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

Income-Tax Officer, Ward - 5(1), Pune vs. Maharashtra State Co-Operative Credit Societies Deposit Gurantee Corp. Ltd, Pune

In the result, quantum assessment appeals for the A

ITA 1492/PUN/2018[2007-08]Status: DisposedITAT Pune18 Aug 2021AY 2007-08

Bench: Shri R.S. Syal & Shri S.S.Viswanethra Raviआयकर अपीऱ सं. / Ita No.709/Pun/2017 निर्धारण वषा / Assessment Year : 2008-09 Ito, Ward 5(1), Vs. Maharashtra State Co-Operative Pune Credit Societies Deposit Guarantee Corp. Ltd., Suraksha Bhawan, Plot No.9, Gultekdi, Pune – 411037 Pan: Aabtm4090M Appellant Respondent आयकर अपीऱ सं. / Ita Nos.1492 & 1493/Pun/2018 निर्धारण वषा / Assessment Years : 2007-08 & 2008-09 Ito, Ward 5(1), Vs. Maharashtra State Co-Operative Pune Credit Societies Deposit Guarantee Corp. Ltd., Suraksha Bhawan, Plot No.9, Gultekdi, Pune – 411037 Pan: Aabtm4090M Corrigendum Per R.S.Syal, Vp : This Corrigendum Is Being Issued To Correct The Typographical Mistake In The Date Of Pronouncement Mentioned In First Page Of Order. The Same May Be Read As “13.08.2021” Instead Of “13.05.2021”. (S.S. Viswanethra Ravi) (R.S.Syal)पुणे Pune; दििधंक Dated : 18Th August, 2021 Gcvsr

Section 22Section 271(1)(c)Section 80PSection 80P(2)(a)

Income Tax Officer, Pune vs. Maharashtra State Co-Operative Credit Societies Deposite Gurantee Corp.Ltd, Pune

In the result, quantum assessment appeals for the A

ITA 709/PUN/2017[2008-09]Status: DisposedITAT Pune18 Aug 2021AY 2008-09

Bench: Shri R.S. Syal & Shri S.S.Viswanethra Raviआयकर अपीऱ सं. / Ita No.709/Pun/2017 निर्धारण वषा / Assessment Year : 2008-09 Ito, Ward 5(1), Vs. Maharashtra State Co-Operative Pune Credit Societies Deposit Guarantee Corp. Ltd., Suraksha Bhawan, Plot No.9, Gultekdi, Pune – 411037 Pan: Aabtm4090M Appellant Respondent आयकर अपीऱ सं. / Ita Nos.1492 & 1493/Pun/2018 निर्धारण वषा / Assessment Years : 2007-08 & 2008-09 Ito, Ward 5(1), Vs. Maharashtra State Co-Operative Pune Credit Societies Deposit Guarantee Corp. Ltd., Suraksha Bhawan, Plot No.9, Gultekdi, Pune – 411037 Pan: Aabtm4090M Corrigendum Per R.S.Syal, Vp : This Corrigendum Is Being Issued To Correct The Typographical Mistake In The Date Of Pronouncement Mentioned In First Page Of Order. The Same May Be Read As “13.08.2021” Instead Of “13.05.2021”. (S.S. Viswanethra Ravi) (R.S.Syal)पुणे Pune; दििधंक Dated : 18Th August, 2021 Gcvsr

Section 22Section 271(1)(c)Section 80PSection 80P(2)(a)

M/S. Jyothi Pattin Souhard Sahakari Niyamit, Gadag vs. Principal Commissioner of Income Tax, Hubballi

In the result, appeal of the Assessee is dismissed

ITA 650/BANG/2020[2015-16]Status: DisposedITAT Bangalore13 Aug 2021AY 2015-16
For Appellant: Shri. R. Chandrashekar, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 263Section 28Section 80Section 80P(2)(a)Section 80P(2)(d)

Sri Vasavamba Co-Operative Society Limited, Hunsur vs. The Principal Commissioner of Income Tax, Mysore

