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

Sulur Panchayat Union Employees Teachers Co-Op. Thrift and Credit Society Ltd., Sulur vs. ITO, Ncw-4(1), Coimbatore

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

ITA 2725/CHNY/2024[2021-22]Status: DisposedITAT Chennai20 Dec 2024AY 2021-22

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita No.2725/Chny/2024 िनधा"रण वष" /Assessment Year: 2021-22

For Appellant: Shri Karunanandham, AdvocateFor Respondent: Ms. Anitha, Addl. CIT
Section 143(2)Section 144Section 80P

Prathmika Krushi Pattin Sahakari Sanga Niyamit Otihal, Bijapur vs. ACIT, Circle-1, Vijayapura

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

ITA 2080/BANG/2024[2017-2018]Status: DisposedITAT Bangalore20 Dec 2024AY 2017-2018

Bench: Shri Prashant Maharishi & Shri Soundararajan K.Assessment Year : 2017-18

For Appellant: NoneFor Respondent: Shri Ganesh R. Gale, Standing Counsel
Section 131Section 133(6)Section 142(1)Section 144Section 69ASection 80P

No.8729 Keelvani Primary Agricultural Cooperative Credit Society Limited, Erode vs. Income Tax Officer, Ward 2(1), Erode

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

ITA 2299/CHNY/2024[2016-17]Status: DisposedITAT Chennai19 Dec 2024AY 2016-17

Bench: Shri S.S. Viswanethra Ravi & Shri Jagadishआयकर अपील सं./I.T.A. No.2299/Chny/2024 िनधा"रण वष"/Assessment Year: 2016-17 No. 8729 Keelvani Primary Agricultural Vs. The Income Tax Officer, Cooperative Credit Society Limited, Ward 2(1), 87/29, Keelvani (P.O.), Athani Via, Erode. Anthiyur T.K., Tamil Nadu 638 502. [Pan:Aaban2087J] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Ms. A. Vijayalakshmi, C.A. ""थ" की ओर से/Respondent By : Shri K. Rohan Raj, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 03.12.2024 घोषणा की तारीख /Date Of Pronouncement : 19.12.2024 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Order Dated 03.07.2024 Passed By The Addl/Jcit (A), Thane For The Assessment Year 2016-17. 2. At The Outset, The Ld. Ar Ms. A. Vijayalakshmi, Ca Challenged The Action Of The Ld. Cit(A) In Dismissing The Appeal By Refusing To Condone The Delay Of 1517 Days In Filing The Appeal On Which 716 Days Comes Within The Ambit Of Exclusion Provided By The Hon’Ble Supreme Court In 2

For Appellant: Ms. A. Vijayalakshmi, C.AFor Respondent: Shri K. Rohan Raj, Addl. CIT
Section 143(3)Section 80P

Bombay City Postal Clerks Co-Op Credit Society Ltd., Mumbai vs. The Pr. CIT-20, Mumbai

In the result the appeal filed by the assessee stands allowed

ITA 771/MUM/2021[2017-18]Status: DisposedITAT Mumbai19 Dec 2024AY 2017-18

Bench: SMT BEENA PILLAI (Judicial Member), SMT RENU JAUHRI (Accountant Member)

For Appellant: RespondentFor Respondent: Shri Kailash C. Kanojiya, CIT DR
Section 142(1)Section 143(3)Section 260Section 263Section 80PSection 80P(2)Section 80P(4)

Sandvik Asia Employees Co-Op Credit Society Ltd, Pune vs. Ward 8(3), Pune

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

ITA 2207/PUN/2024[2018-19]Status: DisposedITAT Pune18 Dec 2024AY 2018-19

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.2206 & 2207/Pun/2024 Assessment Years : 2017-18 & 2018-19

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri Basavaraj Hiremath
Section 142(1)Section 143(1)Section 143(2)Section 144Section 250Section 250(6)Section 80PSection 80P(2)(d)

Sandvik Asia Employees Co-Op Credit Society Limited, Pune vs. ITO Ward 8(3) Pune, Pune

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

ITA 2206/PUN/2024[2017-18]Status: DisposedITAT Pune18 Dec 2024AY 2017-18

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.2206 & 2207/Pun/2024 Assessment Years : 2017-18 & 2018-19

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri Basavaraj Hiremath
Section 142(1)Section 143(1)Section 143(2)Section 144Section 250Section 250(6)Section 80PSection 80P(2)(d)

