This compilation brings together nine Gujarat High Court rulings spanning January 2022 to November 2025, all centred on the deductibility of income earned by co-operative societies and co-operative banks under Section 80P(2)(d) of the Income-tax Act, 1961. Several of these cases also engage the validity of revision proceedings initiated by the Principal Commissioner of Income Tax under Section 263. The compilation is intended for in-house tax teams, Big-4 associates, and law firm researchers who need a structured index of judicial activity on this provision across a multi-year window.

Research index only. This page is a structured case-law reference compiled from publicly available judgments. Nothing on this page constitutes legal advice, tax planning guidance, or a recommendation to take any course of action. Readers must independently verify each ruling against the full judgment text and check for subsequent stays, reversals, or appeals before relying on any entry.

The statutory framework in one paragraph

Section 80P of the Income-tax Act, 1961 provides a deduction in respect of income of co-operative societies. Sub-section (2)(d) specifically covers income by way of interest or dividends derived by a co-operative society from its investments with any other co-operative society. Sub-section (1) of Section 80P sets out the overall deduction mechanism, and sub-section (4), inserted by the Finance Act, 2006 with effect from 1 April 2007, excludes co-operative banks (other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank) from the benefit of Section 80P. The interaction between these sub-sections—particularly whether a given entity qualifies as a "co-operative society" for the purpose of Section 80P(2)(d) and whether the Section 80P(4) exclusion applies—forms the central dispute across the rulings indexed below.

The 9 rulings

1. The Diamond Jubilee Co Operative Bank vs Union Of India

Bench: Gujarat High Court
Date: 25 November 2025
Sections engaged: 148, 148A(1), 148A(3), 2(u), 22(1)(b), 5(b), 56, 80P, 80P(1), 80P(2)(d)
Outcome: Outcome not specified in source
Procedural / substantive ground: The petitioner, The Diamond Jubilee Co Operative Bank Ltd., approached the Gujarat High Court by way of Special Civil Application No. 15085 of 2025, praying for quashing and setting aside proceedings under the notice provisions. Per the source preview, the court noted that the issue was short and was submitted to be squarely covered by a prior decision of the Gujarat High Court in the case of Principal Commissioner of Income-tax vs. Ashwinkumar Arban Co Operative Society Ltd., [2024] 168 taxmann.com 314 (Gujarat), and the matter was accordingly taken up for final disposal on that date.

2. The Principal Commissioner Of Income vs M/S. The Peoples Coop Credit Society

Bench: Gujarat High Court
Date: 26 August 2025
Sections engaged: 22(1)(b), 263, 5(b), 56, 80P, 80P(2), 80P(2)(d), 80P(4)
Outcome: Outcome not specified in source
Procedural / substantive ground: This appeal was filed by the Revenue under Section 260A of the Income-tax Act, 1961, arising out of the judgment and order dated 08.09.2023 passed by the Income Tax Appellate Tribunal, Ahmedabad, in ITA No. 322/AHD/2023 for the Assessment Year 2018-19. Per the source preview, the Tribunal had passed the impugned order holding that the action of the Principal Commissioner of Income Tax invoking Section 263 of the Act and directing the Assessing Officer to re-examine the deduction claim was not sustainable; the Tax Appeal before the Gujarat High Court was taken up with the consent of the parties on the date of hearing.

3. The Principal Commissioner Of Income vs Rajkot Lodhika Sahakari Kharid Vechan

Bench: Gujarat High Court
Date: 17 June 2025
Sections engaged: 143(1)(a), 143(3), 2(u), 260A, 263, 56, 80P, 80P(1), 80P(2), 80P(2)(d), 80P(4)
Outcome: Outcome not specified in source
Procedural / substantive ground: The Revenue filed Tax Appeal No. 154 of 2025 under Section 260A, arising from the judgment and order dated 05.09.2024 of the Income Tax Appellate Tribunal, Rajkot Bench, in ITA No. 131/RJT/2023 for Assessment Year 2018-19. Per the source preview, one of the substantial questions of law proposed by Revenue was whether the Tribunal was justified in quashing the order under Section 263 of the Act without appreciating that Section 80P(2)(d) does not contain the word "Bank" and its scope is limited to only co-operative societies, which was presented as a live interpretive question before the High Court.