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

ITA 453/BANG/2020[2015-16]Status: DisposedITAT Bangalore13 Aug 2021AY 2015-16

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariassessment Year : 2015-16 M/S. Vasavamba Co-Operative Society Ltd., Vs. The Principal Commissioner Of Income Tax, Ganesh Temple, Street Hunsur, Mysuru. Mysuru – 571 105, Karnataka. Pan : Aalas 6055 P Appellant Respondent Appellant By : Shri. V. Srinivasan, Advocate Respondent By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 10.08.2021 Date Of Pronouncement : 13.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 28.04.2020 Of Pr.Cit, Mysuru, Passed Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Called ‘The Act’), In Relation To Assessment Year 2015-16. 2. The Assessee Is A Co-Operative Society Registered Under The Karnataka State Co-Operative Societies Act, 1959. It Accepts Deposits From Its Members & Provides Credit Facilities To Its Members. The Assessee Also Derives Income By Distributing Food Grains On Behalf Of The Karnataka State Food & Civil Supplies Corporation Ltd. In The Return Of Income Filed For Assessment Year 2015-16, The Asssessee Claimed Deduction Under Section 80P(2)(A)(I) Of The Act, 1961 Of A Sum Of Rs.10,61,494/- As Income From The Business Of Providing Credit Facilities To Its Members. The Ao Page 2 Of 15 Passed An Order Of Assessment Under Section 143(3) Of The Act Dated 31.07.2017 Accepting The Claim Of The Assessee.

For Appellant: Shri. V. Srinivasan, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 263Section 80Section 80P(2)(a)Section 80P(2)(d)

M/S Bel Employees House Building Co-Operative vs. The Income Tax Officer

Appeal is disposed of

ITA/292/2018HC Karnataka12 Aug 2021

Bench: ALOK ARADHE,HEMANT CHANDANGOUDAR

Section 260Section 80P(2)(d)

M/S.India Coffee Board Workers Co-Operative Society vs. The Commissioner of Income Tax

ITA/86/2015HC Kerala10 Aug 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Appellant: M/S.INDIA COFFEE BOARD WORKERS CO-OPERATIVEFor Respondent: THE COMMISSIONER OF INCOME TAX
Section 260ASection 40Section 80PSection 80P(2)(a)

ITO 23 (2)(3), Mumbai vs. M/S Mig Co-Op Housing Ociety Group II Ltd., Mumbai

The appeal are allowed

ITA 7326/MUM/2019[2013-14]Status: DisposedITAT Mumbai09 Aug 2021AY 2013-14
Section 12Section 80PSection 80P(2)(c)Section 80P(2)(d)

ITO 23 (2)(3), Mumbai vs. M/S Mig Co-Op Housing Society Group II Ltd., Mumbai

The appeal are allowed

ITA 7325/MUM/2019[2012-13]Status: DisposedITAT Mumbai09 Aug 2021AY 2012-13
Section 12Section 80PSection 80P(2)(c)Section 80P(2)(d)

M/S. Perady Vyavasaya Seva Sahakari Bank Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

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

ITA 1451/BANG/2019[2016-17]Status: DisposedITAT Bangalore06 Aug 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Perady Vyavasaya Seva Sahakari Bank Ltd., Vs. Ito, 01, Post Perady, Ward – 1, Belthangady – 574 236. Puttur. Pan : Aaalp 0218 K Appellant Respondent Appellant By : Smt. Sheethal R. Borkar, Advocate Respondent By : Shri. Kannan Narayanan, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 04.08.2021 Date Of Pronouncement : 06.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 27.03.2019 Of Cit(A), Mangaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Primary Agricultural Co-Operative Society Engaged In The Business Of Acceptance Of Deposits From Lenders, Lending Loans, Providing Banking Facility In Rural Village. The Assessee Filed Return Of Income For The Relevant Ay Declaring Nil Income After Claiming Deduction Of Rs.1,04,78,572/- Under Section 80P Of The Income Tax Act, 1961 (Act).

For Appellant: Smt. Sheethal R. Borkar, AdvocateFor Respondent: Shri. Kannan Narayanan, JCIT(DR)(ITAT), Bengaluru
Section 80PSection 80P(2)(a)Section 80P(2)(d)

M/S. Venoor Co-Operative Agricultural Bank Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

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

ITA 1448/BANG/2019[2016-17]Status: DisposedITAT Bangalore06 Aug 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Venoor Co-Operative Agricultural Bank Ltd., Vs. Ito, Venur, Belthangady – 574 242. Ward – 1,Puttur. Pan : Aaajv 0184 C Appellant Respondent Appellant By : Smt. Sheethal R. Borkar, Advocate Respondent By : Shri. Kannan Narayanan, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 04.08.2021 Date Of Pronouncement : 06.08.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 27.03.2019 Of Cit(A), Mangaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Primary Agricultural Co-Operative Society Engaged In The Business Of Acceptance Of Deposits From Lenders, Lending Loans, Providing Banking Facility In Rural Village. The Assessee Filed Return Of Income For The Relevant Ay Declaring Nil Income After Claiming Deduction Of Rs.83,12,836 Under Section 80P Of The Income Tax Act, 1961 (Act).

