Section 80P(4) of the Income Tax Act

Income-tax Act, 2025: s.149

Section 80P(4) 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(4) is Totgars Co-operative Sale Society Ltd. v. ITO (322 ITR 283), cited in 1,283 of the 1,638 judgments on BharatTax that turn on this section.

Leading authorities on Section 80P(4)

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).

Totgar's Co-operative Sale Society Ltd. v. ITO
188 Taxmann 282 · 2010 · Supreme Court
486
citing judgments

Interest income earned by a co-operative society from investments, particularly with co-operative banks, is not eligible for deduction under Section 80P as it is not attributable to the core business activities of the society and constitutes "other income", not "profits and gains of business".

Judgments on Section 80P(4)

The Adarsh Co-Op. Credit Society Limited., Belagavi vs. Income Tax Officer, Ward -1(2), Belagavi

ITA 28/PAN/2019[2013-14]Status: DisposedITAT Panaji29 Aug 2022AY 2013-14

Bench: Shri Chandra Mohan Garg & Shri Girish Agrawalita Nos.26 To 28/Pan/2019 Assessment Year: 2009-10, 2012-13 & 2013-14 The Adarsh Co-Op. Credit Ito, Ward-1(2), Society Ltd. Bagalkot Vs. A-P: Jugul, Tal: Athani, Dist: Belgaum-591252. Pan: Aaaas 5616 H (Appellant) (Respondent) Present For: Appellant By : Shri Pramod Vaidhya, Advocate Respondent By : Shri Mayur Kamble, Sr. Dr Date Of Hearing : 17.06.2022 Date Of Pronouncement : 30.08.2022 O R D E R Per Girish Agrawal: These Appeals Filed By The Assessee Are Directed Against Different Orders Of Learned Commissioner Of Income Tax (Appeals) – Belagavi In Ita No. Cit(A)/Bgm/10349/2015-16, Cit(A)/Bgm/10518/2014-15 & Cit(A)/Bgm/10136/2015-16 All Dated 27.12.2018. The Assessments Were Framed By The Ito, Ward-1(2), Belgaum U/S 143(3) R.W.S. 254 Of The Income-Tax Act, 1961 (Hereinafter ‘The Act’), For The Assessment Year 2009-10 Vide Order Dated 27.12.2018 & For The Assessment Years 2012-13 & 2013-14 U/S 143(3) Of The Act Vide Order Dated 30.09.2014 & 24.08.2015. 2. The Only Issue In These Three Appeals Of Assessee Is As Regards To The Order Of Cit(A) Confirming The Denial Of Claim Of Deduction U/S 80P(2)(A)(I) Of The Act. The Assessee Has Raised Identical Grounds In All The Appeals & Hence, We Take The Facts & Grounds From Ita No. The Adarsh Co-Operative Credit Society Ltd. A.Y. 2009-10, 2012-13 & 2013-14 26/Pan/2019 For The Assessment Year 2009-10. The Relevant Grounds Raised By Assessee Are Reads As Under:

For Appellant: Shri Pramod Vaidhya, AdvocateFor Respondent: Shri Mayur Kamble, Sr. DR
Section 143(3)Section 5Section 80PSection 80P(2)(a)

The Adarsh Co-Op. Credit Society Limited., Belagavi vs. Income Tax Officer, Ward -1(2), Belagavi

ITA 27/PAN/2019[2012-13]Status: DisposedITAT Panaji29 Aug 2022AY 2012-13

Bench: Shri Chandra Mohan Garg & Shri Girish Agrawalita Nos.26 To 28/Pan/2019 Assessment Year: 2009-10, 2012-13 & 2013-14 The Adarsh Co-Op. Credit Ito, Ward-1(2), Society Ltd. Bagalkot Vs. A-P: Jugul, Tal: Athani, Dist: Belgaum-591252. Pan: Aaaas 5616 H (Appellant) (Respondent) Present For: Appellant By : Shri Pramod Vaidhya, Advocate Respondent By : Shri Mayur Kamble, Sr. Dr Date Of Hearing : 17.06.2022 Date Of Pronouncement : 30.08.2022 O R D E R Per Girish Agrawal: These Appeals Filed By The Assessee Are Directed Against Different Orders Of Learned Commissioner Of Income Tax (Appeals) – Belagavi In Ita No. Cit(A)/Bgm/10349/2015-16, Cit(A)/Bgm/10518/2014-15 & Cit(A)/Bgm/10136/2015-16 All Dated 27.12.2018. The Assessments Were Framed By The Ito, Ward-1(2), Belgaum U/S 143(3) R.W.S. 254 Of The Income-Tax Act, 1961 (Hereinafter ‘The Act’), For The Assessment Year 2009-10 Vide Order Dated 27.12.2018 & For The Assessment Years 2012-13 & 2013-14 U/S 143(3) Of The Act Vide Order Dated 30.09.2014 & 24.08.2015. 2. The Only Issue In These Three Appeals Of Assessee Is As Regards To The Order Of Cit(A) Confirming The Denial Of Claim Of Deduction U/S 80P(2)(A)(I) Of The Act. The Assessee Has Raised Identical Grounds In All The Appeals & Hence, We Take The Facts & Grounds From Ita No. The Adarsh Co-Operative Credit Society Ltd. A.Y. 2009-10, 2012-13 & 2013-14 26/Pan/2019 For The Assessment Year 2009-10. The Relevant Grounds Raised By Assessee Are Reads As Under:

