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)

Income-Tax Officer, Ward-7(2)(5), Bengaluru vs. M/S. Kammavari Credit Co-Operative Society Limited, Bengaluru

In the result, the appeal filed by revenue stands dismissed

ITA 493/BANG/2023[2014-15]Status: DisposedITAT Bangalore08 Sept 2023AY 2014-15

Bench: Shri Chandra Poojari & Ms. Madhumita Royassessment Year : 2014-15 M/S. Kammavari Credit Co-Operative Society Ltd., The Income Tax No. 10, 22Nd Main Road, Officer, Jayanagar Hbsc Layout, Ward – 7(2)(5), Padmanabhanagar, Bengaluru. Vs. Bengaluru – 560 070. Pan: Aaaak2670H Appellant Respondent Assessee By : Shri B. Chattaraj, Advocate Revenue By : Shri V. Parithivel, Jcit (Dr) Date Of Hearing : 07-09-2023 Date Of Pronouncement : 08-09-2023 Order Per Madhumita Roythe Instant Appeal Filed By The Revenue Is Directed Against The Order Dated 04.05.2023 Passed By The National Faceless Appeal Centre (Nfac), Delhi Arising Out Of The Order Dated 15.01.2016 Passed By The Ito, Ward No. 7(2)(4), Bangalore U/S. 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”) For A.Y. 2014-15 Whereby & Whereunder The Addition Made By The Ld.Ao To The Tune Of Rs. 2,13,74,847/- On Account Of Interest Income Has Been Deleted. Hence The Instant Appeal Before Us By The Revenue.

For Appellant: Shri B. Chattaraj, AdvocateFor Respondent: Shri V. Parithivel, JCIT (DR)
Section 143(3)Section 80P(2)(a)

The City Co -Op. Credit Society Limited, Belagavi vs. Income Tax Officer, National E-Assessment Centre, Delhi

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

ITA 95/PAN/2023[2018-19]Status: DisposedITAT Panaji08 Sept 2023AY 2018-19

Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI PARTHA SARATHI CHAUDHURY (Judicial Member)

For Appellant: Shri Pramod VaidhyaFor Respondent: Shri Ashwini D. Hosmani
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

M/S Ravikiran Co-Operative Credit Society Limited, Belagavi vs. Principal Commissioner of Income Tax, Hubli

In the result, the appeal filed by the assessee in ITA

ITA 94/PAN/2023[2018-19]Status: DisposedITAT Panaji08 Sept 2023AY 2018-19

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhurysl.

For Appellant: NoneFor Respondent: Shri Prabhakar Anand DJ
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

M/S Ravikiran Co-Operative Credit Society Limited, Belagavi vs. National E - Assessment Centre, Delhi

In the result, the appeal filed by the assessee in ITA

ITA 93/PAN/2023[2018-19]Status: DisposedITAT Panaji08 Sept 2023AY 2018-19

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhurysl.

For Appellant: NoneFor Respondent: Shri Prabhakar Anand DJ
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

M/S Ravikiran Co-Operative Credit Society Limited, Belagavi vs. The Income Tax Officer, Ward - 3, Belagavi

In the result, the appeal filed by the assessee in ITA

ITA 92/PAN/2023[2017-18]Status: DisposedITAT Panaji08 Sept 2023AY 2017-18

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhurysl.

For Appellant: NoneFor Respondent: Shri Prabhakar Anand DJ
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

The Vazhayoor Service Co-Op Bank Ltd, Malappuram vs. ITO, Ward 2, Tirur

In the result, the assessee’s appeals are allowed for statistical purposes

ITA 966/COCH/2022[2017-18]Status: DisposedITAT Cochin31 Aug 2023AY 2017-18

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

For Appellant: Arjun Nedungadi, CAFor Respondent: Ms. J.M. Jamuna Dev, Sr. DR
Section 143(3)Section 80P(1)

