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)

The Kattoor Service Cooperative Bank Limited, Thrissur vs. Income Tax Officer, Ward 2(1), Thrissur

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

ITA 714/COCH/2025[2022-23]Status: DisposedITAT Cochin06 Nov 2025AY 2022-23

Bench: Shri Inturi Rama Rao, Am & Shri Manu Kumar Giri, Jm Assessment Year: 2022-23 Kattoor Service Co-Op. Bank Ltd. .......... Appellant Kattoor P.O., Thrissur 680702 [Pan: Aacat3937A] Vs. The Income Tax Officer, Ward-2(1), Thrissur ......... Respondent Assessee By: Shri Amaljith P.J., Ca Revenue By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 03.11.2025 Date Of Pronouncement: 06.11.2025 O R D E R Per Manu Kumar Giri, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi [“Cit(A)” In Short] Dated 25.08.2025 For Assessment Year (Ay) 2022-23. 2. Brief Facts Of The Case Are That The Appellant Is A Co-Operative Society Registered Under The Kerala State Co-Operative Societies Act, 1961. It Is Classified As A Primary Agricultural Credit Co-Operative Society. It Is Engaged In The Business Of Accepting Deposits From Members & Providing Credit Facilities To Members. The Return Of 2 Kattoor Service Co-Op. Bank Ltd. Income For Ay 2022-23 Was Filed On 05.11.2022 Disclosing Nil Income After Claiming Deduction U/S. 80P Of The Income Tax Act, 1961 (The Act). Against The Said Return Of Income, The Assessment Was Completed By The Assessment Unit, Income Tax Department (Hereinafter Called "The Ao") Vide Order Dated 19.03.2024 Passes U/S. 143(3) R.W.S. 144B Of The Act At A Total Income Of Rs.5,21,52,939/-. While Doing So, The Ao Denied Deduction U/S.80P(2)(A)(I) & U/S. 80P(2)(D) Of The Act.

For Appellant: Shri Amaljith P.J., CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 143(3)Section 63Section 64Section 80PSection 80P(2)(a)Section 80P(2)(d)

The Farmer Bank Staff Co-Operative Society Ltd, Fort, Mumbai vs. Income Tax Officer, Piramal Chambers

ITA 5686/MUM/2025[2018-19]Status: DisposedITAT Mumbai06 Nov 2025AY 2018-19

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri Sushant Alme, Ld. A.RFor Respondent: Ms. Kavitha Kaushik, Ld. Sr. D.R
Section 119(2)(b)Section 139Section 139(1)Section 143(3)Section 147Section 250Section 80ASection 80PSection 80P(2)(a)Section 80P(2)(d)

DCIT, Circle-2(1)(1), Surat vs. The Surat Vankar Sahkari Sangh Limited, Surat

In the result, the appeal of the revenue is dismissed

ITA 77/SRT/2025[2017-18]Status: DisposedITAT Surat31 Oct 2025AY 2017-18

Bench: Ms. Suchitra Raghunath Kamble & Shri Bijayananda Prusethआयकर अपील सं./Ita No.77/Srt/2025 Assessment Year: (2017-18) (Hybrid Hearing) Dcit, Vs. The Surat Vankar Sahkari Sangh Circle – 2(1)(1), Limited, Surat Opp – Reshamwala Market, Ring Road, Surat - 395002 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aaaat3159L (Appellant) (Respondent) Appellant By Shri Ravi Kant Gupta, Cit-Dr Respondent By Shri Hiren Vepari, Ca Date Of Hearing 19/08/2025 Date Of Pronouncement 30/10/2025

Section 143(2)Section 194A(3)(v)Section 250Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

ACIT Cirlce-1, Lucknow vs. U P Cooperative Sugar Factories Federation Limited, Lucknow

In the result, the appeal of the Revenue is partly allowed

ITA 371/LKW/2024[2021-22]Status: DisposedITAT Lucknow31 Oct 2025AY 2021-22

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

For Appellant: Shri R. K. Agarwal, CIT(DR)For Respondent: Shri Shyam Lal, CA
Section 80PSection 80P(2)Section 80P(2)(d)

Shree Sant Savta Gramin Bigar Seti Sahakari Pathsansta Marayadit, Nashik vs. Assessment Unit, Income Tax Department, Delhi

In the result, appeal of the Assessee is partly allowed

ITA 1625/PUN/2025[2017-18]Status: DisposedITAT Pune31 Oct 2025AY 2017-18

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.1625/Pun/2025 निर्धारण वषा / Assessment Year: 2017-18 Shree Sant Savta Gramin Bigar V Assessment Unit, Seti Sahakari Pathsanstha S. Income Tax Department, Maryadit, Delhi. Pimpalgaon, Niphad, Nashik – 422209. Pan: Aacas4098M Appellant/ Assessee Respondent / Revenue Assessee By None Revenue By Shri Dayanand Jawalikar – Addl.Cit Date Of Hearing 14/10/2025 Date Of Pronouncement 31/10/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Is Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Passed Under Section 250 Of The Income Tax Act, 1961 For A.Y.2017-18, Dated 27.11.2024 Emanating From Assessment Order U/S.143(3) Of The I.T.Act, Dated 15.12.2019. The Assessee Has Raised Following Grounds Of Appeal :

