THE FARRUKHABAD DISTRICT COOPERATIVE BANK,FARRUKHABAD vs. ADDL. C.I.T., RANGE-2, FARRUKHABAD

ITA 138/AGR/2014Status: DisposedITAT Agra15 January 2026AY 2008-09Bench: SHRI S. RIFAUR RAHMAN (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)10 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal deleted the ad-hoc disallowance of 20% of expenditure, citing a violation of natural justice as the remand report was not shared. It remitted the issue of 'provision for overdue interest' and the claim under Section 36(1)(viia) back to the Assessing Officer for verification as per law.

What were the facts?

The assessee, a cooperative bank, filed its return declaring nil income. The Assessing Officer disallowed 20% of expenditure due to non-production of books and enhanced income by Rs. 1,93,94,000 for 'provision for overdue interest'. The CIT(A) upheld the disallowance and enhancement, noting that the assessee produced books only during remand proceedings but the report was not shared.

What were the issues?

The key issues were the validity of ad-hoc disallowance of expenditure due to non-compliance, the enhancement of income for 'provision for overdue interest' without proper notice, and the disallowance of a claim under Section 36(1)(viia).

Which sections of the Income-tax Act were involved?

Section 143(1),Section 143(2),Section 142(1),Section 250,Section 120(4)(b),Section 2(7A),Section 144,Section 145(3),Section 251(2),Section 36(1)(viia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA BENCH, AGRA

Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH

Hearing: 18.12.2025Pronounced: 15.01.2026

PER : S. RIFAUR RAHMAN, ACCOUNTANT MEMBER:

ITA No. 138/Agr/2014 has been preferred by assessee against the order of learned CIT(Appeals), Muzaffarnagar dated 20.01.2014 u/s. 250 of the Income-tax Act, 1961 (“the Act” for short) for the assessment year 2008-09, whereas assessee has preferred ITA No. 75/Agr/2016 against

ITA No.138/Agr/2014 & 75/Agr/2016

the order of learned CIT(Appeals), Aligarh dated 08.02.2016 for the assessment year 2012-13. For the sake of convenience, we first take up

the appeal fo

The order continues below.

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