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

Junnar Taluka Audyogic Sahakari Vasahat Ltd, Junnar vs. ITO, Ward 10(5), Pune

In the result, appeal of the assessee is allowed

ITA 904/PUN/2024[2016-17]Status: DisposedITAT Pune24 Jun 2024AY 2016-17

Bench: Dr. Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.904/Pun/2024 िनधा"रण वष" / Assessment Year : 2016-17 Junnar Taluka Audyogic V The Income Tax Officer, Sahakari Vasahat Ltd., S Ward-10(5), Pune. A.P.Kandali Narayangaon, Nashikroad, Tal: Junnar Kandali, Pune- 410504. Pan: Aabaj1277E Appellant / Assessee Respondent / Revenue Assessee By None. Revenue By Shri Rajesh Gawali – Addl.Cit(Dr) Date Of Hearing 20/06/2024 Date Of Pronouncement 24/06/2024 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], U/Sec.250 Of The Act Dated 13.03.2024. The Assessee Has Raised Following Grounds Of Appeal : “On Issue Of Addition Of Rs.29,96,106/- U/S 80P(2)(D) Of Income Tax Act : 1. On The Facts & In The Circumstances Of The Case & In Law The Learned Commissioner Of Appeals Erred In Sustaining Addition Of Junnar Taluka Audyogic Sahakari Vasahat Ltd., [A]

Section 250Section 80PSection 80P(2)(d)

Income Tax Officer, Ward-1 and Tps, Bagalkot vs. Jyoti Credit Cooperative Society Limited, Badami

In the result, the appeal filed by the revenue stands partly allowed for statistical purposes

ITA 838/BANG/2024[2017-18]Status: DisposedITAT Bangalore24 Jun 2024AY 2017-18

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2017-18

For Appellant: Shri Ramesh V. Mudhol, IncomeFor Respondent: Shri Subramanian .S, JCIT-DR
Section 115BSection 148ASection 51Section 68Section 80PSection 80P(2)(a)

Yadagere Souharda Co-Operative Society Limited., Chikkamagaluru vs. Income Tax Officer, Ward-1, Chikkamagaluru

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

ITA 444/BANG/2024[2018-19]Status: DisposedITAT Bangalore24 Jun 2024AY 2018-19

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahuassessment Year : 2018-19

For Appellant: Shri Varun Bhat, CAFor Respondent: Shri V. Parithivel, Jt.CIT(DR)(ITAT), Bengaluru
Section 56Section 80PSection 80P(2)(a)

Shri Ganesh Urban Cooperative Credit Society Limited, Aurangabad vs. Income Tax Officer, Ward-1(1), Aurangabad

In the result, appeal of the assessee is partly allowed

ITA 196/PUN/2024[2017-18]Status: DisposedITAT Pune21 Jun 2024AY 2017-18

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.196/Pun/2024 िनधा"रण वष" / Assessment Year:2017-18 Shri Ganesh Urban V The Income Tax Officer, Cooperative Credit Society S Ward-1(1), Aurangabad. Limited, Main Market, Sarafa Galli, Sillod, Auranbabad – 431112. Pan: Aagas6006D Appellant/ Assessee Respondent /Revenue Assessee By None Revenue By Shri Arvind Desai – Dr Date Of Hearing 13/06/2024 Date Of Pronouncement 21/06/2024 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeals)[Nfac] Under Section 250 Of The Act, Dated 05.12.2023 For The A.Y.2017-18. The Assessee Has Raised The Following Grounds Of Appeal : “Being Aggrieved By The Order Of Ld. Cit (A), Income Tax Department, Nfac U/S. 250 Of The It Act, 1961 Vide Order No.Itba/Nfac/S/250/2023-24/1058480083(1), Dated 05/12/2023. The Said Order Is Passed By Dismissing Appeal Filed By The Appellant Society Against The Order Passed By The Assessing Officer Ward 1(4), Aurangabad, [Now Ward 1(1), Aurangabad] Hence The Appellant Society Shri Ganesh Urban Cooperative Credit Society Limited [A]

Section 143(3)Section 234BSection 250Section 69ASection 80Section 80P(2)(a)

Kattappana Service Co-Operative Bank Ltd., Idukki vs. The Income Tax Officer, Thodupuzha

In the result, the appeal filed by the assessee is allowed for statistical purposes and the stay application is dismissed

ITA 706/COCH/2023[AY 2020-21]Status: DisposedITAT Cochin21 Jun 2024

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: Shri Anil D. Nair, AdvocateFor Respondent: Shri Ilaiyaraja K.S., Sr. D.R
Section 119(2)(b)Section 139Section 142(1)Section 143(2)Section 143(3)Section 80Section 80P