Bagnapara Samabay Krishi Unnayan Samity Limited, Kalna-I, Bagnapara vs. PCIT, Asansol

In the result, appeal of the assessee stands dismissed in the terms as indicated above

ITA 1221/KOL/2024[2017-2018]Status: DisposedITAT Kolkata18 Dec 2024AY 2017-2018

Bench: Shri Sanjay Garg & Shri Sanjay Awasthi

Section 143(3)Section 147Section 2Section 263Section 80P

Alakode Coconut and Agricultural Marketing Cooperative Society Limited, Kannur vs. I T O, Ward-4, Kannur

ITA 571/COCH/2024[2019-20]Status: DisposedITAT Cochin18 Dec 2024AY 2019-20

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: Shri Jai Krishnan, AdvocateFor Respondent: Smt. Girly Albert, Snr. DR
Section 119(2)Section 143(1)Section 80P

Alakode Coconut and Agricultural Marketing Cooperative Society Limited, Kannur vs. I T O Ward-4, Kannur

ITA 570/COCH/2024[2018-19]Status: DisposedITAT Cochin18 Dec 2024AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: Shri Jai Krishnan, AdvocateFor Respondent: Smt. Girly Albert, Snr. DR
Section 119(2)Section 143(1)Section 80P

Muzaffarpur Division Life Ins Corp Employees Co. Credit Society Limited, Muzaffarpur vs. ACIT Cirle 1(1), Muzaffarpur

The appeals of the assessee are allowed for statistical purposes

ITA 295/PAT/2024[2015-16]Status: DisposedITAT Patna17 Dec 2024AY 2015-16

Bench: Shri Sonjoy Sarma & Shri Sanjay Awasthii.T.A. Nos.294&295/Pat/2024 Assessment Years: 2011-12 & 2015-16 Muzaffarpur Division Life Ins Corp Employees Coop Credit Society Ltd……Appellant Umashankar Prasad Marg, Ramna, Muzaffarpur, Bihar – 842002. [Pan: Aacam1402D] Vs. Dcit/Acit, Circle-1(1), Muzaffarpur...….…..….........……........……...…..…..Respondent Appearances By: Shri Sanjeev Anwar, Ar, Appeared On Behalf Of The Appellant. Shri Ashwani Kumar, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 16, 2024 Date Of Pronouncing The Order : December 17, 2024 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against Separate Orders Dated 22.12.2023 & 12.12.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) For Assessment Years 2011-12 & 2015-16 Respectively. Since, The Issues Involved In Both The Appeals Are Common & Relate To The Same Assessee, Therefore, These Appeals Have Been Heard Together & Are Being Disposed Of By This Consolidated Order. 2. At The Outset, The Ld. Ar Submitted That There Is A Delay Of 14 Days & 24 Days In Filing The Instant Appeals Respectively. The Assessee-Society Has Filed Applications For Condonation Of Delay Citing Valid & Proper Reasons. After Considering The Averments Made In The Application, We Condone The Delay.

Section 144Section 147Section 148Section 250Section 80PSection 80P(2)(a)

Muzaffarpur Division Life Ins Corp Employees Coop Credit Sociuety Ltd, Muzaffarpur vs. DCIT/ACIT-1(1), Muzaffarpur

The appeals of the assessee are allowed for statistical purposes

ITA 294/PAT/2024[2011-12]Status: DisposedITAT Patna17 Dec 2024AY 2011-12

Bench: Shri Sonjoy Sarma & Shri Sanjay Awasthii.T.A. Nos.294&295/Pat/2024 Assessment Years: 2011-12 & 2015-16 Muzaffarpur Division Life Ins Corp Employees Coop Credit Society Ltd……Appellant Umashankar Prasad Marg, Ramna, Muzaffarpur, Bihar – 842002. [Pan: Aacam1402D] Vs. Dcit/Acit, Circle-1(1), Muzaffarpur...….…..….........……........……...…..…..Respondent Appearances By: Shri Sanjeev Anwar, Ar, Appeared On Behalf Of The Appellant. Shri Ashwani Kumar, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 16, 2024 Date Of Pronouncing The Order : December 17, 2024 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against Separate Orders Dated 22.12.2023 & 12.12.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) For Assessment Years 2011-12 & 2015-16 Respectively. Since, The Issues Involved In Both The Appeals Are Common & Relate To The Same Assessee, Therefore, These Appeals Have Been Heard Together & Are Being Disposed Of By This Consolidated Order. 2. At The Outset, The Ld. Ar Submitted That There Is A Delay Of 14 Days & 24 Days In Filing The Instant Appeals Respectively. The Assessee-Society Has Filed Applications For Condonation Of Delay Citing Valid & Proper Reasons. After Considering The Averments Made In The Application, We Condone The Delay.

