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

Kem Hospital Employee Co Op Credit Society, Pune vs. Income Tax Officer, Ward-6(1), Pune

In the result, the appeal is allowed for statistical purposes

ITA 610/PUN/2023[2017-18]Status: DisposedITAT Pune09 Jun 2023AY 2017-18

Bench: Shri R.S. Syal

Section 143(3)Section 250Section 80P

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)

The Perundurai Primary Agricultural and Rural Development Bank, Erode vs. DCIT, CPC, Bengaluru

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

ITA 179/CHNY/2023[2018-19]Status: DisposedITAT Chennai09 Jun 2023AY 2018-19

Bench: Shri V. Durga Raoआयकर अपील सं./I.T.A. No.179/Chny/2023 िनधा"रण वष"/Assessment Year: 2018-19 The Perundurai Primary Agricultural Vs. The Deputy Commissioner Of & Rural Development Bank Ltd, Income Tax, Cpc, 112, Agrahara Street, Perundurai, Bengaluru. Tamil Nadu 638 052. [Pan:Aaaat7088E] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S. Sridhar, Advocate (Erode) ""थ" की ओर से/Respondent By : Shri P. Sajit Kumar, Jcit सुनवाई की तारीख/ Date Of Hearing : 07.06.2023 घोषणा की तारीख /Date Of Pronouncement : 09.06.2023 आदेश /O R D E R This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi Dated 27.12.2022 Relevant To The Assessment Year 2018-19. 2. Brief Facts Of The Case Are That The Assessee Has Filed The Return Of Income For The Assessment Year 2018-19 On 28.12.2018 Admitting Nil Income After Claiming Deduction Under Section 80P Of The Income Tax Act, 1961 [“Act” In Short]. The Dcit Cpc, Bengaluru, While Processing The 2

For Appellant: Shri S. Sridhar, Advocate (Erode)For Respondent: Shri P. Sajit Kumar, JCIT
Section 119(2)Section 119(2)(b)Section 139(1)Section 143(1)Section 80P

K-730, Vellithiruppur Pacbank Ltd, Erode vs. DCIT-CPC, Bengaluru

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

ITA 178/CHNY/2023[2018-19]Status: DisposedITAT Chennai09 Jun 2023AY 2018-19

Bench: Shri V. Durga Raoआयकर अपील सं./I.T.A. No.178/Chny/2023 िनधा"रण वष"/Assessment Year: 2018-19 K-730 Vellithiruppur Primary Vs. The Deputy Commissioner Of Agricultural Co-Operative Bank Ltd., Income Tax, Cpc, Vellithiruppur Post, Bhavani Taluk, Bengaluru. Erode 638 314. [Pan:Aabak5739L] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S. Sridhar, Advocate (Erode) ""थ" की ओर से/Respondent By : Shri P. Sajit Kumar, Jcit सुनवाई की तारीख/ Date Of Hearing : 07.06.2023 घोषणा की तारीख /Date Of Pronouncement : 09.06.2023 आदेश /O R D E R This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi Dated 20.12.2022 Relevant To The Assessment Year 2018-19. 2. Brief Facts Of The Case Are That The Assessee Has Filed The Return Of Income For The Assessment Year 2018-19 On 11.03.2019 Admitting Nil Income After Claiming Deduction Under Section 80P Of The Income Tax Act, 1961 [“Act” In Short]. The Dcit Cpc, Bengaluru, While Processing The 2

For Appellant: Shri S. Sridhar, Advocate (Erode)For Respondent: Shri P. Sajit Kumar, JCIT
Section 119(2)Section 119(2)(b)Section 139(1)Section 143(1)Section 80P

The Shantisheela Co-Operative Housing Society Ltd, Pune vs. The Income Tax Office, Ward-3(1), Pune

In the result, the appeal is allowed

ITA 498/PUN/2023[2020-21]Status: DisposedITAT Pune08 Jun 2023AY 2020-21

Bench: Shri R.S. Syal

Section 139(1)Section 143(1)Section 250Section 80ASection 80PSection 80P(2)(d)

Yuvashakti Nagari Sahkari Path Sanstha Maryadit Rendal, Kolhapur vs. Income Tax Officer, Ward-2, Ichalkaranji

