BUSINESS PROCESS OUTSOURCING, LLC vs. THE AUTHORITY FOR ADVANCE RULINGS (INCOME TAX) AND ANR

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WP/8497/2018HC BombayHCBM01027408201808 March 2022Bench: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE N. J. JAMADAR4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the Petitioner to withdraw the writ petition. The Court noted that the Petitioner sought leave to withdraw in view of a message received from the International Tax Ward-1(3)(2), Mumbai. The Revenue had no objection to the withdrawal. Consequently, the Petition was dismissed as withdrawn. Furthermore, the Petitioner was discharged from its obligation to maintain US Dollars 10 million in an Escrow account and was permitted to withdraw the said amount, along with any accrued interest. The specific content of the communication dated February 17, 2022, which led to the withdrawal, was not detailed in the judgment, but it was the basis for the Petitioner's request and the Court's decision.

What were the facts?

The Petitioner, Business Process Outsourcing, LLC, filed a writ petition challenging an order or action by the Authority for Advance Rulings (Income Tax), Mumbai. The procedural history indicates that by an order dated March 22, 2019, the Petitioner was directed to maintain US Dollars 10 million in Escrow. The present proceedings are before the High Court of Judicature at Bombay. The Petitioner sought leave to withdraw the petition based on a communication received on February 17, 2022, from the International Tax Ward-1(3)(2), Mumbai. The Petitioner also requested to be discharged from the obligation to maintain the US Dollars 10 million in Escrow and to be permitted to withdraw it.

What were the issues?

1. Whether the Petitioner should be permitted to withdraw the writ petition. This issue turns on the impact of the communication dated February 17, 2022, from the International Tax Ward-1(3)(2), Mumbai. The Petitioner argued that in view of this communication, they should be discharged from the obligation to maintain US Dollars 10 million in Escrow and be permitted to withdraw the said amount. The Revenue (Respondents) stated they have no objection to the withdrawal and relied on a message received on March 7, 2021.

AI-generated summary — verify with the full judgment below

902-wp-8497-2018.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE CIVIL JURISDICTION WRIT PETITION NO.8497 OF 2018 Business Process Outsourcing, LLC ...Petitioner vs. The Authority For Advance Rulings (Income Tax), Mumbai and Another ...Respondents Mr. Percy Pardiwala, Sr. Advocate a/w. Mr. Ashish Sodhani i/b. Nishith Desai Associates, for the Petitioner. Mrs. Shehnaz Bharucha, for the Respondent Nos. 1 to 3. CORAM : K.R. SHRIRAM &

N. J. JAMADAR, JJ. DATE : MARCH 08, 2022 P.C.: . Mr. Pardiwalla, for Petitioner seeks leave to withdraw the Petition in view of a message received on 17th February, 2022 received by Petitioner from the International Tax Ward-1(3)(2), Mumbai which is taken on record and marked “X” for identification. Mr. Pardiwalla further states that by order dated 22nd March, 2019 an amount of US Dollars 10 million was directed to be maintained in Escrow by Petitioner. Mr. Pardiwalla states in view of the communication dated 17th February, 2022 Petitioner be discharged of the obligation to maintain US Dollars 10 million in Escrow and Petitioner be permitted to withdraw the US Dollars 10 million. For case of reference message dated 17th February, 2022 is scanned and re-produced below: Vishal Parekar 1/4 VISHAL SUBHASH PAREKAR Digitally signed by VISHAL SUBHASH PAREKAR Date: 2022.03.09 18:33:14 +0530

902-wp-8497-2018.doc 2. Ms. Bharucha states that Respondents have no objection and relies on a message received by her yesterday 7th March, 2021 which is taken on record and marked “X1” for identification. The Vishal Parekar 2/4

902-wp-8497-2018.doc said message for case of reference is scanned and reproduced below. Vishal Parekar 3/4

902-wp-8497-2018.doc 3. In the circumstances, Petition dismissed as withdrawn. 4. Petitioner is discharged of its obligation to maintain US Dollars 10 million in Escrow account and permitted to withdraw the said amount together with interest, if any.

(N. J. JAMADAR, J.)

(K. R. SHRIRAM, J.) Vishal Parekar 4/4

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