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)

Maharashtra Rajya Vidyut Mandal Nagari Credit Co Op Society Ltd, Sangli vs. National Faceless Appeal Centre (NFAC), New Delhi

Appeal is allowed in above terms

ITA 1184/PUN/2023[2020-2021]Status: DisposedITAT Pune07 Mar 2024AY 2020-2021

Bench: Shri Satbeer Singh Godara

For Appellant: -None-For Respondent: Shri Basavaraj Hiremath
Section 143(3)Section 263Section 80P(2)(d)

Sahyadri Co-Operative Credit Society Limited, Mumbai vs. ITO Ward 20(3)2), Mumbai

ITA 3805/MUM/2023[2014-15]Status: DisposedITAT Mumbai07 Mar 2024AY 2014-15

Bench: Shri Kuldip Singh & Shri Amarjit Singhassessment Year: 2014-15

For Appellant: Shri Tanzil Padvekar, A.RFor Respondent: Shri S. Arunkumar, D.R
Section 143(3)Section 80PSection 80P(2)(d)

Mahapalika Kshetra Madhyamik Shikshak Sahakari Pat Sanstha Maryadit (Co-Operative Credit Society), Mumbai vs. ITO Ward 22 (2) (1), Mumbai

In the result the appeal of the assesse is allowed

ITA 3810/MUM/2023[2018-19]Status: DisposedITAT Mumbai06 Mar 2024AY 2018-19

Bench: Shri Kuldip Singh & Shri Amarjit Singhmahapalika Kshetra Vs. Ito Ward 22(2)(1) Madhyamik Shikshak Piramal Chambers, Sahakari Pat Sanstha Mumbai - 400012 Maryadit (Co-Operative Credit Society) 201/202 Anish Tower, Senapati Bapat Marg Matunga (West)- 400016 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaaam1865G Appellant .. Respondent Appellant By : Amit Bharadiya Respondent By : S. Arunkumar Date Of Hearing 29.02.2024 Date Of Pronouncement 06.03.2024 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Ld. Cit(A) Nfac, Dated 25.08.2023 For A.Y. 2018-19. The Assessee Has Raised The Following Grounds Before Us: “1. The Action Of The Learned Cit (A) In Disallowing The Deduction U/S 80P(2) (A) (I) Of Rs. 41,55,200 As Claimed By The Appellant Is Erroneous & Bad In Law. 2. The Action Of The Learned Cit (A) Of Assessing The Income From Interest On Fixed Deposit & Dividend Income Of Rs. 41,55,200 U/S 80 P (2) (D) Instead Of Section 80 P (2) (A) (I) Is Erroneous & Bad In Law. 3. The Action Of The Learned Cit (A) By Not Considering The Itat, Mumbai Order Already Decided In Favour Of The Appellant In A.Y.2014-15 On The Same Matter Is Erroneous & Bad In Law.

For Appellant: Amit BharadiyaFor Respondent: S. Arunkumar
Section 143(2)Section 80Section 80PSection 80P(2)Section 80P(2)(d)Section 80P(4)

Reserve Bank Cooperative Society Ltd., Jaipur vs. ITO, Ward-6(2), Jaipur

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

ITA 10/JPR/2024[2020-21]Status: DisposedITAT Jaipur05 Mar 2024AY 2020-21

Bench: Sh. Sandep Gosain & Dr. M. L. Meena

For Appellant: Sh. P. C. Parwal, C.AFor Respondent: Sh. A. S. Nehra, Addl. CIT
Section 56Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Anugraha Vividhoddesha Sahakari Sangha, Belthangady vs. Income Tax Officer, Ward-1, Puttur

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

ITA 219/BANG/2024[2017-18]Status: DisposedITAT Bangalore05 Mar 2024AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Sandeep Singh Karhailassessment Year : 2017-18

For Appellant: Smt. Pratibha R, AdvocateFor Respondent: Shri Ganesh R Ghale, Advocate – Standing
Section 18Section 80P(2)(a)