4. The Principal Commissioner Of Income vs M/S. Ambika Co-Operative Credit

Bench: Gujarat High Court
Date: 21 April 2025
Sections engaged: 143(3), 260A, 263, 56, 80, 80P, 80P(1), 80P(2)(d)
Outcome: Outcome not specified in source
Procedural / substantive ground: Tax Appeal No. 171 of 2024 was filed by the Revenue under Section 260A, arising from the order dated 08.09.2023 passed by the ITAT, "A" Bench, Ahmedabad, in ITA No. 350/Ahd/2023 for the Assessment Year 2018-19. Per the source preview, upon examination of the assessment record under Section 263, the PCIT, Ahmedabad-3 had observed that the assessee disclosed a gross total income of ₹35,49,682/- on which deduction to the same extent was claimed; the subsequent ITAT order and its challenge before the Gujarat High Court turned on the validity of the Section 263 revision in the context of the deduction claimed under Section 80P(2)(d).

5. The Principal Commissioner Of Income vs Kutch District Co.Op. Milk Producers

Bench: Gujarat High Court
Date: 18 March 2025
Sections engaged: 119, 129, 143(3), 2(24)(x), 260A, 263, 36(1)(va), 69A, 80(2)(d), 80P(2)(a), 80P(2)(d), 92C
Outcome: Outcome not specified in source
Procedural / substantive ground: Tax Appeal No. 666 of 2024 was filed by the Revenue under Section 260A, arising from the order dated 29.01.2024 passed by the ITAT, Rajkot, in ITA No. 176/Rjt/2022 for the Assessment Year 2017-2018. Per the source preview, one of the substantial questions of law raised by Revenue was whether the Tribunal was justified in quashing the Section 263 order of the PCIT in light of a jurisdictional Gujarat High Court ruling which had previously considered the scope of the deduction in question; the appeal involves multiple sections alongside the deduction provisions.

6. The Principal Commissioner Of Income vs Shree Aradhana Urban Co-Op. Credit

Bench: Gujarat High Court
Date: 3 March 2025
Sections engaged: 143(3), 147, 22(1)(b), 260A, 5(b), 56, 80P, 80P(1), 80P(2)(a), 80P(2)(d), 80P(4)
Outcome: Outcome not specified in source
Procedural / substantive ground: Tax Appeal No. 400 of 2024 was filed by the Revenue under Section 260A, arising from the order dated 28.11.2023 passed by the ITAT, Surat, in ITA No. 630/SRT/2023 for the Assessment Year 2014-2015. Per the source preview, the questions of law proposed by Revenue included whether the Tribunal erred in dismissing the Revenue's appeal by ignoring that only income received from members would be eligible for deduction, and whether Section 80P(4), inserted by the Finance Act, 2006 with effect from 01.04.2007, had been correctly applied in the context of the co-operative credit society's deduction claim.

7. The Principal Commissioner Of Income vs Shree Madhi Vighag Khand Udyog Sahakari

Bench: Gujarat High Court
Date: 24 December 2024
Sections engaged: 142(1), 143(2), 143(3), 2(u), 22, 260A, 263, 56, 80P, 80P(2), 80P(2)(d), 80P(4)
Outcome: Outcome not specified in source
Procedural / substantive ground: Tax Appeal No. 803 of 2024 was filed by the Revenue under Section 260A, arising from the judgment and order dated 10.07.2023 passed by the ITAT, Surat, in ITA No. 233/SRT/2023 for Assessment Year 2018-19. Per the source preview, the Revenue contended before the High Court that the ITAT order was unsustainable and perverse on facts and deserved to be quashed, with the proposed substantial questions of law engaging the validity of the Section 263 revision order as well as the scope of the deduction under Section 80P(2)(d) for the co-operative society respondent.

8. Kutch District Co-Operative Milk vs Assistant Commissioner Of Income Tax

Bench: Gujarat High Court
Date: 23 December 2024
Sections engaged: 148, 148A(b), 148A(d), 80P(2)(d)
Outcome: Outcome not specified in source
Procedural / substantive ground: The petitioner filed Special Civil Application No. 21527 of 2022 before the Gujarat High Court, invoking its writ jurisdiction. Per the source preview, the court noted that the controversy involved arose in a narrow compass and, with the consent of the advocates for both parties, the matter was taken up for disposal; the sections engaged indicate the petition concerned proceedings under the reassessment notice provisions alongside the deduction under Section 80P(2)(d).

