2019 (4) TMI 67 - AAR - Income Tax

Withdrawal of application for Advance ruling - HELD THAT - Since the applicant is a non-resident, there is no bar in law preventing the Assessing Authority from passing an assessment order and the ITAT from deciding the appeal carried therefrom. Reference can be made to Section 245RR stating No income-tax authority or the Appellate Tribunal shall proceed to decide any issue in respect to which an application has been made by an applicant, being a resident, under sub-section(1) of Section 245Q. We also notice that the DR has no objection to the withdrawal of this application. Application is allowed to be withdrawn and is disposed off as withdrawn .

Summary

Issues: Applicant's request to withdraw application, legal position regarding non-resident applicant's assessment order and appeal

The judgment pertains to an application before the Authority for Advance Rulings, New Delhi where the applicant sought permission to withdraw the application. The Counsel for the applicant had previously made a similar request, prompting the Authority to examine the circumstances surrounding the assessment order and appeal decided by the ITAT during the ongoing proceedings. The Authority noted that as the applicant is a non-resident, there is no legal impediment for the Assessing Authority to pass an assessment order and for the ITAT to decide the appeal. Reference was made to Section 245RR of the Income-tax Act, 1961, which restricts the Appellate Tribunal from deciding any issue when an application has been made by a resident under Section 245Q. However, this provision does not apply to non-resident applicants. The Departmental Representative did not object to the withdrawal of the application, leading the Authority to allow the withdrawal and dispose of the application as 'withdrawn'.