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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’, NEW DELHI
Before: SHRI BHAVNESH SAINI & SHRI O.P. KANT
ORDER PER O.P. KANT, AM:
These two appeal have been filed by the assessee against two separate orders, both dated 30th November, 2016 passed by Commissioner of Income-tax(Appeals)-XXVI, New Delhi [in short ‘the learned CIT(A)’] pertaining to assessment years 2005-06 and 2006-07 respectively.
In both the appeals, the assessments have been completed by the Assessing Officer under Section 153A/144/264 of the Income-tax Act, 1961 (for short ‘the Act’) consequent to the search proceedings at the premises of the assessee. In the first appellate proceeding, the learned CIT(A) following the decision of Hon’ble Delhi High Court in the case of CIT Vs Kabul Chawla, 126 DTR 130, decided the legal issue that no addition could have been made in the case of the assessee, however, on merit upheld the certain additions. Aggrieved by the finding of the learned CIT(A), both the Revenue and the assessee filed the appeal before the Tribunal.
At the outset, the learned counsel for the assessee submitted that the appeal filed by the Revenue challenging the relief allowed on legal ground to the assessee have already been dismissed in view of the low tax effect. He also submitted a copy of the order of the Tribunal wherein legal ground has already been settled. The learned counsel for the assessee submitted that he does not want to press the merits of the ground and sought to withdrawn the appeals. 4. On the contrary, learned DR did not object to the same. 5. We have heard the rival submissions of the parties. In these cases, the learned CIT(A) held that the Assessing Officer could not have proceeded to frame assessment under section 153A of the Act in respect of the years under consideration as no incriminating documents/assets had been found during the search operation. The relevant finding in assessment year 2005- 06 is reproduced as under:
“14. In view of above analysis of legal view on the issue, the AO couldn’t have proceeded to frame assessment u/s 153A in respect of year under consideration as no incriminating documents/assets have been found during search operation pertaining to this year. This ground of appeal, is therefore, allowed.”
Before us, the learned counsel for the assessee has filed copy of the order of the Tribunal in for assessment year 2005-06 and ITA No. 672/Del/2017 for assessment year 2006-07 dated 11.09.2018, wherein the tax effect was below Rs.20 lakhs. The appeals of the Revenue were dismissed due to low tax effect. The appeals of the assessee are rendered academic only. The learned counsel seeks permission for the withdrawal of the appeals, for which, endorsement has been made on the appeal’s paper. We, therefore, allow the assessee to withdraw the appeals. Accordingly, the appeals are dismissed as withdrawn.
In the result, both the appeals of the assessee are dismissed as withdrawn Order pronounced in the open court on 17th March, 2020.