Kohinoor Industrial Premises Co-Op Society Ltd., Mumbai vs. ITO Ward-31(2)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3697/MUM/2023[2018-19]Status: DisposedITAT Mumbai04 Mar 2024AY 2018-19

Bench: Shri Kuldip Singh & Shri Amarjit Singhkohinoor Industrial Vs. Ito, Ward 31(2)(2), Premises Co-Op Society Kautilya Bhavan, Limited, Plot No.10, Cts Bandra, No. 67, Dindoshi Village, Mumbai – 400 051 Western Express Highway Goregaon East Maharashtra – 400063 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aaaak4970G Appellant .. Respondent Appellant By : Kirit S. Sanghvi Respondent By : S. Arunkumar Date Of Hearing 27.02.2024 Date Of Pronouncement 04.03.2024 आदेश / O R D E R Per Amarjit Singh (Am): This Appeal Filed By The Assessee Is Directed Against The Order Passed By The Ld. Cit(A) Nfac, Dated 11.07.2023 For A.Y. 2018-19. The Assessee Has Raised The Following Grounds Before Us: “1. The Learned Ctt(A) [Nfac, Delhi] Erred On Facts & In Law In Disallowing Rs.22,92,110/-Claimed As Deduction Under S 80P(2)(D) Of The Act 2. The Learned Cit(A) [Nfac, Delhi] Erred On Facts & In Law In Confirming The Order Passed Under S 154 Of The Act By Holding That There Was No Mistake Apparent From The Records 3. The Learned Cit(A) (Nfac, Delhi) Erred On Facts & In Law In Confirming The View Of The Cpc That The Appellant Did Not Correctly Fill In Sch-Via For Claiming Deduction Under S 80P. Relief Claimed: The Appellant Be Allowed Deduction Of Rs.22,92,110/- Under S 80P(2)(D) Of The Act.

For Appellant: Kirit S. SanghviFor Respondent: S. Arunkumar
Section 143(1)Section 154Section 80PSection 80P(2)(d)

Royal Indl Estate Co Op Soc Ltd, Mumbai vs. Deputy Commissioner of Income Tax - 20(1), Piramal Chamber, Lalbaug, Parel, Mumbai

In the result, appeal of the assessee is allowed

ITA 3792/MUM/2023[2018-19]Status: DisposedITAT Mumbai29 Feb 2024AY 2018-19

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

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

The Mangalorean Garden Homes Co-Operative Housing Society Limited, Mumbai vs. ITO Ward 23 (3)(4), Mumbai

In the result, appeal of the assessee is allowed

ITA 3789/MUM/2023[2016-17]Status: DisposedITAT Mumbai29 Feb 2024AY 2016-17

Bench: SHRI AMIT SHUKLA (Judicial Member)

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

Anand Urban Cooperative Credit Society Limited, Aurangabad vs. Income Tax Offier, Ward-1(5), Aurangabad

Appeal is allowed in above terms

ITA 136/PUN/2024[2018-19]Status: DisposedITAT Pune28 Feb 2024AY 2018-19

Bench: Shri Satbeer Singh Godara

For Appellant: Shri Santosh B GarudFor Respondent: Shri B.S. Rajpurohit
Section 143(3)Section 80Section 80P(2)(a)Section 80P(2)(d)

Commerce Center Premises Co Op Soc, Kalyan vs. ADIT, CPC (ITO, Ward-3(1), Mum), Bengaluru

ITA 3694/MUM/2023[2020-21]Status: DisposedITAT Mumbai28 Feb 2024AY 2020-21
Section 143(1)Section 154Section 80PSection 80P(2)(a)Section 80P(2)(d)

Loknete Gopinathraoji Munde, Beed vs. Income Tax Officer, Ward-1(5), Aurangabad

Appeal is partly allowed

ITA 94/PUN/2024[2020-21]Status: DisposedITAT Pune26 Feb 2024AY 2020-21

Bench: Shri Satbeer Singh Godara

For Appellant: Shri Pramod S ShingteFor Respondent: Shri Gaurav K Singh
Section 143(3)Section 144Section 263Section 80P(2)(d)

