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)

Thye Veer Co-Operative Group Housing Society Ltd, New Delhi vs. ITO, Ward-39(4), New Delhi

In the result, ITA.No.2787/Del

ITA 2787/DEL/2018[2013-14]Status: DisposedITAT Delhi04 Sept 2018AY 2013-14

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Ms. Mansi JainFor Respondent: Shri Vijay Kumar Jiwani, Sr. D.R
Section 80P(2)(c)Section 80P(2)(d)

Poonam Chambers Premises Co-Op Society Limited, Mumbai vs. Assistant Commissioner of Income Tax-21(2), Mumbai

In the result, the appeal of assessee is allowed

ITA 4463/MUM/2017[2013-14]Status: DisposedITAT Mumbai23 Aug 2018AY 2013-14

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am Aayakr Apila Sam./ Ita No. 4463/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2013-14)

For Appellant: Shri Devendra Jain, ARFor Respondent: Shri Abi Rama Karthikeyan, DR
Section 143(3)Section 56Section 80P(2)(d)Section 80P(4)Section 8O

Lady Ratan Tower Cooperative Housing Society Limited, Mumbai vs. Income Tax Officer 21(2)(2), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 1152/MUM/2018[2013-14]Status: DisposedITAT Mumbai09 Aug 2018AY 2013-14

Bench: Shri G.S. Pannu & Shri Pawan Singhlady Ratan Tower Cooperative Ito-21(2)(2) Room No. 111, 1St Floor, Housing Society Ltd. Dainik Shivner Marg, Worli, Vs. Piramal Chamebers, Parel, Mumbai-400018. Mumbai-400012. Pan: Aaaal1740P Appellant Respondent Appellant By : Shri Mandar Vaidya (Ar) Respondent By : Shri S.K. Bepair (Sr. Dr) Date Of Hearing : 09.08.2018 Date Of Pronouncement : 09.08.2018 Order Under Section 254(1)Of Income Tax Act Per Pawan Singh; 1. This Appeal By Assessee Is Directed Against The Order Of Ld. Commissioner Of Income-Tax (Appeals)-33, Mumbai [Ld. Cit(A)] Dated 29.12.2017 For Assessment Year 2013-14. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Mandar Vaidya (AR)For Respondent: Shri S.K. Bepair (Sr. DR)
Section 254(1)Section 80PSection 80P(2)(d)Section 80P(4)

Middle Income Group Co-Operative Housing Society Limited, Mumbai vs. Income Tax Officer-23(2)(3), Mumbai

ITA 492/MUM/2018[2011-12]Status: DisposedITAT Mumbai31 Jul 2018AY 2011-12

Bench: Shri G.S.Pannu & Shri Pawan Singh

For Respondent: Shri Narendra Kumar (CIT-
Section 143(3)Section 147Section 156Section 253Section 254(1)Section 45Section 50C

Grain Merchants Co-Op.Hsg. Ltd, Mumbai vs. Pr.CIT-28, Mumbai

In the result , the appeal of the assessee is partly allowed as indicated above

ITA 2187/MUM/2018[2013-14]Status: DisposedITAT Mumbai25 Jul 2018AY 2013-14

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.2187/Mum/2018 (नििाारण वर्ा / Assessment Year: 2013-14) बिाम/ Grain Merchants Co- Pr. Cit-28 Operative Housing Society Mumbai Ltd, Plot No. 26/35, Sec-17, V. Vashi, Navi Mumbai-400705 स्थायी ऱेखा सं./ Pan : Aaaag3973H (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri. M. SubramanianFor Respondent: Shri. Abhijit Patankar,CIT-DR
Section 143Section 143(3)Section 263Section 56Section 80PSection 80P(2)(c)Section 80P(2)(d)Section 80P(4)

Maker Tower 'E' Premises Co.Op.Soc. Ltd., Mumbai vs. ACIT- (CPC), Bangalore

In the result, the appeal assessee is allowed

ITA 4093/MUM/2017[2015-16]Status: DisposedITAT Mumbai04 Jul 2018AY 2015-16

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri PB Chhapgar, ARFor Respondent: Shri Saurabh Kumar Rai
Section 143(1)Section 80PSection 80P(2)(d)Section 8O

