TaxTMI 
TaxTMI 
2026 (6) TMI 981
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....the respective orders passed by the Assessing Officer (for short, "AO") under section 143(3) of the Income Tax Act, 1961 (for short, "the Act"), dated 29/12/2019 and under section 270A of the Act dated 08/02/2022, respectively. As the issues involved in these appeals are interlinked and interwoven, the same are being disposed of vide a consolidated order. We shall first take up the quantum appeal, i.e., ITA No.1690/Hyd/2025, wherein the assessee company has assailed the impugned order of the CIT(A) on the following grounds of appeal: "1. The order of the learned Commissioner of Income Tax (Appeals) is against the law, weight of evidence and probabilities of case. 2. The learned Commissioner ought to have appreciated that t....
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....fore OR at the time of hearing of the appeal, if it is considered necessary." 2. Succinctly stated, the assessee company, which is engaged in the business of real estate, had filed its return of income for AY 2017-18 on 18/12/2017, declaring an income of Rs. 1,20,54,090/- under normal provisions and "book profit" under section 115JB of the Act of Rs. 62,40,156/-. Subsequently, the assessee company's case was selected for scrutiny under section 143(2) of the Act. 3. Thereafter, the AO vide his order passed under section 143(3) of the Act, dated 29/12/2019, determined the income of the assessee company at Rs. 2,58,76,574/- after making certain additions /disallowances, viz., (i) disallowance of development and works cost: Rs. 1,07,6....
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....ntion, had taken us through Form No. 35, which revealed that the assessee company had opted out of receiving notices/communications by email and, at Sl. No 17 had specifically provided the address to which the notices may be sent. The Ld. AR fairly submitted that, except for one occasion, i.e., 30/07/2025, wherein the hearing of the appeal was fixed on 18/08/2025, on neither of the remaining occasions any notice as per the mode requested by the assessee company was served upon it, as a consequence thereof, it had failed to effectively participate in the appellate proceedings and put forth its case. The Ld. AR submitted that as the assessee company had remained divested of a sufficient opportunity to put forth its case and assail the impugne....
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.... 75,99,199/-) that was paid by the assessee company to NBFCs, the Ld. AR submitted that as the respective payees had paid the tax on the aforesaid interest in their respective hands and the certificates in Form-26A evidencing the said fact are available with the assessee, therefore, in case the matter is set aside to the file of the AO, the same shall be filed before him. Apropos the disallowance made by the AO under section 14A of the Act of Rs. 2 lakhs, the Ld. AR submitted that, as the assessee company had not earned any exempt income during the subject year, no disallowance under section 14A was called for in its case. 10. Per contra, Ms Uppaluri Meena, Learned Senior Departmental Representative (for short, "Ld. Sr-DR"), relied upon ....
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....ixing the appeal for hearing on 18/08/2025), wherein it is stated to have sought for an adjournment, but we find that the appeal had thereafter been disposed of within a short span, i.e., on 26/08/2025. In our view, the assessee company, in the absence of valid service of notices intimating the fixation of the hearing of the appeal, was not afforded a sufficient opportunity in the proceedings before the First Appellate Authority, despite no fault on its part. 14. We thus, in terms of our aforesaid deliberations, set aside the matter to the file of the CIT(A) with a direction to re-adjudicate the matter afresh after affording a reasonable opportunity of being heard to the assessee company. 15. In the result, the appeal filed by the ass....