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)

Grama Seva Sahakari Sangh Ltd, Belgaum vs. Income Tax Officer, Ward - 1(4), Belagavi

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

ITA 1/PAN/2018[2013-14]Status: DisposedITAT Panaji15 Nov 2021AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri S. S. Viswanethra Ravi, Jm आयकर अपील सं. / Ita No.01/Pan/2018 िनधा"रण वष" / Assessment Year : 2013-14 Grama Seva Sahakari Sangh Ltd., Sankonhatti, Tq: Athani, Dist. Belgaum. .......अपीलाथ" / Appellant Pan : Aaaag0157B बनाम / V/S. Ito, Ward-1(4), ……""यथ" / Respondent Belagavi. Assessee By : Shri Shivanand Halbhavi Revenue By : Shri Sourabh Nayak सुनवाई क" तारीख / Date Of Hearing : 09.11.2021 घोषणा क" तारीख / Date Of Pronouncement : 15.11.2021 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals), Gulbarga (‘Cit(A)’ For Short) Dated 26.10.2017 For The Assessment Year 2013-14. 2. The Appellant Raised The Following Grounds Of Appeal :- “1. The Learned A.O. & Learned Cit (A) Have Erred In Disallowing Deduction Claimed Under Section 80P(2)(A) By Treating Is As Income From Other Sources. 2. The Learned A.O. Has Erred In Treating Income From Business & Profession As Income From Other Sources. 3. The Learned Ao & Learned Cit(A) Have Wrongly Interpreted The Provisions Of Sec 80P(2)(D) By Not Treating As Co-Op. Societies. 4. The Learned Ao Has Wrongly Interpreted The Definition Of Co-Op Society Vide Sec. 2(19) Of The It Act, 1961 By Treating Those Entities Which Are Registered Under The Co-Op Societies, 1912(2 Of 1912), Or Under Any Other Law For The Time Being In Force In Any State For The Registration Of Co-Op Societies, As Not Being Co-Op Societies.

For Appellant: Shri Shivanand HalbhaviFor Respondent: Shri Sourabh Nayak
Section 143(3)Section 2(19)Section 271(1)(c)Section 80(2)(d)Section 80P(2)(a)Section 80P(2)(d)

Mahishwadagi Grama Seva Sahakari Sangh Ltd, Mahishwadagi vs. ITO, Ward - 1(4), Belgaum

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

ITA 65/PAN/2018[2013-14]Status: DisposedITAT Panaji12 Nov 2021AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri S. S. Viswanethra Ravi, Jm आयकर अपील सं. / Ita No.65/Pan/2018 िनधा"रण वष" / Assessment Year : 2013-14 Mahishwadagi Grama Seva Sahakari Sangh Ltd., Mahishwadagi, Tal. Athani, Dist. Belagavi- 591304. .......अपीलाथ" / Appellant Pan : Aaaam0355P बनाम / V/S. Ito, Ward-1(4), ……""यथ" / Respondent Belgaum. Assessee By : Shri Chetan Chougule Revenue By : Shri Sourabh Nayak सुनवाई क" तारीख / Date Of Hearing : 08.11.2021 घोषणा क" तारीख / Date Of Pronouncement : 12.11.2021 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals), Gulbarga (‘Cit(A)’ For Short) Dated 30.11.2017 For The Assessment Year 2013-14. 2. The Appellant Raised The Following Grounds Of Appeal :- “1. Because The Commissioner Of Income Tax (Appeals) Has Overlooked The Facts Of The Case & Not Taken Into Account The Submissions Given By The Appellant With Respect To Interest Received From Mandatory Statutory Deposits Kept With District Central Bank & Also Dividend Received From Such Mandatory Investments & Considered Them As Income From Other Sources & Also Interest Received From Savings Bank A/C Is Also Considered As Income From Other Sources, Instead Of Considering The Same As Income Attributable To Providing Credit Facilities To Its Members & Denied The Deduction Claimed Under Section 80P(2)(A)(I) Of Income Tax Act, 1961. 2. Because, The Learned Assessing Officer Erred In Denying The Deduction Claimed Under Section 80P(2)(A)(I) Of Income Tax Act, 1961. 3. Because The Learned Assessing Officer Has Overlooked The Facts Of The Case With Respect To Interest Received From Mandatory Statutory Deposits Kept With District Central Bank & Also Dividend Received From Such Mandatory

