ARUNACHAL PRADESH STATE CO OPERATIVE APEX BANK LIMITED,NAHARLAGUN vs. ACIT / DCIT, CIR 1, GUWAHATI

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ITA 371/GTY/2025Status: DisposedITAT Guwahati13 March 2026AY 2014-154 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee's claim for brought forward losses from assessment years where no returns were filed is incorrect and not permissible under the Income Tax Act, 1961. Consequently, such losses cannot be carried forward and set off against the income of subsequent years. However, the Tribunal noted that the chart containing the net taxable income for various assessment years was not before the Assessing Officer or the NFAC. In the interest of justice, the Tribunal decided to restore the appeals back to the file of the Assessing Officer for re-adjudication. The Assessing Officer was directed to ascertain the real income of the assessee and bring the correct income to tax, making necessary adjustments. The appeals were allowed for statistical purposes only. No specific issue was left undecided, but the matter was remanded for fresh consideration.

What were the facts?

The assessee, Arunachal Pradesh State Co-operative Apex Bank Limited, filed appeals before the Income Tax Appellate Tribunal (ITAT) challenging the orders of the National Faceless Appeal Centre (NFAC), Delhi. These orders, dated August 8, 2025, September 4, 2025, September 17, 2025, and September 18, 2025, pertained to assessment years 2009-10 to 2014-15. The core of the dispute was the NFAC's confirmation of an addition of ₹3,18,63,960/- made by the Assessing Officer. This addition arose from the rejection of the assessee's claim for brought forward losses from earlier assessment years, where the assessee had not filed returns, and without any evidence of prior allowance by the Assessing Officer. The appeals were consolidated due to common issues.

What were the issues?

1. Whether the Tribunal had to decide if the assessee's claim for brought forward losses from assessment years where no returns were filed is permissible under the Income Tax Act, 1961, and if the NFAC correctly confirmed the addition made by the Assessing Officer. Assessee's Contention: The assessee's sole contention, as presented through a chart of net taxable income from AY 2006-07 to 2014-15, was that the NFAC erred in confirming the addition. The specific grounds for this confirmation were not detailed by the assessee in the provided text, beyond the fact that the addition was made by rejecting the claim for brought forward losses. Revenue's Contention: The revenue, through the Assessing Officer and subsequently confirmed by the NFAC, rejected the claim for brought forward losses from assessment years in which the assessee had not filed returns. The revenue's argument was that such losses cannot be carried forward and set off against income in subsequent years under the Act.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘GAUHATI BENCH’, GUWAHATI

Before: SHRI DUVVURU RL REDDY & SHRI RAJESH KUMAR

For Appellant: Shri Gaurav Chandak, FCA
For Respondent: Shri Santosh Kumar Karnani, Addl.CIT
Hearing: 09.03.2026Pronounced: 13/03/2026

IN THE INCOME TAX APPELLATE TRIBUNAL ‘GAUHATI BENCH’, GUWAHATI BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENT AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER 351, 357, 369 to 371/GTY/2025 (Assessment Years: 2009-10 to 2014-15) Arunachal Pradesh State Co- DCIT/ACIT operative Apex Bank Limited, Circle-1, Sector-D,Naharlagun,Papumpare, Aayakar Bhawan, Christian Vs. Papumpare,PIN-791110, Basti, G.S. Road, Arunachal Pradesh. Guwahati-781005, Assam (Appellant) (Respondent) PAN No. AABTA2070M Assessee by : Shri Gaurav Chandak, FCA Revenue by : Shri Santosh Kumar Karnani, Addl.CIT Date of hearing: 09.03.2026 Date of pronouncement: 13/03/2026 O R D E R PER: BENCH

These are the appeals preferred by the assessee against the orders of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 08.08.2025, 04.09.2025, 17.09.2025, 18.09.2025 for the AYs2009-10 to 2014-15 respectively. Since these appeals relating to same assessee and are involving common issues, therefore, these are being disposed off by this consolidated order for the sake of brevity and convenience. We would first take up the appeal for the A.Y. 2009-10.

3.

At the outset of hearing, the ld. counsel of the assessee submitted before us a chart containing the net taxable income of various assessment years right from A.Y. 2006-07 to A.Y. 2014-15 which is extracted below:

4.

We note that the assessee has not filed its return of income for the earlier assessment years and claimed brought forward losses against the current

5.

However, necessary adjustments which are required to be made in order to ascertain the correct income have to be allowed to the assessee. Since, this chart as extracted above was not before the Assessing Officer as well as the ld. CIT(A) during the course of the proceedings before them, therefore, in the interests of justice, we are inclined to restore these appeals back to the file of the Assessing Officer for re-adjudication with a direction that real income of the assessee may be ascertained and accordingly the correct income may be brought to tax.

6.

In the result, this appeals of the assessee are allowed for statistical purposes only.

357, 369, 370 and 371/GTY/2025 for the A.Y. 2010-11 to 2014-15. Since the issues raised in these appeals are substantially similar as decided by us in for the A.Y. 2009-10. Therefore, our decision in would mutatis mutandis apply to these appeals as well. Consequently, the issues involved in all these appeals are also restored to the file of Assessing

8.

In the result, all these appeals of the assessee are allowed for statistical purposes only.

Order pronounced in the open court on 13/03/2026.

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