The ACIT, Circle-6, Surat vs. Bardoli Vibhag Gram Vikas Co.Op.Credit Society Ltd., Surat

In the result, the appeal of the revenue is dismissed

ITA 2582/AHD/2014[2010-11]Status: DisposedITAT Surat22 Jun 2018AY 2010-11

Bench: Shri C.M.Garg & Shri O.P.Meenaआ.अ.सं./I.T.A No.2582/Ahd/2014/Srt िनधा"रण वष"/Assessment Year : 2010-11 Assistant Commissioner Of Vs. Bardoli Vibhag Gram Vikas Co- Income Tax, Operative Credit Society Ltd., Circle –6, Surat – 395001. Sardar Baug Bardoli, District Surat, Surat – 396 420 [Pan: Aaatb 8135 B] अपीलाथ" Appellant ""यथ"/Respondent Shri Mitish S. Modi, Ca िनधा"रती क" ओर से /Assessee By राज"व क" ओर से /Revenue By Shri Arvind Kumar Singh, Sr.Dr 20-06-2018 सुनवाई क" तारीख/ Date Of Hearing: 28-06-2018 उ"ोषणा क" तारीख/Pronouncement On आदेश /O R D E R Per O. P. Meena, Accoutant Member:

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

Sindhudurga Zilla Madhyamik Adhyapak Va Ucchya Madhyamik Shikshak Va Shikshaketar Karmachari Sahakari Patpedhi Maryadit, Sindhudurg vs. Income-Tax Officer

In the result, the appeal of the assessee is partly allowed in the terms aforesaid

ITA 154/PUN/2015[2011-12]Status: DisposedITAT Pune31 May 2018AY 2011-12

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri Nikhil PathakFor Respondent: Shri Achal Sharma
Section 80P(2)(a)Section 80P(2)(d)

The Dy. Commissioner of Income Tax, Sabarkantha Circle, Himatnagar vs. The Sabarkantha District Central Co.-Op. Milk Producers Union Ltd., Himatnagar

In the result, appeal of the Revenue is dismissed

ITA 1905/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad25 May 2018AY 2012-13

Bench: Shri Pramod Kumar & Shri Rajpal Yadavआयकर अपील सं./ Ita No.1905/Ahd/2016 "नधा"रण वष"/Asstt. Year: 2012-13 Dcit, Sabarkantha Circle Vs. Sabarkantha District Co-Op. Himatnagar. Milk Producers Union Ltd. Sabar Dairy, Sub Post Boriya Himatnagar 383 006. Pan : Aaaas 5265 L

For Appellant: Shri Y.H. Shah, ARFor Respondent: Shri Saurabh Singh, Sr.DR
Section 14ASection 80PSection 80P(2)(d)

The Amod Co. Op. Credit Society Limited, Anand vs. The Income Tax Officer, Ward-1(3)(1), Petlad

In the result, appeal of the assessee is treated to be dismissed

ITA 3216/AHD/2016[2013-14]Status: DisposedITAT Ahmedabad23 May 2018AY 2013-14

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./ Ita No. 3216/Ahd/2016 "नधा"रण वष"/Assessment Year: 2013-14 The Amod Co-Op. Credit Society Ltd. Ito, Ward-1(3)(1) Nani Khadki, Amod 388 160. Vs Petlad. Tal. Petlad, Dist. Anand

For Appellant: Shri Parin Shah, ARFor Respondent: Shri Prasson Kabra, Sr.DR
Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

M/S. Orissa State Co-Operative Handicrafts Corporation Limited, Bhubaneswar vs. DCIT, Circle-4(1), Bhubaneswar

