This case review focuses on the resolution of a tax dispute involving Jawaharlal Nehru University (JNU) and the Deputy Commissioner of Income Tax (DCIT), New Delhi, for the assessment year 2016-17. The appeal was filed on 27th February 2019 and the final order was pronounced on 20th July 2022.
The appeal was filed by Jawaharlal Nehru University against a heavy tax demand raised by the Revenue Department. The university sought rectification of the demand under Section 119(2)(b) of the Income Tax Act, 1961, through a Central Board of Direct Taxes (CBDT) order dated 4th June 2019.
The case was presented before the Delhi Bench ‘C’ of the Income Tax Appellate Tribunal (ITAT), with Shri N.K. Billaiya, Accountant Member, and Shri N.K. Choudhry, Judicial Member, presiding. During the hearing on 20th July 2022, no representative appeared on behalf of the appellant. However, an application dated 19th July 2022, submitted by the authorized representative (AR) of the appellant, was reviewed. The application requested the withdrawal of the appeal on the grounds that the tax demand had been rectified by the Revenue Department as per the CBDT order.
The learned Departmental Representative (DR) did not object to the withdrawal request. Consequently, the tribunal accepted the withdrawal and dismissed the appeal.
This case exemplifies the effectiveness of Section 119(2)(b) of the Income Tax Act, which allows for the rectification of errors or relief from certain tax demands. The dismissal of the appeal due to the rectification of the tax demand underscores the importance of the CBDT’s role in addressing and correcting tax-related grievances of taxpayers, including large institutions like universities.
For educational institutions and other entities, this case highlights the significance of thorough and timely communication with tax authorities to resolve disputes and the utility of seeking relief under appropriate legal provisions.
In conclusion, the resolution of the tax demand issue through the CBDT’s intervention and the subsequent dismissal of the appeal by the ITAT demonstrates a practical and efficient approach to handling tax disputes. This case serves as a reference for similar institutions dealing with heavy tax demands and looking for remedial measures under the Income Tax Act.
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