Facts of the Case

The assessee, Nimbus Commercial Private Limited, Kolkata, filed an appeal before the Income Tax Appellate Tribunal against the order dated 25.03.2025 passed by the Principal Commissioner of Income Tax (Central), Ahmedabad under Section 263 of the Income-tax Act, 1961 for Assessment Year 2021-22. The revisionary order was passed by the PCIT in exercise of powers under Section 263.

During the pendency of the appeal, the assessee filed a written application dated 10.01.2026 before the Tribunal stating that it did not intend to pursue the appeal any further and requested that the appeal be treated as withdrawn. The Departmental Representative submitted that the Revenue had no objection to the withdrawal of the appeal.

Issues Involved

Whether the appeal filed by the assessee against the revisionary order passed under Section 263 should be dismissed as withdrawn upon a written request by the assessee and in the absence of any objection from the Revenue.

Petitioner’s Arguments

The assessee submitted a written withdrawal application before the Tribunal clearly stating that it did not intend to pursue the appeal any further and requested that the appeal be dismissed as withdrawn.

Respondent’s Arguments

The Revenue, through the Departmental Representative, stated that it had no objection to the withdrawal of the appeal by the assessee.

Court Order / Findings

The ITAT Ahmedabad observed that the assessee had filed a written application dated 10.01.2026 seeking withdrawal of the appeal. The Tribunal further noted that the Departmental Representative had no objection to the withdrawal. In view of the assessee’s request and the absence of any opposition from the Revenue, the Tribunal held that the appeal deserved to be dismissed as withdrawn. Accordingly, the appeal filed by the assessee was dismissed as withdrawn without adjudication on merits.

Important Clarification

The Tribunal clarified that where an assessee voluntarily seeks withdrawal of an appeal and the Revenue raises no objection, the Tribunal is justified in dismissing the appeal as withdrawn without examining the merits of the revisionary order.

Final Outcome

The appeal filed by the assessee for Assessment Year 2021-22 was dismissed as withdrawn. The challenge to the revisionary order passed under Section 263 was not adjudicated on merits.

 Link to download order https://www.mytaxexpert.co.in/uploads/1769063336_NIMBUSCOMMERCIALPVT.LTD.KOLKATAVS.THEPR.CITCENTRALAHMEDABAD.pdf

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