Section 142(1)Section 143(2)Section 143(3)Section 250Section 68Section 80PSection 80P(2)(a)Section 80P(2)(d)

Lake Florence Abcdef and G Chs Ltd, Mumbai vs. DCIT-41 (1)(1), Mumbai

In the result, both the appeals filed by the assessee are allowed

ITA 4671/MUM/2025[2020-21]Status: DisposedITAT Mumbai31 Oct 2025AY 2020-21

Bench: Shri Sandeep Gosain

Section 250Section 80PSection 80P(2)(d)

Lake Florence Abcdef and G Chs Ltd, Mumbai vs. DCIT-41 (1)(1), Mumbai

In the result, both the appeals filed by the assessee are allowed

ITA 4670/MUM/2025[2018-19]Status: DisposedITAT Mumbai31 Oct 2025AY 2018-19

Bench: Shri Sandeep Gosain

Section 250Section 80PSection 80P(2)(d)

Shree Siddhnath Sahakari Pathpedi Maryadit, Mumbai vs. Income Tax Officer 41(2)(5), Mumbai

In the result the appeal filed by the assessee for all the assessment year stands partly allowed for statistical purposes

ITA 3288/MUM/2025[2020-21]Status: DisposedITAT Mumbai31 Oct 2025AY 2020-21

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 22Section 5Section 56Section 80P(2)(d)

Shree Siddhnath Sahakari Pathpedi Maryadit, Mumbai vs. Income Tax Officer 41(2)(5), Mumbai

In the result the appeal filed by the assessee for all the assessment year stands partly allowed for statistical purposes

ITA 3287/MUM/2025[2018-19]Status: DisposedITAT Mumbai31 Oct 2025AY 2018-19

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 22Section 5Section 56Section 80P(2)(d)

Shree Siddhnath Sahakari Pathpedi Maryadit, Mumbai vs. Income Tax Officer 41(2)(5), Mumbai

In the result the appeal filed by the assessee for all the assessment year stands partly allowed for statistical purposes

ITA 3286/MUM/2025[2016-17]Status: DisposedITAT Mumbai31 Oct 2025AY 2016-17

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 22Section 5Section 56Section 80P(2)(d)

Dharapuram Public Servents Co-Op Thrift and Credit Society Ltd., Tirupur vs. ITO, Ward 2(4), Tirupur

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

ITA 2148/CHNY/2025[2021-2022]Status: DisposedITAT Chennai30 Oct 2025AY 2021-2022

Bench: Shri Aby T. Varkey & Shri Jagadishआयकर अपील सं./Ita No.2148/Chny/2025 िनधा:रण वष: /Assessment Year: 2021-22

For Appellant: Ms. S. Mathangi, Advocate &For Respondent: Shri Nishanth Rao, JCIT
Section 143(1)Section 80PSection 80P(2)(d)

Dindoshi Onkar Co-Operative Housing Society Limited, Mumbai vs. Income Tax Officer, Ward 41(3)(1), Mumbai

In the result, both the appeals are under consideration are allowed on the same terms noted above

ITA 5179/MUM/2025[2014-15]Status: DisposedITAT Mumbai30 Oct 2025AY 2014-15

Bench: Shri Narender Kumar Choudhryassessment Year: 2014-15 & Assessment Year: 2015-16 Dinodoshi Onkar Co- Centralised Processing Operative Housing Society Centre/Income Tax Limited Officer, Ward 41(3)(1), Building No. 17, Dindoshi Onkar Mumbai Vs. Co-Operative Housing Society Kautilya Bhavan, Bandra Limited, Gen. A.K. Vaidya Marg, Kurla Complex (East), Shivdham, Malad (East), Mumbai – 400051. Mumbai- 400097 Pan: Aaaad2593A (Appellant) (Respondent) Present For: Assessee By : Shri Rajesh Athavale Revenue By : Shri Praveen K. Srivastav, Ld. Sr.D.R. Date Of Hearing : 09.10.2025 Date Of Pronouncement : 30.10.2025 O R D E R Per : Narender Kumar Choudhry: These Appeals Have Been Preferred By The Assessee Against The Order Dated 24.06.2025, Impugned Herein, Passed By The National Faceless Appeal Center (Nfac)/ Ld. Additional Joint Commissioner Of Income Tax (Appeals) (In Short Ld. Commissioner) U/S 250 Of The Income Tax Act, 1961 (In Short ‘The Act’) For The A.Ys. 2014-15 & 2015-16. 2. Both The Appeals Are Having Involved Identical Facts & Issue, Therefore, For The Sake Of Brevity, The Same Were Heard Together Dindoshi Onkar Co-Operative Housing Society Limited & Are Being Disposed Of By This Composite Order, By Taking Into Consideration The Ita No. 5179/M/2025 (A.Y. 2014-15) As The Lead Case & Result Of The Same Should Be Applicable Mutatis Mutandis To Both The Appeals Under Consideration.

