{"id":64577,"date":"2026-09-11T14:41:24","date_gmt":"2026-09-11T09:11:24","guid":{"rendered":"https:\/\/itatonline.org\/digest\/the-akola-urban-co-operative-bank-ltd-v-acit-nag-trib-www-itatonline-org\/"},"modified":"2026-09-11T14:41:24","modified_gmt":"2026-09-11T09:11:24","slug":"the-akola-urban-co-operative-bank-ltd-v-acit-nag-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/the-akola-urban-co-operative-bank-ltd-v-acit-nag-trib-www-itatonline-org\/","title":{"rendered":"The Akola Urban Co-operative Bank Ltd. v. ACIT (Nag.)(Trib.) [www.itatonline.org]"},"content":{"rendered":"<div>\n<p>The assessee, a co-operative bank, filed its return for A.Y. 2022-23 declaring nil income. The assessment was completed under section 143(3) read with section 144B after the Assessing Officer called for and examined various details, including computation of income, audited financial statements, tax audit report, details of deductions, purchase and sale of securities, cash-flow statement, bank accounts and particulars of advances. The PCIT invoked section 263 on the ground that the Assessing Officer had not specifically examined the assessee&#8217;s claim of \u20b914.71 crore loss arising on sale of Non-Performing Assets (NPAs) to an Asset Reconstruction Company and directed the Assessing Officer to make fresh verification. The Tribunal held that the twin conditions for exercise of jurisdiction under section 263, namely, that the assessment order must be erroneous and prejudicial to the interests of the Revenue, must coexist. Merely because the assessment order did not discuss the issue in detail, it could not be presumed that no enquiry was conducted when the relevant details had been furnished and examined during scrutiny. Further, the Tribunal had already held in the assessee&#8217;s own case for A.Y. 2015-16 that loss on sale of NPAs was allowable as business loss. The PCIT could not disregard the binding decision of the Coordinate Bench and substitute his own interpretation. In the absence of any finding that the claim was legally inadmissible, the direction for fresh enquiry amounted to a fishing and roving enquiry, which was not permissible under section 263. Accordingly, the revisionary order was quashed and the assessee&#8217;s appeal was allowed. <strong><span data-content-reference-start=\"2175\" data-content-reference-end=\"2207\">(AY. 2022-23) (ITA No. 534\/NAG\/2026 dt. 10-08-2026)<\/span><\/strong><b><\/b><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S.263: Commissioner \u2013 Revision of orders prejudicial to revenue \u2013 Non-performing assets \u2013 Loss on sale of NPAs \u2013 Co-operative bank \u2013 Assessment completed under section 143(3) after examination of relevant details \u2013 AO having adopted a possible view \u2013 Loss on sale of NPAs held allowable as business loss by the Tribunal in the assessee\u2019s own case \u2013 PCIT could not invoke revision merely for directing fresh enquiry or substitute his view for the view taken by AO \u2013 Revision order quashed. [ S. 2(14), 143(3), 144B .]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64577","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gNz","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64577"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64577\/revisions"}],"predecessor-version":[{"id":64578,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64577\/revisions\/64578"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}