This article provides a detailed analysis of the case involving the legal heir of Late Sh. Phool Singh, New Delhi, as the appellant, and the Commissioner of Income Tax (CIT), Gurgaon, as the respondent. The case pertains to the assessment year 2010-11 and is identified by ITA No. 1325/DEL/2020. The appeal was filed on 30th June 2020, with the final tribunal order being pronounced on 24th February 2023.
Smt. Roshni Devi, the legal heir of Late Sh. Phool Singh, represented by Shri Deepesh Garg, Advocate, filed an appeal against the order dated 16th March 2020 by the Commissioner of Income Tax, Gurgaon. The appeal was related to the income tax assessment for the year 2010-11. The primary contention in the appeal was against the decisions and assessments made by the CIT, Gurgaon.
The case was heard by a bench comprising Shri Pradip Kumar Kedia, Accountant Member, and Shri Yogesh Kumar US, Judicial Member, at the Delhi Bench ‘F’ of the Income Tax Appellate Tribunal (ITAT), New Delhi. The hearing was scheduled for 22nd February 2023, where both parties presented their submissions.
On the date of the hearing, the Authorized Representative of the appellant, Smt. Roshni Devi, sought the withdrawal of the appeal. The Revenue, represented by Ms. Beenu, Senior Departmental Representative (DR), did not object to this request. The tribunal, after considering the submissions from both sides, allowed the withdrawal of the appeal.
The tribunal reviewed the request for withdrawal and found no objections from the Revenue’s side. Consequently, the appeal was dismissed as withdrawn. The tribunal’s order stated:
“After considering the petition filed by the Authorized Representative of the assessee, the same is permitted to withdraw its appeal.”
The order was pronounced in the open court on 24th February 2023.
The withdrawal of the appeal by the legal heir of Late Sh. Phool Singh highlights the procedural flexibility in income tax litigation, where the appellant can choose to withdraw an appeal if deemed necessary. This case underscores the importance of strategic decision-making in tax disputes and the amicable resolution of issues where both parties agree.
The final order, pronounced by the tribunal, effectively closes the case, with the appeal being dismissed as withdrawn. This decision reflects a procedural conclusion rather than a substantive judgment on the merits of the case, emphasizing the procedural rights of the appellant in tax litigation.
The case was initially filed because the Commissioner of Income Tax, Gurgaon, had assumed jurisdiction under section 263 of the Income Tax Act, 1961, and held that the assessment order passed under section 147/143(3) dated 14-11-2017 was erroneous and prejudicial to the interest of revenue on the grounds that penalty proceedings were not initiated by the AO while passing the assessment order. The appellant raised multiple grounds of appeal, contending that the CIT’s order was bad in law, against the facts, and in violation of the principles of natural justice.
However, during the hearing, the appellant decided not to pursue the appeal, leading to its withdrawal. This decision to withdraw can be influenced by several factors, including potential settlements, reconsideration of legal strategies, or changes in circumstances that make continuing the appeal unnecessary or less advantageous.
This case demonstrates the dynamic nature of legal proceedings in tax matters, where strategic withdrawals can play a role in managing legal risks and outcomes. It also illustrates the collaborative nature of the legal process, where both parties’ agreement can lead to the resolution of disputes without further litigation.
Withdrawal of Appeal by Legal Heir of Lt. Sh. Phool Singh Against CIT Gurgaon: ITA No. 1325/DEL/2020
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