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

Pariyaram Service Co Operative Bank Ltd vs. The Income Tax Officer

WP(C)/12855/2023HC Kerala11 Apr 2023

Bench: The 3Rd Respondent. Since The Petitioner Has Already Availed The Statutory Remedy, This Writ Petition Is Disposed Of Directing The Appellate

Section 80P

Inchakundu Service Co- Operative Bank Ltd vs. Income Tax Officer

WP(C)/12661/2023HC Kerala10 Apr 2023
Section 80P

Inchakundu Service Co- Operative Bank Ltd vs. The Income Tax Officer

WP(C)/12645/2023HC Kerala10 Apr 2023
Section 80P

Koratty Service Co-Operative Bank Limited, No. R 314 vs. The Income Tax Officer

WP(C)/12597/2023HC Kerala10 Apr 2023
Section 80P

M/S Indore Mandal Dak Tar Karamchari Sehakari Sanstha Maryadit, Indore vs. The ITO 5 (1), Indore

Appeal of the assessee is partly allowed for statistical purpose

ITA 400/IND/2022[2017-18]Status: DisposedITAT Indore10 Apr 2023AY 2017-18

Bench: Ms. Suchitra Kamble & Shri Bhagirath Mal Biyani

For Appellant: Shri Venus Rawka, C.AFor Respondent: Shri Ashish Porwal, Sr. D.R
Section 143(2)Section 80P

Income-Tax, Ward-1 & Tps, Tumkur vs. M/S. Tumkuru Basaveshwara Credit Co-Operative Society Limited, Tumkur

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

ITA 75/BANG/2023[2017-18]Status: DisposedITAT Bangalore05 Apr 2023AY 2017-18

Bench: Shri George George K, Jm & Shri Laxmi Prasad Sahu, Am

For Appellant: Sri.Janardhan Sanathan, JCIT-DRFor Respondent: Sri.Balasubramanyam, CA
Section 143(2)Section 143(3)Section 40Section 80PSection 80P(1)Section 80P(1)(d)Section 80P(2)(a)

Shiksha Vibhag Karmchari Sahkari Samiti Limited, Bundi vs. ITO, Bundi

In the result, the appeal of the assessee is allowed

ITA 272/JPR/2022[2019-2020]Status: DisposedITAT Jaipur05 Apr 2023AY 2019-2020

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri S.L. Podar (Adv.)For Respondent: Shri A.S. Nehra (Addl. CIT)
Section 139(4)Section 143(1)Section 80P

Ghatal Co-Operative Agriculture and Rural Development Bank Ltd., Midnapore vs. A.C.I.T., Circle - 38, Midnapur

In the result, the appeal of the assessee is allowed

ITA 114/KOL/2023[2014-2015]Status: DisposedITAT Kolkata31 Mar 2023AY 2014-2015

Bench: Shri Sonjoy Sarma, Hon’Ble & Shri Girish Agrawal, Hon’Bleassessment Year: 2014-15 Ghatal Co-Operative Agriculture Acit, Circle-38 & Rural Development Bank Midnapur Ltd. Vs. Vill. Kushpata, P.O. Ghatal, West Midnapur-721212. Pan: Aacag 0645 G (Appellant) (Respondent) Present For: Assessee By : Shri Asim Kumar De, Ar Revenue By : Smt. Ranu Biswas, Addl. Cit, Sr. Dr Date Of Hearing : 29.03.2023 Date Of Pronouncement : 31.03.2023 O R D E R Per Sonjoy Sarma, Jm: This Appeal Filed By The Assessee Pertaining To A.Y. 2014-15 Is Directed Against The Order Of Ld. Cit(A) Dated 30.03.2022 Which Is Arising Out Of Assessment Order Framed U/S 143(3) Of The I.T. Act Dated 31.12.2016. The Assessee Has Taken The Following Grounds Of Appeal: “I. Additions Made By The Ld. Ao Is To Be Allowed As Deduction U/S 80P As Per Conditions Laid Therein.

