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

The Koradachery Paccs Ltd., Thiruvarur vs. ITO, Ward-1, Thiruvarur

In the result, the appeal of the assessee stands dismissed

ITA 2349/CHNY/2026[2019-20]Status: DisposedITAT Chennai08 Jul 2026AY 2019-20

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपील सं./Ita No.2349/Chny/2026 ननिाारण वर्ा / Assessment Year : 2019-20 The Koradachery Paccs Ltd. The Income Tax Officer No.1, Pillai Street Vs. Ward 1 Koradachery P.O. Thiruvarur. Kodavasal Taluk Thiruvarur Dist. – 613 703. [Pan: Aacat8709Q] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/Appellant By : Shri. K.Meenakshi Sundaram, Advocate प्रत्यर्थी की ओर से/Respondent By : Shri. Manjunath H.S., Addl.Cit सुनवाई की तारीख/Date Of Hearing : 17.06.2026 घोर्णा की तारीख/Date Of Pronouncement : 08.07.2026 आदेश /O R D E R Per S. R. Raghunatha, Am : The Present Appeal Filed By The Assessee Is Directed Against The Order Dated 09.01.2024 Passed By The Learned Commissioner Of Income Tax (Appeals), Addl/Jcit(A)-10, Mumbai (Hereinafter Referred To As “The Ld.Cit(A)”), Arising From The Intimation Dated 22.10.2021 Passed U/S.143(1) Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) By The Centralized

For Appellant: Shri. K.Meenakshi Sundaram, AdvocateFor Respondent: Shri. Manjunath H.S., Addl.CIT
Section 143(1)Section 80P

The Patiala Cooperative Marketing Society Limited, Patiala vs. Income Tax Officer, Patiala

The appeal stand allowed for statistical purposes

ITA 1836/CHANDI/2025[2017-18]Status: DisposedITAT Chandigarh06 Jul 2026AY 2017-18

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.1834/Chandi/2025 & 2. आयकरअपीलसं./ Ita No.1835/Chandi/2025 (िनधा"रणवष" / Assessment Year: 2016-17) & 3. आयकरअपीलसं./ Ita No.1836/Chandi/2025 (िनधा"रणवष" / Assessment Year: 2017-18) The Patiala Cooperative Marketing Ito Society Limited Aaykar Bhawan बनाम/ Vs. 98, Phase – I, New Grain Market New Leela Bhawan Sirhind Road, Patiala – 147001 Patiala - 147001 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aadat-6180-G (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Deepinder Singh (Advocate) – Ld. Ar ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) - Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 29-06-2026 घोषणाकीतारीख /Date Of Pronouncement 06-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Assessee For Assessment Year (Ay) 2016- 17 & 2017-18 Arises Out Of Separate Orders Of Learned First Appellate Authority. First, We Take Up Ita No.1834/Chandi/2025 Which Arises Out

For Appellant: Sh. Deepinder Singh (Advocate) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR
Section 144Section 271(1)(c)Section 80P

The Patiala Cooperative Marketing Society Limited, Patiala vs. Income Tax Officer, Patiala

The appeal stand allowed for statistical purposes

ITA 1835/CHANDI/2025[2016-17]Status: DisposedITAT Chandigarh06 Jul 2026AY 2016-17

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.1834/Chandi/2025 & 2. आयकरअपीलसं./ Ita No.1835/Chandi/2025 (िनधा"रणवष" / Assessment Year: 2016-17) & 3. आयकरअपीलसं./ Ita No.1836/Chandi/2025 (िनधा"रणवष" / Assessment Year: 2017-18) The Patiala Cooperative Marketing Ito Society Limited Aaykar Bhawan बनाम/ Vs. 98, Phase – I, New Grain Market New Leela Bhawan Sirhind Road, Patiala – 147001 Patiala - 147001 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aadat-6180-G (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Deepinder Singh (Advocate) – Ld. Ar ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) - Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 29-06-2026 घोषणाकीतारीख /Date Of Pronouncement 06-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Assessee For Assessment Year (Ay) 2016- 17 & 2017-18 Arises Out Of Separate Orders Of Learned First Appellate Authority. First, We Take Up Ita No.1834/Chandi/2025 Which Arises Out

For Appellant: Sh. Deepinder Singh (Advocate) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR
Section 144Section 271(1)(c)Section 80P

The Patiala Cooperative Marketing Society Limited, Patiala vs. Income Tax Officer, Patiala

The appeal stand allowed for statistical purposes

ITA 1834/CHANDI/2025[2016-17]Status: DisposedITAT Chandigarh06 Jul 2026AY 2016-17

