The central bank has laid down fresh directions requiring transparent, Board-approved interest rate frameworks for urban co-operative banks. The key takeaway is stronger safeguards against excessive interest and clearer disclosures to borrowers.
The 2025 Directions confine UCBs to selling only stressed loans and bar them from acting as transferees. The move aims to limit risk build-up and ensure disciplined balance-sheet clean-up.
The ITAT held that reassessment based purely on an Investigation Wing report, without the Assessing Officer forming an independent belief, is invalid. Copy-pasted reasons failed to establish a live link between material and escapement of income.
The ITAT held that Rule 8D cannot be invoked without first recording a clear dissatisfaction with the assessee’s working based on accounts. Mechanical application of the rule, without identifying specific expenditure linked to exempt income, was ruled invalid.
The regulator has made standardized credit reporting compulsory for UCBs across all credit bureaus. The key takeaway is tighter data quality, uniform formats, and faster, more transparent credit information updates.
The ITAT held that filing Form 10B on the extended due date, especially during COVID-19 relief periods, cannot by itself defeat Section 11 exemption. Procedural delay cannot override substantive compliance.
New norms cap borrower and group exposures based on Tier-I capital to prevent over-concentration. The key takeaway is stronger balance-sheet resilience through diversified lending.
Chennai ITAT held that dismissing appeals as non-maintainable was erroneous. Orders giving effect to appellate directions retain their character as assessment orders.
The question was whether the extended ten-year window under Section 153C could be invoked. The Tribunal held that where the satisfaction note shows escaped income below ₹50 lakh, the extended limitation is unavailable.
The ITAT noted that cash-flow statements showing withdrawal–redeposit nexus were not examined. Non-consideration of material evidence warranted remand.
