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)

Sangli Shikshan Sanstha Sevkanchi Sahkari Patsanstha Maryadit Sangli, Sangli vs. ITO Ward 3, Sangli

In the result, appeal of the assessee is allowed

ITA 679/PUN/2025[2018-19]Status: DisposedITAT Pune27 Jun 2025AY 2018-19

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपील सं. / Ita Nos.679 & 680/Pun/2025 िनधा"रण वष" / Assessment Years: 2018-19 & 2020-21 Sangli Shikshan Sanstah V The Income Tax Officer, Sevkanchi Sahkari Patsanstha S Ward-3, Sangli. Maryadit Sangli, First Floor, Aarya Apartment, Opp.Vishnu Ghat, Gaonbhag, Sangli – 416416. Maharashtra. Pan: Aafas9816G Appellant/ Assessee Respondent / Revenue Assessee By Smt. Deepa Khare – Ar Revenue By Shri Rajesh Haladkar – Addl.Cit(Dr) Date Of Hearing 26/06/2025 Date Of Pronouncement 27/06/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeals)[Nfac] Passed Under Section 250 Of The Income Tax Act, 1961, Dated 17.02.2025 & 18.02.2025 For The Assessment Years 2018-19 & 2020-21 Respectively. For The Sake Of Convenience, These Two Appeals Were Heard Together & Are Being

Section 250Section 57Section 80PSection 80P(2)(a)Section 80P(2)(d)

Sharad Gramin Bigarsheti Sahakari Patsanstha Limited, Nirgudsar vs. Income Tax Officer, Ward 10(5). Pune, Akurdi

In the result, appeal of the assessee is allowed

ITA 434/PUN/2025[2018-19]Status: DisposedITAT Pune27 Jun 2025AY 2018-19

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपील सं. / Ita Nos.433 & 434/Pun/2025 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 Sharad Gramin Bigarsheti V The Income Tax Officer, Sahakari Patsanstha Ltd., S Ward-10(5), Pune. Sharad Gamin Bigarsheti Sanstha, Nirgoodsar, Pune – 412406. Maharashtra. Pan: Aabas8790H Appellant/ Assessee Respondent / Revenue Assessee By Shri Dhiraj S Dandgaval – Ar Revenue By Shri Rajesh Haladkar – Addl.Cit(Dr) Date Of Hearing 26/06/2025 Date Of Pronouncement 27/06/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeals)[Nfac] Passed Under Section 250 Of The Income Tax Act, 1961, Both Dated 28.11.2024 For The Assessment Year 2017-18 & 2018-19 Respectively. For The Sake Of Convenience, These Two Appeals Were Heard Together & Are Being Disposed Of By This

Section 234ASection 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

Sharad Gramin Bigarsheti Sahakari Patsanstha Limited, Nirgudsar vs. Income Tax Officer, Ward 10(5). Pune, Akurdi

In the result, appeal of the assessee is allowed

ITA 433/PUN/2025[2017-18]Status: DisposedITAT Pune27 Jun 2025AY 2017-18

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपील सं. / Ita Nos.433 & 434/Pun/2025 िनधा"रण वष" / Assessment Years: 2017-18 & 2018-19 Sharad Gramin Bigarsheti V The Income Tax Officer, Sahakari Patsanstha Ltd., S Ward-10(5), Pune. Sharad Gamin Bigarsheti Sanstha, Nirgoodsar, Pune – 412406. Maharashtra. Pan: Aabas8790H Appellant/ Assessee Respondent / Revenue Assessee By Shri Dhiraj S Dandgaval – Ar Revenue By Shri Rajesh Haladkar – Addl.Cit(Dr) Date Of Hearing 26/06/2025 Date Of Pronouncement 27/06/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: These Two Appeals Filed By The Assessee Are Directed Against The Separate Orders Of Ld.Commissioner Of Income Tax(Appeals)[Nfac] Passed Under Section 250 Of The Income Tax Act, 1961, Both Dated 28.11.2024 For The Assessment Year 2017-18 & 2018-19 Respectively. For The Sake Of Convenience, These Two Appeals Were Heard Together & Are Being Disposed Of By This

Section 234ASection 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

Shri Ganesh Nagari Sahakari Pat Sanstha Ltd, Kolhapur vs. ITO Ward 2(1), Kolhapur

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

ITA 1232/PUN/2025[2020-21]Status: DisposedITAT Pune27 Jun 2025AY 2020-21

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.1232/Pun/2025 Assessment Year : 2020-21

