M/S. NORTHERN ARC CAPITAL LIMITED ,CHENNAI vs. ACIT , CHENNAI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi, dated 08.08.2018 relevant to the assessment year 2017-18.

Brief facts of the case are that the assessee filed its return of income for the assessment year 2017-18 on 30.10.2017 admitting an income of ₹.1,17,99,65,480/-. After following due procedure, the Assessing Officer has completed the assessment under section 143(3) of the Income Tax Act, 1961 [“Act” in short] assessing total income of the assessee at ₹.1,21,82,18,938/- after making addition of securitization income of ₹.3,82,53,458/- by denying the claim of exemption under section 10(35A) of the Act. On appeal, the ld. CIT(A) confirmed the order of the Assessing Officer.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the assessee has received only one notice of hearing from the ld. CIT(A) and therefore, prayed for adequate opportunity of being heard to the assessee so that the assessee can substantiate its claim before the ld. CIT(A).

On the other hand, the ld. DR fairly conceded the submissions of the ld. Counsel for the assessee.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, in the assessment order, the Assessing Officer denied the claim of exemption under section 10(35A) of the Act in view of the provisions of section 115TCA of the Act inserted by Finance Act, 2013. On appeal, despite seven opportunities given to the assessee and due to non- compliance of the notices, the ld. CIT(A) confirmed the assessment order passed by the Assessing Officer. Before us, the ld. Counsel for the assessee has submitted that the assessee has received only one notice and therefore, he prayed for affording adequate opportunity of being heard to the assessee to substantiate its claim before the ld. CIT(A). In view of the above, we set aside the order passed by the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to decide the issue afresh in accordance with law by affording adequate opportunity of being heard to the assessee. The assessee is also directed to furnish complete details before the ld. CIT(A) for adjudication.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on the 24th November, 2022 in Chennai.