This compilation indexes twelve rulings — from the Income Tax Appellate Tribunal (ITAT), Gujarat High Court, Karnataka High Court, and the Supreme Court of India — in which Section 80P of the Income Tax Act, 1961, was a central or significant issue. The cases span the period December 2022 to April 2026 and arise in a variety of procedural contexts: reassessment, revision under Section 263, condonation of delay, and faceless assessment. The compilation is intended for in-house tax teams, Big-4 associates, and law firm researchers who need a structured starting point for tracing judicial trends around co-operative society deductions.

Research index only. This page organises publicly available court and tribunal orders for reference purposes. It does not constitute legal or tax advice. Readers must consult the full text of each judgment and verify its current status before relying on it in any professional context.

The statutory framework in one paragraph

Section 80P of the Income Tax Act, 1961 provides for a deduction in computing the total income of a co-operative society in respect of profits and gains of business attributable to specified activities. Sub-section (2) enumerates the categories of income eligible for deduction, including, among others, income from the business of banking or providing credit facilities to members under clause (a), and income attributable to transactions with other co-operative societies under clause (d). Sub-section (4), inserted by the Finance Act, 2006 with effect from 1 April 2007, expressly excludes co-operative banks (other than primary agricultural credit societies and primary co-operative agricultural and rural development banks) from the benefit of the deduction available under sub-section (2), to the extent such banks function as co-operative banks. The interplay between sub-sections (2)(a), (2)(d), and (4), as well as the eligibility criteria for different categories of co-operative societies, has generated significant litigation, as reflected in the rulings indexed below.

The 12 rulings

1. Shushrusha Gitizens Co Operative vs ACIT (Exemption) Circle -2, Mumbai

Bench: Income Tax Appellate Tribunal - Mumbai
Date: 2 April 2026
Sections engaged: 11, 13(1)(c), 80P
Outcome: Outcome not specified in source
Procedural / substantive ground: The appeal was filed before the ITAT Mumbai SMC Bench for Assessment Years 2015-16 and 2016-17 (ITA No. 21/Mum/2026 and ITA No. 6785/Mum/2025), with PAN AAATS0257K on record. The source preview records a comparative table of additions and disallowances across the two assessment years alongside claims for exemption, with Sections 11, 13(1)(c), and 80P cited as the operative provisions; the final dispositive findings are not available within the source preview.

2. Shri Padmavati Sharafi Sahkari Mandali vs Chief Commissioner Of Income Tax

Bench: Gujarat High Court
Date: 2 December 2025
Sections engaged: 119(2)(b), 139(1), 143(1)(a), 80P
Outcome: Outcome not specified in source
Procedural / substantive ground: The petition (R/Special Civil Application No. 1359 of 2025) was filed before the Gujarat High Court seeking relief in connection with an application for condonation of delay of four days in e-verification of the income tax return, made under Section 119(2)(b) of the Act before the Chief Commissioner of Income Tax, Rajkot. The source preview notes that a CBDT Notification was also relevant to the controversy; the court took up the matter for final hearing given the limited controversy involved, but the dispositive outcome is not captured in the source preview.

3. 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 approached the Gujarat High Court (R/Special Civil Application No. 15085 of 2025) praying for quashing and setting aside the impugned notice; the court noted at the outset that a short issue was involved and that it was submitted to be squarely covered by the decision of the Gujarat High Court in Principal Commissioner of Income-tax vs. Ashwinkumar Arban Co Operative Society Ltd., [2024] 168 taxmann.com 314 (Gujarat), and accordingly took up the matter for final disposal on the date of hearing. The case was approved for reporting per the source preview.

4. Gajanand Urban Co-Operative Credit vs The Principal Commissioner Of Income

Bench: Gujarat High Court
Date: 15 October 2025
Sections engaged: 119(2)(b), 80P
Outcome: Outcome not specified in source
Procedural / substantive ground: The writ petition (R/Special Civil Application No. 10505 of 2025) was heard by the Gujarat High Court; the source preview records the court's reference to the principle of purposive construction as relevant to interpretation of the provision in question, and to the role of a tax authority in admitting an application or claim. The substantive findings and final order are not available within the source preview.

5. 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 Tax Appeal (R/Tax Appeal No. 169 of 2024) was filed by the Revenue under Section 260A of the Income Tax Act, 1961, arising out of the order dated 08.09.2023 passed by the Income Tax Appellate Tribunal, Ahmedabad, in ITA No. 322/AHD/2023 for Assessment Year 2018-19. The source preview records that the Tribunal had held that the action of the Principal Commissioner of Income Tax invoking Section 263 of the Act and directing the Assessing Officer was not sustainable; the final outcome of the High Court's consideration of the Revenue's appeal is not available within the source preview.

6. 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: This Tax Appeal (R/Tax Appeal No. 154 of 2025) was filed by the Revenue under Section 260A of the Income Tax Act, 1961, arising from the order dated 05.09.2024 passed by the Income Tax Appellate Tribunal, Rajkot Bench, in ITA No. 131/RJT/2023 for Assessment Year 2018-19. A substantial question of law raised in the appeal, as recorded in the source preview, 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 that its scope is limited to only "Cooperative Societies"; the final order of the High Court on this question is not available within the source preview.

7. 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: This Tax Appeal (R/Tax Appeal No. 171 of 2024) was filed by the Revenue under Section 260A of the Income Tax Act, 1961, arising from the order dated 08.09.2023 passed by the ITAT "A" Bench, Ahmedabad, in ITA No. 350/Ahd/2023 for Assessment Year 2018-19. The source preview records that upon examination under Section 263 of the Act, the Principal Commissioner of Income Tax, 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 High Court's final determination on the Revenue's appeal is not available within the source preview.

8. 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: This Tax Appeal (R/Tax Appeal No. 400 of 2024) was filed by the Revenue under Section 260A of the Income Tax Act, 1961, arising from the order dated 28.11.2023 passed by the ITAT, Surat, in ITA No. 630/SRT/2023 for Assessment Year 2014-2015. Among the substantial questions of law raised by Revenue, as recorded in the source preview, was whether the Tribunal erred in dismissing the appeal of Revenue without appreciating that only the income received from members would be eligible for deduction under Section 80P(2)(a) of the Act; the court's final order on the Revenue's appeal is not captured in the source preview.

9. 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: This Tax Appeal (R/Tax Appeal No. 803 of 2024) was filed by the Revenue under Section 260A of the Income Tax Act, 1961, arising out of the order dated 10.07.2023 passed by the Income Tax Appellate Tribunal, Surat, in ITA No. 233/SRT/2023 for Assessment Year 2018-19. The source preview records that the Revenue's proposed questions of law included a challenge to the sustainability of the ITAT's order, with the Revenue characterising it as perverse on facts and deserving of being quashed; the High Court's final ruling on admissibility of the questions of law and on the merits is not available within the source preview.

10. Kerala State Co-Operative vs The Assessing Officer, Trivandrum

Bench: Supreme Court of India
Date: 14 September 2023
Sections engaged: 80P
Outcome: Outcome not specified in source
Procedural / substantive ground: These consolidated Civil Appeals (including Civil Appeal No. 10069 of 2016 and Civil Appeal Nos. 5005-5007 of 2019, among others) arose out of analogous proceedings against the appellant/assessee, Kerala State Co-operative Agricultural and Rural Development Bank Ltd. (KSCARDB), and impugned, inter alia, the judgment dated 26.11.2015 of the Kerala High Court, the order dated 08.08.2016 of the Commissioner of Income Tax (Appeals), Trivandrum, and the order dated 07.02.2019 of the Income Tax Appellate Tribunal. As recorded in the source preview, the central issue was whether the appellant, a co-operative society, was entitled to claim deduction of the whole of its profits and gains of business attributable to the business of banking or providing credit facilities to its members — who are all co-operative societies — under Section 80P of the Income Tax Act, 1961; the dispositive findings are not fully reproduced in the source preview.

11. The Principal Commissioner Of Income vs Sarjan Cooperative Housing Society Ltd

Bench: Gujarat High Court
Date: 22 August 2023
Sections engaged: 263, 80P
Outcome: Outcome not specified in source
Procedural / substantive ground: This Tax Appeal (R/Tax Appeal No. 479 of 2023) challenged the order dated 03.01.2023 passed by the Income Tax Appellate Tribunal, Surat, in ITA No. 189/Srt/2022 for assessment year 2014-15. The source preview records that the assessee, a housing society, had filed its return showing total income of NIL after claiming Rs. 31,57,772/- under Section 80P of the Act; a substantial question of law raised in the appeal concerned the consequences of quashing a revision order under Section 263 and whether the consequent assessment order is rendered ab initio void.