For Appellant: Shri Pramod Vaidhya, AdvocateFor Respondent: Shri Mayur Kamble, Sr. DR
Section 143(3)Section 5Section 80PSection 80P(2)(a)

The Adarsh Co-Op. Credit Society Limited., Belagavi vs. Income Tax Officer, Ward -1(2), Belagavi

ITA 26/PAN/2019[2009-10]Status: DisposedITAT Panaji29 Aug 2022AY 2009-10

Bench: Shri Chandra Mohan Garg & Shri Girish Agrawalita Nos.26 To 28/Pan/2019 Assessment Year: 2009-10, 2012-13 & 2013-14 The Adarsh Co-Op. Credit Ito, Ward-1(2), Society Ltd. Bagalkot Vs. A-P: Jugul, Tal: Athani, Dist: Belgaum-591252. Pan: Aaaas 5616 H (Appellant) (Respondent) Present For: Appellant By : Shri Pramod Vaidhya, Advocate Respondent By : Shri Mayur Kamble, Sr. Dr Date Of Hearing : 17.06.2022 Date Of Pronouncement : 30.08.2022 O R D E R Per Girish Agrawal: These Appeals Filed By The Assessee Are Directed Against Different Orders Of Learned Commissioner Of Income Tax (Appeals) – Belagavi In Ita No. Cit(A)/Bgm/10349/2015-16, Cit(A)/Bgm/10518/2014-15 & Cit(A)/Bgm/10136/2015-16 All Dated 27.12.2018. The Assessments Were Framed By The Ito, Ward-1(2), Belgaum U/S 143(3) R.W.S. 254 Of The Income-Tax Act, 1961 (Hereinafter ‘The Act’), For The Assessment Year 2009-10 Vide Order Dated 27.12.2018 & For The Assessment Years 2012-13 & 2013-14 U/S 143(3) Of The Act Vide Order Dated 30.09.2014 & 24.08.2015. 2. The Only Issue In These Three Appeals Of Assessee Is As Regards To The Order Of Cit(A) Confirming The Denial Of Claim Of Deduction U/S 80P(2)(A)(I) Of The Act. The Assessee Has Raised Identical Grounds In All The Appeals & Hence, We Take The Facts & Grounds From Ita No. The Adarsh Co-Operative Credit Society Ltd. A.Y. 2009-10, 2012-13 & 2013-14 26/Pan/2019 For The Assessment Year 2009-10. The Relevant Grounds Raised By Assessee Are Reads As Under:

For Appellant: Shri Pramod Vaidhya, AdvocateFor Respondent: Shri Mayur Kamble, Sr. DR
Section 143(3)Section 5Section 80PSection 80P(2)(a)

Kalidas Co-Operative Credit Society Limited, Kamatgi, Bagalkot vs. Income Tax Officer, Ward - 1, Bagalkot

In the result, the appeal of the assessee is allowed

ITA 10/PAN/2019[2015-16]Status: DisposedITAT Panaji29 Aug 2022AY 2015-16

Bench: Shri Chandra Mohan Garg & Shri Girish Agrawalassessment Year: 2015-16 M/S. Kalidas Co- Ito, Ward-1, Operative Credit Bagalkot Society Ltd. Near Choudeshwari Vs. Temple, Kamatgi, Tal: Hungund, Dist: Bagalkot, Karnataka-587120. Pan: Aaaak 9788 L (Appellant) (Respondent) Present For: Appellant By : Shri Pramod Vaidhya, Advocate Respondent By : Shri Mayur Kamble, Sr. Dr Date Of Hearing : 17.06.2022 Date Of Pronouncement : 30.08.2022 O R D E R Per Girish Agrawal: This Appeal By The Assessee Is Arising Out Of The Order Of Ld. Cit(A), Belagavi In Ita No.Cit(A)/Bgm/10172/2017-18 Dated 27.12.2018 Against The Order Passed By Ito, Ward-1, Bagalkot U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As The ‘Act’) Dated 31.10.2017 For A.Y. 2015-16. 2. The Grounds Taken By The Assessee In The Present Appeal Are Reproduced As Under:

