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)

Primary Agricultural Credit Co-Operative Society Limited Nidle, Belthangady vs. Income-Tax Officer, Ward-1, Puttur

ITA 659/BANG/2023[2017-18]Status: DisposedITAT Bangalore30 Nov 2023AY 2017-18

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2017-18

For Appellant: Ms. Harsha J, C.A [Instructed by Sri SrihariFor Respondent: Shri Parithivel, JCIT (DR)
Section 234BSection 250Section 80P(2)(a)Section 80P(2)(d)

Subhash Chowk Urban Co- Operative Credit Society Limited, Jalgaon vs. The Income Tax Officer Ward-1(4), Jalgaon

Appeal is allowed in above terms

ITA 1042/PUN/2023[2020-21]Status: DisposedITAT Pune22 Nov 2023AY 2020-21

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: Shri Vinay V KawdiaFor Respondent: Shri M.G. Jasnani
Section 143(3)Section 250Section 80P(2)(a)Section 80P(2)(d)

M/S. Dodmane Group Gramagala Seva Sahakari Sangha Niyamita Karkimaki, Karkimakki vs. Income Tax Officer, Ward-1, Sirsi

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

ITA 751/BANG/2023[2018-19]Status: DisposedITAT Bangalore21 Nov 2023AY 2018-19

Bench: Shri George George Kassessment Year : 2018-19 Sri Dodmane Group Gramagala Seva Sahakari Vs. Ito, Sangha Niyamita Karkimakki, Ward – 1, 41, Siddapur-Kumta Road Karkimakki Sirsi. Tq 581 322, Karnataka. Pan : Aacad 0741 J Appellant Respondent Assessee By : Ms. Sunaina Bhatia, Ca Revenue By : Shri. Ganesh R Ghale, Advocate, Standing Counsel For Revenue. Date Of Hearing : 21.11.2023 Date Of Pronouncement : 21.11.2023

For Appellant: Ms. Sunaina Bhatia, CAFor Respondent: Shri. Ganesh R Ghale, Advocate, Standing Counsel for Revenue
Section 143(2)Section 234Section 250Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Mahalakshmi Pacb Limited, Salem vs. ITO Ward -1(6), Salem

ITA 819/CHNY/2023[2020-21]Status: DisposedITAT Chennai10 Nov 2023AY 2020-21

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. No.819/Chny/2023 िनधा"रण वष"/Assessment Year: 2020-21 Mahalakshmi Pacb Limited, Vs. The Income Tax Officer, Gangavalli Taluk, Salem District, Ward I(6), Tamil Nadu 636 105. Salem. [Pan:Aaaam4723B] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S. Sridhar, Advocate [Erode] ""थ" की ओर से/Respondent By : Shri P. Sajit Kumar, Jcit सुनवाई की तारीख/ Date Of Hearing : 18.10.2023 घोषणा की तारीख /Date Of Pronouncement : 10.11.2023 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi, Dated 12.06.2023 Relevant To The Assessment Year 2020-21. 2. Facts Are, In Brief, The Assessee Is A Primary Agricultural Co- Operative Credit Society Registered Under Tamil Nadu Co-Operative Societies Act. The Assessee Filed Its Return Of Income For The Assessment Year 2020-21 On 28.12.2020 Admitting Nil Income. In The Return Of 2

For Appellant: Shri S. Sridhar, Advocate [Erode]For Respondent: Shri P. Sajit Kumar, JCIT
Section 143(1)Section 143(3)Section 80Section 80P(2)(a)

The Dhamai Cooperative Agriculture Service Society Limited, Hoshiarpur vs. Income Tax Officer, Hoshiarpur

In the result, the appeals filed by the appellant are allowed and the order(s) of the Kerala High Court and other authorities to the contrary are set aside

ITA 273/ASR/2023[2017-18]Status: DisposedITAT Amritsar09 Nov 2023AY 2017-18

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjeei.T.A. No.273/Asr/2023 Assessment Year: 2017-18

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

Pravara Gramin Bigar Sheti Sahakari Patsanstha Maryadit, Mumbai vs. Principle Commissioner of Income Tax, Thane-1, Mumbai

