SHEELA FOAMS LTD,GHAZIABAD vs. ACIT, CENTRAL CIRCLE-6, NEW DELHI

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ITA 919/DEL/2021Status: DisposedITAT Delhi24 November 2022AY 2016-173 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal allowed the assessee's request to withdraw the appeal. This was based on the assessee's submission that a recent Finance Act amendment clarified the taxability of cess, rendering the appeal moot.

What were the facts?

The assessee filed an appeal against the Assessing Officer's order concerning the deduction of education cess on income tax. The assessee requested to withdraw the appeal due to a legislative amendment clarifying that 'tax' includes cess.

What were the issues?

Whether education cess on income tax is deductible as an expense. The issue became moot due to a legislative amendment.

Which sections of the Income-tax Act were involved?

Section 40(a)(ii)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, DELHI BENCH “I” DELHI

Before: SHRI PRADIP KUMAR KEDIA & SHRI NARENDER KUMAR CHOUDHRY

For Appellant: Ms. Somya Jain, CA
For Respondent: Shri Amit Kumar Jain, Sr.DR

The captioned appeal has been filed by the Assessee against the final order dated 31.05.2021 passed by the Assessing Officer for the Assessment Year 2016-17, in pursuance of direction given by the Dispute Resolution Panel-1 vide order dated 17.03.2021. 2. During the course of hearing, at the outset, the ld. counsel for the assessee submitted he has the instruction to withdraw this appeal and furnished a copy of request letter dated 09.11.2022 which is placed on record.

3.

In his rival submissions, learned Department Representative did not object if the appeal of the assessee is dismissed as withdrawn.

4.

After considering the submissions of both the parties and the material available on record, it is noticed that the assessee-company furnished a letter dated 09.11.2022 stating therein as under:

“The captioned appeal is fixed for hearing before the Hon’ble Bench today. In this regard, it is respectfully submitted that the only issue raised in the captioned appeal is regarding deduction of education cess on income tax amounting to Rs. 1,18,01,634 claimed during the course of assessment proceedings in terms of law clarified by the Hon’ble Rajasthan High Court in the case of Chambal Fertilisers and Chemicals Ltd. vs JCIT: D.B Income- tax Appeal No.52/2018 and Hon’ble Bombay High Court in the case of Sesa Goa Ltd. vs. JCIT: 423 ITR 426 (Bom) which was not allowed by the assessing officer. Vide Finance Act 2022, Explanation 3 has been inserted in section 40(a)(ii) of the Act, w.e.f., 01.04.2005, clarifying that for the purposes of this sub- clause, the term “tax” includes and shall be deemed to have always included any surcharge or cess, by whatever name called, on such tax. In view of the aforesaid, it is respectfully submitted that on instructions of the appellant, we crave the leave to withdraw the captioned appeal. The appellant may accordingly be allowed to withdraw the appeal. WWW.VAISHLAW.COM We trust that our request shall be acceded to. The appellant will be grateful for this kindness.”

5.

In view of the above, we dismiss the appeal of the assessee as withdrawn.

6.

In the result, the appeal of the assessee is dismissed as withdrawn.

Order pronounced in the open Court on 24/11/2022.

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