BALAJI FORMALIN PRIVATE LIMITED,AHMEDABAD V. DCIT,CIRCLE, GANDHINAGAR

ITA 956/AHD/2024

AI Insights

Balaji Formalin Private Limited filed an appeal against the order of the Commissioner of Income Tax (Appeals), which arose from an assessment order under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2018-19. The primary issues in the appeal included the incorrect reporting of returned income, the erroneous reduction of return loss by MAT Credit, the improper increase of Book Profit by MAT Credit, and the initiation of penal proceedings under section 270A for alleged underreporting. Despite these substantial issues, the tribunal dismissed the appeal due to the absence of the assessee's representation at the hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312827 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revised return
• Section: 143(3); 115JB

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Makarand Vasant Mahadeokar, Accountant Member Balaji Formalin Private Limited TF 302 Dev Arc, Opp. Big Bazar, S.G. Highway, Satelitte, Ahmedabad-380052 Gujarat PAN: AABCB7062K (Appellant) Vs Income Tax Officer, Circle, Gandhingar (Respondent) Assessee Represented: None Revenue Represented: Shri Prateek Sharma, Sr.D.R. Date of hearing : 30-04-2025 Date of pronouncement : 30 -04-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the exparte appellate order dated 07.03.2024 passed by the Commissioner of Income Tax (Appeals), arising out of the assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19. ITA No: 956/Ahd/2024 Assessment Year: 2018-19 I.T.A No. 956/Ahd/2024 A.Y. 2018-19 Page No Balaji Formalin Pvt. Ltd. . vs. ITO 2 2. The Grounds of appeal raised by the Assessee are as follows: 1. Returned income is shown as Zero in place of loss Rs. (-) 1,62,09,031 in schedule of details of assessee on First Page of Order. (1) The learned A.O. has erred in showing returned income as Zero (First Page of Order), though assessee has filed revised Return of income showing loss at Rs.(-)1,62,09,031. In as much as, in computation of assessed income the A.O. has shown return loss at Rs. (-)1,62,09,031 2. Return loss of Rs. (-) 1,62,09,031 is reduced by MAT Credit Rs. 1,29,09,468/- (1) The learned A.O. has erred in reducing the return loss by MAT Credit of Rs. 1,29,09,468 (F.Y. 2016-17 Rs. 65,82,448 Plus F.Y. 2017-18 Rs. 63,27,020) on the ground that MAT Credit should not be allowable as deduction from total income under normal provision of the Act and assessing the loss at Rs. (-)32,99,563/-. In as much as, MAT Credit of earlier years was accounted in Books of Accounts by Crediting the same to Profit and Loss A/c. and Debiting to MAT Credit A/c. in Balance Sheet. MAT Credit corresponds to excess MAT that was paid and it cannot be considered as income. 3. Book Profit is increased by MAT Credit of earlier years Rs.1,29,09,468/- (1) The learned A.O. has erred in increasing the Book Profit to the extent of MAT Credit of earlier years Rs. 1,29,09,468/- (F.Y. 2016-17 Rs. 65,82,448 Plus F.Y. 2017-18 Rs. 63,27,020) on the ground that MAT Credit should not be allowable as deduction under Book Profit under Section 115JB of the Act. In as much as, the MAT Credit of earlier years is result of excess MAT paid and it is not income. To account for the MAT Credit available to assessee, Book entry was passed by crediting Profit and Loss A/c. and Debiting MAT Credit in Balance Sheet. 4. Penal proceedings U/s. 270A wrongly initiated (1) The learned A.O. has erred in initiating penal proceedings U/s.270A, in as much as, it is not a case of underreporting because MAT Credit accounted in Profit and Loss A/c. is not taxable. The assessee craves the liberty to raise additional grounds. I.T.A No. 956/Ahd/2024 A.Y. 2018-19 Page No Balaji Formalin Pvt. Ltd. . vs. ITO 3 3. Today is the 10th time of hearing of this appeal, None appeared on behalf of the assessee in spite of service of notice. On the earlier occasion, one Shri Arpan Shah requested for adjournment for his professional commitments in various other forums. However adjournment has been granted earlier. Today there is no representation on behalf of the assessee and no request for adjournment and there is no materials placed on record to deviate from the order passed by the Lower Authorities. Since assessee failed to represent before Ld. CIT(A) and also before this Tribunal. This makes it clear, the assessee is not interested in pursuing the appeal. Thus the appeal filed by the Assessee is hereby dismissed for non-prosecution 4. In the result, the appeal filed by the Assessee is hereby dismissed. Order pronounced in the open court on 30 -04-2025 Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 30/04/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) I.T.A No. 956/Ahd/2024 A.Y. 2018-19 Page No Balaji Formalin Pvt. Ltd. . vs. ITO 4 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "