IEI SHAREHOLDING TRAINING AND DEVELOPMENT 1994 TRUST,MUMBAI V. DCIT CIRCLE 22(1), MUMBAI

ITA 4191/MUM/2024

AI Insights

The case involved the IEI Shareholding Training and Development 1994 Trust appealing against the decision of the Additional/Joint Commissioner of Income Tax (JCIT) regarding the tax rate applied to the trust's income. The trust contested the CPC's initial assessment which taxed its income at the Maximum Marginal Rate, seeking a revision to slab rates. The CIT(A) dismissed the trust's appeal due to a delay in filing without discussing the merits. Subsequently, the trust filed a rectification application under section 154 of the Income Tax Act, which was accepted by the CPC, leading to the desired adjustment in the tax rate. Consequently, the trust withdrew its appeal to the Income Tax Appellate Tribunal (ITAT), Mumbai.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471283 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KIRAN UNAVEKAR
• Assessee Lawyers: MOTICHAND GUPTA
• Keywords: Maximum Marginal Rate
• Section: 154; 143(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “K(SMC)” Bench, Mumbai. Before Smt. Kavitha Rajagopal (JM) & Shri Omkareshwar Chidara (AM) ITA No. 4191/MUM/2024 (Assessment Year : 2022-23) IEI Shareholding Training and Development 1994 Trust Ion House, Dr. F. Moses Road, Mahalaxmi Mumbai-400 011. Vs. DCIT Circle 22(1) Piramal Chambers Lalbaug, Parel Mumbai-400 012. PAN : AAAAI0912N Appellant Respondent Assessee by : Shri Motichand Gupta Revenue by : Shri Kiran Unavekar Date of Hearing : 20/02/2025 Date of pronouncement : 24/02/2025 O R D E R Per Omkareshwar Chidara (AM) :- In the above captioned appeal, the appellant filed an appeal stating that Addl./JCIT(A) erred in not computing the tax liability of the appellant by applying section 164(1) of the I.T. Act read with proviso (iv) at the slab rate. 2. At the time of hearing before the bench, Ld. AR of the appellant filed a letter dated 15.1.2025 received on 20.2.2025 and the contents are reproduced below :- “Sub - Application requesting withdrawal of appeal. Respected Sir, Madam, The captioned appeal has been filed by the Employee Benefit Trust of M/s Ion Exchange India Ltd, relates to rate of tax to be applied on income earned by the Trust. The Centralised Processing Centre (CPC), vide its order [intimation u/s 143(1) of the Act] dated 16.03.2023 has taxed the income of the trust at Maximum Marginal Rate, while the Appellant Trust seeks to be taxed at slab rates. The CIT(A) had dismissed the appeal of the Appellant as the condonation for delay was rejected and without any discussion on merits. 2 The Appellant Trust had moved an application u/s 154 of the Act on 25.10.2024, seeking the CPC to rectify the impugned intimation passed u/s 143(1), to restrict the tax on the income of the Appellant to slab rate. The relief sought in the rectification application is similar to the relief sought in the subject appeal before the Tribunal. The CPC has processed the rectification application on 14.12.2024 and granted us the relief sought therein, by restricting the rate of tax to slab rate. As the relief sought before the Hon'ble Tribunal has been granted by the CPC in the rectification application, the Appellant submits that the subject appeal has become infructuous. Hence, we humbly pray for withdrawal of the subject appeal filed before the Hon'ble Tribunal.” 3. From the above letter, it is observed that the appellant wanted to withdraw this appeal as the appellant-trust got relief in pursuance of an application made under section 154 of the I.T. Act. The CPC has processed rectification application on 14.12.2024 and granted relief sought by the appellant. As the appellant-trust has got relief, they wanted to withdraw the appeal. Ld. DR did not object for the same. 4. In view of the above, it is decided that the appeal of the appellant- trust is dismissed as withdrawn. Order pronounced in the open Court on 24/02/2025. Sd/- Sd/- (KAVITHA RAJAGOPAL) (OMKARESHWAR CHIDARA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 24/02/2025 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai PS "