Facts of the Case

The assessee, Shri Bhattarak Yashkirti Digamber Jain Dharmarth Trust, Rishabdev, filed an appeal before the Income Tax Appellate Tribunal, Jodhpur Bench, challenging the order dated 20.03.2024 passed by the Commissioner of Income Tax (Exemptions), Jaipur, whereby the assessee’s application for approval under Section 80G of the Income-tax Act, 1961 was rejected for Assessment Year 2025-26. During the course of hearing, the authorised representative of the assessee submitted that the trust had taken a conscious decision not to pursue approval under Section 80G and had accordingly filed an application before the Tribunal registry on 17.04.2025 seeking withdrawal of the appeal.

Issues Involved

Whether the appeal filed against the rejection of approval under Section 80G was required to be adjudicated on merits when the assessee trust itself sought withdrawal of the appeal and no longer desired to obtain Section 80G approval.

Petitioner’s Arguments

The assessee submitted through its authorised representative that it had decided not to seek approval under Section 80G and therefore did not wish to press the appeal. A formal application for withdrawal of the appeal was placed on record, and the assessee requested that the appeal be dismissed as withdrawn.

Respondent’s Arguments

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

Court Order / Findings

The ITAT Jodhpur observed that the assessee had voluntarily sought withdrawal of the appeal and that the Revenue had no objection to the same. The Tribunal held that since the assessee no longer wished to pursue approval under Section 80G, no useful purpose would be served by adjudicating the appeal on merits. Accordingly, the request for withdrawal was accepted and the appeal was dismissed as withdrawn.

Important Clarification

The Tribunal clarified that where an assessee voluntarily chooses not to pursue statutory approval and seeks withdrawal of the appeal, the Tribunal is justified in dismissing the appeal as withdrawn, particularly when the Revenue raises no objection and the dispute has become infructuous.

Final Outcome

The appeal filed by the assessee was dismissed as withdrawn. The challenge to the order rejecting approval under Section 80G of the Income-tax Act, 1961 did not survive for adjudication in view of the assessee’s decision not to pursue the approval.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1768994067_SHRIBHATTARAKYASHKIRTIDIGAMBERJAINDHARMARTHTRUSTRISHABDEVVS.CITEJAIPUR.pdf

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