For Appellant: Shri Pramod S. ShingteFor Respondent: Date of hearing
Section 143(1)(a)Section 250Section 36(1)(va)Section 80P(2)(a)Section 80P(2)(d)

Modi Co-Operative Housing Society Limited, Mumbai vs. Income Tax Officer, Piramal Chamber, Mumbai

ITA 3195/MUM/2025[2018-2019]Status: DisposedITAT Mumbai27 Jun 2025AY 2018-2019

Bench: the Assessing Officer which was disposed off by the Assessing Officer vide Rectification Order, dated 27/06/2023, passed under Section 154 by allowing only the part deduction of INR.1,63,142/- under Section 80P(2)(d) of the Act. Not being satisfied by the aforesaid partial relief granted by the Assessing Officer, the Assessee carried the issue in appeal before the CIT(A) which was dismissed vide Order, dated 07/03/2025, which has been impugned by way of the present appeal.

For Appellant: Shri Mukul PandyaFor Respondent: Shri Asif Karmal
Section 143(1)Section 154Section 80P(2)(d)

Shri Saibaba Bahuuddeshiya Nagrik Credit Co-Operative Society, Nagpur vs. ITO Ward (3)(4), Nagpur

ITA 194/NAG/2025[2020-21]Status: DisposedITAT Nagpur26 Jun 2025AY 2020-21

Bench: Shri Narender Kumar Choudhry

Section 143(3)Section 250Section 80P(2)(a)Section 80P(2)(d)

B.S.N.L Employees Junior Co Operative Creidt Society Limited, Mumbai vs. ITO Ward 17(1)(2), Mumbai

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

ITA 3264/MUM/2025[2018-19]Status: DisposedITAT Mumbai26 Jun 2025AY 2018-19

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhailbsnl Employees Junior Co-Operative Credit Society Ltd., 1St Floor, Bsnl Office Of Cto, M.G. Road, Fort Mumbai, ............... Appellant Mumbai - 400001 Pan : Aaaat8885H V/S Ito – 17(1)(2), Room No.109, 1St Floor Kautilya Bhavan, ……………… Respondent C-41 To C-43, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051 Assessee By : Shri Shekhar Patwardhan Revenue By : Shri Bhagirath Ramawat, Sr. Dr

For Appellant: Shri Shekhar PatwardhanFor Respondent: Shri Bhagirath Ramawat, Sr. DR
Section 250Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

The Salsette Catholic Co-Operative Housing Society Ltd, Mumbai vs. ACIT Circle 23(3), Mumbai

In the result, the appeal by the assessee is allowed

ITA 6299/MUM/2024[2015-16]Status: DisposedITAT Mumbai26 Jun 2025AY 2015-16

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhailthe Salsette Catholic Co-Operative Housing Society Ltd., The Bandra Gymkhana 42, St. Andrew Road Bandra (W), ............... Appellant Mumbai - 400050 Pan : Aaaat0195N V/S Assistant Commissioner Of Income Tax, Circle-23(3), ……………… Respondent 605, Piramal Chambers, Lalbaug, Mumbai - 400012 Assessee By : Shri Devendra Jain Revenue By : Ms. Kavitha Kaushik, Sr.Dr

For Appellant: Shri Devendra JainFor Respondent: Ms. Kavitha Kaushik, Sr.DR
Section 142(1)Section 143(3)Section 250Section 80P(2)(d)

Gold Coin Apartments Co Operative Housing Society Ltd, Mumbai vs. ITO Ward 22(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3185/MUM/2025[2021-22]Status: DisposedITAT Mumbai25 Jun 2025AY 2021-22

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI OMKARESHWAR CHIDARA (Accountant Member)

For Appellant: Shri Vidyadhar KhandekarFor Respondent: Shri Asif Karmal
Section 143(1)Section 250Section 80PSection 80P(2)(d)Section 80P(4)

Progressive Ambar Chs Ltd, Navi Mumbai vs. Income Tax Officer, Navi Mumbai

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

ITA 2720/MUM/2025[2020-21]Status: DisposedITAT Mumbai25 Jun 2025AY 2020-21

Bench: Shri Sandeep Gosainprogressive Ambar Co- Vs Cit (Appeals), Mumbai / Operative Housing Society Ltd National Faceless Appeal Centre Sector 5, Kopar Khairane (Nfac), Delhi Navi Mumbai-400 709 Pan : Aacap0456G Appellant Respondent

For Appellant: Shri Sanjiv BrahmeFor Respondent: Shri Ram Krishn Kedia, (SR. DR)
Section 80P(2)(d)

Jai Kondeshwar Nagari Sahakari Badnerapat Sanstha Maryadit, Amravati vs. Income Tax Officer, Ward 3, Amravati

In the result, appeal of the Assessee is allowed in the aforesaid terms

ITA 275/NAG/2025[2022-2023]Status: DisposedITAT Nagpur24 Jun 2025AY 2022-2023

Bench: Shri Narender Kumar Choudhry

For Appellant: NoneFor Respondent: Shri Pankaj Kumar, Ld. Sr.DR
Section 2(19)Section 250Section 70Section 80PSection 80P(1)Section 80P(2)(d)Section 80P(4)

The Eroor Service Cooperative Bank Limited No E859, Eroor vs. Income Tax Officer, Corporate Ward 2(1), Kochi

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

ITA 259/COCH/2025[2020-2021]Status: DisposedITAT Cochin24 Jun 2025AY 2020-2021

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2020-21 Eroor Service Co-Op. Bank Ltd. .......... Appellant Eroor P.O., Thripunithura, Ernakulam 682306 [Pan: Aacat5303Q] Vs. Ito, Corporate Ward 2(1), Kochi .......... Respondent Appellant By: Shri Amaljit P.J., Ca Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 26.05.2025 Date Of Pronouncement: 24.06.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi [Cit(A)] Dated 03.02.2025 For Assessment Year (Ay) 2020-21. 2. Brief Facts Of The Case Are That The Appellant Is A Co-Operative Society Registered Under The Kerala State Co-Operative Societies Act, 1969. It Is Engaged In The Business Of Accepting Deposits From Members & Providing Credit Facilities To Members. The Return Of Income For Ay 2020-21 Was Filed On 22.12.2020 Declaring Nil

For Appellant: Shri Amaljit P.J., CAFor Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 63Section 64Section 80P

Yazaki India Employees Co Operative Credit Society Limited, Pune vs. Income Tax Officer 12(4), Pune

In the result, appeal of the assessee is allowed

ITA 911/PUN/2025[2017-2018]Status: DisposedITAT Pune24 Jun 2025AY 2017-2018

Bench: Dr.Manish Boradआयकर अपील सं. / Ita No.911/Pun/2025 Assessment Year : 2017-18

For Appellant: NoneFor Respondent: Date of hearing
Section 143(3)Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

M/S. K274 Uthukuli Paccs Ltd., Tirupur vs. ITO, Ward-1(2), Tirupur

In the result, the appeals filed by the assessee in ITA Nos

ITA 598/CHNY/2025[2018-19]Status: DisposedITAT Chennai24 Jun 2025AY 2018-19

Bench: Shri George George Kand Shri S.R. Raghunatha

For Appellant: Ms. G. Vardini Karthik, AdvocateFor Respondent: Shri Kumar Chandran, JCIT
Section 147Section 250Section 80PSection 80P(2)(d)

M/S. K274 Uthukuli Paccs Ltd., Tirupur vs. ITO, Ward-1(2), Tirupur

In the result, the appeals filed by the assessee in ITA Nos

ITA 597/CHNY/2025[2017-18]Status: DisposedITAT Chennai24 Jun 2025AY 2017-18

Bench: Shri George George Kand Shri S.R. Raghunatha

For Appellant: Ms. G. Vardini Karthik, AdvocateFor Respondent: Shri Kumar Chandran, JCIT
Section 147Section 250Section 80PSection 80P(2)(d)

K274 Uthukuli Paccs Ltd., Tirupur vs. ITO, Ward-1(2), Tirupur

In the result, the appeals filed by the assessee in ITA Nos

ITA 596/CHNY/2025[2015-16]Status: DisposedITAT Chennai24 Jun 2025AY 2015-16

Bench: Shri George George Kand Shri S.R. Raghunatha

For Appellant: Ms. G. Vardini Karthik, AdvocateFor Respondent: Shri Kumar Chandran, JCIT
Section 147Section 250Section 80PSection 80P(2)(d)

Shah Nivas Coop Hsg Society Ltd, Mumbai vs. ITO Ward 25(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2770/MUM/2025[2021-22]Status: DisposedITAT Mumbai24 Jun 2025AY 2021-22

Bench: Shri Sandeep Gosainआयकर अपील सुं./Ita No. 2770/Mum/2025 (नििाारण वर्ा / Assessment Year :2021-22) Shah Nivas Co. Op. Hsg. V/S. Ito Ward 25(1)(1) Society Ltd. बिाम Kautilya Bhavan, Bandra 65, Abhishek, S. V. Road, Kurla Complex, Mumbai- Irla Bridge, Mumbai, 400051 Maharashtra-400058 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aadts9314E Appellant/अपीलार्थी .. Respondent/प्रनिवादी