For Appellant: Smt. Sheethal R. Borkar, AdvocateFor Respondent: Shri. Kannan Narayanan, JCIT(DR)(ITAT), Bengaluru
Section 80PSection 80P(2)(a)Section 80P(2)(d)

Punjab National Bankall Cadre Co. T&C Sociiety Ltd, New Delhi vs. ITO, Ward-52(4), New Delhi

The appeal of the assessee is allowed with above direction

ITA 4761/DEL/2017[2013-14]Status: DisposedITAT Delhi04 Aug 2021AY 2013-14

Bench: Shri Kul Bharata N D Shri Prashant Maharishi(Through Video Conferencing)

For Appellant: N o n eFor Respondent: Shri Govind Singhal, Sr. DR
Section 143Section 194JSection 40Section 80Section 80P

M/S. Thannirupantha Primary Agricultural Credit Co-Operative Society Limited, Belthangady vs. Income Tax Officer, Ward- 1, Puttur

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 277/BANG/2020[2016-17]Status: DisposedITAT Bangalore30 Jul 2021AY 2016-17

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Srinivasan, AdvocateFor Respondent: Sri.Nethrapal, Addl.CIT-DR
Section 57Section 8O

M/S. Thannirupantha Primary Agricultural Credit Co-Operative Society Limited, Belthancady vs. Income Tax Officer, Ward- 1, Puttur

In the result, the appeals filed by the assessee are allowed for statistical purposes

ITA 276/BANG/2020[2015-16]Status: DisposedITAT Bangalore30 Jul 2021AY 2015-16

Bench: Shri George George K, Jm & Shri B.R.Baskaran, Am

For Appellant: Sri.V.Srinivasan, AdvocateFor Respondent: Sri.Nethrapal, Addl.CIT-DR
Section 57Section 8O

M/S. Kadaba Sahakari Vyavasayika Bank Limited, Kadaba vs. Income Tax Officer, Ward - 1, Puttur

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

ITA 210/BANG/2020[2016-17]Status: DisposedITAT Bangalore23 Jul 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year : 2016-17 M/S. Kadaba Sahakari Vyavasayika Vs. Ito, Bank Ltd., Ward – 1, Kadaba Post, Kadaba Tq. Puttur. Dk – 574 221. Pan : Aaajk 0025 B Appellant Respondent Appellant By : Shri. V. Srinivasan, Advocate Respondent By : Smt. R. Premi, Jcit(Dr)(Itat), Bengaluru Date Of Hearing : 22.07.2021 Date Of Pronouncement : 23.07.2021 O R D E R Per N.V. Vasudevanthis Is An Appeal By The Assessee Against The Order Dated 06.01.2020 Of Cit(A), Mangaluru, Relating To Assessment Year 2016-17. 2. The Assessee Is A Primary Agricultural Co-Operative Society Duly Registered Under The Karnataka Co-Operative Societies Act,1959 & Is Engaged In The Business Of Accepting Deposits From Members, Lending Credit Facilities To Its Members (Mainly Agricultural Loans), Distribution Of Food Grains & Other Products Under State Govt'S Public Distribution System, Sale Of Fertilizers / Pesticides Etc., To Farmers. Page 2 Of 7 3. The Assessee Filed Its Return Of Income For The Assessment Year 2016-17 On 14-10-2016 Declaring A Total Income Of Rs.64,060 After Claiming Deduction Of Rs. 1,92,69,544 U/S 80P(2)(D) Of The Act. Thereafter, The Assessee’S Case Was Selected For Scrutiny Under Cass & Notice U/S 143(2) Was Issued By The Ao On 04-072017. During The Course Of The Assessment Proceedings, The Assessee Submitted A Revised Statement Of Income Declaring A Gross Total Income Of Rs 2,17,53,604 & Total Income Of Rs Nil, After Claiming A Deduction Of Rs 2,17,53,604 Under Sec 80P Of The Act.

For Appellant: Shri. V. Srinivasan, AdvocateFor Respondent: Smt. R. Premi, JCIT(DR)(ITAT), Bengaluru
Section 143(2)Section 80PSection 80P(2)(a)Section 80P(2)(d)

M/S. Srinagara Credit Co-Operative Society Limited, Bangalore vs. Income Tax Officer, Ward- 5(2)(5), Bangalore

In the result, both the appeals are treated as allowed for statistical purposes

ITA 163/BANG/2020[2016-17]Status: DisposedITAT Bangalore23 Jul 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaran

For Appellant: Shri. V. Narendra Sharma, AdvocateFor Respondent: Smt. R. Premi, JCIT(DR)(ITAT), Bengaluru
Section 148Section 80PSection 80P(2)(a)Section 80P(2)(c)Section 80P(2)(d)

M/S. Srinagara Credit Co-Operative Society Limited, Bangalore vs. Income Tax Officer, Ward- 5(2)(5), Bangalore