Vellakovil Coop Primaryag, Tamilnadu vs. Addl(Or)JCIT(A)-5, Kolkata

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

ITA 1554/CHNY/2023[2021-22]Status: DisposedITAT Chennai22 Feb 2024AY 2021-22

Bench: Shri Mahavir Singh

For Appellant: NoneFor Respondent: Shri D. Hema Bhupal, IRS, JCIT
Section 143(1)Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Elumalaiyan Powerloom, Weavers Coop P & S Society Limited, Erode vs. ITO, Ward-1(1), Erode

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

ITA 1463/CHNY/2023[2020-21]Status: DisposedITAT Chennai22 Feb 2024AY 2020-21

Bench: Shri Mahavir Singhआयकर अपील सं./Ita No.: 1463/Chny/2023 िनधा"रण वष"/Assessment Year: 2020-21 Elumalaiyan Powerloom Vs. The Income Tax Officer, Weavers Co.Op P & S Society Ward 1(1), Limited Eh 216, Erode. No.285/1, Karuppannan Koil Street, Kumalan Kuttai, Erode – 638 011. [Pan: Aaaae 3164A] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Ms. S. Sree Lakshmi Valli, Advocate ""यथ" क" ओर से /Respondent By : Shri D. Hema Bhupal, Jcit सुनवाई क" तार"ख/Date Of Hearing : 21.02.2024 घोषणा क" तार"ख /Date Of Pronouncement : 21.02.2024

For Appellant: Ms. S. Sree Lakshmi ValliFor Respondent: Shri D. Hema Bhupal, JCIT
Section 143(3)Section 2(19)Section 56Section 80PSection 80P(2)(a)

Konkan Education Soc. Sevaksahakari Patpedhi Ltd, Raigarh vs. Income Tax Officer, Ward-3, Panvel

The appeals of the assessee are ALLOWED

ITA 47/PUN/2024[2020-21]Status: DisposedITAT Pune20 Feb 2024AY 2020-21

Bench: Hon’Ble Partha Sarathi Choudhury & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No. 046 & 047/Pun/2024 निर्धारण वषा / Assessment Year : 2018-19 & 2020-21

For Appellant: Mr Giteesh Kalyani through virtual [‘Ld. AR’]For Respondent: Mr Gaurav Singh [‘Ld. DR’]
Section 143(3)Section 250Section 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Konkan Education Soc. Sevakshakari Patpedhi Ltd, Raigarh vs. Income Tax Officer, Ward-3, Panvel

The appeals of the assessee are ALLOWED

ITA 46/PUN/2024[2018-19]Status: DisposedITAT Pune20 Feb 2024AY 2018-19

Bench: Hon’Ble Partha Sarathi Choudhury & Shri G. D. Padmahshaliआयकर अपऩल सं. / Ita No. 046 & 047/Pun/2024 निर्धारण वषा / Assessment Year : 2018-19 & 2020-21

For Appellant: Mr Giteesh Kalyani through virtual [‘Ld. AR’]For Respondent: Mr Gaurav Singh [‘Ld. DR’]
Section 143(3)Section 250Section 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Unnat Krishi Sahkari Sanstha Maryadit, Dewas vs. ACIT, Delhi

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

ITA 519/IND/2023[2018-19]Status: DisposedITAT Indore19 Feb 2024AY 2018-19

Bench: Shri Vijay Pal Raounnat Krishi Sahkari Sanstha Acit-Nfac Maryadit New Delhi Vs. Hatpipliya Dewas (Appellant / Assessee) (Revenue) Pan: Aaaau3884H Assessee By Shri Venus Rawka, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 19.02.2024 Date Of Pronouncement 19.02.2024

Section 144Section 80PSection 80P(2)(d)

Psg Employees Cooperative Housing Society, Coimbatore vs. Assessing Officer, Coimbatore