For Appellant: Shri Ashok MehtaFor Respondent: Shri Ram Krishn Kedia
Section 250Section 56Section 6(5)Section 8Section 80P(2)(d)

Cheekkilode Service Co-Op Bank Ltd, Kozhikode vs. ITO, Ward-2(3), Kozhikode

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

ITA 353/COCH/2025[2014-15]Status: DisposedITAT Cochin23 Jun 2025AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2014-15 Cheekkilode Service Co-Op. Bank Ltd. .......... Appellant Cheekkilode, Atholi, Kozhikode 673315 [Pan: Aaaac8251E] Vs. The Income Tax Officer, Ward-2(3), Kozhikode .......... Respondent Appellant By: ------- None ------- Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 26.05.2025 Date Of Pronouncement: 23.06.2025 O R D E R Per: Inturi Rama Rao, Am This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals), Faridabad [Cit(A)] Dated 30.11.2023 For Assessment Year (Ay) 2014-15. 2. Brief Facts Of The Case Are That The Appellant Is A Co-Operative Society Registered Under The Kerala State Co-Operative Societies Act, 1969. It Is Classified As Primary Agricultural Credit Co-Operative Society. It Is Engaged In The Business Of Accepting Deposits From Members & Providing Credit Facilities To Its Members. The Return

For Appellant: ------- None -------For Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(2)(i)

The Thudanganad Service Co-Operative Bank Ltd, Thudanganad vs. ITO, Ward 1, Thodupuzha

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

ITA 332/COCH/2025[2017-18]Status: DisposedITAT Cochin23 Jun 2025AY 2017-18

Bench: Shri Inturi Rama Rao, Am Assessment Year: 2017-18 Thudanganad Service Co-Op. Bank Ltd. .......... Appellant Thudanganad P.O., Muttom 685587 [Pan: Aacat5997N] Vs. The Income Tax Officer, Ward-1, Thodupuzha .......... Respondent Appellant By: Shri Arun Raj S., Advocate Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 26.05.2025 Date Of Pronouncement: 23.06.2025 O R D E R This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-1, Nashik [Cit(A)] Dated 20.03.2025 For Assessment Year (Ay) 2017-18. 2. Brief Facts Of The Case Are That The Assessee Is A Co-Operative Society Registered Under The Kerala State Co-Operative Societies Act, 1969. The Return Of Income For Ay 2017-18 Was Filed On 29.10.2017 Declaring Nil Income. The Ito, Ward 2, Thodupuzha (Hereinafter Called "The Ao") Issued Notices U/S. 143(2) & 142(1) Of The Income Tax Act, 1961 (The Act). In Response To The Notice U/S. 142(1) Dated 09.10.2019, The Assessee Filed Necessary Documents. On Verification Of The Bye Laws & Other Documents It Is Found That The Appellant Is 2 Thudanganad Service Co-Op. Bank Ltd. Engaged In Banking Activity. Against The Said Return Of Income, The Assessment Was Completed By The Ao Vide Order Dated 19.12.2019 Passed U/S. 143(3) Of The Act At A Total Income Of Rs. 14,40,605/-. While Doing So, The Ao Disallowed The Claim For Deduction Of Rs. 14,40,605/- U/S. 80P(2)(D) Of The Act Being Dividend Income Received From Other Co-Operative Societies.

For Appellant: Shri Arun Raj S., AdvocateFor Respondent: Smt. Leena Lal, Sr. D.R
Section 142(1)Section 143(2)Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)

Pairpra Service Co-Operative Bank Ltd, Ernakulam vs. ITO, Ward-1 & Tps, Thodupuzha

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

ITA 768/COCH/2024[2021-22]Status: DisposedITAT Cochin23 Jun 2025AY 2021-22

Bench: Shri Inturi Rama Rao, Am & Shri Prakash Chand Yadav, Jm Assessment Year: 2021-22 Paipra Service Co-Op. Bank Ltd. .......... Appellant 11/266, Manary P.O., Ernakulam 686673 [Pan: Aaaap7650E] Vs. The Income Tax Officer, Ward-1 & Tps .......... Respondent Thodupuzha Appellant By: Ms. Swathy S., Advocate Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 28.05.2025 Date Of Pronouncement: 23.06.2025

For Appellant: Ms. Swathy S., AdvocateFor Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 154Section 80P(2)(a)Section 80P(2)(d)