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)

Swami Vivekanand Credit Co-Operative Society Ltd., Jamnagar vs. Income Tax Officer, Ward-1(5), Jamnagar

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

ITA 130/RJT/2018[2014-15]Status: DisposedITAT Rajkot28 Feb 2020AY 2014-15

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./I.T.A. No.130/Rjt/2018 ("नधा"रण वष" / Assessment Year 2014-15) बनाम/ Swami Vivekand Credit Co- I.T.O., Operative Society Ltd., Ward-1(5), Vs. Shed No.427, Gidc Phase-Ii, Jamnagar. Commando Chowk, Jamnagar. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaa8941H (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से / Appellant By : Shri D.S. Varia, A.R ""यथ" क" ओर से/Respondent By : Shri Suhas Mistry, Sr. D.R. सुनवाई क" तार"ख / Date Of Hearing 27/02/2020 घोषणा क" तार"ख /Date Of Pronouncement 28/02/2020 आदेश / O R D E R Per Bench: The Captioned Appeal Has Been Filed At The Instance Of The Assessee Against The Order Of The Learned Commissioner Of Income Tax (Appeals), Jamnagar [Ld. Cit(A) In Short] Dated 16/01/2018 Arising In The Matter Of Assessment Order Passed Under S.143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As "The Act") Dated 29/11/2016 Relevant To The Assessment Years (A.Y.) 2014-15. A.Y.2014-15 2. The Interconnected Issue Involved In The Grounds Of Appeal Nos. 1 To 3 Relates Whether Interest Income Earned On Fixed Deposits With The Nationalized Bank Would Qualify For Deduction Under Section 80P(2)(A)(I) Of The Act.

For Appellant: Shri D.S. Varia, A.RFor Respondent: Shri Suhas Mistry, Sr. D.R
Section 80P(2)Section 80P(2)(a)Section 80P(2)(c)Section 80P(2)(d)

Balasinor Vikas Co. Op. Credit Society Ltd., Mahisagar vs. DCIT, Panchmahal Circle, Godhara

In the result, all three appeals are partly allowed for statistical purpose

ITA 8/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad04 Feb 2020AY 2014-15

Bench: Shri Rajpal Yadav, Vice-आयकर अपील सं./ Ita No. 08/Ahd/2018 "नधा"रण वष"/Assessment Year: 2014-15 Balasinor Vikas Co-P. Credit Dcit, Panchmahal Circle Society Ltd. Vs Godhra Rajpuri Darwaja Dist. Panchmahal. Balasinor 388 255 Dist. Mahisagar. Pan : Aaaab 4748 H अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Sunil Talati, Ar Revenue By : Shri Dilipkumar S.Dr आयकर अपील सं./ Ita No. 2906/Ahd/2017 "नधा"रण वष"/Assessment Year: 2014-15 Shri Jalaram Mahila Co-Op Credit Dcit, Cir.3(1) Society Ltd. Vs Baroda. Jalaram Eye Hospital Compound Alipura, Bodeli 391 135 Dist. Chhotaudepur Pan : Aabas 5194 D आयकर अपील सं./ Ita No. 285/Ahd/2018 "नधा"रण वष"/Assessment Year: 2014-15 Anand Catholic Co-Op. Credit Ito, Ward-2 Society Ltd. Vs Anand. Nr.D-Cabin, Gamdi Tal. & Dist. Anand 388 001. Pan : Aaaaa 5138 Q अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : None Revenue By : Shri Dilipkumar S.Dr सुनवाई क" तार"ख/Date Of Hearing : 03/02/2020 घोषणा क" तार"ख /Date Of Pronouncement : 04/02/2020 O R D E R Present Three Appeals Are Directed Against Separate Orders Of The Ld.Cit(A) Passed In The Cases Of Respective Assessee For The Asstt.Year 2014-15. Common Issue Involved In All These Three Appeals Relates To Quantification Of Deduction Admission Under Section 80P(2)(A)(I) & 80P(2)(D) Of The Income Tax Act, 1961, Therefore, I Proceed To Dispose Of All These Appeals By This Consolidated Order.

For Appellant: Shri Sunil Talati, ARFor Respondent: Shri Dilipkumar S.DR
Section 80PSection 80P(2)(a)Section 80P(2)(d)

The Anand Catholic Co. Op. Credit Society Ltd., Anand vs. The Income Tax Officer, Ward-2, Anand

In the result, all three appeals are partly allowed for statistical purpose

ITA 285/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad04 Feb 2020AY 2014-15

Bench: Shri Rajpal Yadav, Vice-आयकर अपील सं./ Ita No. 08/Ahd/2018 "नधा"रण वष"/Assessment Year: 2014-15 Balasinor Vikas Co-P. Credit Dcit, Panchmahal Circle Society Ltd. Vs Godhra Rajpuri Darwaja Dist. Panchmahal. Balasinor 388 255 Dist. Mahisagar. Pan : Aaaab 4748 H अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Sunil Talati, Ar Revenue By : Shri Dilipkumar S.Dr आयकर अपील सं./ Ita No. 2906/Ahd/2017 "नधा"रण वष"/Assessment Year: 2014-15 Shri Jalaram Mahila Co-Op Credit Dcit, Cir.3(1) Society Ltd. Vs Baroda. Jalaram Eye Hospital Compound Alipura, Bodeli 391 135 Dist. Chhotaudepur Pan : Aabas 5194 D आयकर अपील सं./ Ita No. 285/Ahd/2018 "नधा"रण वष"/Assessment Year: 2014-15 Anand Catholic Co-Op. Credit Ito, Ward-2 Society Ltd. Vs Anand. Nr.D-Cabin, Gamdi Tal. & Dist. Anand 388 001. Pan : Aaaaa 5138 Q अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : None Revenue By : Shri Dilipkumar S.Dr सुनवाई क" तार"ख/Date Of Hearing : 03/02/2020 घोषणा क" तार"ख /Date Of Pronouncement : 04/02/2020 O R D E R Present Three Appeals Are Directed Against Separate Orders Of The Ld.Cit(A) Passed In The Cases Of Respective Assessee For The Asstt.Year 2014-15. Common Issue Involved In All These Three Appeals Relates To Quantification Of Deduction Admission Under Section 80P(2)(A)(I) & 80P(2)(D) Of The Income Tax Act, 1961, Therefore, I Proceed To Dispose Of All These Appeals By This Consolidated Order.

For Appellant: Shri Sunil Talati, ARFor Respondent: Shri Dilipkumar S.DR
Section 80PSection 80P(2)(a)Section 80P(2)(d)

Shri Jalaram Mahila Co. Op. Credit Society Ltd., Chhotaudepur vs. The Dy. CIT, Circle - 3(1), Baroda

In the result, all three appeals are partly allowed for statistical purpose

ITA 2906/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad04 Feb 2020AY 2014-15

Bench: Shri Rajpal Yadav, Vice-आयकर अपील सं./ Ita No. 08/Ahd/2018 "नधा"रण वष"/Assessment Year: 2014-15 Balasinor Vikas Co-P. Credit Dcit, Panchmahal Circle Society Ltd. Vs Godhra Rajpuri Darwaja Dist. Panchmahal. Balasinor 388 255 Dist. Mahisagar. Pan : Aaaab 4748 H अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Sunil Talati, Ar Revenue By : Shri Dilipkumar S.Dr आयकर अपील सं./ Ita No. 2906/Ahd/2017 "नधा"रण वष"/Assessment Year: 2014-15 Shri Jalaram Mahila Co-Op Credit Dcit, Cir.3(1) Society Ltd. Vs Baroda. Jalaram Eye Hospital Compound Alipura, Bodeli 391 135 Dist. Chhotaudepur Pan : Aabas 5194 D आयकर अपील सं./ Ita No. 285/Ahd/2018 "नधा"रण वष"/Assessment Year: 2014-15 Anand Catholic Co-Op. Credit Ito, Ward-2 Society Ltd. Vs Anand. Nr.D-Cabin, Gamdi Tal. & Dist. Anand 388 001. Pan : Aaaaa 5138 Q अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : None Revenue By : Shri Dilipkumar S.Dr सुनवाई क" तार"ख/Date Of Hearing : 03/02/2020 घोषणा क" तार"ख /Date Of Pronouncement : 04/02/2020 O R D E R Present Three Appeals Are Directed Against Separate Orders Of The Ld.Cit(A) Passed In The Cases Of Respective Assessee For The Asstt.Year 2014-15. Common Issue Involved In All These Three Appeals Relates To Quantification Of Deduction Admission Under Section 80P(2)(A)(I) & 80P(2)(D) Of The Income Tax Act, 1961, Therefore, I Proceed To Dispose Of All These Appeals By This Consolidated Order.

For Appellant: Shri Sunil Talati, ARFor Respondent: Shri Dilipkumar S.DR
Section 80PSection 80P(2)(a)Section 80P(2)(d)