Section 80P of the Income Tax Act

Income-tax Act, 2025: s.149

Section 80P of the Income-tax Act, 1961 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 is Totgars Co-operative Sale Society Ltd. v. ITO (322 ITR 283), cited in 1,283 of the 5,069 judgments on BharatTax that turn on this section.

Leading authorities on Section 80P

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.

Co-operative Bank Ltd. v. CIT
384 ITR 490 · 2016 · High Court
631
citing judgments

Co-operative banks are not fundamentally different from co-operative societies, entitling them to claim deductions under Section 80P of the Income Tax Act, 1961, including for interest income treated as business income.

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".

CIT v. Andhra Pradesh State
200 Taxmann 220 · 2011 · High Court
348
citing judgments

Interest earned by a Co-operative Society from investing fixed deposits in banks is entitled to a deduction under Section 80P(2)(a)(i) of the Income-tax Act.

Judgments on Section 80P

Santaji Urban Credit Coop Society Limited, Pusad vs. ITO Ward - 1, Yavatmal

In the result, appeal of the assessee is allowed

ITA 437/NAG/2026[2018-19]Status: DisposedITAT Nagpur14 Jul 2026AY 2018-19

Bench: Shri Anubhav Sharma & Shri Khettra Mohan Roysantaji Urban Credit Co- Ito, Ward – 1, Yavatmal Op. Society Ltd., Near Vs Balaji Sweet Mart, Bus Stand Road, Pusad, Yavatmal-445204 Pan : Aacas 9289 C Assessee Revenue

For Appellant: Shri Mahavir Atal, CA &For Respondent: Shri Surjit Kumar Saha, Sr.DR
Section 11Section 11(1)Section 139Section 139(1)Section 139(4)Section 143(1)Section 250Section 80PSection 80P(2)(a)

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)

Poonam Chambers B Wing Commercial Premises Co Operative Society Ltd, Mumbai vs. Deputy Commissioner Income Tax, Mumbai

ITA 2542/MUM/2026[2020-21]Status: DisposedITAT Mumbai14 Jul 2026AY 2020-21

Bench: Shri Saktijit Dey, Hon'Ble & Shri Girish Agrawalassessment Year: 2020-21 Poonam Chambers B Wing Deputy Commissioner Income Commercial Premises Co Tax -Circle 22-1, Operative Society Ltd Mumbai Poonam Chambers , B Wing, Vs. Dr A B Road, Worli, Mumbai - 400018 (Pan: Aaaap1685M) (Appellant) (Respondent) Present For: Assessee : Shri Vishnu Agarwal, Ca Revenue : Shri Ajay Soneji, Sr.Dr Date Of Hearing : 07.07.2026 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/250/2025-26/1083267805(1) Dated 03.12.2025 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 20.09.2022, For The Assessment Year 2020-21. 2. Grounds Taken By The Assessee Are Reproduced As Under: 1. That The Learned Commissioner Of Income Tax –Appeals, Erred In Passing The Impugned Order Dtd 03-12-2025 On The Basis Of Demand Of Rs. 14,32,032 Instead Of Correct Demand 35,34,743, Due To Caracal Mistake In Filling Form No. 35, By 2 Poonam Chambers B Wing Commercial Premises Csl Assessment Year 2020-21

For Appellant: Shri Vishnu Agarwal, CAFor Respondent: Shri Ajay Soneji, Sr.DR
Section 143Section 143(3)Section 56Section 80P

Shri Vishut Board Credit & Consumer Co Operative Society Ltd., Bhavnagar vs. Deputy Commissioner of I Tax, Circle 1, Bhavnagar

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

ITA 1012/AHD/2026[2018-19]Status: DisposedITAT Ahmedabad13 Jul 2026AY 2018-19

Bench: Dr. B.R.R. Kumar, Vice- & Shri Rahul Chaudharyshri Vishut Board Credit & Deputy Commissioner Of Vs. Consumer Co-Operative Society Income Tax, Limited, Circle-1, Power House Compound, Bhavnagar. Chavdigate, Bhavnagar-364001. [Pan :Aaaas7855 C] (Appellant) .. (Respondent) Appellant By : Shri Parimalsinh B Parmar, Ar Respondent By: Smt. Mamta Singh, Sr. Dr Date Of Hearing 23.06.2026 Date Of Pronouncement 13.07.2026 O R D E R Per Dr. B.R.R. Kumar, Vice-:-

For Appellant: Shri Parimalsinh B Parmar, ARFor Respondent: Smt. Mamta Singh, Sr. DR
Section 2Section 2(19)Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Ramanaickenpettai Paccs, Tirupattur vs. ITO, Ward-3, Vellore

