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

Sai Prerana Co-Op Credit Society Ltd, Mumbai vs. Income Tax Officer 17(3)(2), Mumbai

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

ITA 3169/MUM/2022[2017-18]Status: DisposedITAT Mumbai20 Feb 2023AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Pavan Kumar Gadale () Assessment Year: 2017-18 Sai Prerana Co-Op. Credit Income Tax Officer-17(3)(2), Society Ltd, Room No. 126, 1St Floor, 317, Puran Aasha Bldg., Gr. Fl. Vs. Kautilya Bhavan, C-41 To C- Narashi Natha Street, Kathe 43, G Block, Bandra Kurla Bazar Masjid Bunder (W), Complex, Bandra (East), Mumbai-400 009. Mumbai-400051. Pan No. Aadts 5638 M Appellant Respondent Assessee By : Ms. Ruby Srivastava- Advocate & Mr. Bharat Kumar, Ca Revenue By : Mrs. Sonia Kumar, Dr Date Of Hearing : 15/02/2023 : Date Of Pronouncement 20/02/2023

For Appellant: Ms. Ruby Srivastava- Advocate &For Respondent: Mrs. Sonia Kumar, DR
Section 143(1)Section 143(3)Section 80P

The Kongad Service Co-Operative Bank Ltd vs. The Additional/Joint/Deputy/Asst. Commissioner of Income Tax/Income Tax Officer

WP(C)/4794/2023HC Kerala14 Feb 2023

Bench: The 2Nd Respondent. Since The Petitioner Has Already Availed The Statutory

Section 80P

The Sreekrishnapuram Service Co-Operative Bank Ltd vs. The Additional/Joint/Deputy/Asst. Commissioner of Income Tax/Income Tax Officer

WP(C)/4760/2023HC Kerala14 Feb 2023

Bench: The 2Nd Respondent. Since The Petitioner Has Already Availed The Statutory

Section 80P

M/S. Prathamika Krushi Pattina Sahakara Niyamita, Hosapete vs. Income Tax Officer, Ward-2, Ballari

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

ITA 23/BANG/2023[2017-18]Status: DisposedITAT Bangalore14 Feb 2023AY 2017-18

Bench: Shri Laxmi Prasad Sahuprathamika Krishi Pattina Vs The Income Tax Officer Sahakara Sangha Niymit Ward - 2 No. 350, Ward No. 15, Hospet 583201 Amaravathi Village, Hospet Tq. Ballari - 583201 Pan – Aaajp0326N (Appellant) (Respondent) Assessee By: Shri Siva Prasad Reddy, Irs (Retd) Revenue By: Shri Ganesh R. Ghale, Standing Counsel Date Of Hearing: 13.02.2023 Date Of Pronouncement: 14.02.2023 O R D E R Per: Laxmi Prasad Sahu, A.M. This Is An Appeal Filed By The Assessee Against The Order Passed By The Learned Cit(A)/Nfac, Delhi In Appeal Din & Order No. Itba/Nfac/S/ 250//2022-23/1047496227(1) Dated 18.11.2022 For Ay 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1. The Impugned Assessment Order Made U/S 143(3) Of The Act Dated, 25-11-2019, Is Arbitrary & Opposed To The Facts Of The Case & The Principles Of Natural Justice & Therefore, The Same Is Liable To Be Vacated As Void. 2. The Learned Cit(A) Failed To Appreciate: (I) That The Interest Income Accruing From The Investments Made In Statutory Compliance Of The Provisions Of The State Co-Operative Societies Act, 1959 Is Eligible For The Deduction As Business Income U/S 80P(2)(A)(I) Of The Act.

For Appellant: Shri Siva Prasad Reddy, IRS (Retd)For Respondent: Shri Ganesh R. Ghale, Standing Counsel
Section 143(3)Section 234ASection 56Section 57Section 80Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Shree Sanaliya Seva Sahkari Mandli Ltd., Lital Motaliliya Sanaliya, Dist. Amreli vs. The DCIT (CPC), Bangalore

In the result, all the 4 appeals are allowed

ITA 204/RJT/2022[2019-20]Status: DisposedITAT Rajkot10 Feb 2023AY 2019-20

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2019-20

For Appellant: Shri D.M. Rindani, ARFor Respondent: Shri B.D. Gupta, Sr. DR &
Section 139(1)Section 139(4)Section 143(1)Section 143(1)(a)Section 143(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(2)(e)

Amrutpur Seva Sahkari Mandali Ltd., Village: - Amrutpur Taluka Dhari, Dist. Amreli vs. The DCIT (CPC), Bangalore

In the result, all the 4 appeals are allowed

ITA 203/RJT/2022[2019-20]Status: DisposedITAT Rajkot10 Feb 2023AY 2019-20

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2019-20

For Appellant: Shri D.M. Rindani, ARFor Respondent: Shri B.D. Gupta, Sr. DR &
Section 139(1)Section 139(4)Section 143(1)Section 143(1)(a)Section 143(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(2)(e)

Dhareshwar Seva Sahakari Mandali Ltd., Village: - Dhareshwar, Taluka: - Rajula, Dist. Amreli vs. The DCIT (CPC), Bangalore

In the result, all the 4 appeals are allowed

ITA 197/RJT/2022[2019-20]Status: DisposedITAT Rajkot10 Feb 2023AY 2019-20

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2019-20

For Appellant: Shri D.M. Rindani, ARFor Respondent: Shri B.D. Gupta, Sr. DR &
Section 139(1)Section 139(4)Section 143(1)Section 143(1)(a)Section 143(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(2)(e)

Ambaradi Seva Sahkari Mandali Ltd., Ambaradi, Dist. Amreli vs. The DCIT(CPC), Bangaluru, Bengaluru

In the result, all the 4 appeals are allowed

ITA 186/RJT/2022[2019-20]Status: DisposedITAT Rajkot10 Feb 2023AY 2019-20

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2019-20

For Appellant: Shri D.M. Rindani, ARFor Respondent: Shri B.D. Gupta, Sr. DR &
Section 139(1)Section 139(4)Section 143(1)Section 143(1)(a)Section 143(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(2)(e)

K274 Uthukuli Primary Agricultural Cooperative Credit Society Ltd, Tirupur vs. ITO, NFAC, Delhi

ITA 860/CHNY/2022[2018-2019]Status: DisposedITAT Chennai08 Feb 2023AY 2018-2019

Bench: Shri V. Durga Rao, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./Ita No.: 860/Chny/2022 िनधा"रण वष" / Assessment Year: 2018-19

For Appellant: Ms. G. Vardini Karthik, Advocate
Section 143(3)Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 8O

Shree Aggar Dhara Co-Op Trift & Credit Society Ltd, Delhi vs. ITO, Ward-39(5), New Delhi

Appeal are allowed for statistical

ITA 2294/DEL/2022[2018-19]Status: DisposedITAT Delhi08 Feb 2023AY 2018-19

Bench: Shri Kul Bharat[Assessment Year: 2018-19

Section 143(1)Section 80PSection 80P(2)(a)

The Kekri Cooperative Marketing Society, Ajmer vs. ITO, Ward-2(3), Ajmer

In the result, the appeal of the assessee is allowed

ITA 277/JPR/2022[2013-14]Status: DisposedITAT Jaipur08 Feb 2023AY 2013-14

Bench: Hon’ble SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri Sunil Porwal, CAFor Respondent: Mrs. Monisha Choudhary, JCIT
Section 249(3)Section 271(1)Section 80P

M/S. Yasha Pattina Souharda Sahakari Ni, Raichur vs. ITO, Ward-1, Raichur

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

ITA 1177/BANG/2022[2019-20]Status: DisposedITAT Bangalore07 Feb 2023AY 2019-20

Bench: Shri Chandra Poojariassessment Year: 2019-20

For Appellant: Shri Channamalikarjuna Gowda, A.RFor Respondent: Shri Ganesh R. Ghale, Standing Counsel for Revenue
Section 154Section 253(3)Section 80PSection 80P(2)Section 80P(2)(a)

Kadannamanna Service Co-operative Bank vs. The National Faceless Appeal Centre

WP(C)/3807/2023HC Kerala06 Feb 2023
Section 80P

The Junior Engineers (Telecom) Cooperatives Credit Society Ltd., Kolkata vs. I.T.O., Ward - 11(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 662/KOL/2022[2018-2019]Status: DisposedITAT Kolkata06 Feb 2023AY 2018-2019

