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)

Suman Co-Operative Housing Society Ltd, Mumbai vs. I.T.O Ward 27(3)(1), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 4375/MUM/2026[2012-2013]Status: DisposedITAT Mumbai14 Jul 2026AY 2012-2013

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2012-13 Suman Co-Operative Housing I.T.O, Ward 27(3)(1), Society Ltd Mumbai Office Block ,V.N.Purav Marg Chembur Mumbai 400071 Vs. Mumbai - 400071 (Pan: Abffs2941C) (Appellant) (Respondent) Present For: Assessee : Shri Bharat Kumar, Ca Revenue : Smt. Sujatha Iyyanger, Sr, Dr Date Of Hearing : 02.07.2026 Date Of Pronouncement : 14.07.2026 O R D E R Per Girish Agrawal: This Appeal Filed By The Assessee Is Against The Order Of Ld. Addl/Jcit (A) Agra, Vide Order No. Itba/Apl/S/250/2025- 26/1086668964(1), Dated 27.02.2026, Passed Against The Assessment Order By The Income Tax Officer, Ward 27(3)(3), Mumbai U/S. 147 R.W.S. 144 Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), Dated 09.12.2019, For Assessment Year 2012-13. 2. Grounds Taken By The Assessee Are Reproduced As Under: 1. On The Facts & In The Circumstances Of The Case, The Learned Cit(A) Has Erred In Law In Upholding The Validity Of The Reassessment Proceedings Initiated Under Section 147/148 Of The Income Tax Act, 1961, Which Are Bad In Law, Without Jurisdiction & Liable To Be Quashed.

For Appellant: Shri Bharat Kumar, CAFor Respondent: Smt. Sujatha Iyyanger, Sr, DR
Section 143(3)Section 147Section 56Section 80(2)Section 80PSection 80P(2)(c)Section 80P(2)(d)Section 80P(4)

Orchid Suburbia Cooperative Housing Society Limited, Mumbai vs. ITO Ward 42(1)(3), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 1396/MUM/2026[2021-22]Status: DisposedITAT Mumbai14 Jul 2026AY 2021-22

Bench: Shri Saktijit Dey, Hon'Ble & Shri Girish Agrawalassessment Year: 2021-22 Orchid Suburbia Cooperative Ito -Ward 42(1)(3), Housing Society Limited Mumbai Society Office Podium 2 Orchid Suburbia New Link Road, Kandivali West, Vs. Mumbai – 400067 Maharashtra (Pan: Aaaao6178N) (Appellant) (Respondent) Present For: Assessee : Shri Ajay R. Singh, Advocate Revenue : Shri Ajay Soneji, Sr.Dr Date Of Hearing : 06.07.2026 Date Of Pronouncement : 14.07.2026 O R D E R Per Girish Agrawal: This Appeal Filed By The Assessee Is Against The Order Of Ld. Cit(A)/ National Faceless Appeal Centre, Delhi Vide No. Itba/Nfac/S/250/2025-26/1081306946(1) Dated 29.09.2025 Passed Against The Assessment Order By Assessment Unit, U/S 143(3) R.W.S. 144B Of The Income-Tax Act (Hereinafter Referred To As The “Act”), Dated 19.12.2022, For The Assessment Year 2021-22. 2. Grounds Taken By The Assessee Are Reproduced As Under: 1. The Learned Cit(A) Erred In Dismissing The Appeal Of The Assessee By Holding That The Appeal Is Not Filed In Time As Provided Under Section 249(2) Of The Act Without Appreciating

For Appellant: Shri Ajay R. Singh, AdvocateFor Respondent: Shri Ajay Soneji, Sr.DR
Section 143(3)Section 249(2)Section 80PSection 80P(2)(d)

Rajgir Chambers C Op Hsg, Mumbai vs. Income Tax Officer, Mumnbai

In the result, the Assessee's appeal is allowed

ITA 3037/MUM/2026[2019-20]Status: DisposedITAT Mumbai13 Jul 2026AY 2019-20

Bench: Shri Narender Kumar Choudhry & Shri Makarand Vasant Mahadeokarassessment Year: 2019-20

For Appellant: Ms. Mansi Chatwani, CAFor Respondent: Ms. Jayshree Thakur, SR. D.R
Section 250Section 80PSection 80P(2)(d)Section 80P(4)