For Appellant: Shri Chetan ChouguleFor Respondent: Shri Sourabh Nayak
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

The Amroli Vibhag Vividh Karyakari Sahakari Mandli Ltd., Surat vs. The DCIT., Circle-2(3), Surat

In the result ground No. 2 of the appeal is dismissed

ITA 1764/AHD/2017[2014-15]Status: DisposedITAT Surat09 Nov 2021AY 2014-15

Bench: Shri Pawan Singh & Dr Arjun Lal Saini

Section 143(3)Section 254(1)Section 40A(3)

The Amroli Vibhag Vividh Karyakari Sahakari Mandli Ltd., Surat vs. The Dy. Commissioner of Income Tax, Circle-2(3), Surat

In the result ground No. 2 of the appeal is dismissed

ITA 2386/AHD/2016[2009-10]Status: DisposedITAT Surat09 Nov 2021AY 2009-10

Bench: Shri Pawan Singh & Dr Arjun Lal Saini

Section 143(3)Section 254(1)Section 40A(3)

The Amroli Vibhag Vividh Karyakari Sahakari Mandli Ltd., Surat vs. The Dy.CIT., Circle-2(3), Surat

In the result ground No. 2 of the appeal is dismissed

ITA 3278/AHD/2015[2012-13]Status: DisposedITAT Surat09 Nov 2021AY 2012-13

Bench: Shri Pawan Singh & Dr Arjun Lal Saini

Section 143(3)Section 254(1)Section 40A(3)

The Amroli Vibhag Vividh Karyakari Sahakari Mandli Ltd., Surat vs. The ACIT., Circle-6, Surat

In the result ground No. 2 of the appeal is dismissed

ITA 2198/AHD/2015[2009-10]Status: DisposedITAT Surat09 Nov 2021AY 2009-10

Bench: Shri Pawan Singh & Dr Arjun Lal Saini

Section 143(3)Section 254(1)Section 40A(3)

The Principal Commissioner of Income Tax vs. Peroorkada Service Co-Operative Bank Ltd

Appeals are allowed as indicated above

ITA/5/2020HC Kerala01 Nov 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE BASANT BALAJI

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

The Principal Commissioner of Income Tax vs. Vilappil Service Co-Operative Bank Ltd

Appeals are allowed as indicated above

ITA/142/2019HC Kerala01 Nov 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE BASANT BALAJI

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

Shri Shankarling Co-Operative Credit Souharda Sahakari Niyamit, Belagavi vs. Income Tax Officer, Ward- 1(3), Belagavi

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

ITA 410/BANG/2021[2012-13]Status: DisposedITAT Bangalore12 Oct 2021AY 2012-13

Bench: Shri George George K

For Appellant: Miss.Preethi S.Patel, AdvocateFor Respondent: Sri.Ganesh R.Ghale, Standing Counsel
Section 143(3)Section 56Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

M/S. Primary Agricultural Credit Co-Operative Service Society Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

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

ITA 1306/BANG/2019[2016-17]Status: DisposedITAT Bangalore08 Oct 2021AY 2016-17

Bench: Shri B.R. Baskaran & Smt Beena Pillaiita. No. 1306/Bang/2019 Assessment Year: 2016-17 M/S. Primary Agricultural Credit Co-Operative Service The Income Tax Officer, Society Ltd., Ward – 1, Puttur – Ujire, 574 201. Belthangady – 574 240. Vs. Pan: Aaaju0058J (Appellant) (Respondent) For Assessee: Shri Mahesh R. Uppin, Advocate For Revenue : Shri Priyadarshi Mishra, Addl.Cit.(Dr) Date Of Hearing : 30.08.2021 Date Of Pronouncement : 08.10.2021 Order Per Beena Pillai, Jm. Present Appeals Are Filed By The Assessee Against The Common Order Dated 14/03/2019 Passed By The Ld.Cit(A) Mangaluru For Assessment Year 2016-17 On The Following Grounds:

For Appellant: Shri Mahesh R. Uppin, AdvocateFor Respondent: Shri Priyadarshi Mishra, Addl.CIT.(DR)
Section 143(2)Section 80Section 80PSection 80P(2)(a)Section 80P(2)(d)

Datta Prasad Sahakari Patsanstha Ltd, Mumbai vs. Income Tax Officer -26(3)(2), Mumbai

In the result, appeal is partly allowed

ITA 6029/MUM/2019[2011-12]Status: DisposedITAT Mumbai08 Sept 2021AY 2011-12

Bench: Shri Saktijit Dey () & Shri Rajesh Kumar ()

Section 10ASection 10BSection 143(1)Section 154Section 80A(5)Section 80P(2)(a)

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

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

ITA 468/BANG/2020[2016-17]Status: DisposedITAT Bangalore02 Sept 2021AY 2016-17

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year:2016-17

For Appellant: Shri A. Ravish Rao, A.RFor Respondent: Shri Priyadarshi Mishra, D.R
Section 80Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(2)(i)

Sri Ananthapadmanabha Credit Co-Operative Society Limited, Karkala vs. Income Tax Officer, Ward- 3, Udupi

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

ITA 1256/BANG/2019[2016-17]Status: DisposedITAT Bangalore01 Sept 2021AY 2016-17

Bench: Shri B. R. Baskaran & Smt. Beena Pillaiassessment Year: 2016-17

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Shri Priyadarshi Mishra, D.R
Section 234BSection 57Section 80PSection 80P(2)(a)

M/S. Aletty Co-Operative Agricultural Bank Limited, Sullia vs. Income Tax Officer, Ward-1, Bangalore

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

ITA 469/BANG/2020[2016-17]Status: DisposedITAT Bangalore31 Aug 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2016-17 M/S. Aletty Co-Operative Agricultural Bank Ltd., Vs. The Income Tax Officer, Aletty Post & Village, Ward -1, Sullia – 574 247. Puttur. Pan : Aaaaa 4243 J Appellant Respondent Appellant By : Shri. Ravish Rao, Ca Respondent By : Shri. Elamurugu G, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 30.08.2021 Date Of Pronouncement : 31.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Of Cit(A), Mangaluru, Dated 06.01.2020, In Relation To Ay 2016-17. 2. The Assessee Is A Primary Agricultural Credit Co-Operative Society Registered Under The Karnataka State Co-Operative Societies Act, 1959. It Accepts Deposits From Its Members & Provides Credit Facilities To Its Members. In The Return Of Income Filed For Assessment Year 2015-16, The Assessee Claimed Deduction Under Section 80P Of The Income Tax Act, 1961(Act) Of A Sum Of Rs.68,85,589/-. Out Of The Aforesaid Sum That Was Claimed As Deduction U/S.80P Of The Act, A Sum Of Rs.43,49,141 Was Interest On Deposits Made With South Canara District Co-Operative Bank(Scdcc Bank) & A Sum Of Rs.5,72,959 Was Dividend On Investments Made In Scdcc Bank. The Deduction On The Aforesaid Two Page 2 Of 14 Sums Were Claimed By The Assessee U/S.80P(2)(A)(D) Of The Act. The Remaining Sum Was Claimed As Deduction U/S.80P(2)(A) (I) Of The Act, Being Income Earned From Providing Credit Facility To Its Members.