M/S the Vazhayoor Service Co-Op Bank Ltd, Malappuram vs. ITO Ward 2, Tirur

In the result, the assessee’s appeals are allowed for statistical purposes

ITA 943/COCH/2022[2018-19]Status: DisposedITAT Cochin31 Aug 2023AY 2018-19

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

For Appellant: Arjun Nedungadi, CAFor Respondent: Ms. J.M. Jamuna Dev, Sr. DR
Section 143(3)Section 80P(1)

The Income Tax Officer, Ward-1, Tenali vs. The Kakateeyta Mutually Aided Thrift & Credit Co-Operative Society Limited, Tenali

In the result, Cross Objection raised by the assessee is

ITA 107/VIZ/2022[2017-2018]Status: DisposedITAT Visakhapatnam30 Aug 2023AY 2017-2018

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

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

Aa282 Kolappalur Primary Agricultural Coop Credit Society Limited, Erode vs. ITO Ward 2(1), Erode

The appeal stand allowed for statistical purposes

ITA 815/CHNY/2023[2018-19]Status: DisposedITAT Chennai28 Aug 2023AY 2018-19

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.815/Chny/2023 (िनधा"रण वष" / Assessment Year: 2018-19) Aa282 Kolappalur Primary Agricultural Ito, बनाम Co-Operative Credit Society Limited, Ward-2(1), 328, G.D. Road, Kollapalur Erode. / Vs. Gobichettipalayam, Erode-638 456. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacaa-1567-B (अपीलाथ"/Appellant) : (!"थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri E. Sam Victor(Advocate)-Ld.Ar !"थ"कीओरसे/Respondent By : Shri P.Sajit Kumar (Jcit)-Ld.Dr सुनवाईकीतारीख/Date Of Hearing : 28-08-2023 घोषणाकीतारीख /Date Of Pronouncement : 28-08-2023 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2018-19 Arises Out Of The Order Of Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Cit(A)] Dated 21-03-2022 In The Matter Of An Intimation Issued By Cpc U/S 143(1) 31-05-2019. The Cpc Has Denied Deduction As Claimed By The Assessee U/S 80P(2)(A)(I) Due To The Fact That Return Of Income Was Not Filed Within Due Date U/S 139(1). The Appeal Has Been Dismissed Since The Assessee Failed To Appear During Appellate Proceedings.

For Appellant: Shri E. Sam Victor(Advocate)-Ld.ARFor Respondent: Shri P.Sajit Kumar (JCIT)-Ld.DR
Section 139(1)Section 143(1)Section 80P(2)(a)

The West Coast Paper Mill Employees Souharda Credit Co-Operative Society Ltd, Dandeli vs. Income Tax Officer Ward-1(7), Hubli

In the result, both the appeals by the assessee are partly allowed for statistical purposes

ITA 480/BANG/2023[2018-19]Status: DisposedITAT Bangalore22 Aug 2023AY 2018-19

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

For Appellant: Shri Nagaraj K.H., CAFor Respondent: Smt. Vidya K., Jt.CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 2(19)Section 44ASection 80P(2)(a)Section 80P(2)(i)

The West Coast Paper Mill Employees Souharda Credit Co-Operative Society Ltd, Dandeli vs. Income Tax Officer Ward-1(7), Hubli

In the result, both the appeals by the assessee are partly allowed for statistical purposes

ITA 479/BANG/2023[2017-18]Status: DisposedITAT Bangalore22 Aug 2023AY 2017-18

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

For Appellant: Shri Nagaraj K.H., CAFor Respondent: Smt. Vidya K., Jt.CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 2(19)Section 44ASection 80P(2)(a)Section 80P(2)(i)