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.1834/Chandi/2025 & 2. आयकरअपीलसं./ Ita No.1835/Chandi/2025 (िनधा"रणवष" / Assessment Year: 2016-17) & 3. आयकरअपीलसं./ Ita No.1836/Chandi/2025 (िनधा"रणवष" / Assessment Year: 2017-18) The Patiala Cooperative Marketing Ito Society Limited Aaykar Bhawan बनाम/ Vs. 98, Phase – I, New Grain Market New Leela Bhawan Sirhind Road, Patiala – 147001 Patiala - 147001 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aadat-6180-G (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Deepinder Singh (Advocate) – Ld. Ar ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) - Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 29-06-2026 घोषणाकीतारीख /Date Of Pronouncement 06-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Assessee For Assessment Year (Ay) 2016- 17 & 2017-18 Arises Out Of Separate Orders Of Learned First Appellate Authority. First, We Take Up Ita No.1834/Chandi/2025 Which Arises Out

For Appellant: Sh. Deepinder Singh (Advocate) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR
Section 144Section 271(1)(c)Section 80P

R1589 Uyyakondan Tirumalai Primary Agricultural Cooperative Society Limited, Trichy vs. Income Tax Officer, Ward 2(1), Trichy

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

ITA 2597/CHNY/2026[2015-16]Status: DisposedITAT Chennai02 Jul 2026AY 2015-16

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos. 2597/Chny/2026 ननिाारण वर्ा / Assessment Years : 2015-16 R1589 Uyyakondan Tirumalai The Income Tax Officer Primary Agricultural Co- Vs. Ward 2(1) Operative Society Limited Trichy. Nachikuruchi, Somarasampettai Post, Srirangam Trichy, Tiruchirappalli – 620 102. [Pan: Aabar2093Q] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/Appellant By : Shri. R.Venkataraman, Ca प्रत्यर्थी की ओर से/Respondent By : Shri. Manjunath H.S., Addl.Cit सुनवाई की तारीख/Date Of Hearing : 18.06.2026 घोर्णा की तारीख/Date Of Pronouncement : 02.07.2026 आदेश /O R D E R Per S. R. Raghunatha, Am : The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 11.02.2026 Passed By The Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (Hereinafter Referred To As "The Ld. Cit(A)"), Arising Out Of The Assessment Order Dated 12.03.2024 Passed By The Assessing Officer, Assessment Unit, National Faceless Assessment

For Appellant: Shri. R.Venkataraman, CAFor Respondent: Shri. Manjunath H.S., Addl.CIT
Section 139(1)Section 147Section 148Section 148ASection 149(1)Section 69ASection 80P

Cooperative Cane Development Union Ltd Balrampur, Balrampur vs. ITO Gonda New, Gonda

In the result, the appeal of the assessee is partly allowed

ITA 737/LKW/2025[2018-19]Status: DisposedITAT Lucknow30 Jun 2026AY 2018-19

Bench: Sh. Kul Bharat & Sh. Nikhil Choudharya.Y. 2018-19 U.P. Cooperative Cane Union Vs. Assessing Officer, Limited, Balrampur, U.P. National E-Assessment Center, Delhi Pan: Aaalc0029P (Appellant) (Respondent) Assessee By: Sh. J.N. Shukla, Adv Revenue By: Sh. R.R.N. Shukla, Addl Cit Dr Date Of Hearing: 05.05.2026 Date Of Pronouncement: 30.06.2026 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Orders Of The Ld. Cit(A), Nfac Dated 25.08.2025, Wherein The Ld. Cit(A) Has Dismissed The Appeal Of The Assessee Against The Order Passed By The Assessing Officer Under Section 143(3) Of The Income Tax Act, 1961 For The A.Y. 2018-19 That Was Passed On 9.04.2021. The Grounds Of Appeal Are As Under: - “1. That The Cit (Appeal) Nfac Delhi Has Committed Manifest Error Of Law By Rejecting The First Appeal Of The Appellant Without Appreciating Facts & Circumstances Of The Case Of The Appellant. 2.That The Appeal Filed By The Assessee Against The Order Of Cit (Appeal) Nfac Delhi Dated 25-08-2025 In Which The Disallowances Made By The Ld Ao In Respect Of Claim Of Deduction U/S 80P On Whole Income & Interest Earned By The Assessee Were Upheld & The Appeal Of The Assessee Were Dismissed. 3. That The Appellant Is A Cooperative Society Registered Under The U.P Cooperative Society Registration Act 1965 & Engage In The Business & Marketing Of Sugarcane. The Appellant Derives From Commission Received From The Sugarmill & Interest Income Charged To Provide Credit Facilities To Its Members For Purchase Of Cane Seeds, Fertilizers & Insecticides & Its Total Income Is Deducted From The Grass

For Appellant: Sh. J.N. Shukla, AdvFor Respondent: Sh. R.R.N. Shukla, Addl CIT DR
Section 143(3)Section 194HSection 80PSection 80P(2)(a)