M/S. DINESH TEXTILE MILLS,TIRUPPUR vs. DCIT, CIRCLE-1,, TIRUPPUR

The assessee is a partnership firm engaged in the business of garment exports. The assessee filed a return of income for A.Y 2018-19 on 29.10.2018 declaring total income of Rs. 2,13,90,090/-. The case was selected for limited scrutiny to verify the issue of compliance with the TDS provisions on payments outside India. The A.O completed the assessment u/s. 143(3) of the Act assessing the total income at Rs. 3,90,41,163/- by disallowing a sum of Rs. 1,72,99,085/- u/s. 40(a)(i) of the Act. Aggrieved, the assessee filed further appeal before the CIT(A). The CIT(A) deleted the disallowance and allowed the appeal of the assessee. Before the CIT(A), the assessee raised a ground (ground No.5) praying that the receipts from sale of MLFS scrip be allowed as exempted income. The assessee is in appeal before the Tribunal raising a contention that the CIT(A) has not adjudicated the said ground.

We have heard the parties, and perused the material available on record. We notice that the assessee in the grounds of appeal before the CIT(A) has made an additional claim stating that the receipts from sale of MLFS scrip which is offered to tax in the return of income is to be treated as not taxable in view of the decision of the coordinate bench of the Tribunal. From the perusal of the order of the CIT(A), we notice that the CIT(A) has not adjudicated the said ground. Therefore, we are remitting the appeal back to the CIT(A) for the limited purpose of considering the additional claim made by the assessee with regard to receipts from sale of MLFS scrip and adjudicate the claim in accordance with law. Needless to say that the assessee be given a reasonable opportunity of being heard. It is ordered accordingly.