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

ITA/263/2019HC Punjab & HaryanaPHHC01051000201920 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 ITAT, Division Bench, Chandigarh. The ITAT had dismissed the Revenue's appeal, thereby deleting a tax demand raised against the Manager, District Office, 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 Income Tax Act, 1961. The Revenue subsequently filed an application seeking withdrawal of the appeal, citing a tax effect of Rs. 21,02,037/- and relying on 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 an application seeking withdrawal of the appeal, stating that the tax effect was Rs. 21,02,037/-. The Revenue relied on Circular No. 17/2019, as clarified on 20.08.2019, which stipulated that appeals should not be filed if the tax effect is below a certain threshold. Based on this circular, the Revenue argued that the present appeal was not maintainable. The Court, accepting the reasons stated in the application, dismissed the main appeal as withdrawn.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 present appeal is maintainable before this Court in view of the tax effect and the prevailing monetary limits prescribed by the Revenue's Circular No. 17/2019 and its clarification dated 20.08.2019? Assessee's Contention: The assessee did not file any reply or present arguments as the appeal was withdrawn by the Revenue. Revenue's Contention: The Revenue contended that the tax effect in the appeal is Rs. 21,02,037/-. In view of Circular No. 17/2019, which was further clarified on 20.08.2019, the present appeal is not maintainable before this Court as the tax effect is lower than the prescribed limit.

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

Date of Decision:-20.08.2021 ITA No.263 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-6923-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.21,02,037/- and in view of Circular no.17/2019 dated 8.8.2019 which wa

The order continues below.

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