For Appellant: Shri Asim Kumar De, ARFor Respondent: Smt. Ranu Biswas, Addl. CIT, Sr. DR
Section 143(2)Section 143(3)Section 56Section 80P

Chennai District Coop Union Limited, Chennai vs. ITO, Che-W-(116)(1), Chennai

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

ITA 81/CHNY/2023[2019-20]Status: DisposedITAT Chennai31 Mar 2023AY 2019-20

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita No.: 81/Chny/2023 िनधा"रण वष" / Assessment Year: 2019-20

For Appellant: Shri. N. Arjunraj CA for Shri. S. Sridhar, AdvocateFor Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(1)Section 143(1)(v)Section 80ASection 80PSection 80P(2)(d)

Bhattad Augustine Co-Operative Housing Society Ltd., Mum vs. Centralised Processing Centre, Bangalore

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

ITA 20/MUM/2023[2016-17]Status: DisposedITAT Mumbai31 Mar 2023AY 2016-17
For Appellant: NoneFor Respondent: Shri Anil Gupta
Section 143(1)Section 80P

Income Tax Officer, Ward-1, Mumbai vs. The Thane Zilla Madhyamik Shikshak Sangh Bsahkari Patpedhi Maryadit, Palghar

In the result, all the appeals of the Revenue are dismissed

ITA 3115/MUM/2022[2017-2018]Status: DisposedITAT Mumbai31 Mar 2023AY 2017-2018
Section 143(3)Section 148Section 269SSection 271DSection 80P(2)(a)

Income Tax Officer, Ward-1, Palghar vs. The Thane Zilla Madhyamik Shikshak Sangh Bsahkari Patpedhi Maryadit, Mumbai

In the result, all the appeals of the Revenue are dismissed

ITA 3114/MUM/2022[2016-17]Status: DisposedITAT Mumbai31 Mar 2023AY 2016-17
Section 143(3)Section 148Section 269SSection 271DSection 80P(2)(a)

Income Tax Officer, Ward-1, Palghar vs. The Thane Zilla Madhyamik Shikshak Sangh Bsahkari Patpedhi Maryadit, Mumbai

In the result, all the appeals of the Revenue are dismissed

ITA 3113/MUM/2022[2015-16]Status: DisposedITAT Mumbai31 Mar 2023AY 2015-16
Section 143(3)Section 148Section 269SSection 271DSection 80P(2)(a)

Sagar Premises Co-Operative Socitey Limited, Mumbai vs. Deputy Commissioner of Income Tax, CPC Bengaluru Income Tax Officer -17(3)(1), Mumbai

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

ITA 2797/MUM/2022[2018-2019]Status: DisposedITAT Mumbai31 Mar 2023AY 2018-2019

Bench: Shir Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blesagar Premises Co-Operative Society Ltd., V. Income Tax Officer – 17(3)(1) 327, Sagar Premises, Narshi Natha Street Kautilya Bhavan Kharek Bazar, Masjid (W), Mumbai - 400009 Bandra Kurla Complex Bandra(E), Mumbai - 400051 Pan: Aamas0482M (Appellant) (Respondent)

Section 139(1)Section 234FSection 5ASection 80P(2)(c)Section 80P(2)(d)

Janseva Co-Operative Credit Society Ltd., Mumbai vs. Income Tax Officer, Ward-17(2)(1), Mumbai

ITA 174/MUM/2023[2016-17]Status: DisposedITAT Mumbai30 Mar 2023AY 2016-17
For Appellant: Shri Tanzil R. PadvekarFor Respondent: Shri C.T. Mathews
Section 143(2)Section 250Section 80P

Ss-10 Pupm Thrift Society, Salem vs. ADIT-CPC, Bengaluru

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

ITA 47/CHNY/2023[2019-20]Status: DisposedITAT Chennai29 Mar 2023AY 2019-20

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.47/Chny/2023 िनधा"रण वष"/Assessment Year: 2019-20 Ss 10 Pupm Thrift Society, Vs. The Assistant Director Of Harur Main Road, Ayothiyapattinam Income Tax - Cpc, Post, Valappady Taluk, Salem 636 103. Bengaluru. [Pan: Aavas3179A] (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 : 07.03.2023 घोषणा की तारीख /Date Of Pronouncement : 29.03.2023 आदेश /O R D E R Per V. Durga Rao: 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 19.12.2022 Relevant To The Assessment Year 2019-20. 2. Brief Facts Of The Case Are That The Assessee Has Not Filed The Return Of Income For The Assessment Year 2019-20 Within The Due Date. Therefore, In The Intimation Order Under Section 143(1) Of The Income Tax

