SOCIETE GENERALE Vs. COMMISSIONER OF INCOME TAX BOMBAY

JUDGEMENT

(1.) These appeals by special leave impugn the judgment and order of the authority for advance rulings established under chapter XIX-B of the Income Tax act. The question that the authority was called upon to answer, at the behest of the appellant, read thus:

(2.) Before the authority the revenue contended that the authority did not have jurisdiction to decide the question in view of the fact that assessment proceedings in respect of the appellant relating to the assessment year 1996-97 were pending when the application before the authority was filed, and attention was drawn to section 245-R of the Act, the proviso whereof states that the authority shall not allow an application where the question raised in it is already pending before an income tax authority or the appellate tribunal or any court. The authority came to the conclusion that the appellant could not "be heard to say that even though the assessment proceedings are pending, determination of the rate of tax which is an integral part of the assessment process is not pending". The authority was, therefore, of the view that the preliminary objection raised on behalf of the revenue was "of some substance". However, the authority did not dispose of the application on that preliminary ground and it went on to decide it. The decision went against the appellant.

(3.) The same objection is raised before us on behalf of the revenue. The objection has been argued for some time and now Mr. Dastur, learned counsel for the appellant, applies for leave to withdraw the application before the authority. He submits that the issue regarding the rate of tax payable by the appellant for the assessment year 1996-97 and subsequent assessment years shall be raised by the appellant before the authorities and that, having regard to his withdrawal of the application itself, the order thereon should be set aside.