Irla Co-Op Hsg Soceity Ltd, Mumbai vs. Ward 25(2)(5), Mumbai

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

ITA 4269/MUM/2023[2016-17]Status: DisposedITAT Mumbai21 Jun 2024AY 2016-17

Bench: Shri Amarjit Singh & Shri Rahul Chaudhary, Irla Co-Op Hsg Society Vs. Ito, Ward 25(2)(5) Limited, 191/A, Prime Maharashtra – 400054 Mall Irla, Vile Parle (West) Mumbai – 400056 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaaai4878F Appellant .. Respondent Appellant By : Pramod Parida Respondent By : H.M. Bhatt Date Of Hearing 13.05.2024 Date Of Pronouncement 21.06.2024 आदेश / O R D E R Per Amarjit Singh (Am): The Present Appeal Filed By The Assessee Is Directed Against The Assessment Order Dated 23.11.2018 Passed U/S 143(3) Of The Income Tax Act, 1961 For The Assessment Year 2016-17. The Assessee Has Raised The Following Grounds Before Us: “1. Disallowance U/S 43B- 61,01,040/- I) The Id. Cit(A) Erred In Confirming The Disallowance Of Statutory Liabilities Without Appreciating That The Same Had Been Paid Before The Due Date Of Filing Of Return U/S 139(1) & Further Erred In Holding That The Appellant, A Co-Op Housing Society (Chs), Is Doing Business Activity, Therefore, As Sec 438 Is Not Applicable On The Face It Being Eligible For The Benefit U/S 80P, The Disallowance Of Rs.61.01.040/- Is Uncalled For & The Same May Be Deleted Ii) Without Prejudice To Above, The Id Cit(A) Erred In Holding That The Concept Of Mutuality Does Not Apply To The Appellant Where There Is Close Nexus Of All Its Funds Flow Are Utilized Exclusively For The Benefit Of Its Members, Hence The Disallowance Made May Be Deleted As Consistency Needs To Be Respected. 2. Taxability U/S. 22 Or U/S. 56- Rental Or Hire Charges Rs.8,73,634/-

For Appellant: Pramod ParidaFor Respondent: H.M. Bhatt
Section 139(1)Section 143(2)Section 143(3)Section 22Section 24Section 43BSection 56Section 80P

Vishwakarma Suvarnakar Sa Hakari Patsanstha Ltd Kolhappur, Kolhapur vs. ITO, Ward 1(1), Kolhapur

Appeal is allowed in above terms

ITA 496/PUN/2024[2018-19]Status: DisposedITAT Pune20 Jun 2024AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Inturi Rama Rao

For Appellant: -None-For Respondent: Shri Sourabh Nayak, Addl. CIT
Section 143(3)Section 28Section 40Section 40aSection 80P

Aditya Nagari Sahakari Pathsanstha Ltd., Pune vs. ITO Ward13(4), Pune

Appeal is allowed for statistical

ITA 569/PUN/2024[2020-21]Status: DisposedITAT Pune19 Jun 2024AY 2020-21

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

For Appellant: Shri Abhay A AvachatFor Respondent: Shri Arvind Desai
Section 144Section 250(6)Section 68Section 80P

Doctor Punjabrao Deshmukh Krushi Vidyapeeth Karamchari Pat Sanstha Mryat, Akola vs. Income Tax Officer, Ward-1, Akola

ITA 331/NAG/2022[2018-2019]Status: DisposedITAT Nagpur19 Jun 2024AY 2018-2019

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri K.P. DewaniFor Respondent: Shri Abhay Y. Marathe
Section 139(1)Section 234ASection 250Section 80ASection 80P

Savanoor Primary Agricultural Credit Co-Operative Society Ltd., Puttur vs. Income-Tax Officer, Ward-1, Puttur

Accordingly, the impugned order and the present appeal is also infructuous, therefore the appeal by the assessee is dismissed as infructuous

ITA 730/BANG/2024[2016-17]Status: DisposedITAT Bangalore19 Jun 2024AY 2016-17

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeyassessment Year : 2016-17

For Appellant: Shri Shreehari Kutsa, AdvocateFor Respondent: Shri Subramanian S., Jt. CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 250Section 263Section 80P

Johnson & Johnson Employees Co-Operative Credit Society Limited, Mumbai vs. Commissioner of Income Tax (Appeals) Add/JCIT (A)-5 Income Tax Department, Mumbai

In the result, the appeal by the assessee is allowed

ITA 1473/MUM/2024[2021-22]Status: DisposedITAT Mumbai19 Jun 2024AY 2021-22

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

For Appellant: Shri Jitendra SinghFor Respondent: Shri Surendra Meena
Section 143(1)Section 250Section 80PSection 80P(1)Section 80P(2)(a)Section 80P(2)(d)