ITA 1944/CHNY/2026[2019-20]Status: DisposedITAT Chennai13 Jul 2026AY 2019-20

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपील सं./I.T.A. No.1944/Chn/2026 िनधा"रण वष"/Assessment Year: 2019-20 Ramanaickenpet Primary Vs. The Ito, Agricultural Co-Operative Ward 3, Vellore. Credit Society Ltd, Ramanaickenpettai, Vaniyambadi Tk, Tirupattur, Tamil Nadu-635801. [Pan: Aanfr3772R] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Mr. Shyam Sundar. S, Ca ""थ" की ओर से/Respondent By : Mr. S. Manoj Prakash, Jcit सुनवाई की तारीख/ Date Of Hearing : 15.06.2026 घोषणा की तारीख /Date Of Pronouncement : 13.07.2026 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Order Dated 20.03.2026 Passed By The Ld. Commissioner Of Income Tax (Appeals), Nfac, Delhi For The Assessment Year 2019-20. 2. At The Outset, It Is Noted That The Assessee Is A Primary Agricultural Cooperative Credit Society Engaged In Providing Credit Facilities To Its Members. According To The Ao, No Return Of Income Was Filed Within The Due Date Prescribed Under Section 139(1) Of The Income-Tax Act, 1961 (For Short, "The Act") & Based On The Information Received From The Insight Portal Under The Category 'Non-Filing Of Return' (Rms), With 2

For Appellant: Mr. Shyam Sundar. S, CAFor Respondent: Mr. S. Manoj Prakash, JCIT
Section 139(1)Section 148Section 80P

Nekkallu Pacs Limited, Guntur vs. Income Tax Officer, Ward-2(1), Guntur

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

ITA 838/VIZ/2025[2017-18]Status: DisposedITAT Visakhapatnam10 Jul 2026AY 2017-18

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

For Appellant: AAGFN4238H
Section 148Section 250Section 69Section 69ASection 80P

Nekkallu Pacs Limited, Guntur vs. Income Tax Officer, Ward-2(1), Guntur

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

ITA 837/VIZ/2025[2015-16]Status: DisposedITAT Visakhapatnam10 Jul 2026AY 2015-16

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

For Appellant: AAGFN4238H
Section 148Section 250Section 69Section 69ASection 80P

The Kanumolu Pacs Ltd, Eluru vs. Income Tax Officer, Ward-1, Eluru

In the result, the appeal filed by the assessee is allowed in terms of our aforesaid observations

ITA 835/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam10 Jul 2026AY 2018-19

Bench: Shri Ravish Sood, Hon’Ble & Shri Omkareshwar Chidara, Hon’Ble

For Appellant: AACAT8189L
Section 147Section 148Section 148ASection 151Section 151ASection 80P

Ramrao Aher Nagari Sahkari Patsanstha Maryadit, Deola vs. ITO Ward 1(1), Nashik

In the result, appeal of the assessee is allowed

ITA 1841/PUN/2026[2018-19]Status: DisposedITAT Pune10 Jul 2026AY 2018-19

Bench: Shri Pavan Kumar Gadale & Shri Dr. Dipak P. Ripoteassessment Year : 2018-19 Ramrao Aher Nagari Sahkari Income Tax Officer, Patsanstha Maryadit, Ward – 1(1), Nashik Market Yard Shopping Complex, Vs. Deola , Tal.-Deola, Nashik-423102 Pan : Aaaar1654C (Appellant) (Respondent)

For Appellant: Shri Piyush BafnaFor Respondent: Shri Ambarnath Khule, JCIT
Section 143(3)Section 234ASection 250Section 274Section 57Section 80PSection 80P(2)Section 80P(2)(a)

Income Tax Officer, Ward-1(5), Aurangabad vs. Beed Zilha Krushi Khate Rajya Karmchari Sahkari Pat Sanstha Maryadit Beed, Beed

In the result, the appeal of the Revenue is dismissed

ITA 2426/PUN/2025[2018-19]Status: DisposedITAT Pune10 Jul 2026AY 2018-19

Bench: Shri Pavan Kumar Gadale & Shri Dr. Dipak P. Ripoteassessment Year : 2018-19 Income Tax Officer, Vs. Beed Zilha Krushi Khate Rajya Karmchari Ward – 1(5), Aurangabad Sahkari Pat Sanstha Maryadit, Krushi Bhavan , Rahmat Nagar, Barshi Road, Before S.P. Office, Beed, Aurangabad-431122 Pan : Aadab6777D (Appellant) (Respondent)

For Appellant: N O N EFor Respondent: Shri Ambarnath Khule, JCIT
Section 139(1)Section 147Section 148Section 148ASection 250Section 80PSection 80P(2)(a)

Annapurna Mahila Co Operative Credit Society Limited, Pune vs. Income Tax Officer Ward 2(2), Pune

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

ITA 3210/PUN/2025[2022-23]Status: DisposedITAT Pune09 Jul 2026AY 2022-23

Bench: Ms. Astha Chandra & Shri Dr. Dipak P. Ripote

For Appellant: Shri Nikhil PathakFor Respondent: Shri Bharat Andhale, Addl.CIT
Section 142(1)Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)(a)

Annapurna Mahila Co Operative Credit Society Limited, Pune vs. Income Tax Officer Ward 2(2), Pune

