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)

Anupam Co- Operative Housing Society, Pune vs. Income Tax Officer, Ward-12(1), Pune

In the result, both the appeals are allowed

ITA 609/PUN/2023[2017-18]Status: DisposedITAT Pune09 Jun 2023AY 2017-18

Bench: Shri R.S. Syal

Section 143(3)Section 154Section 2(19)Section 80PSection 80P(2)(d)Section 80P(4)

Bhoomi Classic Co-Op Hsg.Soc.Ltd., Mumbai vs. ITO Ward-30(1)(2), Mumbai

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

ITA 981/MUM/2023[2017-18]Status: DisposedITAT Mumbai09 Jun 2023AY 2017-18

Bench: Shri Pavan Kumar Gadalebhoomi Classic Co-Op Ito, Ward 30(1)(2) Hsg. Soc. Ltd., Room No. 436, 4Th बनाम/ Cts No. 1406, Link Floor, Kautilya Vs. Road, Opp Sabkuch Bhavan, C-41 To C- Market, Malad (West) 43, G Block, Bkc, Mumbai- 400064. Bandra (E) Mumbai – 400051. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaab4452G (""थ" / Respondent) (अपीलाथ" /Appellant)

For Appellant: Ms. NeelamJadhav.ARFor Respondent: Ms. Kavita Kaushik.DR
Section 143(1)Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)(d)

Goragandhi Co-Operative Housing Society Ltd., Mumbai vs. ITO-32(1)(5), Mumbai

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

ITA 1024/MUM/2023[2017-18]Status: DisposedITAT Mumbai08 Jun 2023AY 2017-18

Bench: Shri Pavan Kumar Gadale & Shri S Rifaur Rahmangoragandhicooperative Ito-32(1)(5), Housingsociety Ltd., Room.No 729, बनाम/ Svp Road, Borivali (W) Kautilya Bhavan, Vs. Mumbai –400 051. Bkc,Bandra (E), Mumbai – 400 051. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaag3933F (""थ" / Respondent) (अपीलाथ" /Appellant)

For Appellant: Mr. Pojan Mehta.ARFor Respondent: Ms. Kavita Kaushik.DR
Section 143(1)Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)(d)Section 80P(4)

Ichalkaranji Vyapari Sahakari Patsanstha Ltd, Ichalkaranji vs. Income Tax Officer, Ward-1, Ichalkaranji

In the result, the appeal is allowed

ITA 478/PUN/2023[2020-21]Status: DisposedITAT Pune07 Jun 2023AY 2020-21

Bench: Shri R.S. Syal

Section 2(19)Section 250Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Uppinangady Catholic Multipurpose Co-Operative Society Ltd., Puttur vs. Income-Tax Officer, Ward-1, Puttur

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

ITA 292/BANG/2023[2016-17]Status: DisposedITAT Bangalore07 Jun 2023AY 2016-17

Bench: Shri George George Kassessment Year : 2016-17 M/S. Uppinangady Catholic Multipurpose The Income Tax Officer, Co-Operative Society Ltd., Ward - 1, Uppinangadi, Puttur Taluk, Vs. Puttur, D. K. District – 574 241. D. K. District – 574 201. Pan : Aaaau 8482 H Appellant Respondent Assessee By : Shri. Mahesh R. Uppin, Advocate Revenue By : Shri. Ganesh R. Ghale, Advocate – Standing Counsel For Revenue. Date Of Hearing : 07.06.2023 Date Of Pronouncement : 07.06.2023

For Appellant: Shri. Mahesh R. Uppin, AdvocateFor Respondent: Shri. Ganesh R. Ghale, Advocate – Standing Counsel for Revenue
Section 143(1)Section 80P(2)(a)Section 80P(2)(d)

Khuleshwar Gramin Bigar Sheti Sahakari Patsanstha Limited, Ahmednagar vs. Principal Commissioner of Income Tax, Pune-1, Pune

