TaxTMI 
TaxTMI 
2025 (1) TMI 36
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.... learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (NFAC) [hereinafter referred to as "CIT(A)"] under section 250 of the Income Tax Act, 1961 [hereinafter referred to as "the Act"]. Since the issues involved in both appeals are similar and arise from a common set of facts, they are being adjudicated upon by this consolidated order for the sake of convenience and brevity. Facts in Brief: 2. The assessee, Deendayal Port Authority (formerly Kandla Port Trust), is a statutory authority constituted under the Major Port Trust Act, 1963 and is engaged in the business of port operations. 2.1. The income of the assessee has been held to be exempt under Sections 11 and 12 of the Income Tax Act, 1961, pursua....
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....l related to allowing Prior Period Expenses of Rs. 3,78,49,201 in spite of quoting following facts in his order: "It is seen that the order u/s 143(3) r.w. 147 has been passed on 14/03/2014, subsequently Hon'ble ITAT vide order dated 08.06.2018 confirmed the stand of Ld. CIT(A) that the appellant is eligible for exemption u/s 11 to 13 and in the order giving effect to ITAT order dated 07/05/2019, the entire income of the assessee trust is eligible for exemption u/s 11 & 12. In other words, the entire income of the appellant trust is exempt, subject to the provisions of section 11 & 12. It is seen that the issue of prior period expenditure or income thus has become academic and would not affect the outcome of exemption u/s 11. ....
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.... of the case in confirming the action of the AO of making addition of Rs. 9,66,66,667/- in respect of upfront premium being the income of Appellant is exempted u/s 11-13 of the Act. 3. The Ld. CIT(A) has not provided link of Virtual Hearing as requested from your appellant from time to time which has been confirmed by Income Tax Department vide DIN / Letter No: ITBA/NFAC/S/17/2023-24/1058958521(1) dated 21.12.2023. 4. The learned CIT(A) has erred in law and on the facts of the case in confirming action of the Id. AO in levying interest u/s. 234A/B/C of the Act. 5. The learned CIT(A) has erred in law and on facts of the case in confirming action of the id. AO in initiating penalty u/s. 271(1)(c) of the Act. ....
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....AR submitted that since the assessee's income is exempt, the levy of interest under Sections 234A, 234B, and 234C of the Act, as well as the initiation of penalty under Section 271(1)(c) of the Act, was unsustainable. 7. The learned DR fairly conceded that the issue of exemption under Sections 11 and 12 of the Act is covered by the decisions of the Hon'ble ITAT in the assessee's own case for earlier years. 8. We have carefully considered the rival submissions, perused the materials on record, and examined the orders passed by the authorities below. The issues raised in these appeals primarily pertain to the disallowance of prior period expenses, contributions to pension and gratuity funds, and the treatment of upfront lease premiu....
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....ire income of the assessee is exempt under Sections 11 and 12 of the Act, the disallowance is not tenable. Accordingly, the disallowances are deleted. 8.4. In the A.Y. 2007-08, the AO added the upfront lease premium of Rs. 9,66,66,667/- to the taxable income. The CIT(A) upheld this addition. The lease premium pertains to a 30-year lease and should be spread over the lease period. Reliance is placed on the decision in the case of CIT v. Unique Mercantile Services Pvt. Ltd. (2015) 56 taxmann.com 429 (Gujarat). As the entire income of the assessee is exempt under Sections 11 and 12 of the Act, the addition is unwarranted. Accordingly, the addition is deleted. 8.5. The failure to provide a link for virtual hearings constitutes a procedura....