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

ITA 378/CTK/2017[2013-14]Status: DisposedITAT Cuttack17 May 2018AY 2013-14

Bench: Shri N.S.Saini, Am & Shri Pavan Kumar Gadale, Jm M/S Orissa State Cooperative Vs. Dcit, Circle-4(1), Handicrafts Corporation Limited, Bhubaneswar At-D-2/3, Industrial Estate, Rasulgarh, Bhubaneswar स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No. : Aaaao 0096 K (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee By : Shri Ambika Prasad Mohanty, Ar िाजस्व की ओर से /Revenue By : Shri D.K.Pradhan, Dr सुनवाई की तािीख / Date Of Hearing : 14/05/2018 घोषणा की तािीख/Date Of Pronouncement 17/05/2018 आदेश / O R D E R Per Shri Pavan Kumar Gadale, Jm: The Assessee Has Filed This Appeal Against The Order Of Cit(A)-2, Bhubaneswar, Dated 28.06.2017, Passed In I.T.Appeal No.0039/2016-17, U/S.143(3)/250 Of The I.T.Act For The Assessment Year 2013-2014. 2. At The Time Of Hearing, Ld. Ar Of The Assessee Has Not Pressed The Grounds No.2 & 3 Of The Grounds Of Appeal. Accordingly, We Dismiss The Ground Nos.2&3 As Not Pressed. 3. The Effective Grounds Of Appeal Are As Under :- 1. Ld Cit (Appeals) Is Wrong & Unlawful In Upholding The Decision Of Assessing Officer With Respect To Disallowance Of Interest Claimed By The Assessee U/S 80P(2) (D). Interest Income From Orissa State Co Operative Bank Ltd Being Another Co Operative Society To The Tune Of Rs. 30,37,898/-. 4. Thus Ld Cit (Appeals) Is Wrong In Holding That, The Whole Of Rs. 44,02,128/- Interest Income Is Income From Fixed Deposits & Is Neither Deductible U/S 80P(2)(D) Nor Eligible For Set Off Against Carried Forward Loss For Being Income From Other Sources.

For Appellant: Shri Ambika Prasad Mohanty, ARFor Respondent: Shri D.K.Pradhan, DR
Section 143(1)Section 143(2)Section 143(3)Section 56(2)Section 72(1)Section 80P(2)Section 80P(2)(d)

Income Tax Officer Ward-3(2), Thane vs. Eternity Co Op Housing Society Limited, Mumbai

In the result, the appeal of Revenue is dismissed

ITA 6159/MUM/2017[2013-14]Status: DisposedITAT Mumbai15 May 2018AY 2013-14

Bench: Sri Mahavir Singh

For Appellant: Anil Sathe, ARFor Respondent: PR Chauhan, DR
Section 143(3)Section 4Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

ITO 24(1)(4), Mumbai vs. Citiscape Co Op Hsg Soc. Ltd, Mumbai

ITA 7154/MUM/2016[2013-14]Status: DisposedITAT Mumbai09 May 2018AY 2013-14

Bench: Shri Rajendra, Am & Shri Ravish Sood, Jm Income Tax Officer-24(4), Citiscape Co-Op. Hsg. Soc. Ltd., R. No. 607, 6Th Floor, Ground Floor, Society Office, Andheri बिधम/ Piramal Chambers, Kurla Road, Andheri (East), Vs. Lalbaug, Parel, Mumbai-400059 Mumbai- 400 012 स्थामी रेखा सं./ जीआइआय सं./ Pan No. Aaaac4160G (अऩीराथी /Revenue) (प्रत्मथी / Assessee) :

For Appellant: Shri Rishabh Shah, A.RFor Respondent: Shri Rajat Mittal, D.R
Section 143(1)Section 143(2)Section 143(3)Section 80P(2)(c)Section 80P(2)(d)Section 80P(4)

M/S Sri Nagendra Credit Co-Op Society Ltd, Bangalore vs. Income Tax Officer Ward-5(2)(5), Bangalore

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

ITA 1155/BANG/2018[2014-15]Status: DisposedITAT Bangalore04 May 2018AY 2014-15

Bench: Shri Arun Kumar Garodia

For Appellant: Shri Ravishankar, AdvocateFor Respondent: Shri Abi Rama Karthikeyan, IRS (DR)
Section 234BSection 80Section 80P

