Central Hatcheries Pvt Ltd Vs ACIT (ITAT Jabalpur)
Summary: The assessee-company’s return for AY 2022-23 was processed under Section 143(1). While computing book profit under Section 115JB, the CPC made an adjustment concerning the treatment of agricultural income and the assessee’s share of profit from a partnership firm, resulting in a MAT demand of ₹2.42 lakh. The assessee contended that the adjustment involved a debatable issue beyond the limited scope of Section 143(1), that agricultural income and the share of profit from the partnership firm should be excluded from book profit, and that the CIT(A) had failed to adjudicate the specific ground concerning the share of profit from the firm. The assessee relied upon T.S. Balaram, ITO v. Volkart Brothers, (1971) 82 ITR 50 (SC), on the scope of a mistake apparent from the record. The Jabalpur ITAT observed that the CIT(A), while upholding the CPC adjustment, discussed the treatment of agricultural losses but did not consider the assessee’s submissions regarding its share of profit from the partnership firm. Accordingly, without deciding the merits, the Tribunal set aside the CIT(A)’s order and restored the appeal for fresh adjudication, with directions to consider all the issues and provide the assessee an adequate opportunity of hearing. The appeal was allowed for statistical purposes.
