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Facts
The appellant filed an appeal against an order that did not compute tax liability at slab rates. Subsequently, the appellant sought withdrawal of the appeal as they had obtained relief from the CPC via a rectification application under Section 154 of the I.T. Act.
Held
The Tribunal observed that the appellant had received the desired relief through a rectification application, rendering the appeal infructuous. Consequently, the Tribunal decided to dismiss the appeal as withdrawn.
Key Issues
Whether the appeal has become infructuous due to the relief granted in a rectification application, warranting withdrawal.
Sections Cited
164(1), 154, 143(1)
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Income Tax Appellate Tribunal, Mumbai “K(SMC
Before: Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM)
At the time of hearing before the bench, Ld. AR of the appellant filed a letter dated 15.1.2025 received on 20.2.2025 and the contents are reproduced below :- “Sub - Application requesting withdrawal of appeal. Respected Sir, Madam, The captioned appeal has been filed by the Employee Benefit Trust of M/s Ion Exchange India Ltd, relates to rate of tax to be applied on income earned by the Trust. The Centralised Processing Centre (CPC), vide its order [intimation u/s 143(1) of the Act] dated 16.03.2023 has taxed the income of the trust at Maximum Marginal Rate, while the Appellant Trust seeks to be taxed at slab rates. The CIT(A) had dismissed the appeal of the Appellant as the condonation for delay was rejected and without any discussion on merits.
2 The Appellant Trust had moved an application u/s 154 of the Act on 25.10.2024, seeking the CPC to rectify the impugned intimation passed u/s 143(1), to restrict the tax on the income of the Appellant to slab rate. The relief sought in the rectification application is similar to the relief sought in the subject appeal before the Tribunal. The CPC has processed the rectification application on 14.12.2024 and granted us the relief sought therein, by restricting the rate of tax to slab rate. As the relief sought before the Hon'ble Tribunal has been granted by the CPC in the rectification application, the Appellant submits that the subject appeal has become infructuous. Hence, we humbly pray for withdrawal of the subject appeal filed before the Hon'ble Tribunal.”
From the above letter, it is observed that the appellant wanted to withdraw this appeal as the appellant-trust got relief in pursuance of an application made under section 154 of the I.T. Act. The CPC has processed rectification application on 14.12.2024 and granted relief sought by the appellant. As the appellant-trust has got relief, they wanted to withdraw the appeal. Ld. DR did not object for the same.
In view of the above, it is decided that the appeal of the appellant- trust is dismissed as withdrawn.
Order pronounced in the open Court on 24/02/2025.