DCIT, CIRCLE-1, NOIDA vs. DNATA INTERNATIONAL PVT. LTD., NOIDA

Heard the rival contentions and perused the records.

It was the contention of the assessee made in the grounds of appeal that the AO has grossly erred in law and on facts in framing the assessment in the case of the assessee, a Unit Run Canteen (URC), whose income is expressly exempt under section 10(23AA) of the Act. The assessment is, therefore bad in law and liable to be quashed. It was the further contention that AO has erred in treating the cash receipt amounting to Rs. 27,31,049/- received from retired and serving armed forces personnel as taxable income. The said receipts pertain to the functioning of the Unit Run Canteen and are exempt from tax under section 10(23AA) of the Act. Per contra, Ld. DR relied upon the orders of the authorities below. In view of the aforesaid facts and circumstances, I am of the considered view that the aforesaid pleas of the assessee needs to be verified and examined at the level of the Assessing Officer, afresh, particularly the genuineness of the receipts and cash deposits and also the correctness and genuineness of the claim of exemption u/s. 10(23AA) of the Act by the Assessee and then decide the issue in dispute afresh, in accordance with law. Hence, in the interest of natural justice, I remit back the issues to the file of the Assessing Officer for fresh adjudication, after giving adequate opportunity of being heard to the assessee. I hold and direct accordingly. Assessee is also directed through his Ld. AR to fully cooperate with the AO and canvass its case properly.