JAYASHREE POLYMERS PRIVATE LIMITED,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 9, PUNE

This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)- 6, Pune [‘CIT(A)’ for short] dated 18.02.2019 for the assessment year 2014-15.

When the matter had come up for hearing, ld. AR for the assessee filed a letter dated 20.05.2022 seeking permission to withdraw the above captioned appeal. The relevant contents of the said letter dated 20.05.2022 are reproduced hereunder :- “In this regard it is respectfully submitted that the Appellant had filed the appeal before Your Honours against the order of the Hon'ble CIT(A) wherein the Hon'ble CIT(A) has allowed all the other grounds claimed by the Appellant apart from the disallowance of 20% of salary cost amounting to Rs. 1,84,40,444/-. The appeal was filed by the Appellant keeping in view penalty proceedings u/s. 271(1)(c) of the Act. However, subsequently on analysing the matter, it was observed by the Appellant that the addition sustained by the Hon'ble CIT(A) does not result into any tax effect since the deduction allowable u/s. 80IA and 80IC of the Act has also increased to the extent of disallowance upheld by the Hon'ble CIT(A) i.e. Rs. 1,84,40,444/-. In view of the same, no penalty is leviable on the addition so sustained since there is no tax which becomes payable as a result of this disallowance. In view of the fact that there are no adverse implications of the disallowance made and to avoid cost of litigation, the Appellant requests your Honour to kindly allow the Appellant to withdraw the appeal mentioned above, for the kind act of which the Appellant shall be much obliged.”

Considering the above submissions of the ld. AR for the assessee and ld. Sr. DR’s no objection for withdrawal of the present appeal, we hereby grant permission to the assessee to withdraw the present appeal. Accordingly, the above captioned appeal stands dismissed as ‘withdrawn’.