ITAT Dismisses Appeal as Withdrawn After Rectification Relief Granted u/s 115BAA

The assessee had preferred this appeal against the CIT(A) order dated 15.05.2024 for AY 2021-22. The appeal was preferred on 13.07.2024 with ITA No. 3290/DEL/2024.

While this appeal was still pending, the assessee made a rectification application under s. 154. The NFAC, through an order under Section 154 read with Section 250, rectified the mistakes in the CIT(A) order and granted the benefit of lower rate of taxation under Section 115BAA. Then, the Assessing Officer issued an appeal effect order dated 30.07.2025 permitting the benefit. Based on this, the assessee made an application dated 05.08.2025 requesting withdrawal of the appeal.

The Tribunal, observing that the Departmental Representative had not opposed, accepted the request for withdrawal and rejected the appeal as withdrawn. The order was made in open court on 22.08.2025 and dated 26.08.2025.

Main Issue: Whether appeal could be pursued when NFAC had already corrected the order of CIT(A) under Section 154, giving the benefit of Section 115BAA and the Assessing Officer had given effect to it.

ITAT’s Decision: The Tribunal observed that the assessee had submitted an application on 05.08.2025 requesting the withdrawal of the appeal following NFAC, by order dated 02.09.2024 passed u/s 154 r.w.s. 250, corrected errors in the order of CIT(A) and extended the benefit of reduced tax rate u/s 115BAA. The Assessing Officer later passed an appeal effect order dated 30.07.2025 releasing the benefit. Since the grievance had already been redressed, the assessee filed a request to withdraw the appeal. No objection was raised by the Departmental Representative. The request was accepted and the appeal was dismissed as withdrawn by the Tribunal.

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