Gujarat Cancer and Research Institute, Ahmedabad V. The CIT (Exemption), Ahmedabad

ITA 163/AHD/2022

AI Insights

The case involved the Gujarat Cancer and Research Institute appealing against an order passed by the Commissioner of Income-Tax (Exemption), Ahmedabad, under section 263 of the Income Tax Act, 1961, for the Assessment Year 2017-18. The original dispute was regarding the claim of impairment loss of fixed assets which was allowed by the Assessing Officer in the original assessment but later contested by the CIT(Exemption). The CIT(Exemption) directed the AO to reconsider the claim of allowing set off of losses as per law. In the consequential proceedings, the AO disallowed the claim of impairment loss but accepted the set off of deficit of earlier years against the current year income, resulting in a nil tax liability for the institute. Consequently, the institute decided to withdraw the appeal, which the tribunal accepted, noting that the withdrawal was final and absolute as no dispute remained to be adjudicated.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133640 (ITAT-AHMEDABAD)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 263; 143(3)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘D’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER ITA No.163/Ahd/2022 Assessment Year :2017-18 Gujarat Cancer and Research Institute 1, Civil Hospital Campus Asarwa Ahmedabad. PAN : AAATG 1008 L Vs The CIT(Exemption) Aaykar Bhavan, Vejalpur Ahmedabad. (Applicant) (Responent) Assessee by : Shri Yogesh Shah, AR Revenue by : Shri Sudhendu Das, CIT-DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 1 3 / 0 4 / 2 0 2 3 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 1 3 / 0 4 / 2 0 2 3 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER The present appeal has been filed by the assessee against order passed by the Ld.Commissioner of Income-Tax(Exemption) Ahmedabad (hereinafter referred to as “ld.CIT(Exemption) dated 17.03.2022 under section 263 of the Income Tax Act, 1961 ("the Act" for short) pertaining to Assessment Year 2017-18. 2. At the outset, the ld.counsel for the assessee filed request letter dated 12.4.2023 for withdrawal of the appeal filed by the assessee, the same is taken on record. The contents of the letter read as under: “The appellant trust filed captioned appeal against the order passed u/s. 263 by the Principal Commissioner of Income Tax (Exemption)- Ahmedabad (PCIT). The learned PCIT has passed the alleged order on the basis that claim of impairment of loss of fixed assets allowed by the learned AO in ITA No.163/Ahd/2022 2 original assessment proceedings is not allowable as application, therefore to that extent order passed the AO is erroneous and prejudicial to the interest of revenue. He also directed AO to consider claim of allowing set off of losses as per law. In consequential proceedings, the AO has passed the order u/s. 143(3) rws 263 dated 29-03-2023 and disallowed the claim of impairment of loss of fixed assets amounting to Rs. 19,77,62,170. However, the learned AO has accepted the other contention of the appellant to allow the set off of deficit of earlier years against the current year income. Pursuant to that, total income computed by the AO is nil and no tax is required to be payable by the appellant. Copy of the order passed by the AO is enclosed herewith. In view of the above, though appellant strongly object the disallowance of impairment loss, as per the consequential order, income is determined at Rs. NIL and no tax is payable by the appellant, the appeal is infructuous and academic in nature and therefore the appellant would like to withdraw the captioned appeal filed before Your Honours. The Appellant request Your Honour to kindly allow to withdraw the captioned appeal. Please note that withdrawal of the appeal does not tantamount to give up our objections for invoking the provisions of section 263 by the learned PCIT. The request of withdrawal of appeal is because no tax is payable on passing the consequential order and benefit of set off of loss anyhow would not available for future benefit in view of the insertion of Explanation 5 to section 11(1) of the Act from AY 2022-23. We regret the inconvenience caused to the Hon'ble Bench and hope the Hon'ble Bench would accede to our above request.” 3. We have perused the above letter submitted by the ld.counsel for the assessee. However, in the second last paragraphs, the ld.counsel has also sought for conditional withdrawal, which terms, we cannot accept. As per the counsel’s own written submissions, since the assessee’s grievance has already been resolved by the Department, and no dispute remains as of now, being pointed out by the ld.counsel, to be adjudicated by the Tribunal, ipso facto withdrawal becomes final and absolute. Thus, we dismiss the appeal of the assessee as withdrawn unconditionally. Order pronounced in the Court on 13 th April, 2023 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad, dated 13/04/2023