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

ITA 1970/MUM/2023[2018-2019]Status: DisposedITAT Mumbai16 Oct 2023AY 2018-2019

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

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

M/S Thankamany Service Co-Op Bank Ltd, Idukki vs. ITO Ward 2, Thodupuzha

In the result, the assessee’s appeal is allowed for on the aforesaid terms

ITA 914/COCH/2022[2015-16]Status: DisposedITAT Cochin11 Oct 2023AY 2015-16

Bench: Shri Sanjay Arora, Am & Shri Manomohan Das, Jm

For Appellant: Ms.Swathy S, AdvocateFor Respondent: Smt.J.M.Jamuna Devi, Sr.DR
Section 143(3)Section 154Section 80P(2)(a)

The Metropolitan Co-Operative Housing Society Ltd, Bangalore vs. Income-Tax Officer, Ward-1(2)(1), Bangalore

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

ITA 628/BANG/2023[2017-18]Status: DisposedITAT Bangalore03 Oct 2023AY 2017-18

Bench: Shri George George Kassessment Year : 2017-18 M/S. The Metropolitan Co-Operative Housing Vs. Ito, Society Ltd., Ward – 1(2)(1), No.21, Grund Floor, Vidhana Soudha, Bengaluru. Vidhana Veedi, Bengaluru – 560 001. Pan : Aaaat 0990 P Appellant Respondent Assessee By : Shri. Sandeep Chalapthy, Ca Revenue By : Shri. Ganesh R Ghale, Advocate, Standing Counsel For Revenue. Date Of Hearing : 03.10.2023 Date Of Pronouncement : 03.10.2023

For Appellant: Shri. Sandeep Chalapthy, CAFor Respondent: Shri. Ganesh R Ghale, Advocate, Standing Counsel for Revenue
Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

M/S. Canara Bank Staff Credit Co-Operative Society Limited, Bangalore vs. Income-Tax Officer, Ward-7(2)(2), Bangalore

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

ITA 517/BANG/2023[2017-18]Status: DisposedITAT Bangalore03 Oct 2023AY 2017-18

Bench: Shri George George Kassessment Year : 2017-18 M/S. Canara Bank Staff Credit Co-Operative Vs. Ito, Society Ltd., Ward – 7(2)(2), No.26, 8Th Main Road, Bengaluru. 6Th Cross, Sampangiramanagar, Bengaluru – 560 027. Pan : Aaaac 0152 A Appellant Respondent Assessee By : Shri. Suresh Muthukrishna A, Ca Revenue By : Shri. Ganesh R Ghale, Advocate, Standing Counsel For Revenue. Date Of Hearing : 03.10.2023 Date Of Pronouncement : 03.10.2023

For Appellant: Shri. Suresh Muthukrishna A, CAFor Respondent: Shri. Ganesh R Ghale, Advocate, Standing Counsel for Revenue
Section 143(2)Section 143(3)Section 234BSection 250Section 57(2)Section 80(2)(d)Section 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Maharashtra Rajya Pathyapustak Mandal Karmachari Sahakari Pat Sanstha Maryadit, Pune vs. The Principal Commissioner of Income Tax -2, Pune

The appeal of the assessee stands ALLOWED

ITA 733/PUN/2023[2017-18]Status: DisposedITAT Pune26 Sept 2023AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No. 733/Pun/2023 निर्धारण वषा / Assessment Year : 2017-18 Maharashtra Rajya Pathyapustak Mandal Karmachari Sahakari Pat Sanstha Maryadit, Bal Bharati, Senapati Bapat Rd., Pune – 411 004 Pan: Aaaam2009A . . . . . . . अपऩलधर्थी / Appellant बिधम / V/S Pr. Commissioner Of Income Tax -2 Pune . . . . . . प्रत्यर्थी / Respondent द्वधरध / Appearances Assessee By : Mrs. J.R. Chandekar Revenue By : Shri Keyur Patel सुनवाई की तारीख / Date Of Conclusive Hearing : 25/09/2023 घोषणा की तारीख / Date Of Pronouncement : 26/09/2023 आदेश / Order Per G. D. Padmahshali, Am; This Appeal Of The Assessee For Assessment Year 2017-18 [For Short ‘Ay’] Is Assailed Against Revisionary Order Of Pr. Commissioner Of Income Tax-2, [For Short ‘Pcit’] Dt. 21/03/2022 Passed U/S 263 Of The Income-Tax Act, 1961 [For Short ‘The Act’], Which Ascended Out Of Assessment Order Dt. 24/12/2019 Passed U/S 143(3) By The Income Tax Officer, Ward 3(5), Pune [For Short ‘Ao’].

