THE COMMISSIONER OF INCOME TAX (TDS)-1 CHANDIGARH vs. THE MANAGER, DISTRICT OFFICE, M/S PUNJAB AGRO FOOD GRAINS CORPORATION LTD., MOHALI

ITA/237/2019HC Punjab & HaryanaPHHC01050994201920 August 2021Author: MR JUSTICE JASWANT SINGH,MR. JUSTICE SANT PARKASH2 pages
AI SummaryWithdrawn

What were the facts?

The Commissioner of Income Tax (TDS)-1, Chandigarh (the Revenue) filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order dated 30.10.2018 passed by the Income Tax Appellate Tribunal (ITAT). The ITAT had dismissed the Revenue's appeal, thereby deleting a tax demand raised against the respondent, M/s Punjab Agro Food Grains Corpn. Ltd. (the assessee), for non/short deduction of tax under Section 201(1)/201(1-A) of the Act. The tax effect in dispute was Rs. 25,97,525/-. The Revenue filed an application seeking withdrawal of the appeal, citing Circular No. 17/2019 and its clarification dated 20.08.2019, which stipulated a monetary limit for filing appeals.

What did the High Court hold?

The High Court allowed the application for withdrawal of the appeal. The Court noted that the Revenue had filed the appeal under Section 260-A of the Income Tax Act, 1961, against an order of the ITAT that had deleted a tax demand related to non/short deduction of tax under Section 201(1)/201(1-A). The Revenue's application for withdrawal was based on Circular No. 17/2019 and its subsequent clarification, which indicated that the appeal was not maintainable due to the tax effect being below the stipulated limit. The Court accepted the reasons stated in the application and consequently dismissed the main appeal as withdrawn. No decision was made on the merits of the ITAT's order.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before this Court, considering the tax effect and the CBDT Circulars regarding monetary limits for filing appeals? Assessee's Contention: The assessee did not present any arguments as the appeal was withdrawn by the Revenue. Revenue's Contention: The Revenue argued that the appeal is not maintainable before the High Court as the tax effect of Rs. 25,97,525/- is below the prescribed monetary limit as per Circular No. 17/2019, further clarified on 20.08.2019. Therefore, the appeal should be dismissed as withdrawn.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 201(1),Section 201(1-A)

AI-generated summary — verify with the full judgment below

ITA 237 of 2019(O&M) #1# IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH.

Date of Decision:-20.08.2021 ITA No.237 of 2019(O&M)

The Commissioner of Income Tax (TDS)-1 Chandigarh. ......Appellant.

Versus The Manager, District Office, M/s Punjab Agro Food Grains Corpn.

Ltd. ......Respondents. CORAM:- HON'BLE MR. JUSTICE JASWANT SINGH HON'BLE MR. JUSTICE SANT PARKASH Present:- Mr. Denesh Goyal, Senior Standing Counsel for the Appellant. *** JASWANT SINGH, J.(ORAL) [The aforesaid presence is being recorded through video conferencing since the proceedings are being conducted in virtual court] Appellant-Revenue filed present appeal under Section 260-A of the Income Tax Act, 1961 against the order dated 30.10.2018 (Annexure A- 3) passed by ITAT, Division Bench, 'A', Chandigarh whereby its appeal was dismissed inter alia deleting the Tax Demand created on account of non/short deduction of tax under Section 201(1)/201(1-A) of the Income Tax Act, 1961.

Today CM-7015-CII-2021 moved by the appellant has been listed seeking withdrawal of the appeal.

It is stated in the application that the tax effect in this appeal is Rs.25,97,525/- and in view of Circular no.17/2019 dated 8.8.2019 which wa

The order continues below.

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