ACIT, NEW DELHI vs. SHRI SANJEEV MALHOTRA, NEW DELHI

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ITA 3290/DEL/2009Status: DisposedITAT Delhi16 April 2025AY 2004-05Bench: SHRI ANUBHAV SHARMA (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)5 pages

In favour of the assessee: the Revenue'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 filed an application seeking to withdraw the appeal, citing that the grounds for appeal had been resolved. Specifically, the assessee had filed a rectification application under section 154, which led to an order from the NFAC rectifying the CIT(A)'s order and granting the benefit of lower taxation under section 115BAA. Following this, the AO had passed an appeal effect order allowing the assessee this benefit. The Tribunal observed that the Revenue did not object to the withdrawal application. Accordingly, the Tribunal dismissed the appeal as withdrawn, based on the assessee's request and the subsequent resolution of the issues that formed the basis of the appeal. No issue was left undecided.

What were the facts?

The assessee, Induslynk Training Services Pvt Ltd, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging an order dated 15.05.2024 passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2021-22. The assessee subsequently filed an application dated 05.08.2025 seeking to withdraw the appeal. The reason for withdrawal was that the assessee had filed a rectification application under section 154 of the Income Tax Act, 1961, against the CIT(A)'s order. The National Faceless Appeal Centre (NFAC) passed an order under section 154, rectifying the earlier order and granting the benefit of lower taxation as per section 115BAA of the Act. Consequently, the Assessing Officer (AO) passed an appeal effect order dated 30.07.2025, allowing the assessee the benefit of section 115BAA. The assessee stated that the grounds for which the appeal was pending had been allowed.

What were the issues?

1. Whether the assessee's appeal should be permitted to be withdrawn. (Question of procedure, turning on the assessee's application and the circumstances leading to it). Assessee's Contention: The assessee contended that an appeal effect order had been passed by the AO allowing the benefit of lower taxation under section 115BAA, consequent to a rectification order by the NFAC. Therefore, the grounds for which the appeal was filed had been duly allowed, and the assessee requested permission to withdraw the appeal. Revenue's Contention: The Departmental Representative (DR) did not raise any objection to the assessee's application for withdrawal.

Which sections of the Income-tax Act were involved?

Section 154,Section 250,Section 115BAA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘C’ BENCH,

Before: SHRI MAHAVIR SINGH & SHRI NAVEEN CHANDRA

For Appellant: Shri Aman Garg, CA, Shri Rohit Bartana, CA
For Respondent: Shri Dheeraj Kumar Jain, Sr. DR
Hearing: 22.08.2025Pronounced: 22.08.2025

PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-

This appeal by the assessee is preferred against the order dated 15.05.2024 for A.Y 2021-22.

1.

[A.Y 2021-22] Induslynk Training Services 2. At the very outset, the ld. counsel for the assessee filed an application dated 05.08.2025 seeking permission to withdraw the appeal filed by the assessee. The relevant portion of the application reasoning the withdrawal reads as under:

“The above-mentioned appeal was filled by assessee on 13 July 2024 bearing for assessment year 2021- 22), against order dated 15 May 2024 passed by Honorable Commissioner of Income- Tax Appeal ['CIT(A)'] under section u/s 250 of the Income Tax Act 1961 ('Act') fixed for hearing before "C" Bench on 07.08.2025. Copy of Acknowledgement of filling of appeal along with Form 36 and Ground of Appeals is attached as Annexure 1.

Your Honour, in this regard, it is relevant to mention that against the above-mentioned order of the CIT(A), assessee has filed rectification application u/s 154 of the Act.

In response to above mentioned rectification application filed by the assessee, National Faceless Appeal Centre ('NFAC') passed order u/s 154 read with section 250 (dated 2 September 2024) rectifying mistakes apparent from record in the order dated 15 May 2024 passed by CIT(A), granting the benefit of lower rate of taxation as per section 115BAA of the Act for AY 2021-22 and directing AO to allow assessee the benefit of lower rate of taxation under section 115BAA of the Act.

[A.Y 2021-22] Induslynk Training Services Consequent to the above stated direction, the Ld.AO has also passed an appeal effect order dated 30 July 2025, allowing assessee benefit of lower rate of taxation under section 115BAA of the Act. Accordingly, the grounds for which the subject appeal is pending has been duly allowed to assessee.

In view of the same, the assessee requests your honours to take the above on record and accept assessee's request to withdraw the subject appeal.”

3.

The ld. DR did not raise any objection.

4.

Accordingly, the appeal of the assessee is dismissed as withdrawn.

5.

In the result, the appeal of assessee in is dismissed as withdrawn.

The order is pronounced in the open court on 22.08.2025.

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