For Appellant: Mrs. J.R. ChandekarFor Respondent: Shri Keyur Patel
Section 143(3)Section 263Section 80P(2)(a)Section 80P(2)(d)

Dy. C. I. T., Circle - 1, Gorakhpur vs. Baroda Uttar Pradesh Gramin Bank Now Amalgamated With Baroda U.P. Bank, Gorakhpur

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 56/VNS/2023[2019-2020]Status: DisposedITAT Varanasi26 Sept 2023AY 2019-2020

Bench: Shri. B. R. Baskaran & Shri Amit Shukla

For Appellant: Shri S. K. Garg, AdvocateFor Respondent: Shri Robin Chaudhary, CIT
Section 143(3)Section 2(19)Section 22Section 254Section 271Section 3Section 80PSection 80P(2)(a)

Dy. C. I. T., Circle - 1, Gorakhpur vs. Baroda Uttar Pradesh Gramin Bank Now Amalgamated With Baroda U.P. Bank, Gorakhpur

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 55/VNS/2023[2018-2019]Status: DisposedITAT Varanasi26 Sept 2023AY 2018-2019

Bench: Shri. B. R. Baskaran & Shri Amit Shukla

For Appellant: Shri S. K. Garg, AdvocateFor Respondent: Shri Robin Chaudhary, CIT
Section 143(3)Section 2(19)Section 22Section 254Section 271Section 3Section 80PSection 80P(2)(a)

Dy. C. I. T., Circle - 1, Gorakhpur vs. Baroda Uttar Pradesh Gramin Bank Now Amalgamated With Baroda U. P.. Bank, Gorakhpur

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 54/VNS/2023[2017-2018]Status: DisposedITAT Varanasi26 Sept 2023AY 2017-2018

Bench: Shri. B. R. Baskaran & Shri Amit Shukla

For Appellant: Shri S. K. Garg, AdvocateFor Respondent: Shri Robin Chaudhary, CIT
Section 143(3)Section 2(19)Section 22Section 254Section 271Section 3Section 80PSection 80P(2)(a)

Dy. C. I. T., Circle - 1, Gorakhpur vs. Baroda Uttar Pradesh Gramin Bank Now Amalgamated With Baroda U.P. Bank, Gorakhpur

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 53/VNS/2023[2011-2012]Status: DisposedITAT Varanasi26 Sept 2023AY 2011-2012

Bench: Shri. B. R. Baskaran & Shri Amit Shukla

For Appellant: Shri S. K. Garg, AdvocateFor Respondent: Shri Robin Chaudhary, CIT
Section 143(3)Section 2(19)Section 22Section 254Section 271Section 3Section 80PSection 80P(2)(a)

Dy. C. I. T., Circle - 1, Gorakhpur vs. Baroda Uttar Pradesh Gramin Bank Now Amalgamated With Baroda U.P. Bank, Gorakhpur

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 52/VNS/2023[2010-2011]Status: DisposedITAT Varanasi26 Sept 2023AY 2010-2011

Bench: Shri. B. R. Baskaran & Shri Amit Shukla

For Appellant: Shri S. K. Garg, AdvocateFor Respondent: Shri Robin Chaudhary, CIT
Section 143(3)Section 2(19)Section 22Section 254Section 271Section 3Section 80PSection 80P(2)(a)

Dy. C. I. T., Circle - 1, Gorakhpur vs. Baroda Uttar Pradesh Gramin Bank Now Amalgamated With Baroda U.P. Bank, Gorakhpur

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessee are allowed

ITA 51/VNS/2023[2009-2010]Status: DisposedITAT Varanasi26 Sept 2023AY 2009-2010

Bench: Shri. B. R. Baskaran & Shri Amit Shukla

For Appellant: Shri S. K. Garg, AdvocateFor Respondent: Shri Robin Chaudhary, CIT
Section 143(3)Section 2(19)Section 22Section 254Section 271Section 3Section 80PSection 80P(2)(a)

Dy. Commissioner of Income Tax Circle, Sultanpur vs. M/S Kanpur Kshetriya Gramin Bank, Kanpur