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

ITA 3209/PUN/2025[2020-21]Status: DisposedITAT Pune09 Jul 2026AY 2020-21

Bench: Ms. Astha Chandra & Shri Dr. Dipak P. Ripote

For Appellant: Shri Nikhil PathakFor Respondent: Shri Bharat Andhale, Addl.CIT
Section 142(1)Section 143(2)Section 143(3)Section 250Section 80PSection 80P(2)(a)

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)

Ft 66 Kandamangalam Panchayat Union Teachers Coop Thrift & Credit Society, Villupuram vs. Incom Tax Officer, Villupuram

ITA 1362/CHNY/2026[2019-2020]Status: DisposedITAT Chennai09 Jul 2026AY 2019-2020

Bench: Shri Aby T. Varkey & Shri S.R. Raghunatha

Section 143(1)Section 80P

K 1653 Muthugoundenpudur Primary Agricultural Co-Op Credit Society, Coimbatore vs. Income Tax Officer, Non Corp Ward 4(1), Cbe, Coimbatore

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

ITA 3971/CHNY/2025[2018-2019]Status: DisposedITAT Chennai09 Jul 2026AY 2018-2019

Bench: Shri Aby T. Varkey & Shri S.R. Raghunatha

Section 139(1)Section 148Section 69ASection 80ASection 80P

No.K.779.Guruvareddiyur Primary Agri Co-Op Credit Society, Erode vs. The Income Tax Officer, Ward 2(1) Erode, Erode

In the result appellant various GOA as advanced to hold the addition as not maintainable is to be treated as not maintainable

ITA 2777/CHNY/2025[2019-20]Status: DisposedITAT Chennai09 Jul 2026AY 2019-20

Bench: Shri Aby T. Varkey & Shri Gagan Goyal

Section 139(1)Section 148Section 69ASection 80Section 80P

Nariman Bhavan Premises Co- Op Society Ltd., Mumbai vs. Ward 25(3)(1), Mumbai

In the result, the appeal is allowed for statistical purposes

ITA 2658/MUM/2026[2018-2019]Status: DisposedITAT Mumbai09 Jul 2026AY 2018-2019

Bench: Shri Amit Shukla & Shri Prabhash Shankarnariman Bhavan Premises V/S. Income Tax Officer, Ward – Co-Op Society Limited बनाम 25(3)(1), Kautilya Bhavan, 227, Nariman Bhavan, Backbay Bkc, Bandra East, Mumbai Reclamation, Nariman Point, – 400 051, Maharashtra Mumbai – 400 021, Maharashtra स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaajn0320J Appellant/अपीलाथी .. Respondent/प्रतिवादी

For Appellant: Shri Asif Karmali & Shri Jayesh Dhabaria,ARsFor Respondent: Shri Swapnil Choudhri,(Sr. DR)
Section 139(9)Section 143(1)Section 80PSection 80P(2)(d)

Jaisingpur Vyapari Nagri Sahakari Patsanstha Maryadit, Kolhapur vs. Income Tax Officer Ward 1, Kolhapur

In the result, the appeal is allowed for statistical purposes

ITA 2468/PUN/2025[2015-16]Status: DisposedITAT Pune08 Jul 2026AY 2015-16

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2468/Pun/2025 िनधा"रण वष" / Assessment Year : 2015-16 Jaisingpur Vyapari Nagri Vs. Ito, Ward-1, Ichalkaranji. Sahakari Patsanstha Maryadit, City Survey No.1098, Opp. To Ichalkaranji Janta Sahakari Bank Ltd., Railway Station Road, Shirol, Jaysingpur- 416101. Pan : Aaajj0409L Appellant Respondent Assessee By : Shri Bhuvanesh Kankani Revenue By Smt. Sonal L. Sonkavde : Date Of Hearing : 05.05.2026 Date Of Pronouncement : 08.07.2026 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 19.09.2025 Passed By Ld. Cit(A)/Nfac For The Assessment Year 2015-16. 2. The Appellant Has Raised The Following Grounds Of Appeal :- “1. On The Facts & Circumstance Prevailing In The Case & As Per Provisions & Scheme Of The Act It Be Kindly Held That Assessment Proceeding So Completed Are Not In Accordance

For Appellant: Shri Bhuvanesh Kankani
Section 133(6)Section 139Section 142(1)Section 144B(8)Section 147Section 148Section 148ASection 151ASection 80P

The Primary Agricultural Cooperative Society, Bethampudi, Tekulapally vs. ITO Ward-1, Kothagudem

In the result, appeals ITA

ITA 1663/HYD/2025[2019-20]Status: DisposedITAT Hyderabad08 Jul 2026AY 2019-20

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

Section 139Section 139(1)Section 147Section 148Section 148ASection 69ASection 80P

The Primary Agricultural Cooperative Society Ltd, Bethampudi, Tekulapally vs. ITO Ward-1, Kothagudem

In the result, appeals ITA

ITA 1662/HYD/2025[2018-19]Status: DisposedITAT Hyderabad08 Jul 2026AY 2018-19

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

Section 139Section 139(1)Section 147Section 148Section 148ASection 69ASection 80P