Indraprasth-5 Co.Op. Housing Service Society Limited, Ahmedabad vs. NFAC, Dehi, Jurisdictional AO: the ITO, Ward-3(3)(1), Ahmedabad

In the result, appeal of the assessee is partly allowed for statistical purpose

ITA 585/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad18 Jun 2024AY 2018-19

Bench: Ms. Suchitra Kambleassessment Year: 2018-19

Section 57Section 80P(2)(c)

The Ismailia Urban Co-Op Society Ltd., Yavatmal vs. Income Tax Officer Ward 1, Income Tax Officer, Ward-1

ITA 122/NAG/2023[2018-19]Status: DisposedITAT Nagpur18 Jun 2024AY 2018-19

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Naresh Jakhotia, CAFor Respondent: Shri Surjit Kumar Saha, Sr.DR
Section 143(3)Section 70PSection 8Section 80PSection 80P(2)(a)Section 80P(2)(c)

Bombay Mercantile Co-Op Bank Ltd Employees Co-Op Credit Soc. Ltd, Mumbai vs. Income Tax Officer-17(2)(1), Mumbai

ITA 1325/MUM/2024[2018-19]Status: DisposedITAT Mumbai18 Jun 2024AY 2018-19

Bench: Shri Anikesh Banerjee & Shri Gagan Goyal

For Appellant: Ms. Aarti Sathe a/w Asavari KadamFor Respondent: Shri H.M. Bhatta (SR DR)
Section 142Section 143Section 143(2)Section 143(3)Section 250Section 253

Nadiad Taluka Prathmik Shikshakoni Dhiran & Grahak Sahakari Mandali Limited, Nadiad vs. The PCIT-1, Vadodara

In the result, appeal of the assessee is partly allowed for statistical purpose

ITA 170/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad14 Jun 2024AY 2017-18

Bench: Ms. Suchitra Kamble & Shri Narendra Prasad Sinhaassessment Year: 2017-18

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

Chemanchery Rural Co-Op Housing Society Ltd, Calicut vs. ITO Ward 2(2), Kozhikode

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

ITA 175/COCH/2023[2018-19]Status: DisposedITAT Cochin14 Jun 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Soundararajan K.Assessment Year: 2018-19

For Appellant: N O N EFor Respondent: Smt. Jamuna Devi, Sr. DR
Section 143(1)Section 154Section 250Section 80P

Mananthavady Co-Op Urban Society Ltd, Wayanad vs. ITO Ward 2, Kalpetta

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

ITA 161/COCH/2023[2013-14]Status: DisposedITAT Cochin14 Jun 2024AY 2013-14

Bench: Shri Chandra Poojari & Shri Soundararajan K.Assessment Year: 2013-14

For Appellant: N O N EFor Respondent: Smt. Jamuna Devi, Sr. D.R
Section 143(1)Section 143(3)Section 250Section 80Section 80PSection 80P(2)(a)

Chakkittapara Service Co-Op Bank Ltd, Calicut vs. ITO Ward 2(1), Calicut

In the result, appeal of the assessee is allowed

ITA 160/COCH/2023[2015-16]Status: DisposedITAT Cochin14 Jun 2024AY 2015-16

Bench: Shri Chandra Poojari & Shri Soundararajan K.Assessment Year: 2015-16

For Appellant: N O N EFor Respondent: Smt. Jamuna Devi, Sr. D.R
Section 154Section 250Section 80Section 80PSection 80P(2)(a)

Backbay Premises Co-Op Society Ltd., Mumbai vs. National Faceless Appeal Centre, Delhi

In the result, the appeals are allowed

ITA 4146/MUM/2023[2014-15]Status: DisposedITAT Mumbai14 Jun 2024AY 2014-15

Bench: Justice (Retd.) C V Bhadang, Hon’Ble & Shri B R Baskaran, Hon’Ble

For Appellant: Shri Vimal PunmiyaFor Respondent: Shri Ashok Kumar Ambastha
Section 143(3)Section 80P(2)(d)

Backbay Premises Co-Op Society Ltd., Mumbai vs. National Faceless Assement Centre, Delhi

In the result, the appeals are allowed

ITA 4144/MUM/2023[2015-16]Status: DisposedITAT Mumbai14 Jun 2024AY 2015-16

Bench: Justice (Retd.) C V Bhadang, Hon’Ble & Shri B R Baskaran, Hon’Ble

For Appellant: Shri Vimal PunmiyaFor Respondent: Shri Ashok Kumar Ambastha
Section 143(3)Section 80P(2)(d)