Janseva Co-Operative Credit Society Ltd, Mumbai vs. PCIT-17, Mumbai

ITA 1225/MUM/2023[2018-19]Status: DisposedITAT Mumbai21 Aug 2023AY 2018-19

Bench: Shri Amit Shukla & Shri Amarjit Singhjanseva Co-Operative Vs. Pcit-17 Credit Society Limited Room No. 120, 1 St Floor, 408, Maker Bhavan No. 3, Kautilya Bhavan, C-41 To 21, New Marine Lines, C-43, G Block, Bandra Mumbai – 400 020 Kurla Complex, Bandra (East) Mumbai – 400 051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaaaj7811P Appellant .. Respondent [ Appellant By : Tanzil Padvekar Respondent By : Ankush Kapoor Date Of Hearing 25.07.2023 Date Of Pronouncement 21.08.2023 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assesse Is Directed Against The Order Passed By The Ld. Pcit-17, Mumbai, Dated 30.03.2023 For A.Y. 2018-19. The Assesse Has Raised The Following Grounds Before Us: “1. On The Facts & In Law, The Ld. Principal Commissioner Of Income Tax, Mumbai-17 Erred In Passing The Impugned Order Under Section 263 Of The Act By Invoking Powers Under Section 263 Of The Act Without Jurisdiction. Hence, The Impugned Order Passed Under Section 263 Of The Act Is Bad In Law & Without Meeting Jurisdictional Requirement As Twin Mandatory Conditions Are Not Fulfilled For Invoking Power Under Section 263 Of The Act. 2. On The Facts & In Law, The Ld. Principal Commissioner Of Income Tax, Mumbai-17 Has Erred In Relying On The Decision Of The Hon'Ble Supreme Court In The Case Of Totgars Co-Operative Sale Society V/S. Income Tax

For Appellant: Tanzil PadvekarFor Respondent: Ankush Kapoor
Section 263Section 80P(2)(a)Section 8o

Shri Lokeshwar Co-Operative Credit Society Niyamit, Lokapur vs. Income Tax Officer, Ward - 1 & Tps, Bagalkot

In the result, stay application of the assessee is dismissed as withdrawn and that the appeal stands allowed for statistical purposes

ITA 76/PAN/2023[2013-14]Status: DisposedITAT Panaji21 Aug 2023AY 2013-14

Bench: Shri Partha Sarathi Chaudhury & Shri G.D. Padmahshali(Through Virtual Hearing) S.A.No. 05/Pan/2023 & Shri Lokeshwar Co-Operative Vs Ito, Ward-1 & Tps, Credit Society Niyamit Bagalkot. Lokapur, Tq. Mudhol, Dist. Bagalkot Pan: Aaals 2253 H Appellant Respondent Assessee By : Shri Saidappa Gadadi, Ca Revenue By : Shri N. Shrikanth, Dr Date Of Hearing : 14/08/2023 Date Of Pronouncement : 21/08/2023 O R D E R Per Partha Sarathi Chaudhury, Jm: The Stay Application & The Appeal Preferred By The Assessee Emanates From The Order Of National Faceless Appeal Centre [Nfac], Delhi, Dated 23.02.2023 For A.Y.2013-14 As Per The Grounds Of Appeal On Record.

For Appellant: Shri Saidappa Gadadi, CAFor Respondent: Shri N. Shrikanth, DR
Section 143(3)Section 154Section 80P(2)(a)Section 80P(4)

Mumbai Postal Employees Co-Operative Credit Society Ltd, Mumbai vs. Income Tax Officer, Ward 17(2)(1), Mumbai

In the result, both the appeal of the assessee are allowed

ITA 1051/MUM/2023[2016-2017]Status: DisposedITAT Mumbai16 Aug 2023AY 2016-2017

Bench: Shri Amit Shukla & Shri Amarjit Singhita Nos.1050 & 1051/Mum/2023 (A.Ys. 2015-16 & 2016-17) Mumbai Postal Employees Vs. Income Tax Officer, Co-Operative Credit Ward 17(2)(1) Society Limited, Gpo Room No. 115, 1 St Floor, Building, Fort, Kautilya Bhavan, C-41 To Mumbai – 400001 C-43, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaajm0032G Appellant .. Respondent

For Appellant: Madhur Agarwal &For Respondent: Neena Jeph
Section 143(2)Section 143(3)Section 263Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Mumbai Postal Employees Co-Operative Credit Society Ltd, Mumbai vs. Income Tax Officer, Ward 17(2)(1), Mumbai