Section 144Section 147Section 148Section 250Section 80PSection 80P(2)(a)

Karikunnam Service Co-Operative Bank Ltd, Thodupuzha vs. ITO, Ward-1& Tps, Thodupuzha

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

ITA 364/COCH/2024[2017-2018]Status: DisposedITAT Cochin17 Dec 2024AY 2017-2018

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Assessment Year : 2017-18

For Appellant: Shri Arun Raj S, AdvocateFor Respondent: Smt. Girly Albert, Snr. DR
Section 142Section 80PSection 80P(2)(a)Section 80P(2)(d)Section 80P(4)

Shri Venkatesh Nisarg Sahakari Gruhrachna Sanstha Maryadit, Pune vs. ACIT Ward 9(1), Pune

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

ITA 2174/PUN/2024[2018-19]Status: DisposedITAT Pune16 Dec 2024AY 2018-19

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2174/Pun/2024 िनधा"रण वष" / Assessment Year: 2018-19 Shri Venkatesh Nisarg Sahakari V The Acit, Gruhrachna Sanstha Maryadit, S Ward-9(1), Pune. S.No.56/3/1, Vadagaon Bk, Near Hotel Ashirvad, Haveli, Pune – 411041. Pan: Aaras2349J Appellant/ Assessee Respondent / Revenue Assessee By Shri B.C.Malakar – Ar Revenue By Smt Shraddha Nichal – Addl.Cit(Dr) Date Of Hearing 12/12/2024 Date Of Pronouncement 16/12/2024 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeals)[Nfac] For Assessment Year 2018-19 Dated 30.08.2024 Passed U/Sec.250 Of The Income Tax Act, 1961. The Assessee Has Raised The Following Grounds Of Appeal : “1. On The Facts & In The Circumstances Of The Case & In Law The Ld. Cit(A), Addl/Jcit(A)-2, Bangaluru Erred In Dismissing The Appeal Of The Appellant Assessee Society Thereby Confirming The Computation Of Total Income Made In The Intimation U/S. 143(1) Of The I.T. Act, 1961 Dated 12/07/2019 Issued By The Dcit, Cpc Bangaluru Assessing The Total Income In The Case Of The Appellant At Rs.10,04,160/- Ignoring & Without Appreciating The Facts Of The Case Appellant Housing Society That The Appellant Is A Mutual Society Created By The Members & The Source Of Its Income Was From The Members Only & Therefore Its Income Was Qualified For Exemption Under The Act On Concept Of Mutuality As A Mutual Concern. The Appellate Order Passed By The Appellate Authority Be Quashed & The Assessing Officer Be Directed To Re-Compute The Total Income Of The Appellant At Rs. Nil Treating The Appellant As A Mutual Society.

Section 143(1)Section 250Section 80PSection 80P(2)(a)

N1915 Vellalapatty Paccs Ltd., Salem vs. ITO, Ward-1(6), Salem

The appeal stand allowed in terms of our above order

ITA 2495/CHNY/2024[2018-19]Status: DisposedITAT Chennai16 Dec 2024AY 2018-19
For Appellant: Shri T. Vasudevan (Advocate) - Ld.ARFor Respondent: Shri S. Easwar (JCIT) - Ld. DR
Section 119(2)(b)Section 271BSection 44ASection 80P

Income Tax Officer, Bhimavaram vs. The Yendagandhi Large Size Cooperative Society Limited, Yedagandi

ITA 354/VIZ/2024[2020-21]Status: DisposedITAT Visakhapatnam13 Dec 2024AY 2020-21

Bench: Shri K. Narasimha Chary, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.No.354/Viz/2024 (निर्धारण वर्ा/ Assessment Year: 2020-21) Income Tax Officer - Ward - 1 V. The Yendagandhi Large Size Cooperative Society Limited Opp. Ganesh Canteen 4-16, Kk Road, Yendagandhi J.P. Road, Bhimavaram – 534202 West Godavari District – 534186 Andhra Pradesh Andhra Pradesh [Pan: Aacat0967G] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

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

Amrut Lahri Sahakari Pat Sanshtha Maryadit, Mumbai vs. Income Tax Officer, Ward 27(1)(1), Mumbai