In the result, appeal filed by the assessee is allowed

ITA 1496/CHNY/2023[2021-22]Status: DisposedITAT Chennai19 Feb 2024AY 2021-22

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita No.: 1496/Chny/2023 िनधा"रण वष" / Assessment Year: 2021-22 Psg Employees Cooperative The Income Tax Officer, Housing Society, V. Non-Corporate Ward -1(1), 1609, Peelamedu, Coimbatore Coimbatore. South, Coimbatore – 641 004. [Pan: Aadap-3102-C] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. M. Karunanantham, Advocate : Shri. D. Hema Bhupal, Jcit ""यथ" क" ओर से/Respondent By सुनवाई क" तारीख/Date Of Hearing : 19.02.2024 घोषणा क" तारीख/Date Of Pronouncement : 19.02.2024

For Appellant: Shri. M. Karunanantham, Advocate
Section 142(1)Section 143(3)Section 250Section 80PSection 80P(2)(d)

The Balduhak Co-Operative Agriculture Service Society Ltd., Hamirpur vs. ITO, Ward, Hamirpur

ITA 703/CHANDI/2022[2018-19]Status: DisposedITAT Chandigarh16 Feb 2024AY 2018-19

Bench: Us Are That The Assessee Is A Cooperative

For Appellant: Shri Alok Krishan, C.AFor Respondent: Shri Dharam Vir, JCIT, Sr. DR
Section 80PSection 80P(2)(d)

Vittal Grameena Sahakari Bank Niyamitha, Vittal vs. Income-Tax Officer, Ward-2(5), Mangaluru

ITA 895/BANG/2023[2017-18]Status: DisposedITAT Bangalore06 Feb 2024AY 2017-18

Bench: Shri George George K. & Shri Chandra Poojariassessment Year: 2017-18 Vittal Grameena Sahakari Bank Niyamitha F.F. 94, Palace Road Vittal Bantwal Taluk Ito Vs. Vittal 574 222 Ward-2(5) Karnataka Mangaluru Pan No.Aaava1252A Assessee Respondent Assessee By : Ms. Harsha J., A.R. Revenue By : Shri Parithivel, D.R. Date Of Hearing : 06.02.2024 Date Of Pronouncement : 06.02.2024 O R D E R Per Chandra Poojari: This Appeal By Assessee Is Directed Against Order Of Nfac For The Assessment Year 2017-18 Dated 12.9.2023 Passed U/S 250 Of The Income Tax Act, 1961 (In Short “The Act”). The Assessee Has Raised Following Grounds Of Appeal: 1. “The Order Of The Learned Commissioner Passed Under Section 250 Of The Act Is Opposed To Law, Equity, Weight Of Evidence, Probabilities & The Facts & Circumstances In The Appellant'S Case. 2. The Appellant Denies To Be Assessed To Tax On Total Income As Determined By The Learr.Ad Ao Of Rs. 2,52,38,729/- As Against The Total Income Reported By The Appellant Of Rs. Nil On The Facts & Circumstances Of The Case.

For Appellant: Ms. Harsha J., A.RFor Respondent: Shri Parithivel, D.R
Section 250Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

M/S. Primary Agricultural Credit Co-Operative Society Ltd Guruvayanakere, Belthangady vs. Income-Tax Officer, Ward-1, Puttur

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

ITA 1008/BANG/2023[2020-21]Status: DisposedITAT Bangalore06 Feb 2024AY 2020-21

Bench: Shri George George K & Shri Chandra Poojariassessment Year : 2020-21 M/S. Primary Agricultural Credit Vs. Ito, Co-Operative Society Ltd., Ward –1, 1 ‘Jeshta’ Uppinangady Road, Puttur. Guruvayanakere, Belthangady – 574 217. Pan : Aabas 3237 K Appellant Respondent Assessee By : Ms. Harsha J, Advocate Revenue By : Shri. Parithivel, Jcit(Dr)(Itat), Bengaluru. Date Of Hearing : 06.02.2024 Date Of Pronouncement : 06.02.2024

For Appellant: Ms. Harsha J, AdvocateFor Respondent: Shri. Parithivel, JCIT(DR)(ITAT), Bengaluru
Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)