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.662/Kol/2022 Assessment Year: 2018-19 The Junior Engineers (Telecom) Cooperatives Credit Society Ltd..…..…Appellant Telephone Bhavan, Room No.610, 6Th Floor, 34 Bbd Bag(South), Kolkata-1. [Pan: Aadat1109K] Vs. Ito, Ward-11(1), Kolkata.…..….............................................…....…..…..Respondent Appearances By: Shri Subhabrata Dutta, Ca, Appeared On Behalf Of The Appellant. Smt. Ranu Biswas, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 16, 2023 Date Of Pronouncing The Order : February 06, 2023 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 20.09.2022 Of The National Faceless Appeal Centre [Hereinafter Referred To As The ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1. For That Hon’Ble Cit(A) Erred In Law As Well As On Facts In Confirming The Disallowance Of The Benefit Of Deduction U/S 80P For Alleged Late Filing Of Return For No Fault On The Part Of The Assessee, Which Is Not Sustainable In The Eye Of Law & Needs To Be Deleted.

Section 139Section 139(1)Section 139(4)Section 250Section 80ASection 80P

The Kuruvambalam Service Co-operative Bank Ltd. F 1638 vs. The National Faceless Appeal Centre

WP(C)/3663/2023HC Kerala03 Feb 2023
Section 80P

The Perinthalmanna Co-Operative Agrioultural & Rural Development Bank Ltd. No.P505 vs. The Income Tax Officer

WP(C)/3696/2023HC Kerala03 Feb 2023

Bench: The 2Nd Respondent. Since The Petitioner Has Already Availed A Statutory Remedy, This Writ Petition Is Disposed Of Directing The Appellate Authority To Consider The Appeal & Pass Orders On The Same At The Earliest. The

Section 80P

Pulamanthole Service Co-operative Bank Limited vs. The National Faceless Appeal Centre

WP(C)/3667/2023HC Kerala03 Feb 2023
Section 80P

The Ramapuram Service Co-Operative Bank Limited vs. The National Faceless Appeal Centre

WP(C)/3332/2023HC Kerala02 Feb 2023

Bench: The 1St Respondent. Since The Petitioner Has Already Availed The Statutory

Section 80P

S 1129 Erumapalayam Primary Agricultural Co-Op Credit Society, Salem vs. ITO, NFAC, Delhi

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

ITA 1092/CHNY/2022[2017]Status: DisposedITAT Chennai31 Jan 2023

Bench: Shri V. Durga Rao & Shri Manoj Kumar Aggarwalआयकर अपील सं./I.T.A. No.1092/Chny/2022 िनधा"रण वष"/Assessment Year: 2017-18 M/S. S 1129 Erumapalayam Primary Vs. The Income Tax Officer, Agricultural Co-Op. Credit Society, National Faceless Assessment Annai Janaki Mgr Nagar, Centre, New Delhi. Erumapalayam, Salem 636 015. [Pan:Aaeas6676B] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : None ""थ" की ओर से/Respondent By : Shri D. Hema Bhupal, Jcit सुनवाई की तारीख/ Date Of Hearing : 23.01.2023 घोषणा की तारीख /Date Of Pronouncement : 31.01.2023 आदेश /O R D E R Per V. Durga Rao:

For Appellant: NoneFor Respondent: Shri D. Hema Bhupal, JCIT
Section 143(2)Section 143(3)Section 271BSection 44ASection 80P

Vapi Merchant Saving & Credit Co. Op. Society Ltd., Vapi vs. The PCIT, Valsad

In the result, appeal of the assessee is allowed

ITA 107/SRT/2022[2017-18]Status: DisposedITAT Surat31 Jan 2023AY 2017-18

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.107/Srt/2022 "नधा"रण वष"/Assessment Year: (2017-18) (Virtual Court Hearing) Vapi Merchant Saving & Credit Co. Vs. The Pcit, Valsad. Op. Society, 130, 1St Floor Varun Complex, Opp. Reliance Super Market, Gidc, Vapi – 396195. (Appellant) (Respondent) "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaaav3925E

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