CREATIVE TANNERY LIMITED,KOLKATA V. A.C.I.T., COMPANY CIRCLE - 1(2), KOLKATA

ITA 1663/KOL/2024

AI Insights

The case involves Creative Tannery Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), Kolkata, allowing the withdrawal of their appeal concerning additions made by the Assessing Officer under sections 143(3) and 36(1)(va) of the Income-tax Act, 1961 for the assessment year 2018-19. The Assessing Officer had made additions to the assessee's income, which the assessee did not contest during the appellate proceedings, opting instead to withdraw the appeal after paying the assessed taxes. The Tribunal's decision to dismiss the appeal was based on the assessee's own request to withdraw, which did not obligate the CIT(A) to decide on the merits of the case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472235 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 09-08-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 250

Judgement Text

" आयकर अपीलीय अिधकरण, कोलकाता पीठ ‘A’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Sanjay Awasthi, Accountant Member I.T.A. No.1663/Kol/2024 Assessment Year: 2018-19 Creative Tannery Limited .………. Appellant P-73A, Lake Road, Lake Gardens, Kolkata-700019. (PAN: AACCC6385M) vs. ACIT, Company Circle-1(2), Kolkata ……..… Respondent Appearances by: Shri B.R. Dutta, FCA appeared on behalf of the Appellant. Sm. Archana Gupta, Addl. CIT, Sr. DR appeared on behalf of the Respondent Date of concluding the hearing :October 01, 2024 Date of pronouncing the order :November, 18, 2024 आदेश / ORDER Per Sanjay Garg, Judicial Member : The present appeal has been preferred by the assessee against the order dated 27.06.2024 of the Ld. Commissioner of Income Tax, (Appeal), Kolkata-20 [hereinafter referred to as the “Ld. CIT(A)”] passed u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for AY 2018-19. 2. Brief facts of the case are that in the assessment proceedings carried out u/s. 143(3) of the Act, the Assessing Officer (in short the “AO”) made the addition of Rs.16,05,030/- by applying 8% profit rate in respect of unaccounted/out of books sales made by the assessee. The AO further made the addition of Rs.6,79,457/- on account of disallowance u/s. 36(1)(va) of the Act. I.T.A. No.1663/Kol/2024 AY: 2018-19,Creative Tannery Ltd. 2 3. Being aggrieved by the said addition made by the AO, the assessee preferred appeal before the Ld. CIT(A). However, during the appellate proceedings, the assessee made a request for withdrawal of the appeal stating, as under: “This is with reference to our appeal. Please note that we have already paid taxes assessed by the Ld. ACIT. Hence, we do not want to challenge addition made for the AY. Hence, we request you to drop the proceedings and oblige.” 4. The Ld. CIT(A) accordingly, allowed the assessee to withdraw the appeal and dismissed the appeal as withdrawn. Now, assessee has come in appeal pleading that the Ld. CIT(A) was not justified in allowing the assessee to withdraw its appeal without considering the validity of the additions on merits. 5. It is to be noted that the assessee, itself, had made a request before the Ld. CIT(A) that it was not interested in contesting the additions made by the AO and that it had already paid due taxes and that the appeal of the assessee may be dismissed as withdrawn. Though, there was a discretion available to the Ld. CIT(A) either to accept the aforesaid request of the assessee or to reject it, if it was a case, in his view, of enhancement of income, however, there was no statutory obligation cast upon the Ld. CIT(A) to decide the appeal on merits, even though, the assessee has requested that its appeal may be dismissed as withdrawn. In view of this, there is no merit in the appeal of the assessee and the same is accordingly dismissed. 6. In the result, the appeal of the assessee stands dismissed. Order is pronounced in the open court on 18.11.2024. Sd/- Sd/- [Sanjay Awasthi] [Sanjay Garg] लेखा सद᭭य/Accountant Member ᭠याियक सद᭭य/Judicial Member Dated: 18.11.2024. JD Sr. P.S I.T.A. No.1663/Kol/2024 AY: 2018-19,Creative Tannery Ltd. 3 Copy of the order forwarded to: 1. Appellant – Creative Tannery Limited 2. Respondent – ACIT, Central Circle-1(2), Kolkata 3. CIT(A), Kolkata-20. 4. Pr.CIT 4. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches "