2014 (9) TMI 209 - HC - Income Tax

Withdrawal of appeal matter attained finality - Charge of interest u/s 234B already deleted in quantum appeal - Held that - Revenue has produced copy of the communication No.CIT/PTA/Judl/2014-15/2240 dated 29.08.2014 which states that during the course of the preparation of reply to be filed in response to the above mentioned C.M. filed by the assessee, it has come to light that the quantum addition in respect of which interest u/s 234B was charged has already been deleted and the matter of quantum addition has attained finality - the issue of charging of interest u/s 234B is consequential to the quantum addition, and not required to be followed up the withdrawal application accepted Decided in favour of revenue.

Summary

Issues:
1. Appeal challenging the order of the Income Tax Appellate Tribunal
2. Substantial questions of law proposed by the revenue
3. Request for withdrawal of the appeal

Analysis:
1. The appellant, the revenue, approached the High Court under Section 260-A of the Income-Tax Act, 1961, challenging the order of the Income Tax Appellate Tribunal (ITAT) passed in a specific case. The revenue raised substantial questions of law regarding the dismissal of their Miscellaneous Applications by the ITAT. These questions pertained to the justification of the ITAT's actions in dismissing the revenue's applications and the need for permission from the Committee of Disputes. The ITAT's decisions were being questioned based on legal justifications and precedents set by previous cases.

2. The learned counsel for the revenue presented a communication stating that the quantum addition, in respect of which interest was charged, had been deleted, and the matter had reached finality. Consequently, interest under a specific section was no longer chargeable. The communication highlighted that the issue of interest charging was no longer relevant due to the deletion of the quantum addition. As a result, the counsel requested the withdrawal of the appeal concerning the interest charging issue. The court considered this request and ordered the withdrawal of the appeal accordingly.

In conclusion, the High Court addressed the revenue's appeal challenging the ITAT's order, focusing on substantial questions of law raised by the revenue. The subsequent communication regarding the deletion of quantum addition and the irrelevance of interest charging led to the withdrawal of the appeal. The judgment reflects a meticulous consideration of legal aspects and factual circumstances to arrive at a decision in line with the prevailing legal framework.