Karamveer Garmeen Bigar Sheti Sahakari Path Sanstha Maryadit, Kolhapur vs. Income Tax Officer Ward-1, Ichalkaranji

In the result, the appeal filed by the Revenue is dismissed

ITA 1854/PUN/2026[2015-16]Status: DisposedITAT Pune10 Jul 2026AY 2015-16

Bench: Shri Pavan Kumar Gadale & Dr. Dipak P. Ripote

For Appellant: NoneFor Respondent: Shri. Ambarnath Khule, JCIT
Section 147Section 80P(2)Section 80P(2)(d)

Shiv Ki Jai Co-Operative Housing Society, Pune vs. Income Tax Officer, Pune

In the result, the appeal filed by the Revenue is dismissed

ITA 1779/PUN/2026[2021-22]Status: DisposedITAT Pune10 Jul 2026AY 2021-22

Bench: Shri Pavan Kumar Gadale & Dr. Dipak P. Ripote

For Appellant: NoneFor Respondent: Shri.AmbarnathKhuleJCIT.Sr.DR
Section 143(1)Section 80P(2)Section 80P(2)(d)Section 80P(4)

Income Tax Officer, Kolhapur vs. Pirajirao Prathamik Shikshak Sahakari Patpedhi Maryadit Kagal, Kolhapur

In the result, the appeal of the Revenue is dismissed

ITA 2717/PUN/2025[2020-21]Status: DisposedITAT Pune09 Jul 2026AY 2020-21

Bench: Shri Pavan Kumar Gadale & Shri Dr. Dipak P. Ripoteassessment Year : 2020-21 Income Tax Officer, Vs. Pirajirao Prathamik Shikshak Kolhapur Sahakari Patpedhi Maryadit Kagal, Koshti Galli, A/P Koshti Galli, Kagal, S.O, Kagal Kolhapur-416216 Pan : Aabas4032Q (Appellant) (Respondent)

For Appellant: N O N EFor Respondent: Shri Himanshu Sharma, CIT
Section 143(3)Section 2Section 250Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Shramshakti Kamgar Nagari Sam Path Sanstha Maryadit Ichalkaranji, Ichalkaranji vs. Income Tax Officer, Ward 1, Ichalkaranji, Maharashtra

In the result, appeal of the assessee is allowed

ITA 1815/PUN/2026[2020-21]Status: DisposedITAT Pune08 Jul 2026AY 2020-21

Bench: Shri Pavan Kumar Gadale & Shri Dr. Dipak P. Ripoteassessment Year : 2020-21 Shramshakti Kamgar Nagari Sam Income Tax Officer, Path Sanstha Maryadit, Ward – 1, Ichalkaranji Gala No. 54/55, Ichalkaranji Nagar Vs. Palika, Complex Behind Panchwati Taikies, Ichalkaranji-416115, Parbhani Pan : Aajas1959A (Appellant) (Respondent)

For Appellant: N O N EFor Respondent: Shri Ambarnath Khule, JCIT
Section 143(3)Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

Shree Siddhanath Nagari Sahakari Patsanstha Maryadit, Pune vs. ITO WD-5(2), Pune

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

ITA 1051/PUN/2026[2021-22]Status: DisposedITAT Pune08 Jul 2026AY 2021-22

Bench: Shri Pavan Kumar Gadale & Shri Dr. Dipak P. Ripoteassessment Year : 2021-22 Shri Shiddhanath Nagari Sahakari Income Tax Officer, Patsanstha Maryadit, Ward – 5(2), Pune Sr. No. 25, Ganesh Arked, Vs. Pune Satara Road, Dhankawadi, Pune-411043 Pan : Aacas1188E (Appellant) (Respondent)

For Appellant: N O N EFor Respondent: Ms. Bhavya. I.V., Jt. CIT
Section 139(1)Section 143(1)Section 250Section 80P(2)(a)Section 80P(2)(d)

The Kanyakumari District Cooperative Milk Producers Union Ltd No 2946, Nagercoil vs. Assessing Officer, Tirunelveli

