ACIT-2(2)(1), MUMBAI vs. M/S. LIC HOUSING FINANCE LTD., MUMBAI

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ITA 1029/MUM/2023Status: DisposedITAT Mumbai23 August 2023AY 2020-214 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found no grievance for the revenue as the subsequent assessment order rectified the initial disallowance. Therefore, the revenue's appeal against the CIT(A)'s permission to withdraw the appeal was dismissed.

What were the facts?

During 143(1) proceedings, the AO disallowed leave encashment deduction. Subsequently, during scrutiny (143(3)), the AO allowed this deduction. The assessee then sought to withdraw their appeal before the CIT(A) due to this subsequent allowance.

What were the issues?

Whether the revenue has a grievance when an assessee withdraws an appeal after the subsequent assessment order allows the disputed deduction. Whether the revenue's appeal against the CIT(A)'s permission to withdraw is maintainable.

Which sections of the Income-tax Act were involved?

Section 43B(f),Section 143(1),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI

Before: SHRI PAVAN KUMAR GADALE, HONBLE & SHRI S. RIFAUR RAHMAN, HONBLE

For Respondent: Shri Ujjawal Kumar
Pronounced: 23.08.2023

O R D E R PER S. RIFAUR RAHMAN (AM)

1.

This appeal is filed by revenue against order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short “Ld.CIT(A)”] dated 04.02.2023 for the A.Y. 2020-21.

(A.Y: 2020-21) M/s. LIC Housing Finance Ltd., 2. Revenue has raised following grounds in its appeal: -

1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not considering the adjustment made on account of disallowance of deduction of leave encashment w/s. 43B(f). made u/s. 143(1) of the Act by the CPC, Bangalore of Rs.2,49,01,180/- without considering the fact that the said adjustment was not made w/s. 143(3) of the Act without discussing the issue on merits?

"2. The Ld. CIT(A)'s order is contrary in law and on facts and deserves to be set aside. 3. "The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the AO restored. The appellant craves leave to amend or alter any ground or add a new ground that may be necessary at the time of hearing."

3.

Brief facts relating to the above grounds are, under 143(1) proceedings the Assessing Officer has disallowed the claim made by the assessee u/s. 43B(f) of the Act i.e., leave encashment amount of ₹.2,49,01,180/- . Aggrieved with the above order assessee preferred an appeal before the Ld.CIT(A). During pendency of this appeal, the case of the assessee is selected for scrutiny and in the 143(3) proceedings, the Assessing Officer had allowed the deductions u/s. 43B(f) of the Act – leave encashment, as a consequence there is no disallowance and therefore assessee intimated the above said development in the Appellate proceedings vide its submission dated 06.11.2022.

4.

Based on the above submissions and facts on record Ld.CIT(A) permitted the assessee to withdraw the appeal by observing that once Page No. | 2

(A.Y: 2020-21) M/s. LIC Housing Finance Ltd., right of appeal is exhausted, by party concerned, and the appeal is filed before appropriate appellate authority, who after receiving the same has registered it and accordingly, he allowed the assessee to withdraw the appeal.

5.

Now before us, revenue is in appeal against the above said permission to withdrawal the appeal.

6.

After considering the overall facts on record we do not see any reason that there is any grievance to the revenue. Since both the counsel are in agreement that there is no loss to the revenue in entertaining the withdrawal of the appeal by the Ld.CIT(A). Accordingly, ground filed by the Revenue become infructuous, hence, dismissed.

7.

In the result, appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 23rd August, 2023.

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