M/S Sri Nagendra Credit Co-Op Society Ltd, Bangalore vs. Income Tax Officer Ward-5(2)(5), Bangalore

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

ITA 1154/BANG/2018[2013-14]Status: DisposedITAT Bangalore04 May 2018AY 2013-14

Bench: Shri Arun Kumar Garodia

For Appellant: Shri Ravishankar, AdvocateFor Respondent: Shri Abi Rama Karthikeyan, IRS (DR)
Section 234BSection 80Section 80P

Kaliandas Udyog Bhavan Premises Co-Operative Society Limited, Mumbai vs. Income Tax Officer 21(2)(1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 6547/MUM/2017[2014-15]Status: DisposedITAT Mumbai25 Apr 2018AY 2014-15

Bench: Shri G.S. Pannu, Am & Shri Ravish Sood, Jm Kaliandas Udyog Bhavan Premises Ito-21(2)(1), R.No. 107, Co-Op Society Ltd., Vs. Piramal Chambers, Parel, Near Century Bazar, Prabhadevi, Mumbai – 400 012. Mumbai – 400 025 Pan No. Aaaak 4678 B (Appellant) (Respondent) Assessee By : Shri Deepak P. Rikekar & Shri Ajit Gupte, Cas. Department By : Ms. N. Hemalatha – Sr. Dr Date Of Hearing : 31/01/2018. Date Of Pronouncement : 25/04/2018. O R D E R

For Appellant: Shri Deepak P. Rikekar &For Respondent: Ms. N. Hemalatha – Sr. DR
Section 143(2)Section 143(3)Section 80PSection 80P(2)(d)Section 80P(4)

Aqua Cooperative Housing Society Limited, Mumbai vs. Income Tax Officer 21(1)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 408/MUM/2018[2013-14]Status: DisposedITAT Mumbai20 Apr 2018AY 2013-14

Bench: S/Shri B.R. Baskaran (Am) & Sandeep Gosain (Jm)

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

Lokhandwal Residency Towers Chs Limited, Mumbai vs. Income Tax Officer 21(2)(2), Mumbai

In the result, the appeal of the assessee is treated as allowed

ITA 7018/MUM/2017[2014-15]Status: DisposedITAT Mumbai20 Apr 2018AY 2014-15

Bench: S/Shri B.R. Baskaran (Am) & Sandeep Gosain (Jm)

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

Mtnl Mumbai Employees Co Operative Credit Society Ltd, Mumbai vs. ITO 21(2)(2), Mumbai

The appeal of the assessee is allowed

ITA 7352/MUM/2016[2013-14]Status: DisposedITAT Mumbai17 Apr 2018AY 2013-14

Bench: Shri Joginder Singh & Shri Ramit Kocharassessment Year: 2013-14 Mtnl Mumbai Employees Income Tax Officer-21(2)(2), Cooperative Credit Society Piramal Chambers, बनाम/ Limited, Lalbaug, Parel, Vs. Shivaji Park Telephone Mumbai-400012 Exchange Compound, Anant Patil Marg, Dadar, Mumbai-400028 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aaaam1777H "नधा"रती क" ओर से / Assessee By Shri Deepak Tikekar & Shri R.B. Prabhavalkar Shri Saurabh Kumar Rai-Dr राज"व क" ओर से / Revenue By 17/04/2018 सुनवाई क" तार"ख /Date Of Hearing : 17/04/2018 आदेश क" तार"ख /Date Of Order:

Section 143(3)Section 2(10)Section 5Section 80PSection 80P(2)(d)

M/S Chowdeshwari Credit Co-Operative Society Ltd, Bangalore vs. Income Tax Officer Ward-7(2)(2), Bangalore

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

ITA 2602/BANG/2017[2014-15]Status: DisposedITAT Bangalore06 Apr 2018AY 2014-15

Bench: Shri Arun Kumar Garodia

For Appellant: Shri Ravishankar, AdvocateFor Respondent: Shri L.V. Bhaskar Reddy, Addl. CIT (DR)
Section 234Section 80Section 80P