Sheela Foams Ltd, Ghaziabad V. ACIT, Central Circle-6, New Delhi

ITA 919/DEL/2021

AI Insights

The case involved Sheela Foams Ltd., which appealed against the order of the Assessing Officer regarding the disallowance of education cess on income tax for the Assessment Year 2016-17. The appeal was initially influenced by judicial precedents from the Rajasthan and Bombay High Courts, which had allowed such deductions. However, following the amendment to the Income Tax Act through the Finance Act 2022, which clarified that 'tax' includes any surcharge or cess, the appellant decided to withdraw the appeal. The Income Tax Appellate Tribunal accepted the withdrawal and dismissed the appeal accordingly.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 121750 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 08-11-2022
• Assessment Year: misc
• Appeal Filed On: 29-08-2022
• Other Referred Cases: Chambal Fertilisers and Chemicals Ltd. vs JCIT, Sesa Goa Ltd. vs. JCIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.A. No.919/DEL/2021 Assessment Year 2016-17 Sheela Foams Ltd., 604 Ashadeep, 9 Hailey Road, New Delhi. Vs. ACIT, Central Circle-6, New Delhi. TAN/PAN: AAACS0189B (Appellant) (Respondent) Appellant by: Ms. Somya Jain, CA Respondent by: Shri Amit Kumar Jain, Sr.DR Date of hearing: 09 11 2022 Date of pronouncement: 24 11 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the Assessee against the final order dated 31.05.2021 passed by the Assessing Officer for the Assess ment Year 2016-17, in pursuance of direction given by the Dispute Resolution Panel-1 vide order dated 17.03.2021. 2. During the course of hearing, at the outset, the ld. counsel for the assessee submitted he has the instruction to withdraw this appeal and furnished a copy of request letter dated 09.11.2022 which is placed on record. 3. In his rival submissions, learned Department Representative did not object if the appeal of the assessee is dismissed as withdrawn. 4. After considering the submissions of both the parties and the material available on record, it is noticed that the assessee-company furnished a letter dated 09.11.2022 stating therein as under: I.T.A. No.919/Del/2021 2 “The captioned appeal is fixed for hearing before the Hon’ble Bench today. In this regard, it is respectfully submitted that the only issue raised in the captioned appeal is regarding deduction of education cess on income tax amounting to Rs. 1,18,01,634 claimed during the course of assessment proceedings in terms of law clarified by the Hon’ble Rajasthan High Court in the case of Chambal Fertilisers and Chemicals Ltd. vs JCIT: D.B Income- tax Appeal No.52/2018 and Hon’ble Bombay High Court in the case of Sesa Goa Ltd. vs. JCIT: 423 ITR 426 (Bom) which was not allowed by the assessing officer. Vide Finance Act 2022, Explanation 3 has been inserted in section 40(a)(ii) of the Act, w.e.f., 01.04.2005, clarifying that for the purposes of this sub- clause, the term “tax” includes and shall be deemed to have always included any surcharge or cess, by whatever name called, on such tax. In view of the aforesaid, it is respectfully submitted that on instructions of the appellant, we crave the leave to withdraw the captioned appeal. The appellant may accordingly be allowed to withdraw the appeal. WWW.VAISHLAW.COM We trust that our request shall be acceded to. The appellant will be grateful for this kindness.” 5. In view of the above, we dismiss the appeal of the assessee as withdrawn. 6. In the result, the appeal of the assessee is dismissed as withdrawn. Order pronounced in the open Court on 24/11/2022. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /11/2022 prabhat I.T.A. No.919/Del/2021 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar Date 1. Draft dictated on 09.11.2022 2. Draft placed before author 09.11.2022 3. Draft proposed & placed before the second member 4. Draft discussed/approved by Second Member. 5. Approved Draft comes to the Sr.PS/PS 6. Kept for pronouncement on 7. File comes back to PS/Sr. PS 8. Uploaded on 9. File sent to the Bench Clerk 10. Date on which file goes to the AR 11. Date on which file goes to the Head Clerk. 12. Date of dispatch of Order.