THE AP MAHESH COOP URBAN BANK,HYDERABAD vs. DCIT., CIRCLE-5(1), HYDERABAD

ITA 1331/HYD/2025Status: DisposedITAT Hyderabad18 September 2026AY 2017-189 pages
AI SummaryRemanded

What were the facts?

The assessee, a cooperative urban bank, claimed a deduction for contribution to the NCUI Education Fund. The Assessing Officer disallowed this, viewing it as an appropriation of profits, not a business expenditure. The First Appellate Authority upheld this disallowance.

What did the Tribunal hold?

The Tribunal acknowledged that an identical question of law was pending before the High Court in the assessee's own case for earlier years. Following the procedure under Section 158A of the Act, the Tribunal admitted the assessee's claim.

What were the issues?

Whether the contribution to the NCUI Education Fund is an allowable business expenditure under Section 37. Whether the Tribunal should adjudicate the issue when an identical question is pending before the High Court.

Which sections of the Income-tax Act were involved?

Section 37,Section 143(2),Section 143(3),Section 158A,Section 260A,Section 261

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

Before: Shri Vijay Pal Rao, Vice-Shri Madhusudan Sawdia

Hearing: 03/09/2026

Per Madhusudan Sawdia, A.M.:

This appeal is filed by The AP Mahesh Coop Urban Bank (“the assessee), feeling aggrieved by the order passed by the Learned ADDL/JCIT(A)-3 Chennai, (“Ld. First Appellate Authority ”) dated 24.06.2025 for the A.Y.2017-18. 2. The assessee has raised the following grounds of appeal:

3.

The brief facts of the case are that the assessee is a banking company, filed its return of income for Assessment Year 2017-18 on 28.10.2017, declaring total income of Rs. 31,32,27,890/-. The return of income of the assessee was selected for complete

The order continues below.

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