For Appellant: Shri. Ravish Rao, CAFor Respondent: Shri. Elamurugu G, JCIT(DR)(ITAT), Bengaluru
Section 80PSection 80P(2)(a)Section 80P(2)(d)

Shree Venkatramana Credit Co-Operative Society Limited, Sullia vs. Income Tax Officer, Ward- 1, Puttur

In the result, the appeal of the assessee is allowed for

ITA 1515/BANG/2019[2015-16]Status: DisposedITAT Bangalore31 Aug 2021AY 2015-16

Bench: Shri Chandra Poojari

Section 143(2)Section 58Section 80Section 80PSection 80P(2)(a)

M/S. Ravindra Multipurpose Co-Operative Society Limited, Udupi vs. Income Tax Officer, Ward - 3, Udupi

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

ITA 1262/BANG/2019[2016-17]Status: DisposedITAT Bangalore31 Aug 2021AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year : 2016-17

For Appellant: Shri Ramasubramaniyan, C.AFor Respondent: Smt. H Kabila, Addl.CIT
Section 143(2)Section 80PSection 80P(2)(a)Section 80P(2)(d)

M/S. Potters Cottage Industrial Co-Operative Society Limited, Puttur vs. Income Tax Officer, Ward- 1, Puttur

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

ITA 1257/BANG/2019[2015-16]Status: DisposedITAT Bangalore30 Aug 2021AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Respondent: Shri V Srinivasan, Advocate
Section 234Section 57Section 80P

Bapooji Pattin Souharda Sahakari Niyamit, Bagalkot vs. Income Tax Officer Ward-1, Bagalkot

ITA 544/BANG/2019[2013-14]Status: DisposedITAT Bangalore24 Aug 2021AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2013-14

For Appellant: Shri Ishwar Yanni, CAFor Respondent: Shri Kannan Narayanan, Jt. CIT(DR)(ITAT), Bengaluru
Section 80PSection 80P(2)(a)

M/S. Nagini Co-Operative Credit Society Limited, Bengaluru vs. Income Tax Officer, Ward- 6(2)(1), Bangalore

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

ITA 2352/BANG/2019[2016-17]Status: DisposedITAT Bangalore10 Aug 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Nagini Co-Operative Credit Society Ltd., Vs. Ito, No.569, 3Rd Stage, 4Th Block, 80 Ft. Road, Ward – 6[2][1], Basaveswara Nagar, Bengaluru. Bengaluru – 560 079. Pan : Aacan 5552 H Appellant Respondent Appellant By : Shri. V. Srinivasan, Advocate Respondent By : Shri. Kannan Narayanan, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 04.08.2021 Date Of Pronouncement : 10.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 30.08.2019 Of Cit(A), Bengaluru-6, Bengaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Society Registered Under The Karnataka State Co- Operative Societies Act, 1959. For Assessment Year 2016-17, The Assessee Filed Return Of Income & Claimed Deduction Of A Sum Of Rs.1,70,31,095/- Under Section 80P(2)(1)(I) Of The Income Tax Act, 1961 (Hereinafter Called ‘The Act’).

For Appellant: Shri. V. Srinivasan, AdvocateFor Respondent: Shri. Kannan Narayanan, JCIT(DR)(ITAT), Bengaluru
Section 56Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

M/S. Venoor Co-Operative Agricultural Bank Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

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

ITA 1448/BANG/2019[2016-17]Status: DisposedITAT Bangalore06 Aug 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Venoor Co-Operative Agricultural Bank Ltd., Vs. Ito, Venur, Belthangady – 574 242. Ward – 1,Puttur. Pan : Aaajv 0184 C Appellant Respondent Appellant By : Smt. Sheethal R. Borkar, Advocate Respondent By : Shri. Kannan Narayanan, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 04.08.2021 Date Of Pronouncement : 06.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 27.03.2019 Of Cit(A), Mangaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Primary Agricultural Co-Operative Society Engaged In The Business Of Acceptance Of Deposits From Lenders, Lending Loans, Providing Banking Facility In Rural Village. The Assessee Filed Return Of Income For The Relevant Ay Declaring Nil Income After Claiming Deduction Of Rs.83,12,836 Under Section 80P Of The Income Tax Act, 1961 (Act).

For Appellant: Smt. Sheethal R. Borkar, AdvocateFor Respondent: Shri. Kannan Narayanan, JCIT(DR)(ITAT), Bengaluru
Section 80PSection 80P(2)(a)Section 80P(2)(d)