WINSOME FOUNDATION,CHANDIGARH vs. ITO (E), WARD, CHANDIGARH

During the course of hearing the Ld. AR had submitted that pursuant to the order passed by the Ld. CIT(A) the AO had passed the rectification order, thereby making the addition in the hands of the assessee. It was submitted that the assessee may be permitted to withdraw this appeal and liberty may kindly be granted to challenge the rectification order passed by the AO before the competent authority.

Ld. DR relied on the order passed by the lower authorities.

We have heard the rival contention and perused the material available on the record. In view of the request made by the assessee, the appeal is dismissed as withdrawn. However, liberty is granted to the assessee to take appropriate steps in accordance with law, including challenging the rectification order passed by the Assessing Officer. Needless to state, the competent authority shall decide any proceedings arising therefrom independently and on their own merits, in accordance with law, without being influenced by the present withdrawal. While adjudicating the appeal on merits, the competent authority is also directed to consider the delay in filing the appeal against the rectification order in a sympathetic and judicious manner. It is pertinent to note that the assessee has been diligently pursuing the challenge to the order of the Ld. CIT(A), which forms the foundation for the rectification proceedings initiated by the Assessing Officer, before this Tribunal. In this regard, reference may be made to the provisions of Section 14 of the Limitation Act, 1963, which provide for exclusion of time during which a party has been prosecuting with due diligence another civil proceeding in good faith before a court or tribunal which, due to a defect of jurisdiction or other cause of like nature, did not entertain it. Hence, the period spent by the assessee in prosecuting the appeal before this Tribunal may be taken into account while considering the delay in filing the appeal against the rectification order.

In the result, appeal of the Assessee is dismissed as withdrawn and the liberty is granted to file the appeal against the order passed by the Assessing Officer.