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

ITA 298/ALLD/2008[2000-01]Status: DisposedITAT Varanasi26 Sept 2023AY 2000-01

Bench: Shri B.R. Baskaran & Shri Amit Shuklaassessment Year: 2000-01 Dcit, Vs M/S Baroda Up Bank Circle-1, (Earlier Known As Kanpur Kshatriya Gorakhpur. Gramin Bank & Since Amalgamated With Baroda Up Bank) Gorakhpur. Pan: Aabck0383Q (Appellant) (Respondent) Assessee By : Shri S.K. Garg, Ca Revenue By : Shri Robin Chaudhary, Cit-Dr Date Of Hearing : 25.09.2023 Date Of Pronouncement : 26.09.2023 Order Per B.R. Baskaran, Am: The Revenue Has Filed This Appeal Challenging The Order Dated 02.07.2008 Passed By The Ld.Cit(A)-Ii, Kanpur & It Relates To The Assessment Year 2000-01. The Only Ground Raised By The Revenue Reads As Under:- “That The Ld.Cit(Appeal) Ii, Kanpur Has Erred In Law & On Facts In Deleting The Entire Income Of The Assesse As Exempt & Without Appreciating That The Addition By The Ao On The Points Of Depreciation, Gratuity, P.F., Penalty Provisions For Npa & Disallowance Of Share Capital Deposits Are Not Covered U/S 80P(2)(A)(I) Of The I.T. Act.” 2. We Have Heard The Parties & Perused The Record. The Assesse Was Earlier Known As Kanpur Kshatriya Gramin Bank. It Has Been Amalgamated Into Baroda U.P. Bank. The Assessee Filed The Return Of Income For The Year Under Consideration Declaring Nil Income After Claiming Deduction U/S 80P(2)(A)(I) Of The Act. The Ao Took The View That The Assessee Is Not Eligible For The Above-Said Deduction For The Reason That The Assessee Had Engaged Itself During The Year In Normal Banking Business. Accordingly, He Rejected The Claim For Deduction U/S 80P(2)(A)(I) Of The Act. The Ao Also Made Various Additions To The Business Income Returned By The Assessee. The Assessee Had Declared A Net Profit Of Rs.5.69 Crores & The Ao Computed Total Income At Rs.10.85 Crores.

For Appellant: Shri S.K. Garg, CAFor Respondent: Shri Robin Chaudhary, CIT-DR
Section 80P(2)(a)

M/S. Kachur Credit Co-Operative Society Ltd, Kachur vs. Income-Tax Officer, Ward-2(2), Mangalore

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

ITA 478/BANG/2023[2017-18]Status: DisposedITAT Bangalore26 Sept 2023AY 2017-18

Bench: Shri George George Kassessment Year : 2017-18 M/S. Kachur Credit Co-Operative Society Ltd., Vs. Ito, 15-20-1227/6, Ward - 2(2), Lower Ground Floor, Mangalore. Essel Wilcon Below Radha Medicals, Bendorewell, Kankanady, Mangalore – 575 002. Pan : Aaatk 8754 H Appellant Respondent Assessee By : Shri. Kashinath Kalamath, Advocate Revenue By : Shri. Ganesh R Ghale, Advocate, Standing Counsel For Revenue. Date Of Hearing : 21.09.2023 Date Of Pronouncement : 26.09.2023

For Appellant: Shri. Kashinath Kalamath, AdvocateFor Respondent: Shri. Ganesh R Ghale, Advocate, Standing Counsel for Revenue
Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)Section 80P(2)(a)

Kerala State Co-Operative Agricultural and Rural Development Bank Ltd. Kscardb vs. The Assessing Officer, Trivandrum

In the result, the appeals filed by the appellant are allowed and

C.A. No.-010069-010069 - 2016Supreme Court14 Sept 2023

Bench: HON'BLE MRS. JUSTICE B.V. NAGARATHNA HON'BLE MR. JUSTICE UJJAL BHUYAN

Section 10Section 110Section 2Section 80Section 80P

The Dhamai Cooperative Agriculture Service Society Limited, Hoshiarpur vs. Income Tax Officer Ward, Hoshiarpur

In the result, appeal of the assessee ITA No

ITA 238/ASR/2023[2020-21]Status: DisposedITAT Amritsar13 Sept 2023AY 2020-21

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjeei.T.A. No.238/Asr/2023 Assessment Year: 2020-21

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