Section 80P(2)(d) of the Income Tax Act

Income-tax Act, 2025: s.149

Section 80P(2)(d) 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)(d) is CIT v. Vegetable Products Ltd. (88 ITR 192), cited in 2,664 of the 2,440 judgments on BharatTax that turn on this section.

Leading authorities on Section 80P(2)(d)

CIT v. Vegetable Products Ltd.
88 ITR 192 · 1973 · Supreme Court
2,664
citing judgments

When two equally plausible interpretations of a taxing provision are possible, or when conflicting views exist from non-jurisdictional High Courts, the interpretation that favors the assessee must be adopted.

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.

CIT v. Ponni Sugars & Chemicals Ltd.
306 ITR 392 · 2008 · Supreme Court
577
citing judgments

The "Purpose Test" determines whether an incentive or subsidy is a capital or revenue receipt for income tax purposes. If the incentive's purpose is to enable an assessee to set up a new industry or make investments in capital assets, it is a capital receipt and not taxable.

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).

Judgments on Section 80P(2)(d)

Palsana Gram Sewa Sahkari Samiti Ltd., Palsana vs. PCIT-2, Jaipur

In the result, all these three appeals of the assessee are allowed

ITA 35/JPR/2021[2010-11]Status: DisposedITAT Jaipur02 Nov 2021AY 2010-11

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 35 To 37/Jp/2021 Assessment Years: 2010-11 To 2012-13 Palsana Gram Sewa Sahkari Samiti Cuke Pr.Cit-2, Vs. Limited, Jaipur. Village- Palsana Main Market, Palsana, Dist.- Sikar- 332402 (Raj) Pan No.: Aabap 8390 A Vihykfkhz@Appellant Izr;Fkhz@Respondent Fu/Kzkfjrh Dh Vksj Ls@ Assessee By : Shri Shrawan Kr. Gupta (Adv) Jktlo Dh Vksj Ls@ Revenue By : Shri B.K. Gupta (Pr.Cit-Dr) Lquokbz Dh Rkjh[K@ Date Of Hearing : 04/08/2021 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 02/11/2021 Vkns'K@ Order Per: Sandeep Gosain, J.M. These Are The Appeals Filed By The Assessee Against The Separate Order Of The Ld. Pr.Cit-2, Jaipur All Dated 31/03/2021 Passed U/S 263 Of The Income Tax Act, 1961 (In Short, The Act) For The A.Y. 2010-11 To 2012-13. 2. The Hearing Of The Appeal Was Concluded Through Video Conference In View Of The Prevailing Situation Of Covid-19 Pandemic.

For Appellant: Shri Shrawan Kr. Gupta (Adv)For Respondent: Shri B.K. Gupta (Pr.CIT-DR)
Section 143(2)Section 147Section 148Section 263Section 80P(2)(a)Section 80P(2)(d)

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)

Bhandup Industrial Estate Co-Op Soc. Ltd., Mumbai vs. ITO Ward 29 (1)(2), Mumbai

ITA 1367/MUM/2020[2015-16]Status: DisposedITAT Mumbai27 Oct 2021AY 2015-16

Bench: Sri Mahavir Singhaayakr Apila Sam Aayakr Apila Sam./ Ita No. 1367/Mum/2020 Aayakr Apila Sam Aayakr Apila Sam (Inaqa-Arna Baya- / Assessment Year 2015-16) Bhandup Industrial Estate Co-Op The Income Tax Officer Ward-29(1)(2) Soc.Ltd. C-10, 1St Floor, Room No.103 4094, Bhandup Industrial Estate Bkc, Mumbai-400 051 Co-Op Soc.Ltd. Vs. Lbs Marg, Pannalal Compound, Bhandhup(W) Mumbai-400 078 (Api Api Apilaaqai Api Laaqai Laaqai- / Appellant) Laaqai (P`%Yaqaai P`%Yaqaai P`%Yaqaai- / Respondent) P`%Yaqaai .. "थायी लेखा सं./Pan No. Aaaab1446J अपीलाथ" क" ओर से / Appellant By : Shri Aditya Ramchandran,Ar ""यथ" क" ओर से / Respondent By : Shri Vaibhav Jain, Dr 27.10.2021 सुनवाई क" तारीख / Date Of Hearing: घोषणा क" तारीख / Date Of Pronouncement : 27 .10.2021 Aadosa Aadosa / O R D E R Aadosa Aadosa