In the result, both the appeals are treated as allowed for statistical purposes

ITA 162/BANG/2020[2015-16]Status: DisposedITAT Bangalore23 Jul 2021AY 2015-16

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaran

For Appellant: Shri. V. Narendra Sharma, AdvocateFor Respondent: Smt. R. Premi, JCIT(DR)(ITAT), Bengaluru
Section 148Section 80PSection 80P(2)(a)Section 80P(2)(c)Section 80P(2)(d)

Primary Agricultural Credit Co-Operative Society Limited, Chikkamagaluru vs. Principal Commissioner of Income Tax, Mysore

ITA 568/BANG/2020[2015-16]Status: DisposedITAT Bangalore14 Jul 2021AY 2015-16

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Shri Mahesh R.Uppin, AdvocateFor Respondent: Shri Muzaffar Hussain, CIT-DR
Section 143(3)Section 263Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

Shivkripa Sahakari Patpedhi Ltd, Mumbai vs. PCIT-29, Mumbai

ITA 1672/MUM/2019[2014-15]Status: DisposedITAT Mumbai12 Jul 2021AY 2014-15

Bench: Shri S. Rifaur Rahman () & Shri Pavan Kumar Gadale () Assessment Year: 2014-15 Shivkrupa Sahakari Patpedhi Ltd., The Pcit-29, C-10, 3Rd Floor, Pratyaksh Kar 219/3111, Group No. 1, Dr. Vs. Ambedkar Chowk, Tagore Nagar, Bhavan, Bandra Kurla Complex, Vikhroli (East), Bandra (East), Mumbai-400083. Mumbai-400051. Pan No. Aaaas 3870 K Appellant Respondent Assessee By : Mr. Kishor Phadke, Ar Revenue By : Mr. Yashvant Bhaskar, Dr Date Of Hearing : 10/05/2021 Date Of Pronouncement : 12/07/2021

For Appellant: Mr. Kishor Phadke, ARFor Respondent: Mr. Yashvant Bhaskar, DR
Section 143(1)Section 143(2)Section 143(3)Section 263Section 80PSection 80P(2)(a)Section 80P(2)(c)

M/S. the Puttur Primary Co-Operative Agriculture and Rural Development Bank Limited, Dakshina Kannada vs. The Income Tax Officer, Ward- 1, Puttur

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

ITA 1449/BANG/2019[2016-17]Status: DisposedITAT Bangalore14 Jun 2021AY 2016-17

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2016-17

For Appellant: Smt. Sheetal, A.RFor Respondent: Shri Priyadarshi Mishra, D.R
Section 80PSection 80P(2)(a)Section 80P(2)(d)

M/S. Bardoli Vibhag Gram Vikas Co.-Op.Credit Society Ltd., Surat vs. The Pr.. Commissioner of Income Tax, -2, Surat

In the result, appeal of the assessee is allowed

ITA 283/SRT/2019[2014-15]Status: DisposedITAT Surat11 May 2021AY 2014-15

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Virtual Hearing) आ.अ.सं./I.T.A No.283/Srt/2019 "नधा"रण वष"/Assessment Year: 2014-15 Bardoli Vibhag Gram Vikas Co.Op. Vs The Principal Credit Society Ltd., Commissioner Of Income Sahakar Sadan, Station Road, Tax-2, Surat. Bardoli, Surat. [Pan: Aaatb 8135 B] अपीलाथ" / Appellant ""यथ"/Respondent "नधा"रतीक"ओर से /Assessee By Shri Mitesh Modi – Ca राज"वक"ओर से /Revenue By Shri Ritesh Mishra – Cit-Dr सुनवाई की तारीख/ Date Of Hearing: 29.04.2021 उ"घोषणा क" तार"ख/Pronouncement On: 12.05.2021 आदेश /O R D E R Per Pawan Singh, Judicial Memeber: 1. This Appeal By The Assessee Is Directed Against The Order Of Ld. Principal Commissioner Of Income Tax-2, Surat Hereinafter Referred As “Ld. Pcit”, Passed Under Section 263 Of Income- Tax Act (Act) Dated 26.03.2019 For The Assessment Year (Ay) 2014-15. 2. Brief Facts Of The Case Are That The Assessee Is A Co-Operative Society Engaged In The Business Of Providing Credit Facility To Its Members By Accepting The Deposits From Members & Lending Money Them Too. The Assessee Filed Its Return Of Income For A.Y. 2014-15 On 21.08.2013 Declaring Nil Income. In The Computation Of Income, The Assessee Claimed Deduction 80P Of The Act Of Rs.7,03,56,728/-. The Return Of Income Was Bardoli Vibhag Gram Vikas Cooperative Credit Society Ltd., Vs. Pcit

Section 142(1)Section 143(3)Section 263Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)