In the result, the appeal of the assessee is allowed

ITA 568/PUN/2023[2018-19]Status: DisposedITAT Pune06 Jun 2023AY 2018-19

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryआयकर अपऩल सं. / Ita No.568/Pun/2023 निर्धारण वषा / Assessment Year : 2018-19 Khuleshwar Gramin Vs. Pr.Cit, Pune-1. Bigar Sheti Sahakari Patsanstha Ltd., Kashti, Ahmednagar. Pan : Aaajk 0829 K Appellant Respondent Assessee By Shri Devendra A. Patil, Ca Revenue By Shri Keyur Patel, Cit-Dr Date Of Hearing 31-05-2023 Date Of Pronouncement 06-06-2023 आदेश / Order Per Partha Sarathi Chaudhury, Jm:

Section 2(19)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Jaihind Nagari Sahakari Patsanstha, Maryadit, Pune vs. Principal Commissioner of Income Tax, Pune-3, Pune

In the result, the appeal of the assessee is allowed

ITA 542/PUN/2023[2018-19]Status: DisposedITAT Pune06 Jun 2023AY 2018-19

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryआयकर अपऩल सं. / Ita No.542/Pun/2023 निर्धारण वषा / Assessment Year : 2018-19 Jaihind Nagari Sahakari Vs. Pr.Cit, Pune-3. Patsanstha Maryadit, Narayangaon, Tal- Junnar, Dist. – Pune. Pan : Aaaaj 2456 Q Appellant Respondent Assessee By Shri Pramod S. Shingte, Ca Revenue By Shri Keyur Patel, Cit-Dr Date Of Hearing 31-05-2023 Date Of Pronouncement 06-06-2023 आदेश / Order Per Partha Sarathi Chaudhury, Jm:

Section 2(19)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Sampada Nagari Sahakari Patsanstha Maryadit, Pune vs. The Principal Commissioner of Income Tax-4, Pune

Appeal is allowed in above terms

ITA 556/PUN/2023[2018-19]Status: DisposedITAT Pune29 May 2023AY 2018-19

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: -None-For Respondent: Shri Shashank Deogadkar
Section 143(3)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

The ACIT-24(1), Mumbai vs. Oberoi Spring Co-Op Hsg Soc. Ltd, Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 847/MUM/2023[2018-2019]Status: DisposedITAT Mumbai29 May 2023AY 2018-2019

Bench: Shri Amit Shukla & Shri Amarjit Singh

For Appellant: Ujjwal ChavhanFor Respondent: Anil Mehta
Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

The ACIT-24(1), Mumbai vs. Oberoi Spring Co-Op Hsg Soc. Ltd, Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 846/MUM/2023[2017-18]Status: DisposedITAT Mumbai29 May 2023AY 2017-18

Bench: Shri Amit Shukla & Shri Amarjit Singh

For Appellant: Ujjwal ChavhanFor Respondent: Anil Mehta
Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Urulikanchan Gramin Bigarshety Sahakari Patsanstha Maryadit, Pune vs. The Income Tax Officer, Ward-14(3), Pune

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

ITA 554/PUN/2023[2018-19]Status: HeardITAT Pune26 May 2023AY 2018-19

Bench: Shri Inturi Rama Raoआयकर अपील सं. / Ita No.554/Pun/2023 िनधा"रण वष" / Assessment Year : 2018-19 Urulikanchan Gramin Vs. Ito, Ward-14(3), Pune. Bigarshety Sahakari Patsanstha Maryadit, At & Post Urulikanchan, Taluka- Haveli, Urulikanchan, Pune- 412202. Pan : Aaaau0866D Appellant Respondent Assessee By : None Revenue By : Shri Piyush Kumar Singh Yadav Date Of Hearing : 25.05.2023 Date Of Pronouncement : 26.05.2023 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of The National Faceless Appeal Centre, Delhi [‘Nfac’] Dated 09.03.2023 For The Assessment Year 2018-19. 2. Briefly, The Facts Of The Case Are That The Appellant Is A Co- Operative Society Registered Under The Provisions Of The Maharashtra