In the result, both the appeal of the assessee are allowed

ITA 1050/MUM/2023[2015-16]Status: DisposedITAT Mumbai16 Aug 2023AY 2015-16

Bench: Shri Amit Shukla & Shri Amarjit Singhita Nos.1050 & 1051/Mum/2023 (A.Ys. 2015-16 & 2016-17) Mumbai Postal Employees Vs. Income Tax Officer, Co-Operative Credit Ward 17(2)(1) Society Limited, Gpo Room No. 115, 1 St Floor, Building, Fort, Kautilya Bhavan, C-41 To Mumbai – 400001 C-43, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaajm0032G Appellant .. Respondent

For Appellant: Madhur Agarwal &For Respondent: Neena Jeph
Section 143(2)Section 143(3)Section 263Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Aryanad Service Co-Op Bank Ltd, Trivandrum vs. ITO Ward -2(3), Trivandrum

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

ITA 922/COCH/2022[2017-18]Status: DisposedITAT Cochin31 Jul 2023AY 2017-18

Bench: Shri Sanjay Arora, Am &Shriabyt.Varkey, Jm

For Appellant: Sri.Arun Raj S, AdvocateFor Respondent: Smt.J.M.Jamuna Devi, Sr. DR
Section 143(3)Section 28Section 36(1)(viii)Section 56Section 80PSection 80P(2)(d)Section 80P(4)

Basaveshwar Gramin Bigarsheti Sahakari Pat Sanstha Maryajath Mangalwar Peth Jath, Sangli vs. Income Tax Officer, Ward-2, Sangli

In the result, the appeal is allowed

ITA 826/PUN/2023[2020-21]Status: DisposedITAT Pune28 Jul 2023AY 2020-21

Bench: Shri R.S. Syal

Section 2(19)Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

M/S. Shreerama Credit Co-Operative Society Limited, Udupi vs. Assistant Commissioner of Income Tax, Circle-1, Udupi

Appeal is allowed

ITA 436/BANG/2023[2017-18]Status: DisposedITAT Bangalore20 Jul 2023AY 2017-18

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2017-18

For Appellant: Shri Mahesh R. Uppin, AdvocateFor Respondent: Smt. Supriya Rao, Addl.CIT(DR)(ITAT), Bengaluru
Section 80PSection 80P(2)(a)

Ballaleshwar Sahakari Patpedhi Maryadit, Mumbai vs. ITO Ward-17(2)(1), Mumbai

In the result, the solitary ground of appeal filed by the assessee is partly allowed with above directions

ITA 1237/MUM/2023[2018-19]Status: DisposedITAT Mumbai19 Jul 2023AY 2018-19

Bench: Shri Prashant Maharishi, Am & Shri Narender Kumar Choudhry, Jm Ballaleshwar Sahakari Patpetdhi Income Tax Officer, Maryadit 11/11A, Amnir, Bldg, Ward 17(2)(1), Vs. Navroji Hill Road No.9, Mumbai-400 020 Dongiri, Mumbai-400 009 (Appellant) (Respondent) Pan No. Aaatb6933F Assessee By : Shri P.S. Shingte, Authorised Representative Revenue By : Shri Ashok Kumar Ambastha, Sr Dr Date Of Hearing: 13.07.2023 Date Of Pronouncement : 19.07.2023

For Appellant: Shri P.S. Shingte, AuthorisedFor Respondent: Shri Ashok Kumar Ambastha, SR
Section 143(3)Section 144BSection 56Section 80Section 80(2)(p)Section 80PSection 80P(2)Section 80P(2)(a)

Grameena Vyavasaya Sahakari Bank Limited, Jali vs. Income Tax Officer, Ward - 1, Karwar

Appeals of the assessee are allowed in above terms

ITA 228/PAN/2019[2015-16]Status: DisposedITAT Panaji19 Jul 2023AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri G.D. Padmahshali

For Appellant: For Revenue : Shri N. ShrikanthFor Respondent: Shri N. Shrikanth
Section 143(3)Section 80P(2)(a)