Appeal is allowed for statistical purposes

ITA 5676/MUM/2024[2016-17]Status: DisposedITAT Mumbai12 Dec 2024AY 2016-17

Bench: Shri Anikesh Banerjee (Jm) & Shri Omkareshwar Chidara (Am)

Section 144(1)Section 148ASection 68Section 80P

Maliyana Co-Operative Cane Development Union, Gorakhpur vs. ITO, Ward-1(1)(4), Meerut

Appeal is allowed in above terms

ITA 1874/DEL/2023[2017-18]Status: DisposedITAT Delhi12 Dec 2024AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. M. Balaganeshita No. 1874/Del/2023 : Asstt. Year : 2017-18 Maliyana Co-Operative Cane Vs Income Tax Officer, Development Union, C/O D. S. Kohli, Ward-1(1)(4), F.F.-06, Narayan Tower, Gandhi Meerut, U.P. Ashram Lane, Golghar, Gorakhpur, U.P.-273001 (Appellant) (Respondent) Pan No. Aaaam6185F Assessee By : Sh. Ibad Mushtaq, Adv. Revenue By : Sh. Akhilesh Kumar Yadav, Sr. Dr Date Of Hearing: 05.12.2024 Date Of Pronouncement: 12.12.2024 Order Per Satbeer Singh Godara: This Assessee’S Appeal For Assessment Year 2017-18, Arises Against The Cit(A)/Nfac, Delhi’S Din & Order No. Itba/Nfac/S/250/2023-24/1051871860(1) Dated 05.04.2023 In Proceedings U/S 144 Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: Sh. Ibad Mushtaq, AdvFor Respondent: Sh. Akhilesh Kumar Yadav, Sr. DR
Section 144Section 80Section 80PSection 80P(2)Section 80P(2)(a)

Dhule Jilha Prathamik Shikshakanchi Sahakari Patpedhi Ltd Dhule, Dhule vs. Income Tax Officer Ward 1 Dhule, Dhule

In the result, appeal of the assessee is partly allowed

ITA 2185/PUN/2024[2017-18]Status: DisposedITAT Pune10 Dec 2024AY 2017-18

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2185/Pun/2024 िनधा"रण वष" / Assessment Year: 2017-18 Dhule Jilha Prathamik V The Income Tax Officer, Shikshakanchi Sahakari S Ward-1, Dhule. Patpedhi Ltd., Plot No.3. Abhiyanta Nagar, Wadibhokar Road, Dhule – 424002. Pan: Aabtd7183N Appellant/ Assessee Respondent / Revenue Assessee By Shri Shirude M.R. – Ar Revenue By Shri Manish Mehta – Addl.Cit(Dr) Date Of Hearing 05/12/2024 Date Of Pronouncement 10/12/2024 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeals)[Nfac] For Assessment Year 2017-18 Dated 05.09.2024 Passed U/Sec.250 Of The Income Tax Act, 1961. The Assessee Has Raised The Following Grounds Of Appeal : “1. In These Facts, Circumstances & Position Of Law Assessment Order Under Appeal Is Bad In Law Illegal & Void Ab Initio & Hence May Be Annulled.

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

Nilambur Service Co-Operative Bank Limited, Malappuram vs. ACIT, Circle-1, Triur

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

ITA 553/COCH/2024[2014-15]Status: DisposedITAT Cochin10 Dec 2024AY 2014-15

Bench: Shri Inturi Rama Rao, Am Assessment Year: 2014-15 Nilambur Service Co-Op. Bank Ltd. Edavanna, Akampadam Malappuram 679329 [Pan: Aaban8659C] .......... Appellant Vs. Asst. Commissioner Of Income Tax Circle - 1, Tirur .......... Respondent Appellant By: Shri Rishal K., Advocate Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 10.12.2024 Date Of Pronouncement: 10.12.2024

For Appellant: Shri Rishal K., AdvocateFor Respondent: Smt. Leena Lal, Sr. D.R
Section 143(3)Section 80P

Trichur Dist Electricity Board Employees Co-Op Society Limited, Thrissur vs. ITO, Ward-2(1), Thrissur

In the result, the appeal filed by the assessee is allowed as indicated above

ITA 496/COCH/2024[2020-2021]Status: DisposedITAT Cochin10 Dec 2024AY 2020-2021

Bench: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

For Appellant: Sri.Arun Raj, AdvocateFor Respondent: Smt.Leena Lal, Senior AR
Section 56Section 80HSection 80PSection 80P(2)(a)Section 80P(2)(d)