M/S HIND ENERGY AND COAL BENEFICATION(INDIA) LTD.,,BILASPUR(CG) vs. THE DY. COMMISSIONER OF INCOME TAX,-2(1), BILASPUR(CG)

There are two issues involved in the present appeal, first is relating to disallowance u/s 40(a)(ia) for non-deduction of tax at source [for short “TDS”] on sum paid to resident payee and secondly disallowance u/s 14A of the Act, owning to the claim of an appellant assessee falling within rule 8D(1)(b).

Before advancing the matter on facts for adjudication, it is necessary to reproduce grounds challenged by the appellant company as under; “1. In the facts and circumstance of the case, the learned Commissioner of Income-Tax (Appeals) has erred in confirming the order of the learned Assessing Officer disallowing Rs1,53,20,400/- u/s 40(a)(ia) of the Income Tax Act, 1961 by overlooking the law laid down in carious case including that rendered by the Hon’ble jurisdictional Bench of the Income –tax Appellate Tribunal.”

“2. The Learned Commissioner of Income-tax (Appeals) has erred in confirming the disallowance of Rs1,60,240/- made u/s 14A of the Income- tax Act, 1961 though the appellant did not incur any expenditure falling u/s 14A of the Income-tax Act, 1961”

Having laid the ground of appeal for adjudication, now we turn to the facts of the case which pithily are, the appellant assessee is a closely held limited company, engaged in trading of coal, has filed its return of income [for short “ROI or ITR”] on 29/09/2012 declaring the total income of Rs7,39,01,010/-. The return was processed & accepted summarily u/s 143(1) of the Act. Subsequently the case was selected for scrutiny by issue of a notice u/s 143(2) dt 07/08/2013 through registered post. A regular assessment, after making certain additions was completed u/s 143(2) of the Act by the Ld AO.

On this date of first hearing, the counsel for the assessee referring to an application of withdrawal dt 28/01/2022 made to and received by this Tribunal, entreated for withdrawal of appeal without prosecuting the matter further for the reason “due to developments post filing the appeal” as stated therein.

Ld departmental representative expressed no objection in assessee’s action of withdrawing this appeal.

After hearing to the rival contention of both the parties; perused material placed on record and duly considered the facts of the case in the light of legal position. In the light of written application from the Ld AR of the assessee company and no objection from the revenue, we allow the appeal for withdrawal.

Resultantly, the appeal of the appellant assessee is dismissed, with no order as to cost.