ZILA SAHAKARI BANK LIMITED ,SIDDHARTH NAGAR A vs. ITO-BASTI-NEW, BASTI, UTTAR PRADESH

ITA 839/LKW/2025Status: DisposedITAT Lucknow31 August 2026AY 2017-1815 pages
AI SummaryAllowed

What were the facts?

The assessee, Zila Sahakari Bank Limited, filed its return for AY 2017-18 under Section 119(2)(b) after a significant delay, which was not condoned. The Assessing Officer (AO) initiated reassessment proceedings under Section 147 based on a CBDT instruction, considering the return invalid. The CIT(A) dismissed the assessee's appeal.

What did the Tribunal hold?

The Tribunal held that the reassessment notice under Section 147 was vitiated as it was issued based on a higher authority's instruction without independent satisfaction of income escaping assessment by the AO. Consequently, the assessment proceedings were rendered void ab initio.

What were the issues?

Whether reassessment proceedings initiated based on CBDT instructions without independent satisfaction of the AO are valid, and whether the disallowance of set-off of brought-forward losses and provision for penal interest were justified.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 119(2)(b),Section 139(1),Section 139(3),Section 144B,Section 270A,Section 271B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘B’ BENCH, LUCKNOW

For Respondent: Smt. Sonal Singh, Addl CIT DR
Hearing: 04.06.2026Pronounced: 31.08.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC dated 3.09.2025, wherein the ld. CIT(A) has dismissed the appeal of the assessee, filed against the order of the ld. Assessing Officer passed under section 147 r.w.s. 144B for the A.Y. 2017-18 dated 19.03.2022. The grounds of appeal are as under:- “1.1 BECAUSE the ld. CIT(A) was not justified in dismissing the appeal by passing the impugned order ex-parte without affording reasonable opportunity of being heard to the appellant.

1.

2 BECAUSE the appellant could not make ground-wise submission before the ld. CIT(A) owing to pendency of petition before the CBDT for condonation of delay in filing of in

The order continues below.

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