For Appellant: NoneFor Respondent: Shri Piyush Kumar Singh Yadav
Section 80P(2)(a)Section 80P(2)(d)

Kai Fakira Jairam Patil Sahakari Patsanstha Maryadit Shahada, Nandurbar vs. Invcome Tax Officer Ward-1, Dhule

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

ITA 551/PUN/2023[2017-18]Status: HeardITAT Pune26 May 2023AY 2017-18

Bench: Shri Inturi Rama Raoआयकर अपील सं. / Ita No.551/Pun/2023 िनधा"रण वष" / Assessment Year : 2017-18 Kai Fakira Jairam Patil Vs. Ito, Ward-1, Dhule. Sahakari Patsanstha Maryadit Shahada, Plot No.5A, Vrindavan Nagar, Besides Swami Samaratha Kendra, Shahada Tal. Shahada, Dist. Nandurbar- 425409 Pan : Aaaak5870D Appellant Respondent Assessee By : None Revenue By : Shri Piyush Kumar Singh Yadav Date Of Hearing : 24.05.2023 Date Of Pronouncement : 26.05.2023 आदेश / Order Per Inturi Rama Rao, Am : This Is An Appeal Filed By The Assessee Directed Against The Order Of The National Faceless Appeal Centre, Delhi [‘Nfac’] Dated 24.03.2023 For The Assessment Year 2017-18. 2 2. Briefly, The Facts Of The Case Are That The Appellant Is A Co- Operative Credit Society Registered Under Maharashtra Co-Operative Societies Act, 1960. The Return Of Income For The Assessment Year 2017-18 Was Filed On 10.10.2017 Disclosing Total Income Of Rs.Nil After Claiming Deduction U/S 80P(2)(A)(I) Of The Income Tax Act, 1961 (‘The Act’) Of Rs.73,98,124/-. Against The Said Return Of Income, The Assessment Was Completed By The Assessing Officer Vide Order Dated 31.10.2019 Passed U/S 143(3) Of The Act At A Total Income Of Rs.44,57,088/-. While Doing So, The Assessing Officer Denied The Exemption U/S 80P(2)(A)(I) In Respect Of Interest Income On Deposits Made Out Of The Surplus Funds In Cooperative Banks & Scheduled Banks On The Ground That The Said Income Does Not Qualify For Deduction U/S 80P(2)(A)(I) Or 80P(2)(D) Of The Act. 3. Being Aggrieved, An Appeal Was Filed Before The Nfac, Who Vide Impugned Order Confirmed The Addition Made By The Assessing Officer. 4. Being Aggrieved, The Appellant Is In Appeal Before This Tribunal In The Present Appeal.

For Appellant: NoneFor Respondent: Shri Piyush Kumar Singh Yadav
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

Kai Fakira Jairam Patil Sahakari Patsanstha Maryadit Shahada, Nandurbar vs. Invcome Tax Officer Ward-1, Dhule

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

ITA 553/PUN/2023[2020-21]Status: DisposedITAT Pune25 May 2023AY 2020-21
For Appellant: Adjournment application rejectedFor Respondent: Shri Ramnath P. Murkunde
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

Satpuda Urban Credit Co- Opt Society Ltd, Jalgaon vs. Income Tax Officer, Ward-1(4), Jalgaon

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

ITA 531/PUN/2023[2018-19]Status: DisposedITAT Pune25 May 2023AY 2018-19

Bench: Shri Inturi Rama Raoआयकर अपील सं. / Ita No.531/Pun/2023 िनधा"रण वष" / Assessment Year : 2018-19 Satpuda Urban Credit Vs. Ito, Ward-1(4), Co-Op. Society Ltd., Jalgaon. At Post: Faizpur, Tal- Yawal, Dist.- Jalgaon- 425503 Pan : Aaals0467P Appellant Respondent Assessee By : None Revenue By : Shri Piyush Kumar Singh Yadav Date Of Hearing : 24.05.2023 Date Of Pronouncement : 25.05.2023 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of The National Faceless Appeal Centre, Delhi [‘Nfac’] Dated 31.03.2023 For The Assessment Year 2018-19. 2. Briefly, The Facts Of The Case Are That The Appellant Is A Co- Operative Society Registered Under The Provisions Of The Maharashtra

For Appellant: NoneFor Respondent: Shri Piyush Kumar Singh Yadav
Section 80P(2)(a)Section 80P(2)(d)

M/S Sahakar Maharshi Shankarrao Kolhe Sakhar Kar Kamgaranchi Sah Patpedhi, Ahmednagar vs. Principal Commissioner of Income Tax, Pune-1, Pune

Appeal is allowed in above terms

ITA 454/PUN/2023[2018-19]Status: DisposedITAT Pune25 May 2023AY 2018-19

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: Shri Sanket JoshiFor Respondent: Shri Sardar Singh Meena
Section 143(3)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

Pune District Supervision Co- Operative Societies Ltd, Pune vs. The Principal Commissioner of Income Tax-3, Pune

Appeal is allowed in above terms

ITA 428/PUN/2023[2018-19]Status: DisposedITAT Pune25 May 2023AY 2018-19

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: -None-For Respondent: Shri Sardar Singh Meena
Section 143(3)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

Shivkrupa Nagari Sahakari Pata Sanstha Ltd, Pune vs. The Principal Commissioner of Income Tax-4, Pune

Appeal is allowed in above terms

ITA 409/PUN/2023[2018-19]Status: DisposedITAT Pune25 May 2023AY 2018-19

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: -None-For Respondent: Shri Sardar Singh Meena
Section 143(3)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

Poona Post and Telecom Co. Op. Credit Society Ltd., Pune vs. The Principal Commissioner of Income Tax-4, Pune

Appeal is allowed in above terms

ITA 394/PUN/2023[2018-19]Status: DisposedITAT Pune25 May 2023AY 2018-19

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: -None-For Respondent: Shri Sardar Singh Meena
Section 143(3)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)

Zila Sahkari Bank Ltd., Bulandshahr vs. DCIT, Circle- 3(1), Bulandshahr

In the result, the appeal of the Revenue is dismissed

ITA 914/DEL/2021[2015-16]Status: DisposedITAT Delhi22 May 2023AY 2015-16

Bench: Shri Saktijit Dey & Shri M. Balaganeshassessment Year: 2015-16 Zila Sahkari Bank Ltd., Bulandshahr Vs Dcit, C/O Kashyap & Co., Circle-3(1), 114, Citi Centre, Bulandshahr. Bb Road, Meerut, Uttar Pradesh – 250001. Pan: Aaaaz0005B (Appellant) (Respondent) Assessee By : Shri P.S. Kashyap, Ca Revenue By : Shri Bhupendra Anant, Sr. Dr Date Of Hearing : 08.05.2023 Date Of Pronouncement : 22.05.2023 Order Per M. Balaganesh, Am: This Appeal In Ita No.914/Del/2021 For Ay 2015-16 Arises Out Of The Order Of The Commissioner Of Income Tax (Appeals), Ghaziabad [Hereinafter Referred To As ‘Ld. Cit(A)’, In Short] In Appeal No.358717431080118 Dated 31.07.2019 Against The Order Of Assessment Passed U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Dated 22.12.2017 By The Ld. Assessing Officer, Circle-3(1), Bulandshahr (Hereinafter Referred To As ‘Ld. Ao’).

For Appellant: Shri P.S. Kashyap, CAFor Respondent: Shri Bhupendra Anant, Sr. DR
Section 10Section 10(34)Section 115Section 115OSection 143(3)Section 80P(2)Section 80P(2)(d)

M/S. Kamal Mahila Nagari Sahakari Petpedhi Maryadit, Panvel vs. The Income Tax Officer, NFAC

In the result, the appeal is allowed to this extent

ITA 507/PUN/2023[2018-19]Status: DisposedITAT Pune19 May 2023AY 2018-19

Bench: Shri R.S. Syal

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Suresh Gaikwad
Section 250Section 80P(2)(d)