9. Katlary Kariyana Merchant Sahkari vs Asst. Commr. Of Income Tax

Bench: Gujarat High Court
Date: 4 January 2022
Sections engaged: 142(1), 143(1), 143(2), 143(3), 147, 148, 18, 80P, 80P(1), 80P(2)(d)
Outcome: Outcome not specified in source
Procedural / substantive ground: The writ applicant, a co-operative society incorporated under the Gujarat Cooperative Societies Act, 1961, invoked the extraordinary writ jurisdiction of the Gujarat High Court under Article 226 of the Constitution of India by filing Special Civil Application No. 20585 of 2019. Per the source preview, the applicant is a co-operative society and the petition engages reassessment-related provisions alongside Section 80P and Section 80P(2)(d); this ruling is notably cited in later Gujarat HC proceedings (case 5 above) as a jurisdictional precedent on the deduction question.

Patterns across these 9 rulings

Repeated Revenue challenge to ITAT orders quashing Section 263 revision: In cases 2, 3, 4, 5, 6, and 7, the Revenue (Principal Commissioner of Income Tax) filed Tax Appeals under Section 260A challenging ITAT orders that had quashed or set aside Section 263 revision directions relating to deduction claims by co-operative societies. This pattern indicates a consistent departmental position that the PCIT's revisionary jurisdiction over Section 80P(2)(d) claims should be upheld.
Scope of Section 80P(2)(d) as a recurring legal question: Across cases 3, 7, and others, a common question of law is whether Section 80P(2)(d) extends to co-operative banks (the provision using the term "co-operative society") or is restricted to entities that are not co-operative banks within the meaning of applicable provisions. This interpretive tension between the deduction clause and the exclusion in Section 80P(4) is a dominant theme.
Reassessment notices under Section 148 challenged by co-operative entities: Cases 1, 8, and 9 involve co-operative entities approaching the Gujarat High Court directly by writ petition to challenge reassessment-related proceedings alongside their Section 80P(2)(d) deduction claims, reflecting a parallel litigation strategy distinct from the appellate route taken in the other cases.
Assessment Year 2018-19 as the most frequently litigated year: The text previews for cases 2, 3, 4, and 7 each reference Assessment Year 2018-19 as the year in dispute, suggesting this year was a particularly active period for departmental examination of Section 80P(2)(d) claims by co-operative societies in Gujarat.
Gujarat High Court as the dominant forum: All nine rulings originate from the Gujarat High Court at Ahmedabad. This geographic concentration may reflect the density of registered co-operative societies and co-operative banks in Gujarat and the state's active departmental audit activity on this deduction during the period covered.

How to use this compilation

This index is a starting point for locating relevant judicial activity on Section 80P(2)(d) and related provisions as they apply to co-operative societies and co-operative banks before the Gujarat High Court. Researchers should retrieve the full text of each judgment from indiankanoon.org or the official Gujarat High Court portal before drawing any conclusions about the ratio or the precise holding. The source previews reproduced here are truncated and do not capture the dispositive paragraphs of most rulings; the "Outcome not specified in source" notation means the full outcome could not be extracted from the available data and must be verified independently.

Before relying on any ruling in this compilation, researchers should check whether the judgment has been stayed, reversed, or affirmed in a subsequent appeal before the Supreme Court or a larger bench of the Gujarat High Court. Tax Appeal proceedings under Section 260A are limited to substantial questions of law, and not every appeal results in a final merits ruling; some orders in this list may be admission-stage or consent-disposal orders. Researchers should also check for any relevant CBDT circulars or instructions that may have been issued on the application of Section 80P(2)(d) or Section 80P(4) to specific categories of co-operative entities, as administrative guidance can affect how departmental officers and tribunals approach these claims in later assessment years.

Finally, given that several of these cases cross-reference earlier Gujarat HC decisions (such as the Ashwinkumar Arban Co Operative Society Ltd. ruling cited in case 1, and the Katlary Kariyana Merchant Sahkari ruling cited in case 5), researchers working on a Section 80P(2)(d) matter should map the full chain of Gujarat HC precedents alongside this compilation to understand the evolving judicial position in this jurisdiction.

Source

All cases listed above are drawn from the TaxNoticeAI structured legal corpus (16,101 Indian tax judgments, CBIC circulars, ITAT rulings, AAR rulings, GSTAT rulings), sourced from indiankanoon.org and official court portals.

Section 80P(2)(d) & 263 for Co-operative Societies: 9 Gujarat HC Rulings (2022–2025)