Hamdard Laboratories India Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, adjudicated an appeal concerning the validity of directions issued by the Commissioner of Income Tax (Appeals) [CIT(A)] in relation to Assessment Year 2023–24. The dispute arose from an intimation issued under Section 143(1) of the Income Tax Act, 1961 by the Centralized Processing Centre (CPC), which determined the assessee’s taxable income at ₹112.15 crore despite the assessee having filed a return declaring nil income and claiming exemption under Section 10(23C)(iv).
The assessee challenged the adjustment before the CIT(A), who accepted the contention that no addition under Section 143(1) could be made without providing an opportunity of being heard. Consequently, the addition was deleted. However, the CIT(A) further directed the Assessing Officer (AO) to re-examine the assessee’s exemption claim under Section 10(23C)(iv).
The assessee contested this direction before the Tribunal, arguing that once the intimation under Section 143(1) was held invalid due to lack of opportunity, the entire proceeding ceased to exist and no further directions could be issued. It was also pointed out that a regular assessment under Section 143(3) had already been completed on 26.03.2025, wherein the AO had examined the exemption claim and made no addition on the disputed amount.
