IBM DAKSH BUSINESS PROCESS SERVICES (P) LTD.,GURGAON vs. CIT, NEW DELHI

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ITA 4929/DEL/2009Status: DisposedITAT Delhi23 February 2021AY 2003-042 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 noted that the assessee had settled the dispute related to the revised assessment order. Consequently, the appeal challenging the Section 263 order became infructuous.

What were the facts?

The assessee's foreign exchange gain was treated as revenue by the CIT under Section 263, leading to a revised assessment. The assessee appealed this order and a subsequent order passed under Section 143(3) read with Section 263.

What were the issues?

Whether the foreign exchange gain was a capital receipt and the validity of the CIT's revisionary powers under Section 263.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘C’ NEW DLEHI

Before: SHRI R.K. PANDA & SHRI K. NARASIMHA CHARY

For Respondent: Ms. Sunita Singh, CIT/DR
Hearing: 23.02.2021

PER K. NARASIMHA CHARY, J.M. Challenging the order dated 28.03.2008 passed by the learned Commissioner of Income Tax-IV, New Delhi (“the Ld. CIT”), for the assessment year 2003-04, M/s. IBM Daksh Business Process Services (P) Ltd.(“the assessee”), preferred this appeal.

2.

Brief facts are that subsequent to assessment u/s. 143(3) of the Income Tax Act, 1961 (“the Act”) by order dated 30.03.2006 in the case of assessee, M/s. IBM Daksh Business Process Services (P) Ltd. for assessment year 2003-04, ld. CIT in exercise of powers u/s 263 of the Act passed the order dated 28.03.2008 holding that the foreign exchange gain of Rs.1,22,18,371/- cannot be held as capital receipts and therefore, revised the order directing the Assessing Officer to decide the issue afresh. Pursuant to such order u/s. 263 of the Act, ld. Assessing Officer passed the order u/s. 143(3) read with section 263 of the Act. is preferred by the assessee against the order passed u/s. 263 of the Act, whereas was preferred against the order passed u/s. 143(3) read with section 263 of the Act.

3.

Today, when this matter was called, the ld. AR submitted that the assessee opted settlement of the dispute involved in which was against the order passed u/s. 143(3) r.w.s.263 of the Act and recording the said fact, a co-ordinate Bench of this Tribunal dismissed the appeal as withdrawn by order dated 19.02.2021. He, therefore, submits that in view of the settlement of the dispute in ITA No. 3871/Del/2019, the very basis for stands deleted and therefore, this appeal has become infructuous. In view of this, ld. DR reports no objection. Recording the same, this appeal is dismissed as withdrawn.

4.

In the result, the appeal is dismissed.

1.

Order was announced on conclusion of Virtual Hearing in the presence of both the parties on this the 23rd day of February, 2021.

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