2005 (10) TMI 256 - AT - Income Tax

Summary

Issues Involved:
1. Dismissal of appeals as withdrawn by the Commissioner of Income-tax (Appeals).
2. Limitation period for filing appeals.
3. Legal principles regarding withdrawal of appeals in tax matters.
4. Jurisdiction and powers of the appellate authority under Section 251(1) of the Income-tax Act.

Detailed Analysis:

1. Dismissal of Appeals as Withdrawn by the Commissioner of Income-tax (Appeals):
The primary issue in these appeals is the dismissal of the appeals by the Commissioner of Income-tax (Appeals) as withdrawn. The assessee's appeals were dismissed as infructuous based on a withdrawal request made by the assessee's counsel. The CIT (Appeals) permitted the withdrawal, stating that the appeals were dismissed as infructuous. The assessee contended that the CIT (Appeals) erred in dismissing the appeals as infructuous and argued that the appeals should have been decided on merits.

2. Limitation Period for Filing Appeals:
The appeals were initially considered barred by limitation as the relevant column in Form 36 was not filled. The assessee filed an affidavit requesting the date of service of the CIT(A)'s order to be considered as 29-11-2000, which would make the appeals filed on 29-1-2001 within the permissible time limit. The Departmental Representative did not object to this, and the Tribunal admitted the appeals as being within time.

3. Legal Principles Regarding Withdrawal of Appeals in Tax Matters:
The assessee argued that once an appeal is filed, it cannot be withdrawn and must be decided on merits. The Tribunal referred to various case laws, including the Hon'ble Supreme Court's decision in Rai Bahadur Hardutroy Motilal Chamaria, which established that an assessee cannot withdraw an appeal once filed. The Tribunal distinguished the present case from those precedents, noting that in cases where the Revenue objects to the withdrawal due to potential under-assessment, the withdrawal is not permitted. However, in the present case, the Revenue did not object to the withdrawal.

4. Jurisdiction and Powers of the Appellate Authority under Section 251(1) of the Income-tax Act:
The Tribunal examined Section 251(1) of the Income-tax Act, which outlines the powers of the Commissioner (Appeals) in disposing of appeals. The provision allows the Commissioner (Appeals) to confirm, reduce, enhance, annul, or set aside the assessment. The Tribunal noted that the appellate authority has the discretion to permit the withdrawal of an appeal if the other party does not object and if it does not cause harm to the other party. The Tribunal concluded that the appellate authority in tax matters acts in the public interest and must consider the merits of the case to ensure there is no under-assessment.

Conclusion:
The Tribunal held that the appellate authority can permit the withdrawal of an appeal if the opposite party does not object and if the appellate authority is judiciously satisfied. In this case, the assessee's counsel had knowingly withdrawn the appeals, and the Revenue did not object. Therefore, the Tribunal dismissed the assessee's appeals and confirmed the order of the CIT (Appeals).

Result:
The three appeals of the assessee were dismissed.