In the result, the appeal is partly allowed

ITA 476/PUN/2023[2017-18]Status: DisposedITAT Pune08 Jun 2023AY 2017-18

Bench: Shri R.S. Syal

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

Nashik Road Nagari Sahkari Patsanstha Maryadit, Nashik vs. Income Tax Officer, Ward-1(2), Nashik

In the result, the appeal is allowed

ITA 480/PUN/2023[2014-15]Status: DisposedITAT Pune07 Jun 2023AY 2014-15

Bench: Shri R.S. Syal

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

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)

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)

M/S. Saunshi Urban Co-Operative Credit Society Limited, Saunshi vs. Income-Tax Officer, Ward-1(1), Hubli

The appeal of the assessee is partly allowed for statistical purposes

ITA 301/BANG/2023[2017-18]Status: DisposedITAT Bangalore06 Jun 2023AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2017-18

For Appellant: Shri Srihari Kutsa, A.R. &For Respondent: Smt. Priyadarshini Baseganni, D.R
Section 115BSection 234BSection 68Section 80P(2)(a)

M/S Kodanad Service Co-Op Bank Ltd No 1565, Ernakulam vs. ITO Ward 2, Aluva

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

ITA 997/COCH/2022[2012-13]Status: DisposedITAT Cochin06 Jun 2023AY 2012-13

Bench: Shri Sanjay Arora, Am & Shri Aby T. Varkey, Jm

For Appellant: NoneFor Respondent: Smt J. M Jamuna Devi, (Sr. AR)
Section 80PSection 80P(2)(a)Section 80P(4)

M/S Kanippayyur Service Co-Op Bank, Thrissur vs. ITO Ward 1, Guruvayoor

In the result, the appeal of the assessee is dismissed

ITA 923/COCH/2022[2012-13]Status: DisposedITAT Cochin06 Jun 2023AY 2012-13

Bench: Shri Sanjay Arora, Am & Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No. 923/Coch/2022 (िनधा"रण वष" / Assessment Year: 2012-13) Kanippayyur Service Co- बनाम/ Cit(A)/Income Tax Operative Bank, Department, National Vs. Kanippayyur, Faceless Appeal Centre Kunnamkulam, Thrissur- (Nfac), Delhi. 680517. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabtk8207E (अपीलाथ" /Appellant) .. (""थ" / Respondent) Assessee By: Shri Vipin K. K Revenue By: Smt J. M Jamuna Devi, (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 17/05/2023 घोषणा की तारीख /Date Of Pronouncement: 06/06/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Cit(A)/Nfac Dated 24.08.2022 For Ay. 2012-13. 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Confirming The Penalty Levied Against The Assessee Society U/S 271B Of The Income Tax Act, 1961 (Hereinafter “The Act”). 3. Brief Facts As Noted By The Ao Is That The Assessee Is A Primary Credit Society & Turnover Was To The Tune Of Rs.3,12,85,157/-. Therefore, According To Ao, Since The Assessee’S Turnover Was More Than Rs.1 Crores [As Per Section 44Ab Of The Act] It Was Liable To Get Its Accounts Audited By An Accountant Before The Specified Date; & Furnished By That Date, Report Of Such Audit, In The Prescribed Form Duly Signed & Verified By Accountant By Setting Forth Such Particulars As May Be Prescribed. According To The Ao, The Assessee Failed To Furnish

For Appellant: Shri Vipin K. KFor Respondent: Smt J. M Jamuna Devi, (Sr. AR)
Section 271BSection 44A

Changanacherry Co-Op Agrl & Rural Development Bank Limited, Kottayam vs. ITO Ward 1 &Tps, Kottayam

ITA 938/COCH/2022[2016-17]Status: DisposedITAT Cochin05 Jun 2023AY 2016-17

Bench: SHRI SANJAY ARORA (Accountant Member), SHRI ABY T. VARKEY (Judicial Member)

For Appellant: Shri Abraham K. ThomasFor Respondent: Smt J. M Jamuna Devi, (Sr. AR)
Section 139Section 143(1)Section 143(1)(a)Section 7(1)Section 80PSection 80P(2)

Parisar Abhiyantriki Nokranchi Sahakari Patsanstha Maryadit, Nashik vs. Deputy Commissioner of Income Tax, CPC Bangaluru, Bangaluru

