Mseb Bill Payments & The Same Is Treated As Income From Other Sources. 4. The Appellant Crave Leave To Add, Delete, Amend, Alter, Vary And/Or Withdraw All Or Any One Of The Above Grounds Of Appeal.” 2

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

Belve Vyavasaya Seva Sahakari Sangha Limited, Udupi vs. Income Tax Officer, Ward-1, Udupi

ITA 1441/BANG/2024[2020-21]Status: DisposedITAT Bangalore15 Jan 2025AY 2020-21

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri Mahesh R Uppin, A.RFor Respondent: Sri V. Parithivel, D.R
Section 250

Belve Vyavasaya Seva Sahakari Sangha Limited, Udupi vs. Income Tax Officer, Ward-1, Udupi

ITA 1440/BANG/2024[2020-21]Status: DisposedITAT Bangalore15 Jan 2025AY 2020-21

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri Mahesh R Uppin, A.RFor Respondent: Sri V. Parithivel, D.R
Section 250

Veerakeralam Pacb, Coimbatore vs. The Income Tax Officer, Non Corp Ward 4(1), Cbe, Coimbatore

ITA 1952/CHNY/2024[2020-21]Status: DisposedITAT Chennai10 Jan 2025AY 2020-21

Bench: Shri Ss Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./Ita No.1951/Chny/2024, निर्ाारण वर्ा /Assessment Years: 2018-19 आयकर अपील सं./Ita No.1952/Chny/2024, निर्ाारण वर्ा /Assessment Years: 2020-21

For Appellant: Shri S.Ramachandran, C.A
Section 250Section 80PSection 80P(2)(a)

Veerakeralam Pacb, Coimbatore vs. The Income Tax Officer, Non Corp Ward 4(1), Cbe, Coimbatore

ITA 1951/CHNY/2024[2018-19]Status: DisposedITAT Chennai10 Jan 2025AY 2018-19

Bench: Shri Ss Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./Ita No.1951/Chny/2024, निर्ाारण वर्ा /Assessment Years: 2018-19 आयकर अपील सं./Ita No.1952/Chny/2024, निर्ाारण वर्ा /Assessment Years: 2020-21

For Appellant: Shri S.Ramachandran, C.A
Section 250Section 80PSection 80P(2)(a)

Gurumachideva Vividhodeesha Sahakara Sangh Ltd., Udupi vs. Income Tax Officer, Ward-1 & Tps, Udupi

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

ITA 1345/BANG/2024[2017-18]Status: DisposedITAT Bangalore10 Jan 2025AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.Assessment Year : 2017-18

For Respondent: Shri Mahesh .R. Uppin
Section 40A(7)Section 40A(7)(b)Section 43(2)Section 80P(2)(a)

Udupi Taluk Protestant Christian Credit Co-Operative Society Limited, Udupi vs. Income Tax Officer, Ward-1, Udupi

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

ITA 1752/BANG/2024[2017-18]Status: DisposedITAT Bangalore09 Jan 2025AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.Assessment Year : 2017-18

For Respondent: Shri Mahesh .R. Uppin
Section 18Section 2Section 40Section 40A(7)(b)Section 56Section 57Section 60Section 80PSection 80P(2)(a)