VINCENT & CO P LTD,TRICHY vs. ACIT COMPANY CIRCLE-1(1), TRICHY

This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-1, Trichy, in vide order dated 27.12.2019. The Assessment was framed by ACIT, Company Circle 1, Trichy for the assessment year 2004-05 vide order dated 24.12.2009 U/s 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).

I have gone through the order of CIT(A), who first decided the appeal ex-parte but the CIT(A) has not at all discussed about the facts of the case on merits. The relevant adjudication by CIT(A) in Para 3.2 & 3.4 reads as under:- “3.2 Only issue in this case is regarding taxability u/s.115JB of the Act on book profits, which have been computed without including capital gains on sale of shares. This issue has been decided against the assessee by ITAT Bangalore [ITA 1659/1660/1861 & 1862/203] which has allowed benefit of indexation to assessee while computing the mat liability, as has been done in this case. The relevant extracts of this judgement as under: …… …… 3.3…… 3.4 AR of assessee, Mr. S. Sridhar, CA’s have not responded to notices dated 09.11.2016 and then again on 27.12.2019 and hence the matter is decided on the merits of the case.”

As the CIT(A) passed ex-parte order and moreover nothing was discussed on merits, I deem it fit to remand the matter back to the file of the CIT(A) for fresh adjudication. When these facts was pointed out to ld. senior Department Representative, he could not controvert the above stated position. In the facts and 3 circumstances, I set aside the order of CIT(A) and remand the matter back to his file for fresh consideration.

In the result, the appeal of the assessee is allowed for statistical purpose