COMMISSIONER OF INCOME TAX vs. M/S JAY DEE FABRICS

ITA/119/2002HC Punjab & HaryanaPHHC01051700200201 April 20162 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as not pressed, granting the revenue the liberty to file an application for revival of the appeal as prayed for. The Court clarified that the withdrawal of the appeal by the revenue would not be considered an affirmation of the Tribunal's order on merits. The legal issues raised by the revenue were explicitly left open to be adjudicated in an appropriate future case. Therefore, no finding was reached on the merits of the substantial questions of law concerning the application of block period assessment principles to normal assessment and the sufficiency of stock analysis records. The operative direction was the dismissal of the appeal with liberty to revive.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Jalandhar-I, against an order dated January 11, 2002, passed by the Income Tax Appellate Tribunal (ITAT), Amritsar Bench. The ITAT's order pertained to the assessment year 1996-97. The appeal was filed under Section 260A of the Income Tax Act, 1961. The revenue, represented by the Commissioner, challenged the ITAT's decision regarding the assessment of M/s Jay Dee Fabrics Ltd. The procedural history leading to this appeal involves the ITAT's decision which the revenue sought to challenge before the High Court.

What were the issues?

The High Court was to decide the following substantial questions of law: 1. Whether the ITAT erred in applying a decision made for a block period assessment to the normal assessment for the assessment year 1996-97 in the case of the same assessee. 2. Whether the ITAT was justified in holding that the assessee maintained complete stock analysis, despite the absence of day-to-day records for raw material consumption and finished product production. The revenue, represented by the appellant, did not press the appeal due to the tax effect being less than ₹20 lakhs, citing CBDT Circular No. 21/2015 and Circular No. 279/Misc/M-142/2007-ITJ (Part). The revenue requested liberty to revive the appeal if circumstances changed. The respondent-assessee's arguments are not recorded in the provided text.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 01.04.2016 The Commissioner of Income Tax, Jalandhar-I, Jalandhar. .......Appellant Versus M/s Jay Dee Fabrics Ltd. ......Respondent CORAM: HON'BLE MR. JUSTICE RAJESH BINDAL HON'BLE MR. JUSTICE HARINDER SINGH SIDHU Present: Mr. Vivek Sethi, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. RAJESH BINDAL,J. This appeal has been filed under Section 260 A of the Income Tax Act, 1961 (for short 'the Act'), against the order dated 11.1.2002 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, in ITA No.507(ASR)/2001, for the assessment year 1996-97, raising the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case, the ITAT was right in law in applying the decision given in respect of block period assessment in the case of the same assessee to the normal assessment for the assessment year under consideration? (ii) Whether, on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in holding that the assessee was maintaining complete stock analysis in the absence of day-to- day consumption of raw material and production of the finished products? REEMA SAINI 2016.04.04 13:52 I attest to the accuracy and authenticity of this document High Court, Chandigarh -2- Learned counsel for the appellant-revenue submitted that in view of circular No.21/2015 dated 10.12.2015 read with circular No.279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, issued by Central Board of Direct Taxes, he does not wish to press the present appeal, as the tax effect involved is less than ` 20 lacs. However, he prays that liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. Dismissed as not pressed with liberty as prayed for. It is however, clarified that withdrawal of the appeal by the revenue shall not be taken as affirmation of order of the Tribunal on merits. The legal issue as claimed by the revenue is left open to be adjudicated in an appropriate case. (RAJESH BINDAL)

JUDGE (HARINDER SINGH SIDHU) 01.04.2016 JUDGE reema REEMA SAINI 2016.04.04 13:52 I attest to the accuracy and authenticity of this document High Court, Chandigarh

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