Narayanan Subramaniam vs ACIT International Taxation 3(1)(2), New Delhi | Assessment Year 2016-17 | Appeal Withdrawal

Narayanan Subramaniam vs ACIT International Taxation 3(1)(2), New Delhi: Assessment Year 2016-17

Case Number: ITA 6501/DEL/2019

Appellant: Narayanan Subramaniam, Gurgaon

Respondent: ACIT Circle International Taxation 3(1)(2), New Delhi

Assessment Year: 2016-17

Order Date: 30th June 2022

Pronounced On: 30th June 2022

Order Type: Final Tribunal Order

Background

Narayanan Subramaniam, a resident of Gurgaon, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)-43, New Delhi, dated 7th June 2019, for the assessment year 2016-17. The appeal was directed towards certain disputes regarding the assessment made by the ACIT Circle International Taxation 3(1)(2), New Delhi.

Why the Case Was Filed

The appeal was initially filed to contest the assessment order passed by the ACIT Circle International Taxation 3(1)(2), New Delhi. However, upon review, the appellant decided that the appeal had become infructuous. The primary reason for filing the appeal was to address issues related to the brought forward long-term capital loss from the assessment year 2011-12. Since more than eight years had passed from the end of AY 2011-12, the brought forward long-term capital loss had lapsed unutilized. The appellant, therefore, determined that even if the appeal were to be decided in their favor, it would not result in any tax benefit or impact, rendering the appeal moot.

Application for Withdrawal

On 2nd May 2022, the appellant submitted an application requesting the withdrawal of the appeal. The application stated that the appeal no longer had any tax impact or benefit for the appellant. It was explained that the appeal had become infructuous because the long-term capital loss from AY 2011-12, which was central to the dispute, had already lapsed unutilized due to the passage of more than eight years. As such, there was no longer any benefit to be gained from pursuing the appeal.

Tribunal’s Decision

The Income Tax Appellate Tribunal (ITAT) Delhi Bench, presided over by Shri Challa Nagendra Prasad, Judicial Member, considered the appellant’s request for withdrawal. The Senior Departmental Representative (DR) representing the Revenue had no objections to the withdrawal of the appeal. After hearing both parties, the Tribunal granted permission for the withdrawal of the appeal.

The Tribunal acknowledged the appellant’s reasoning that the appeal had become infructuous and agreed that there was no longer any practical benefit in proceeding with the case. Consequently, the appeal was dismissed as withdrawn.

Conclusion and Final Judgment

The ITAT’s decision to allow the withdrawal of the appeal highlights the importance of evaluating the practical implications of pursuing legal disputes. In this case, the appellant, Narayanan Subramaniam, recognized that the appeal no longer served any meaningful purpose, given that the long-term capital loss in question had already lapsed. By withdrawing the appeal, the appellant avoided unnecessary litigation and administrative burden.

This case serves as a reminder that taxpayers and their representatives should continually assess the relevance and potential outcomes of their legal actions, ensuring that resources are directed towards matters that still have a significant impact or benefit.

Narayanan Subramaniam vs ACIT International Taxation 3(1)(2), New Delhi | Assessment Year 2016-17 | Appeal Withdrawal