For Appellant: Shri Pramod Vaidhya, AdvocateFor Respondent: Shri Mayur Kamble, Sr. DR
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)

Mangaidevi Sahakari Patpedhi Maryadit, Mumbai vs. ITO WD-22(2) (1), Mumbai

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

ITA 701/MUM/2022[2017-18]Status: DisposedITAT Mumbai26 Aug 2022AY 2017-18
Section 80PSection 80P(2)(d)

Ocean Gold Co-Op Hsg. Soc.Ltd, Mumbai vs. DCIT -CPC, Bengaluru

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

ITA 1787/MUM/2022[2015-16]Status: DisposedITAT Mumbai25 Aug 2022AY 2015-16
Section 80PSection 80P(2)(d)

Ocean Gold Co-Op Hsg. Soc.Ltd, Mumbai vs. DCIT -CPC, Bengaluru

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

ITA 1786/MUM/2022[2014-15]Status: DisposedITAT Mumbai25 Aug 2022AY 2014-15
Section 80PSection 80P(2)(d)

Shri Ganesh Krupa Co-Operative Housing Society Ltd, Mumbai vs. Asst Dir of Income Tax CPC Bengaluru/ the ITO WD 22 (1) (1), Mumbai

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

ITA 1543/MUM/2022[2020-2021]Status: DisposedITAT Mumbai25 Aug 2022AY 2020-2021
Section 80PSection 80P(2)(d)

Durga Co. Op.Credit Society Ltd, Mumbai vs. O/O the Income Tax Officer, WD 22(1) (2), Mumbai

ITA 1413/MUM/2021[2017-18]Status: DisposedITAT Mumbai24 Aug 2022AY 2017-18

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singhdurga Co-Op Credit Vs. The Income Tax Officer, Society Limited 22(1)(2), 2/3 Sukarma Aptt. Room No. 313, 3 Rd Floor, Prabhat Cly, Gandhi Piramal Chamber, Lal Chowk Santacruz (East), Baug, Parel, Mumbai – 400055 Mumbai - 400012 स्थायी लेखा सं./ जीआइआर सं./ Pan/Gir No: Aaaad8298C Appellant .. Respondent

For Appellant: NoneFor Respondent: Smt. Mahita Nair
Section 143(2)Section 80Section 80PSection 80P(2)(a)Section 80P(2)(c)Section 80P(2)(d)

Badar Bagh Co-Operative Credit Society Ltd, Mumbai vs. Income Tax Officer 20(1)(3), Mumbai

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 1488/MUM/2022[2013-2014]Status: DisposedITAT Mumbai22 Aug 2022AY 2013-2014

Bench: Ldcit(A), The Assessee Did Not Appear. I Notice That The Ldcit(A) Has Given Several Opportunities To The Assessee. Hence Learned Cit(A) Passed The Orders Confirming The Disallowance Made By The Ao In Both The Years. Aggrieved, The Assessee Has Filed These Two Appeals Before The Tribunal.

Section 80PSection 80P(4)

Badar Bagh Co-Operative Credit Society Ltd, Mumbai vs. Income Tax Officer 20(1)(3), Mumbai

In the result, both the appeals of the assessee are treated as allowed for statistical purposes

ITA 1487/MUM/2022[2014-15]Status: DisposedITAT Mumbai22 Aug 2022AY 2014-15

Bench: Ldcit(A), The Assessee Did Not Appear. I Notice That The Ldcit(A) Has Given Several Opportunities To The Assessee. Hence Learned Cit(A) Passed The Orders Confirming The Disallowance Made By The Ao In Both The Years. Aggrieved, The Assessee Has Filed These Two Appeals Before The Tribunal.