In the result, the appeal of the assessee stands allowed

ITA 2436/CHNY/2026[2018-19]Status: DisposedITAT Chennai08 Jul 2026AY 2018-19

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपील सं./Ita No.2436/Chny/2026 ननिाारण वर्ा / Assessment Year : 2018-19 The Kanyakumari District Co- The Assessing Officer Operative Milk Producers Union Vs. Tirunelveli Limited No.2946 Kp Road, Palpannai Nagercoil – 629003 [Pan: Aaaat1033D] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/Appellant By : Shri. V.Padmanaban, Ca प्रत्यर्थी की ओर से/Respondent By : Shri. Manjunath H.S., Addl.Cit सुनवाई की तारीख/Date Of Hearing : 17.06.2026 घोर्णा की तारीख/Date Of Pronouncement : 08.07.2026 आदेश /O R D E R Per S. R. Raghunatha, Am : The Present Appeal Filed By The Assessee Is Directed Against The Order Dated 09.02.2026 Passed By The Learned Commissioner Of Income Tax (Appeals), Nfac, Delhi [Hereinafter Referred To As "The Ld.Cit(A)"], Arising From The Assessment Order Dated 17.05.2023 Passed U/S.143(3) R.W.S 263 Of The Income-Tax Act, 1961 (Hereinafter Referred To As "The Act") By The Assistant

For Appellant: Shri. V.Padmanaban, CAFor Respondent: Shri. Manjunath H.S., Addl.CIT
Section 143(3)Section 263Section 80P(2)Section 80P(2)(c)Section 80P(2)(d)

Prathamika Krushi Pattin Sahakari Sangh Niyamit, Jamkhandi vs. Income Tax Officer, Ward 1 & Tps, Bagalkot

In the result, the appeal of the assessee is hereby allowed

ITA 335/BANG/2026[2020-2021]Status: DisposedITAT Bangalore08 Jul 2026AY 2020-2021

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2020-21 Prathamika Krushi Pattin Sahakari Vs. The Income Tax Officer, Sangh Niyamit, Ward -1 & Tps, 101, Jagadal, Bagalkot. Bagalkot – 587 311. Pan – Aabap 7337 D Appellant Respondent

For Appellant: Shri Ashok Mudnur, CFor Respondent: Shri Ganesh R Ghale, Standing Counsel for the Dept
Section 250Section 56Section 57Section 80PSection 80P(2)(a)

Jamkhandi Taluka Shree Parshwanath Alpasankyatar Pattin Sahakar Sangh Nyt, Jamkhandi vs. Income Tax Officer, Ward 1 & Tps, Bagalkot

In the result, the appeal of the assessee is hereby allowed

ITA 326/BANG/2026[2018-2019]Status: DisposedITAT Bangalore08 Jul 2026AY 2018-2019

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2018-19 Jamkhandi Taluka Shree Vs. The Income Tax Officer, Parashwanath Alpasankyatar Pattin Ward -1 & Tps, Sahakar Sangh Nyt, Cts More Plot, Bagalkot. Near Murgod Petrol Pump, Bagalkot – 587 301. Pan – Aacaj 0614 L Appellant Respondent

For Appellant: Shri Ashok Mudnur, CAFor Respondent: Shri Ganesh R Ghale, Standing Counsel for the Dept
Section 194A(3)(v)Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Swarup Co-Operative Housing Society Limited, Mumbai vs. Asst. Director of Income Tax, CPC, Bengaluru

In the result, both the appeals of the assessee are allowed

ITA 4256/MUM/2026[2021-22]Status: DisposedITAT Mumbai07 Jul 2026AY 2021-22

Bench: Us.

Section 143(1)Section 143(1)(a)Section 154Section 80PSection 80P(2)(d)Section 80P(4)

Swarup Co-Operative Housing Society Limited, Mumbai vs. Asst. Director of Income Tax, CPC, Bengaluru

In the result, both the appeals of the assessee are allowed

ITA 4255/MUM/2026[2020-21]Status: DisposedITAT Mumbai07 Jul 2026AY 2020-21

Bench: Us.

