2012 (5) TMI 735 - AT - Income Tax

Summary

Issues involved:
The issues involved in the judgment are related to the withdrawal of appeals by the assessee companies under Article 27 of the Double Tax Avoidance Agreement between India and the United States.

Withdrawal of Appeals:
The assessee companies had filed separate letters under Article 27 of the Double Tax Avoidance Agreement between India and the United States regarding adjustments made in the assessment orders. Subsequently, the competent authorities of both countries resolved the cases, and closing letters were issued to the assessees by the United States competent authority. The learned counsel for the assessee informed the tribunal that the appeals are to be withdrawn as the assessee is no longer interested in prosecuting them. The tribunal considered the submissions and allowed the assessees to withdraw their appeals, noting that there were no genuine reasons presented by the Revenue to justify continuing the appeals. The tribunal emphasized that if the Department was aggrieved by the lower authorities' orders, they could have filed cross objections or appropriate petitions, but no such material was available on record. Therefore, the appeals were dismissed as withdrawn.

Competency to Withdraw Appeals:
The learned CIT-DR raised an objection stating that the Bench D.R. handling the appeals was not competent to assist in the withdrawal process. However, the tribunal opined that a person competent to file an appeal should also have the liberty to withdraw it, unless genuine reasons are provided by the Revenue to justify continuation. The tribunal highlighted that since neither the Department nor the assessee was aggrieved by the impugned orders, there was no reason to keep the appeals pending for formal approval. Consequently, the assessees were permitted to withdraw their appeals, and the appeals were dismissed accordingly.

Conclusion:
The Appellate Tribunal ITAT Mumbai allowed the withdrawal of appeals by the assessee companies under Article 27 of the Double Tax Avoidance Agreement between India and the United States. The tribunal emphasized the importance of genuine reasons for continuing appeals and permitted the withdrawal as neither the Department nor the assessee was aggrieved by the impugned orders. Consequently, the appeals were dismissed as withdrawn on 31st May 2012.