Section 80PSection 80P(4)

M/S Dtps Employees Co-Op Credit Limited Dahanu, Palghar vs. Pr Commissioner of Income Ta -1, Thane

In the result, the appeal of the assessee is allowed

ITA 1519/MUM/2022[2017-18]Status: DisposedITAT Mumbai18 Aug 2022AY 2017-18

Bench: Us:-

Section 142(1)Section 143(3)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Income Tax Officer, Ward -2(2), Belgavi vs. Shiva Credit Souharda Sahakari Niyamit, Belgavi

ITA 18/PAN/2019[2012-13]Status: DisposedITAT Panaji17 Aug 2022AY 2012-13

Bench: Shri Chandra Mohan Garg & Shri Girish Agrawal

For Appellant: -None-For Respondent: Sh Mayur Kamble, Sr. D.R
Section 142Section 143(2)Section 143(3)Section 2(24)Section 80PSection 80P(2)(a)Section 80P(2)(i)Section 80P(4)

M/S. the Faridkot Primary Coop Agricultural Development Bank.Limited, Faridkot vs. Deputy Commissioner of Income Tax Circle-3, Ferozepur

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

ITA 288/ASR/2019[2015-16]Status: DisposedITAT Amritsar11 Aug 2022AY 2015-16

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: Sh. P. N. Arora, AdvFor Respondent: Sh. Manpreet Singh Duggal, Sr. DR
Section 143(3)Section 80Section 80PSection 80P(2)(c)Section 80P(4)

The Income-Tax Officer-26(2)(1), Mumbai vs. Ramaraja Kshatriya Co-Op Credit Society Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 1146/MUM/2022[2017-2018]Status: DisposedITAT Mumbai11 Aug 2022AY 2017-2018
Section 143(3)Section 80PSection 80P(2)(d)Section 80P(4)

C.G. Power and Industrial Solutions Ltd Employees Co Op. Credit Soc. Ltd, Mumbai vs. ITO 26 (1) (1), Mumbai

In the result, impugned order is set-aside and appeal by assessee is allowed

ITA 2044/MUM/2021[2015-16]Status: DisposedITAT Mumbai01 Aug 2022AY 2015-16

Bench: Shri Vikas Awasthyआअसं. 2044/मुं/2021 ("न.व 2015-16) Cg Power & Industrial Solutions Ltd.Employees Co Op Credit Society Ltd. C/O. Mrs. Sadhana Modak, 102, Kamal Villa Co-Op. Hsg. Society, Aaglave Lane, Gandhi Chowk, Kalyan West, Dist. Thane – 421 301. Pan: Aaaac-2551-P ...... अपीलाथ" /Appellant बनाम Vs. Income Tax Officer -26(1)(1), Kautilya Bhavan, Bandra(East) Mumbai 400 051. . ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Ritesh Gawande ""तवाद" "वारा/Respondent By : Ms. Beena Santosh सुनवाई क" "त"थ/ Date Of Hearing : 01/08/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 01/08/2022

For Appellant: Shri Ritesh GawandeFor Respondent: Ms. Beena Santosh
Section 143(3)Section 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Sharavathi Pathina Sahakari Sangha Niyamitha, Shivamogga vs. Income Tax Officer, Ward-5, Bangalore

In the result, the appeals of the Assessee for AY 2013-14 &

ITA 152/BANG/2022[2015-16]Status: DisposedITAT Bangalore01 Aug 2022AY 2015-16

Bench: Shri N. V. Vasudevan

For Appellant: Shri. G. Sathyanarayan, CAFor Respondent: Shri. Ganesh R Ghale, Standing Counsel for Department
Section 2Section 22Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(4)

Sharavathi Pathina Sahakara Sangha Niyamitha, Shivamogga vs. Income Tax Officer, Ward-5, Bangalore

In the result, the appeals of the Assessee for AY 2013-14 &

ITA 151/BANG/2022[2014-15]Status: DisposedITAT Bangalore01 Aug 2022AY 2014-15

Bench: Shri N. V. Vasudevan

For Appellant: Shri. G. Sathyanarayan, CAFor Respondent: Shri. Ganesh R Ghale, Standing Counsel for Department
Section 2Section 22Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(4)

Sharavathi Pathina Sahakara Sangha Niyamitha, Shivamogga vs. Income Tax Officer, Ward-5, Bangalore

In the result, the appeals of the Assessee for AY 2013-14 &

ITA 150/BANG/2022[2013-14]Status: DisposedITAT Bangalore01 Aug 2022AY 2013-14

Bench: Shri N. V. Vasudevan

For Appellant: Shri. G. Sathyanarayan, CAFor Respondent: Shri. Ganesh R Ghale, Standing Counsel for Department
Section 2Section 22Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(4)

M/S. Mumbai Kolsa Kamgar Sahakari Society, Mumbai vs. The ITO 17(2) (3), Mumbai

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

ITA 720/MUM/2022[2014-15]Status: DisposedITAT Mumbai28 Jul 2022AY 2014-15
Section 80PSection 80P(2)(d)