NATIONAL HOUSING BANK,DELHI V. DCIT CIRCLE 16(1) DELHI, DELHI

ITA 4695/DEL/2025

AI Insights

The case involves the National Housing Bank (Assessee) appealing against the order of the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, which dismissed their appeal regarding an assessment order that restricted their deduction under Section 36(1)(viia)(c) of the Income Tax Act, 1961. The initial assessment made an addition of Rs. 1,66,82,274 under the head of profit and gain of business and professional income, which the Assessee contested. The primary contention in the appeal was the alleged violation of the principles of natural justice, as the Assessee claimed they were not provided an opportunity to be heard by the Ld. CIT(A). The Income Tax Appellate Tribunal found merit in the Assessee's claim and remanded the matter back to the Ld. CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822432 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 30-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: ANJU GOEL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 147

Judgement Text

"1 ITA No. 4695/Del/2025 National Housing Bank Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ NEW DELHI) BEFORE YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 4695/DEL/2025 (A.Y. 2016-17) National Housing Bank Core-5A, 3rd-5th Floor, Indian Habitat Centre, Lodhi Road, New Delhi PAN: AABCN2600H Vs DCIT Circle 16(10 Delhi New Delhi Appellant Respondent Assessee by Ms. Anju Goel, CA Revenue by Ms. Pooja Swaroop, CIT(DR) Date of Hearing 22/12/2025 Date of Pronouncement 22/12/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, (‘Ld. CIT(A)/NFAC’ for short), dated 29/05/2025 pertaining to Assessment Year 2016-17. 2. Brief facts of the case are that, an assessment order came to be passed on 23/05/2023 passed under Section 147 r.w. Section 144B of the Income Tax Act, 1961 by restricting the deduction u/s 36(1)(viia)(c) of Rs. 5,31,86,500/- as against the claim of the Assessee of Rs. 5,37,37,70,848/- by making addition of Rs. 1,66,82,274/- under the head of profit and gain of business and professional income. Aggrieved by the assessment order dated 23/05/2023, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 29/05/2025, dismissed the Appeal filed by the Assessee. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeal. Printed from counselvise.com 2 ITA No. 4695/Del/2025 National Housing Bank Vs. DCIT 3. The Ld. Counsel for the Assessee submitted that the Ld. CIT(A) has provided no opportunity of being heard to the Assessee and in violation of principals of natural justice, dismissed the appeal of the Assessee. 4. Per contra, the Ld. Departmental Representative relying on the orders of the Ld. CIT(A) sought for dismissal of the Appeal. 5. We have heard both the parties and perused the material available on record. It can be seen from the order of the Ld. CIT(A), the order impugned has been passed ex-parte without hearing the Assessee. It is further observed that while deciding the Appeal, the Ld. CIT(A) has not decided all the grounds of Appeal of the Assessee on its merits. Considering the facts that the Assessee has not participated in the first Appellate proceedings, in the interest of justice, we remand the matter to the file of the Ld. CIT(A) with a direction to the Ld. CIT(A) to decide the Appeal afresh on its merits in accordance with law after providing opportunity of being heard to the Assessee. 6. In the result, the Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 22nd December, 2025 Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 22.12.2025 R.N, Sr.P.S* Printed from counselvise.com 3 ITA No. 4695/Del/2025 National Housing Bank Vs. DCIT Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "