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Assessee by Shri Nimesh Chothani, CA Department by Shri Ashok B. Koli, CIT-DR Date of hearing 02/05/2023 Date of pronouncement 02/05/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned Principal Commissioner of Income tax-1, Surat [ in short the ld. Pr.CIT] dated 23/02/2020 passed under Section 263 of the Income Tax Act, 1961 (in short, the Act) for the Assessment Year (AY) 2015- 16. The assessee has raised following grounds of appeal:-
1. The ld. Pr.CIT has erred in passing the order u/s 263 of the Act ignoring the fact that the case of the appellant was selected for limited scrutiny under CASS and that the issue raised by your Honour in the order is not a part of the scope in limited scrutiny and hence the revision of such order is beyond the scope of section 263 of the Act.
Purple Medical Solutions P Ltd Vs Pr.CIT 2. The ld. Pr.CIT erred in passing the order u/s 263 of the Act on a non- existent entity and hence the order passed is void and bad in law and liable to be quashed.
The ld. Pr.CIT has erred in disallowing the amount received towards employee’s provident Fund and ESIC by invoking provision of Section 36 (1)(va) of the Act ignoring the fact that the total contribution is covered under the provisions of Section 43B of the Act and therefore allowable as deduction.”
At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that pursuant to the order of National Company Law Tribunal (NCLT) Ahmadabad Bench, dated 10/02/2020 and NCLT Mumbai Bench 08/05/2020, the assessee company has been merged with Purple Medical Solutions Private Limited. The office of successor company is situated a Mumbai. The assessee has already filed a Transfer Application for transferring of this appeal from Surat Bench to Mumbai Benches of the Tribunal. The ld. jurisdictional Pr.CIT has already granted no objection vide their reply/no objection dated 18/03/2023. The ld. AR submits that his application for transfer of appeal is pending consideration before the Hon’ble President, Income Tax Appellate Tribunal. During hearing of the appeal, the ld. AR of the assessee submits that in order to avoid inordinate delay and technicalities in transferring of this appeal from Surat Bench to Mumbai Benches, he may be allowed to withdraw this appeal, with the liberty to file it before the Mumbai Benches of the Tribunal.
Purple Medical Solutions P Ltd Vs Pr.CIT 3. The learned Commissioner of Income Tax-Departmental Representative (ld. CIT-DR) for the revenue after going through his record, accepted the fact that the jurisdictional Pr. CIT has given no objection in transferring this appeal from Surat Bench to Mumbai Benches of the Tribunal. The ld. CIT-DR has further stated that he has no objection if such liberty is given to the assessee.
We have considered the submissions of both the parties and find that the ld. Pr.CIT passed the order on 23/03/2020 and the present appeal was filed on 20/07/2020. The Registry of this Bench has not issued defect memo, perhaps keeping in view the decision of Hon’ble Apex Court in Suo Moto Writ Petition No. 3/2020, wherein the time limit for filing appeal during nationwide pandemic period of Covid-19, before the various Courts / authorities was extended up March 2022. Thus, keeping in view the prayer of ld. AR of the assessee, the assessee’s appeal is allowed to be withdrawn from the Surat Bench. The assessee is given liberty to file the same before the Mumbai Benches of Tribunal. In the event of filing appeal before Mumbai benches, the assessee shall be at liberty to file application for condonation of delay for explaining all the aforesaid fact in such application and the coordinate bench are expected to consider such application sympathetically for condoning the delay if any. With this observation, Purple Medical Solutions P Ltd Vs Pr.CIT the appeal of assessee is dismissed as withdrawn with the liberty to file appeal at Mumbai Benches of the Tribunal.
In the result, this appeal of the assessee is dismissed as withdrawn.
Order pronounced on 02/05/2023 in open court at the time of hearing.