TaxTMI 
TaxTMI 
2026 (8) TMI 1043
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....A.Y. 2003-04 came to be carried forward to A.Y.2009-10, in light of fact that Income Tax Return Filed for A.Y. 2003-04 is genuine and admitted?" Substantial questions of law proposed in TAX APPEAL 683 of 2022: "3.1. Whether the Ld. ITAT have legally dismissed the appeal filed by the Appellant herein on account of non-prosecution? 3.2. Whether the authorities below Ld. ITAT have erred in disallowance claim of Appellant whereby loss of A.Y. 2003-04 came to be carried forward to A.Y. 2010-11, in light of fact that Income Tax Return Filed for A.Y. 2003-04 is genuine and admitted?" 3. So far as Tax Appeal No. 682 of 2022 is concerned for the Assessment Year 2009-10, the same is arising out of ITA No. 389/AHD/2013 and the same is decided on merits by the Tribunal, whereas, Tax Appeal No. 683 of 2022 for the Assessment Year 2010-11 arising out of ITA No. 2281/AHD/2014 is dismissed by the Tribunal for non-prosecution. However, the question of law to be considered is common for both the assessment years regarding as to whether the appellant-assessee is entitled to set off the loss of the Assessment Year 2003-04 for the years under consideration even though the assess....
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.... and the status of the bank has to be ceased. After that the status of assessee (bank) is only a cooperative society and it is controlled, managed and governed by the District Registrar and Registrar of cooperative societies, Gandhinagar. On cancellation of RBI license, bank has gone in liquidation process and liquidator has been appointed from time to time by Registrar of cooperative societies, Gandhinagar. We have submitted copy of appointment order of liquidator to the learned ITO. Assessee has filed income tax return for A. Y. 2009-10 stating income of Rs. 53,13,178/-. Against Income of Rs. 53,13,178/- claim set off business loss u/s 72 of the I.T. Act, 1961 for A.Y. 2003-04 of Rs. 2,38,21,495/- so showing net taxable income Is NIL and balance amount of business loss brought forward Rs. 1,85,08,317/- and depreciation loss of Rs.29,52,747/- The assessee is still doing banking activities after cancellation of banking license by RBI l.e. to collect/recover loans given to the borrower., filed a case with Court against default borrower for recovery of loans amount. Assessee is doing banking activities as per banking regulation Act and as per cooperative so....
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....siness loss is to be set off. [Para 16] It was an admitted fact as was apparent from a perusal of the order of the Commissioner (Appeals) that no valid return for the assessment year 1986-87 had been filed by the assessee and, accordingly, no assessment could be made and the business losses could not be notified to the assessee. Once it was established that no valld Peter had been filed by the assessee for the assessment year 1986-87, the assessee could not be allowed to set off the business losses of earlier years during the assessment year 1987-88. The Tribunal, thus, clearly erred in allowing set-off of business losses for earlier assessment years 1984-85 and 1985-86 during the assessment year 1987-88" [Para 17], So far as appellant's claim of deduction u/s 80P of the IT Act is concerned, it Is seen from the facts on record that the appellant was in the banking business as a cooperative bank. Thus, customers of the appellant were members of the cooperative society as well as the general public. Thereafter, the license of the bank came to be cancelled. In the previous year under consideration the appellant is no longer in the banking business because its lic....
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.... in assessment year 2003-04, non-filing of valid return in assessment years 2004-05 to 2008-09 followed by impugned set off claim in assessment year 2009-10. We thus find no reason to reverse CIT(A)'s conclusion extracted hereinabove. 6 Learned counsel representing assessee at this stage raises an alternative ais entitled for Section 80P deduction being a cooperative society from activity of providing credit facility to its members. It quotes tribunal's decision in (2010) 122 ITD 43(Delhi) Citizen Co-operative Bank Ltd vs. Addl CIT as well as hon'ble jurisdictional high court's decision in Tax Appeal No. 442/2013 CIT vs. Jafari Momin Vikas Co-operative Credit Society Ltd. It however emerges that banking sector regulator ie the Reserve Bank of India has already cancelled assessee's banking license way back on 03.06.2005. This tribunal's decision in Apex Urban Co-operative Bank of Maharashtra and Goa Ltd. vs. ITO (2012) 134 ITD 118 (Mum') holds that cancellation of a banking license disentitles an assessee from claiming Section 80P deduction. This assessee had no clue to this legal development. We therefore follow the said coordinate bench decision to....