12. Padubidri Co Operative Agricultural vs The National Faceless Assessment

Bench: Karnataka High Court
Date: 9 December 2022
Sections engaged: 142(1), 143(3), 144B, 156, 270A, 80, 80P
Outcome: Outcome not specified in source
Procedural / substantive ground: The writ petition (Writ Petition No. 23989 of 2022 (T-IT)) was filed before the Karnataka High Court under Articles 226 and 227 of the Constitution of India, praying to quash the assessment order passed by the National Faceless Assessment Centre under Sections 143(3) read with 144B of the Income Tax Act, 1961, dated 20.09.2022, bearing DIN No. ITBA/AST/S/143(3)/2022-23/1045710752(1), for Assessment Year 2020-21. The source preview confirms the petition sought quashing of the impugned assessment order; the final order of the Karnataka High Court on the writ petition is not available within the source preview.

Patterns across these 12 rulings

Section 263 revision as a recurring flashpoint. Multiple cases in this compilation — Cases 5, 6, 7, 9, and 11 — involve the Revenue invoking Section 263 to revise assessments where co-operative society deductions were originally allowed, with several resulting in the ITAT quashing the revision orders and the Revenue thereafter filing Section 260A appeals in the Gujarat High Court. This pattern suggests that the revisionary route under Section 263 has become a frequently used tool by the Revenue to reopen Section 80P claims already accepted at the assessment stage.
Scope of Section 80P(2)(d) — the "Bank" vs "Co-operative Society" dispute. Cases 3, 6, and 7 each surface the question of whether the scope of Section 80P(2)(d) extends to transactions with co-operative banks, or is restricted to transactions exclusively with entities qualifying as co-operative societies, with the Revenue repeatedly arguing that the word "Bank" does not appear in that sub-clause. This textual/interpretive dispute appears across multiple Gujarat High Court appeals during 2025.
Condonation of delay under Section 119(2)(b) in the context of 80P claims. Cases 2 and 4 both involve co-operative societies approaching the Gujarat High Court in connection with applications under Section 119(2)(b) — one concerning a four-day delay in e-verification — where the underlying deduction claim involves Section 80P. The procedural gateway of Section 119(2)(b) appears as a distinct but recurring issue for co-operative societies seeking to preserve their 80P claims.
Revenue-initiated High Court appeals from ITAT orders. In Cases 5, 6, 7, 8, and 9, it is the Principal Commissioner of Income Tax who is the appellant before the Gujarat High Court, filing under Section 260A after unsuccessful revision or reassessment efforts at the tribunal level. This pattern of Revenue-as-appellant in High Court tax appeals on 80P issues is a notable structural feature of this body of litigation.
Breadth of forum and procedural variety. The compilation spans the ITAT (Case 1), multiple Gujarat High Court divisions (Cases 2–9, 11), the Karnataka High Court (Case 12), and the Supreme Court (Case 10), with procedural vehicles ranging from writ petitions, special civil applications, and Section 260A tax appeals to Supreme Court civil appeals. Researchers should note that the underlying substantive questions may be at different stages of finality depending on the forum and procedural posture of each case.

How to use this compilation

This index is a structured starting point for locating judicial orders on Section 80P of the Income Tax Act, 1961. Each entry provides the forum, date, sections engaged, and a brief procedural note derived from the available source text. Because every entry in this compilation carries the outcome field "Outcome not specified in source," researchers must retrieve the full text of each judgment from indiankanoon.org, the official court portals, or a licensed legal database before drawing any conclusions about the holding, ratio, or precedential value of the ruling. Do not treat the procedural notes in this index as a substitute for the full judgment.

After locating the full text of a relevant ruling, researchers should verify whether the order has been challenged in a higher forum, whether a stay has been granted, or whether a subsequent ruling of a coordinate or higher bench has taken a different view. In the Section 80P space in particular, several Gujarat High Court appeals in this compilation arise from the same broader wave of litigation, and a subsequent ruling on a companion appeal — or a Supreme Court pronouncement — could affect the persuasive weight of any individual order indexed here.

Finally, researchers should cross-check the judicial positions identified in these rulings against any CBDT circulars, instructions, or notifications that may bear on the deduction or on the procedural rights of co-operative societies under the Income Tax Act. Regulatory guidance from CBDT may affect how the statutory provisions are being applied in ongoing assessments, independent of the judicial trend visible in this compilation.

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 Co-operative Society Deductions: 12 Rulings (2022–2026)