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

K1444 Mettupalayam Co-Op. Building Society Limited, Coimbatore vs. DCIT CPC, Begnaluru

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

ITA 46/CHNY/2023[2018-19]Status: DisposedITAT Chennai29 Mar 2023AY 2018-19

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.46/Chny/2023 िनधा"रण वष"/Assessment Year: 2018-19 K1444 Mettupalayam Co-Op. Building Vs. The Deputy Commissioner Of Society Limited, Co-Operative Colony, Income Tax - Cpc, Mettupalayam, Coimbatore 641 301. Bengaluru. [Pan: Aadam3770D] (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 : 07.03.2023 घोषणा की तारीख /Date Of Pronouncement : 29.03.2023 आदेश /O R D E R Per V. Durga Rao: 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 26.12.2022 Relevant To The Assessment Year 2018-19. 2. Brief Facts Of The Case Are That The Assessee Filed The Return Of Income For The Assessment Year 2018-19 On 23.03.2019 Declaring Total Income At ₹.6,64,021/- After Claiming Deduction Under Section 80P Of 2

For Appellant: Shri S. Sridhar, Advocate [Erode]For Respondent: Shri P. Sajit Kumar, JCIT
Section 119(2)(b)Section 139(1)Section 143(1)Section 154Section 80P

S2754 Slm Corporation Ele and Mid School Teachers Coop T 7C Soc Limited, Salem vs. ADIT, CPC, Bengaluru

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

ITA 38/CHNY/2023[2019-20]Status: DisposedITAT Chennai29 Mar 2023AY 2019-20

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.38/Chny/2023 िनधा"रण वष"/Assessment Year: 2019-20 S2754 Slm Corporation Ele & Mid Vs. The Assistant Director Of School Teachers Co-Op. T & C Soc. Income Tax - Cpc, Ltd., No. 22, Car Street, Bengaluru. Salem 636 001, Tamil Nadu. [Pan: Aaras6200L] (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 : 07.03.2023 घोषणा की तारीख /Date Of Pronouncement : 29.03.2023 आदेश /O R D E R Per V. Durga Rao: 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 25.11.2022 Relevant To The Assessment Year 2019-20. 2. Brief Facts Of The Case Are That The Assessee Filed The Return Of Income For The Assessment Year 2019-20 On 03.10.2020 Admitting Nil Income, After Claiming Deduction Under Section 80P Of The Income Tax

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

The Chennai Corporation Officials Co-Operative Society Limited, Chennai vs. ADIT, CPC, Bengaluru

In the result, appeal of the assessee is allowed for

ITA 33/CHNY/2023[2018-19]Status: DisposedITAT Chennai29 Mar 2023AY 2018-19

Bench: Shri Mahavir Singh, Vice- & Shri G.Manjunathaआयकरअपीलसं./I.T.A.No.33/Chny/2023 ("नधा"रणवष" / Assessment Year: 2018-19) The Chennai Corporation Officials Co- Vs The Adit., Operative Society Ltd. No.5125, Centralized Processing Center Bengaluru-560 500. 5125, Ripon Buildings, Evr Periyar Salai, Park Town, Chennai-600 003. Pan:Aaabt 2688P (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Mr. P.Sajit Kumar, JCIT
Section 119(2)(b)Section 139(1)Section 143(3)Section 270ASection 80ASection 80PSection 80P(2)(a)

Sagara Vikasa Mutually Aided Coop Thrift Society Ltd, Visakhapatnam vs. Income Tax Officer, Ward-2(1), Visakhapatnam

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

ITA 235/VIZ/2022[2018-19]Status: DisposedITAT Visakhapatnam29 Mar 2023AY 2018-19

Bench: Shri Duvvuru Rl Reddy, Hon’Bleआयकर अपील सं./I.T.A.No.235/Viz/2022 (ननधधारण वर्ा / Assessment Year : 2018-19) Sagara Vikasa Mutually Aided Coop Vs. Income Tax Officer Thrift Society Ltd., Ward-2(1) Opp. Sun School Visakhapatnam Near Vuda Layout, Bheemunipatnam Visakhapatnam [Pan : Aacas9620H] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri O.N.Hari Prasada Rao, DR
Section 10ASection 11Section 139Section 139(1)Section 139(4)Section 143(1)Section 143(1)(a)Section 80P