M/S TUNGANATH REALTORS PRIVATE LTD.,KOLKATA vs. ITO(CPC), BANGALORE, BANGALORE

This appeal of the assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals) -17 , Kolkata [ in short the ld CI(A)] in Appeal No.309/CIT(A)- 17/Kol/14-15 dated 16.06.2016 against the order passed by the CPC, Bangalore [ in short the ld AO] under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act ‘] dated 07.09.2010 for the Asst Year 2009-10.

The only issue to be decided in this appeal of the assessee is as to whether the ld CIT(A) was justified in confirming the addition of Rs.6,67,301/- towards share of profit from the partnership firm in computing the book profit u/s 115JB of the Act in the facts and circumstances of the case. 3. At the outset, we find that the ld. CIT(A) has passed an order ex-parte and the ld. AR prayed before us for setting aside of this issue to the file of the ld. CIT(A). In response to this the ld. DR vehemently relied on the order of the lower authorities.

We have heard the rival submissions. We find that the issue before us is with regard to the inclusion of Rs.6,67,301/- representing profit from partnership firm in the M/s. Tunganath Realtors Private Ltd. A.Yr.2009-10 computation of income u/s 115JB of the Act. This was considered as income u/s 115JB of the Act in the intimation processed by CPC u/s 143(1) of the Act. The ld. AR argued that the share of profit from the partnership firm is exempt u/s 10 of the Act and accordingly the same would be outside the ambit of computation of book profits u/s 115JB of the Act. However, we find that no finding in this regard has been given by the ld. CIT(A) and since the ld. CIT(A) had decided the appeal ex-parte we deem it fit in the interest of justice and fair play to set aside this appeal to the file of the ld. CIT(A) for denovo adjudication of issue with regard to inclusion of profit from the partnership firm in the computation of book profits u/s 115JB of the Act. Accordingly grounds raised