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Facts
The assessee filed an appeal against the order of the CIT(A) for AY 2021-22. The assessee later requested to withdraw the appeal, stating that the assessment order had been rectified by the AO, making the appeal infructuous. The AO had initially issued an intimation under section 143(1) and later an assessment order under section 143(3).
Held
The Tribunal allowed the assessee's request to withdraw the appeal. The appeal was dismissed as withdrawn. The Tribunal also granted liberty to the appellant to reapproach the bench if the AO takes any action to rectify the assessment order.
Key Issues
Whether the assessee can withdraw the appeal when the assessment order has been rectified, rendering the appeal infructuous.
Sections Cited
250, 253, 139(1), 143(1), 143(2), 143(3), 144C(13), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “F”, MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAJ KUMAR CHAUHAN
O R D E R PER RAJ KUMAR CHAUHAN (J.M.): 1. The appeal filed by the appellant/assessee against the Ld. Commissioner of Income Tax (Appeals), Mumbai [Ld. CIT(A)], Mumbai dated 14th August, 2024 passed u/s 250 of the Act for AY 2021-22. Page | 1 Schneider Electric Private Limited 2. At the outset, our attention was drawn towards letter dated 08.01.2025 wherein the assessee has requested to withdraw the appeal. The operative portion of the letter extracted as under:-
Sub: Request for withdrawal of above referred appeal filed under section 253 of the Income-tax Act, 1961 ('the Act')
We refer to the captioned appeal filed by the Company before your Honour against the order of the Hon'ble Commissioner of Income-tax (Appeal) ['CIT(A)] dated August 14, 2024, passed under section 250 of the Act ['the Order']. This appeal was filed on October 10, 2024, and was listed for hearing on January 01, 2025.
In this regard, the Company wishes to submit as under:
For AY 2021-22, the Appellant filed its Income Tax Return on 15 March 2022 under section 139(1) of the Act declaring taxable income of INR 1,70,16,14,230. Thereafter, an Intimation dated September 22, 2022 was issued under Section 143(1) of the Act (referred to as 'Intimation') determining the total income of INR 1,70,42,15,940. and raising demand of INR 96,75,900.
The Company filed an appeal on September 26, 2023 before the CIT(A) along with the request to condone the delay in filing said appeal. However, the CIT(A) without appreciating that issues in appeal involve mistakes apparent from record resulting in double taxation of income/disallowance of expenses, rejected the appeal without granting condonation.
The assessment proceedings for the subject year were also initiated against the Company through issuance of notice under section 143(2) of the Act. During the proceedings, these Company highlighted mistakes apparent Page | 2
Post filing of appeal with the Hon'ble Tribunal, the assessment proceedings for the captioned year were concluded through an order dated October 28, 2024 ('Assessment Order'), passed under Section 143(3) read with Sections 144C(13) and 144B of the Act by the Ld.AO., wherein the mistakes apparent from the record in the Intimation were duly rectified (copy of the Assessment Order enclosed as Annexure 1).
In view of the above, it is humbly submitted that the captioned appeal filed before the Hon'ble Tribunal has now become infructuous on account of rectification made by the Ld. AO in the Assessment Order. In light of the above facts and legal position the Appellant seeks withdrawal of above appeal.
Furthermore, as directed by your Honours during the hearing scheduled on January 01, 2025, the Company is enclosing the affidavit explaining reasons for the delay in filing the appeal before the office of CIT(A) against the Intimation as Annexure 2.
We trust that your office will accede to our request and oblige.
The above withdrawal is being filed without prejudice to the rights and contentions of the Company, and other available legal remedies. It is submitted in case the Ld. AO and/or jurisdictional assessing officer takes any action to rectify the Assessment Order, the Appellant may be given liberty to reapproach the Hon'ble Bench to seek due relief.
On the other hand, Ld. DR did not object to the said request of withdrawal.
In the result, the appeal filed by the assessee is dismissed as withdrawn.
Order pronounced in the open court on 13.01.2025