For Appellant: Shri Aditya Ramchandran,ARFor Respondent: Shri Vaibhav Jain, DR
Section 143(3)Section 80P(2)(c)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)

Kandivali Pritisangam Co.Op.Hsg. Society Ltd., Mumbai vs. ITO 32 (2)(2), Mumbai

In the result, the appeal of assessee is allowed

ITA 3745/MUM/2019[2015-16]Status: DisposedITAT Mumbai27 Sept 2021AY 2015-16

Bench: Sri Mahavir Singhaayakr Apila Sam./ Ita No. 3745/Mum/2019 (Inaqa-Arna Baya- / Assessment Year 2015-16) The Income Tax Officer Kandivali Pritisangam Co-Op. Hsg Ward, 32(2)(2) Society Ltd. C-11/304, Pratyakshkar A-1, Pritisangam, Holy Cross Road, Vs. Bhavan, Bkc, Bandra (E), Near Jaybhai Khod School, Borivali Mumbai-400 051 (W), Mumbai-400 103 (Apilaaqai- / Appellant) .. (P`%Yaqaai- / Respondent) स्थामी रेखा िं./Pan No. Aaaak5823A अऩीराथी की ओय े / Appellant By : None प्रत्मथी की ओय े / Respondent By : Smt. Smita Verma, Dr स नवाई की तारीख / Date Of Hearing: 27.09.2021 घोषणा की तारीख / Date Of Pronouncement : 27.09.2021

For Appellant: NoneFor Respondent: Smt. Smita Verma, DR
Section 143(3)Section 4Section 80P(2)(d)

Guru Tegbahadur Co-Op. Credit Society Ltd., Mumbai vs. ITO, Ward 26 (1)(5), Mumbai

The appeal of the assessee is dismissed

ITA 3947/MUM/2019[2014-15]Status: DisposedITAT Mumbai20 Sept 2021AY 2014-15

Bench: Shri Vikas Awasthyआअसं. 3946 /मुं/2019("न.व.2014-15) Raj Tarang 1 Housing Society, Shiv Vallabh Cross Road, Ashokvan, Rawalpada, Dahisar East, : अपीलाथ"/ Appellant Mumbai 400 068. Pan:Aaaar-6740-H बनाम/ Vs.

For Respondent: Shri Sanjay J. Sethi/
Section 80A(5)Section 80PSection 80P(2)(c)Section 80P(2)(d)

Raj Tarang Housing Society, Mumbai vs. ITO, Ward 32(3)(1), Mumbai

The appeal of the assessee is dismissed

ITA 3946/MUM/2019[2014-15]Status: DisposedITAT Mumbai20 Sept 2021AY 2014-15

Bench: Shri Vikas Awasthyआअसं. 3946 /मुं/2019("न.व.2014-15) Raj Tarang 1 Housing Society, Shiv Vallabh Cross Road, Ashokvan, Rawalpada, Dahisar East, : अपीलाथ"/ Appellant Mumbai 400 068. Pan:Aaaar-6740-H बनाम/ Vs.

For Respondent: Shri Sanjay J. Sethi/
Section 80A(5)Section 80PSection 80P(2)(c)Section 80P(2)(d)

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)

Petit Towers Co-Op Housing Soc. Ltd., Mumbai vs. ITO - 19(2)(5), Mumbai

ITA 549/MUM/2021[2015-16]Status: DisposedITAT Mumbai01 Sept 2021AY 2015-16

Bench: Shri S.Rifaur Rahman () & Shri Ravish Sood () M/S Petit Towers Co-Op. Income Tax Officer, 19(2)(5) Housing Society Ltd. Vs. Matru Mandir, Cs 597 & 598, Petit Towers, Mumbai - 400 007 August Kranti Marg, Bomani Petit Road, Cumballa Hill, Kemps Corner, Mumbai – 400 036 Pan No. Aaaap5446J (Assessee) (Revenue) Assessee By : Shri Vijay Mehta, A.R Revenue By : Shri R. K. Sahu, D.R Date Of Hearing : 26/08/2021 Date Of Pronouncement : 01/09/2021 Order Per Ravish Sood, J.M: The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By The Pr. Commissioner Of Income Tax, Mumbai-19 (For Short “Pr. Cit”), U/S 263 Of The Income Tax Act, 1961 (For Short „Act‟), Dated 17.02.2021, Which In Turn Arises From The Order Passed By The A.O U/S 143(3) Of The Act, Dated 31.08.2017. The Assessee Has Assailed The Impugned Order On The Following Grounds Of Appeal:

For Appellant: Shri Vijay Mehta, A.RFor Respondent: Shri R. K. Sahu, D.R
Section 143(1)Section 143(2)Section 143(3)Section 263Section 40Section 80PSection 80P(2)(d)

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

M/S Doshi Palace Co - Operative Hsg. Soc. Ltd., Mumbai vs. ACIT - 19(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 3510/MUM/2019[2015-16]Status: DisposedITAT Mumbai20 Aug 2021AY 2015-16

Bench: Shri Vikas Awasthyआअसं. 3510/मुं/2019 (िन.व.2015-16) M/S Doshi Palace Co-Operative Hsg Soc. Ltd. 24, Walkeshwar Road, Walkeshwar, Mumbai-400006. ...... अपीलाथ" /Appellant Pan: Aaaad3401H बनाम Vs. Acit-19(1), Matru Mandir, ..... "ितवाद"/Respondent Mumbai-400007 अपीलाथ" "ारा/ Appellant By : None "ितवाद" "ारा/Respondent By : Sh. Sanjay J. Sethi सुनवाई क" ितिथ/ Date Of Hearing : 23/06/2021 घोषणा क" ितिथ/ Date Of Pronouncement : 20/08/2021 आदेश/ Order Per Vikas Awasthy, J.M: This Appeal By The Assessee Is Against The Order Of Commissioner Of Income Tax (Appeals)-18, Mumbai [Hereinafter Referred To As ‘The Cit(A)’] Dated 14.03.2019 For The Assessment Year (Ay) 2015-16. The Solitary Ground Raised By The Assessee In Appeal Is Against Rejection Of Assessee’S Claim Of Deduction Under Section 80P(2)(D) Of The Income Tax Act, 1961 [Hereinafter Referred To As ‘The Act’].

For Appellant: NoneFor Respondent: Sh. Sanjay J. Sethi
Section 80PSection 80P(2)(d)Section 80P(4)

Hyde Park (A) Co Operative Housing Society Limited, Pune vs. Income Tax Officer, Ward 5 (4), Pune

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

ITA 262/PUN/2020[2016-2017`]Status: DisposedITAT Pune17 Aug 2021

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपील सं. / Ita No.262/Pun/2020 िनधा"रण वष" / Assessment Year : 2016-17 Hyde Park (A) Cooperative Housing Society Limited, Society Office Hyde Park (A) Cooperative Housing Society Ltd., Market Yard Road, Market Yard, Pune-411037. .......अपीलाथ" / Appellant Pan : Aaajh0371F बनाम / V/S. Ito, Ward-5(4), ……""यथ" / Respondent Pune. Assessee By : Shri Sanket M. Joshi Shri Sudeep Chhallani Revenue By : Shri S. P. Walimbe सुनवाई क" तारीख / Date Of Hearing : 16.08.2021 घोषणा क" तारीख / Date Of Pronouncement : 17.08.2021 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)- 4, Pune (‘Cit(A)’ For Short) Dated 24.09.2019 For The Assessment Year 2016-17. 2. Briefly, The Facts Of The Case Are As Under :- The Appellant Is A Cooperative Society Formed Under The Maharashtra Cooperative Societies Act, 1960. It Is Formed With The Object Of Maintaining The Housing Society. The Return Of Income For The Assessment Year 2016-17 Was Filed On 07.09.2016 Declaring Total Income Of Rs.Nil. Against The Said Return Of Income, The Assessment Was Completed By The Income Tax Officer, Ward- 5(4), Pune (‘The Assessing Officer’) Vide Order Dated 22.12.2018 Passed

For Appellant: Shri Sanket M. JoshiFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 80P(2)(d)

ITO 23 (2)(3), Mumbai vs. M/S Mig Co-Op Housing Ociety Group II Ltd., Mumbai

The appeal are allowed

ITA 7326/MUM/2019[2013-14]Status: DisposedITAT Mumbai09 Aug 2021AY 2013-14
Section 12Section 80PSection 80P(2)(c)Section 80P(2)(d)

ITO 23 (2)(3), Mumbai vs. M/S Mig Co-Op Housing Society Group II Ltd., Mumbai

The appeal are allowed

ITA 7325/MUM/2019[2012-13]Status: DisposedITAT Mumbai09 Aug 2021AY 2012-13
Section 12Section 80PSection 80P(2)(c)Section 80P(2)(d)