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TMI Blog2025 (1) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... ls), 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, pursuant to orders passed by the Hon'ble ITAT in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 2. The learned CIT(A) has erred both in law and on the facts by directing to AO to verify/determine the exac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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. 6. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 6. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 premium. Additionally, procedural grievances regarding virtual hearings and the consequential levy of interest and penalty have also been raised. In light of the factual matrix, settled judicial prece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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 procedural lapse and violates principles of natural justice. However, as the issues have been decided on merit, this defect does not impact the outcome. The levy of interest is consequential in nature and arises o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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