For Appellant: Shri Rajesh AthavaleFor Respondent: Shri Praveen K. Srivastav, Ld. Sr.D.R
Section 143(1)Section 2(19)Section 250Section 80PSection 80P(1)Section 80P(2)(d)

Dindoshi Co-Operative Housing Society Limited, Mumbai vs. Income Tax Officer, Ward 41(3)(1), Mumbai

ITA 5178/MUM/2025[2015-16]Status: DisposedITAT Mumbai30 Oct 2025AY 2015-16

Bench: Shri Narender Kumar Choudhry

For Appellant: Shri Rajesh AthavaleFor Respondent: Shri Praveen K. Srivastav, Ld. Sr.D.R
Section 143(1)Section 250Section 80PSection 80P(1)Section 80P(2)(d)

Shri Ganesh Nagari Sahakar Patsanstha M. Chiplun Ta. Chiplun, Ratnagiri vs. Income Tax Officer, Ratnagiri

In the result, the appeal filed by the assessee is partly allowed

ITA 1743/PUN/2025[2018-19]Status: DisposedITAT Pune29 Oct 2025AY 2018-19

Bench: Dr.Manish Borad

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri Ajitesh Meena
Section 143(3)Section 80PSection 80P(2)(d)

Yedapadavu Vyavasaya Seva Sahakara Sangha Niyamitha, Yedapadavu vs. Income Tax Officer, Mangaluru

In the result, both the appeals filed by the assessee are allowed

ITA 1919/BANG/2025[2018-19]Status: DisposedITAT Bangalore29 Oct 2025AY 2018-19

Bench: Shri Prashant Maharishi

For Appellant: Shri Sriram V. Rao, CA
Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)

Yedapadavu Vyvasaya Sahakara Sangha Niyamitha, Yedapadavu vs. Income Tax Officer, Ward-2(2), Mangaluru

ITA 1878/BANG/2025[2020-21]Status: DisposedITAT Bangalore29 Oct 2025AY 2020-21

Bench: Shri Prashant Maharishi

For Appellant: Respondent byFor Respondent: Shri Sriram V. Rao, CA
Section 143(3)Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

Kamalpur Jotekanuragarh S K U S Limited, Paschim Medinipur vs. ACIT, Circle 38, Midnapur

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

ITA 382/KOL/2025[2017-18]Status: DisposedITAT Kolkata28 Oct 2025AY 2017-18

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 142(1)Section 144Section 250Section 270ASection 271FSection 272A(1)Section 80ASection 80PSection 80P(2)(a)

The West Godavari District Co Op Marketing Society Ltd, Eluru vs. Principal Commissioner of Income Tax-1, Visakhapatnam

ITA 356/VIZ/2025[2020-21]Status: DisposedITAT Visakhapatnam27 Oct 2025AY 2020-21

Bench: Shri Balakrishnan Sshri Sandeep Singh Karhailthe West Godavari District Co-Op. Marketing Society Ltd., Eluru, 25-55, Opposite To Fire Station N.R. Pet Eluru - 534006 ............... Appellant Pan: Aaaat7717Q V/S Principal Commissioner Of Income Tax, Pcit, Visakhapatnam - 1 ……………… Respondent

For Appellant: Shri GVN Hari, AdvocateFor Respondent: Shri M.N. Murthy Naik, CIT (DR)
Section 143(3)Section 144BSection 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

Katrathal Gram Sewa Sahkari Samiti Limited, Katrathal vs. ITO Ward 1 Sikar, Sikar

The appeal is dismissed

ITA 1001/JPR/2025[2019-20]Status: DisposedITAT Jaipur27 Oct 2025AY 2019-20
For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Shri Gautam Singh Choudhary, Addl. CIT
Section 139(1)Section 143(2)Section 144BSection 147Section 147rSection 148Section 148ASection 151Section 234ASection 250

Sahkari Karya Sanstha Shiksha Vibhag Indoor, Indore vs. ITO-4(3), Indore

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

ITA 348/IND/2025[2018-19]Status: DisposedITAT Indore24 Oct 2025AY 2018-19

Bench: Dr. Manish Borad & Shri Paresh M Joshisahkari Sanstha Shiksha Income Tax Officer 4(3), Vibhag, Indore 89, Nagar Nigam Road, Vs. Indore (Appellant / Assessee) (Respondent/ Revenue) Pan: Aadas8639M Assessee By Shri Jayant Jain, Ar Revenue By Ms. Ila Parpar, Cit-Dr With Shri Nihar Sahu Date Of Hearing 23.10.2025 Date Of Pronouncement 24.10.2025 O R D E R Per Dr. Manish Borad, Am: This Appeal By The Assesse Is Directed Against The Order Dated 31.01.2025 Of The Commissioner Of Income Tax (Appeals), Nfac, Delhi For A.Y.2018-19 Which Is Arising From The Assessment Order U/S 143(3) Of The Act Dated 02.03.2021 Framed By National E- Assessment Centre, Delhi. 2. The Assessee Has Raised Issues On Merits Against The Addition

Section 143(3)Section 263Section 80P(2)(a)Section 80P(2)(d)