Non-resident applicant allowed to withdraw application for tax assessment under Income-tax Act

The Authority for Advance Rulings, New Delhi allowed the non-resident applicant to withdraw their application seeking permission to do so. The Authority highlighted that there was no legal impediment for the Assessing Authority to pass an assessment order and for the ITAT to decide the appeal for non-resident applicants, unlike for resident applicants under Section 245Q of the Income-tax Act, 1961. The Departmental Representative did not oppose the withdrawal, resulting in the application being disposed of as 'withdrawn'.

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Issues: Applicant's request to withdraw application, legal position regarding non-resident applicant's assessment order and appeal

The judgment pertains to an application before the Authority for Advance Rulings, New Delhi where the applicant sought permission to withdraw the application. The Counsel for the applicant had previously made a similar request, prompting the Authority to examine the circumstances surrounding the assessment order and appeal decided by the ITAT during the ongoing proceedings. The Authority noted that as the applicant is a non-resident, there is no legal impediment for the Assessing Authority to pass an assessment order and for the ITAT to decide the appeal. Reference was made to Section 245RR of the Income-tax Act, 1961, which restricts the Appellate Tribunal from deciding any issue when an application has been made by a resident under Section 245Q. However, this provision does not apply to non-resident applicants. The Departmental Representative did not object to the withdrawal of the application, leading the Authority to allow the withdrawal and dispose of the application as 'withdrawn'.

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