Section 143(1)Section 143(1)(a)Section 154Section 80PSection 80P(2)(d)Section 80P(4)

Seamist Co-Operative Housing Society Limitd, Mumbai vs. Income Tax Officer Ward 23(3)(1), Piramal Chamber

In the result, appeal filed by the assessee is allowed

ITA 3852/MUM/2026[2021-22]Status: DisposedITAT Mumbai07 Jul 2026AY 2021-22
For Appellant: NoneFor Respondent: Smt. Sujatha Iyyanger, Sr. DR
Section 143(1)Section 154Section 2(19)Section 80(2)Section 80PSection 80P(2)(d)Section 80P(4)

Tamil Nadu Handloom Weavers Co-Op Society Ltd., Chennai vs. ITO, Chennai

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

ITA 2177/CHNY/2026[2020-21]Status: DisposedITAT Chennai06 Jul 2026AY 2020-21

Bench: Ms. Padmavathy S & Shri Manu Kumar Giriआयकर अपील सं./Ita No. 2177/Chny/2026 "नधा"रण वष"/Assessment Year: 2020-21 Tamil Nadu Handloom Weavers V. The Income Tax Officer, Co-Op Society Limited., Non-Corporate Ward 9(1), No. 350, Balasundaram Buildings, Chennai-600 034 Panthen Road, Egmore, Chennai-600008 [Pan: Aaaah 2788 P] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. G. Baskar, AdvocateFor Respondent: Mr. C.P. Solomon, Addl.CIT
Section 234ASection 264Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Shri Parshuram Nagri Sahkari Patsanstha Maryadit, Nashik vs. The ITO, Ward 1(1), Nashik

In the result, the appeal filed by the Revenue is dismissed

ITA 1660/PUN/2026[2017-18]Status: DisposedITAT Pune02 Jul 2026AY 2017-18

Bench: Shri Pavan Kumar Gadale

For Appellant: NoneFor Respondent: Shri. Manish Mehta, JCIT.Sr.DR
Section 147Section 80P(2)Section 80P(2)(d)

Shri Parshuram Nagri Sahkari Patsanstha Maryadit, Nashik vs. The ITO, Ward 1(1), Nashik

In the result, the appeal filed by the Revenue is dismissed

ITA 1659/PUN/2026[2015-16]Status: DisposedITAT Pune02 Jul 2026AY 2015-16

Bench: Shri Pavan Kumar Gadale

For Appellant: NoneFor Respondent: Shri. Manish Mehta, JCIT.Sr.DR
Section 147Section 80P(2)Section 80P(2)(d)

Sri Vasavi Souhardha Pattina Sahakari Sangha Niyamitha, Hosakote vs. Income Tax Officer, Ward-1, Tumakuru

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

ITA 2887/BANG/2025[2020-21]Status: DisposedITAT Bangalore30 Jun 2026AY 2020-21

Bench: Shri Prashant Maharishi & Shri Soundararajan K.Assessment Year : 2020-21 M/S. Sri Vasavi Souhardha Pattina Sahakari Sangha The Income Tax Niyamitha, Officer, 1 1St Cross, M G Road, Ward – 1, Y N Hosakote, Tumakuru. Vs. Karnataka – 572 141. Pan: Aajas6597E Appellant Respondent

For Appellant: Shri Madhukar G Hegde, CAFor Respondent: Shri Pradeep S, Addl. CIT-DR
Section 80P(2)(a)Section 80P(2)(d)

The Belgaum Bakers Co-Op Credit Society Ltd, Belgaum vs. Income Tax Officer, Ward - 1, Belgaum

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

ITA 296/PAN/2025[2020-21]Status: DisposedITAT Panaji29 Jun 2026AY 2020-21

Bench: Dr.Manish Borad & Shri Pavan Kumar Gadaleआयकर अपील सं. / Ita No.296/Pan/2025 Assessment Year : 2020-21 The Belgaum Bakers Coop. Vs. Income Tax Officer, Credit Society Ltd., Ward-1, Belgaum No.490/87, Tashildar Galli, Belgaum – 590003 Karnataka Pan : Aaaat8091K Appellant Respondent

For Appellant: Shri Pramod VaidhyaFor Respondent: Shri Jeetendra Kumar
Section 144Section 68Section 80P(2)(d)

Jalmayur Coop Hsg Soc Ltd, Laxmi Vilas vs. CIT (Appeal), Primal Chember

In the result, the appeal of the assessee bearing ITA No

ITA 2677/MUM/2026[2022-23]Status: DisposedITAT Mumbai29 Jun 2026AY 2022-23
For Appellant: NoneFor Respondent: Dr. Sumit Jha (Sr.DR)
Section 139(1)Section 143(1)Section 154Section 250Section 80P(2)(d)