GENERAL INSURANCE CORPORATION OF INDIA,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX, RANGE-3(1)(1), MUMBAI

This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals) (NFAC), Delhi dated 07.10.2022 for the assessment year 2014-15.

The only grievance of the assessee is against the action of the Ld. CIT(A)/NFAC in not considering the additional ground raised by the assessee which was uploaded on the official website on 10.11.2021 (along with letter dated 08.11.2021) which fact has been acknowledged by the e-Proceedings Response Acknowledgment (refer Annex-A). In the additional ground the assessee has raised additional claim of exemption u/s 10(38) of the Income Tax Act, 1961 (hereinafter “the Act”) of Rs.33,16,60,530/- on account of gains arising from transfer of Long Term Capital Asset (LTCA) being listed equity shares which was chargeable to STT (over and above the General Insurance Corporation of India assessee’s claim for exemption u/s 10(38) of the Act of Rs.954,91,65,332/- in return of income). According to the Ld. AR, even though the additional ground was raised before the Ld. CIT(A)/NFAC which was uploaded on 10.11.2021, the NFAC while deciding the appeal of the assessee on 07.10.2022 though granted 100% relief by allowing the claim of exemption u/s 10(38) of the Act to the tune of Rs.954,91,65,332/- did not adjudicate/examine the additional claim of Rs.33,16,60,530/-. And therefore he prayed that the Ld. CIT(A) be directed to adjudicate the additional ground of appeal raised (supra).

We have heard both the parties and perused the records. We note that the additional ground vide letter dated 08.11.2021 (supra) was uploaded by assessee in the official website of NFAC on 10.11.2021 which fact has been acknowledged by e-Proceedings Response Acknowledgment (Acknowledgment no. 806424271101121) which is found placed at page no. 5 of the P.B. By preferring the additional ground, the assessee over and above the claim of exemption u/s 10(38) of the Act in return of income (ROI) to the tune of Rs.954,91,65,332/-, the assessee claimed additional exemption of Rs.33,16,60,530/- u/s 10(38) of the Act. Even though the original claim in the rate of interest was allowed, the additional claim has not been considered by the NFAC while passing the impugned order. Therefore, we restore the appeal back to the file of the Ld. CIT(A)/NFAC and direct the NFAC to decide the additional ground of General Insurance Corporation of India appeal raised by the assessee as discussed (supra) in accordance to law.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 31/01/2023.