Assessee withdraws appeal; revision u/s263 and PCIT's consequential directions to AO remain fully effective

The ITAT Chandigarh dismissed the assessee's appeal challenging the validity of revision proceedings under s.263. The assessee had questioned the PCIT's directions to the AO to pass a consequential order in light of observations made in the s.263 order. During hearing, the assessee sought permission to withdraw the appeal. The Tribunal recorded the request and dismissed the appeal as withdrawn, leaving the s.263 revisional order and the PCIT's consequential directions to the AO intact and operative.

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Appeal before the ITAT Chandigarh for AY 2018-19 challenged an order dated 16.02.2024 passed by CIT(A)-5, Ludhiana. Before hearing, the assessee filed an application dated 06.09.2024 seeking permission to withdraw the appeal. In the withdrawal application, the assessee stated that, on going through the CIT(A) order, it was realized that the Principal CIT in the order passed u/s 263 had only given directions to the Assessing Officer "to pass consequential order in the light of the observation given in the order u/s 263, dated 30.03.2021." It was further stated that this position came to the knowledge of the assessee's counsel only while preparing for the hearing, and that an appeal had already been filed against the order u/s 263 dated 31.03.2021. The Department raised no objection. The Tribunal accordingly dismissed the appeal as withdrawn.

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