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

ITA 572/PUN/2023[2019-20]Status: DisposedITAT Pune02 Jun 2023AY 2019-20
For Appellant: Shri Pramod ShingteFor Respondent: Shri Ganesh Rath
Section 139(1)Section 139(4)Section 143(1)Section 143(1)(a)Section 80ASection 80PSection 80P(2)(a)

M/S Hingulambika Co- Operative Thrift & Credit Society Limited, Pune vs. Principal Commissioner of Income Tax, Pune-4, Pune

In the result, the appeal is allowed

ITA 524/PUN/2023[2017-18]Status: DisposedITAT Pune01 Jun 2023AY 2017-18

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.524/Pun/2023 "नधा"रण वष" / Assessment Year : 2017-18

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

Shailendra Co- Operative Housing Society Ltd, Pune vs. The Income Tax Officer, Ward-3(1), Pune

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

ITA 429/PUN/2023[2019-20]Status: DisposedITAT Pune31 May 2023AY 2019-20

Bench: Shri Inturi Rama Raoआयकर अपीऱ सं. / Ita No.429/Pun/2023 ननधधारण वषा / Assessment Year : 2019-20

For Appellant: Shri Sarang GudhateFor Respondent: Shri Ganesh Rath, JCIT
Section 143(1)Section 2(19)Section 250Section 80PSection 80P(2)(d)Section 80P(4)

Shree Saurastra Ka;Akendra Co-Op. Housing Society Ltd., Rajkot vs. The ADIT (CPC), Bangalore

In the result, the appeal of the assessee is allowed

ITA 55/RJT/2023[2019-20]Status: HeardITAT Rajkot31 May 2023AY 2019-20

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri D. M. Rindani, A.RFor Respondent: Shri B. D. Gupta, Sr. DR
Section 143(1)Section 143(1)(a)Section 154Section 254Section 254(2)Section 80Section 80PSection 80P(2)Section 80P(2)(d)

Rashtriya Chemicals and Fertilisers Employees Co-Op Credit Society, Mumbai vs. ITO, Ward-27(3)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 765/MUM/2023[2012-13]Status: DisposedITAT Mumbai30 May 2023AY 2012-13

Bench: Shri Aby T. Varkey, Jm & Shri Prashant Maharishi, Am आयकर अपील सं/ I.T.A. No.765/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2012-13) Rashtriya Chemicals & बिधम/ The Ito, Ward-27(3)(1) Fertilisers Employees’ Co- Room No. 442, 4Th Floor, Vs. Op. Credit Society Tower No. 6, Vashi Type-1A/21 481/484, Railway Station Chembur, Mumbai-400074. Commercial Complex, Vashi, Navi Mumbai- 4000703. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaaar1076N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Mayank Thosar Revenue By: Shri P. D. Chougule (Addl. Cit) सुनवाई की तारीख / Date Of Hearing: 24/05/2023 घोषणा की तारीख /Date Of Pronouncement: 30/05/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Rashtriya Chemicals & Fertilisers Employees Co-Operative Credit Society Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi Dated 12.01.2023 For The Assessment Year 2012-13. 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) In Confirming The Action Of The Ao In Not Allowing The Deduction Claimed By The Assessee U/S 80P Of The Income Tax Act, 1961 (Hereinafter “The Act”) To The Tune Of Rs.99,59,604/-. 3. Brief Facts Of The Case Are That The Assessee Is A Credit Co- Operative Society Providing Credit Facilities To Its Members. The Assessee Filed Its Return Of Income On 27.09.2012 Declaring Total Income Of Rs.Nil. Later, The Case Of The Assessee Was Selected For Scrutiny Under Cass. & The Ao Noted That The Assessee Is A Co-

For Appellant: Shri Mayank ThosarFor Respondent: Shri P. D. Chougule (Addl. CIT)
Section 80PSection 80P(2)(a)Section 80P(4)

Pradeshik Manorungnalaya Karmachary Sahakari Patha Sanstha, Pune vs. Income Tax Officer, Ward-7(2), Pune

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

ITA 573/PUN/2023[2016-17]Status: DisposedITAT Pune29 May 2023AY 2016-17
For Appellant: Shri Digambar SurwaseFor Respondent: Shri Piyush Kumar Singh Yadav
Section 142(1)Section 144Section 80P