Facts:

The Federal Inland Revenue commenced the action against Agromix Nigeria Limited, the Responded, alleging that the Respondent had neglected or failed to file audited accounts and returns for the year 2015/2016 as it was required to do under the Companies and Income Tax Act. The Respondent commissioned a firm of Estate Surveyors and Values which valued the Respondents property at situate at Abuja, FCT at N126,870,000,00 and based on the value of the property and a deemed profit of N25,374,000, the Respondent’s tax liability for the year 2016 was assessed to the best of the Appellant’s judgment at N7,612,200 (being 30% of deemed profit. The Appellant claimed that an assessment/demand notice was posted at the Respondent’s property in Abuja but the Respondent’s registered address is situate at Agbeloba House, 56 Quarry Road, Abeokuta, Ogun State.

When the Respondent did not make any payment, the Appellant commenced an action against the Respondent in Abuja which was subsequently transferred to Abeokuta Division of the Federal High Court. The Respondent claimed among other reliefs that the by the provision of the Company Income Tax Act, the Plaintiff is empowered to distrain Respondents’ properties for failure to pay its tax being assessed by the Appellant. The trial court dismissed the suit of the Appellant and entered judgment in favour of the Respondent. Aggrieved by the decision, the Appellant appealed to the Court of Appealed.