C I T vs. SANDEEP PODDAR PROP. M/S INDEPENDENT PUBLISHING & MFG. CO.

ITA/122/2008HC Punjab & HaryanaPHHC01080086200829 March 2016Author: MR. JUSTICE HEMANT GUPTA,MR. JUSTICE JASPAL SINGH2 pages
AI SummaryWithdrawn

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Chandigarh-II (the revenue) against an order dated 5.7.2007 passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench (B), for the assessment year 2003-04. The ITAT's order was in appeal No. 236/Chandi/2007. The dispute concerned whether the assessee, Sh. Sandeep Poddar, was carrying on business at Parwanoo, the validity of addresses used for business operations, and eligibility for deductions under Section 80-I/80-IB for book publication. The amount in dispute is not explicitly stated but is implied to be below Rs. 20 lacs based on the revenue's submission.

What did the High Court hold?

The High Court dismissed the appeal as not pressed, granting liberty to the revenue to file an application for revival of the appeal as prayed. The court clarified that the withdrawal of the appeal by the revenue would not be taken as an affirmation of the ITAT's order on merits. The legal issues raised by the revenue were left open to be adjudicated in an appropriate case. Therefore, the Tribunal's findings on the questions of whether the assessee was carrying on business at Parwanoo, the validity of addresses, and the eligibility for deductions under Section 80-I/80-IB were not decided on merits by the High Court. The ratio decidendi is that appeals with a tax effect below a certain threshold, as per CBDT circulars, may not be pressed, and such dismissals do not prejudice the adjudication of the legal issues in future cases.

What were the issues?

The High Court was asked to decide the following substantial questions of law: 1. Whether the ITAT was justified in holding that the assessee was carrying on its business of computer assembly and book publication at Parwanoo without reliable evidence, ignoring material on record? 2. Whether the ITAT was justified in concluding that the assessee was carrying on business at Shed No. 90, Sector 1, Parwanoo, when certificates from authorities showed different addresses and none of them matched Shed No. 90, Sector 1, Parwanoo? 3. Whether the ITAT was justified in allowing deductions under Section 80-I/80-IB by considering book publication as a manufacturing activity, even though the assessee was not the publisher and got printing done from places where such deductions were not available? The revenue, through its counsel, submitted that in view of CBDT circulars No. 21/2015 dated 10.12.2015 and No. 279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, it did not wish to press the appeal as the tax effect was less than Rs. 20 lacs. The revenue prayed for liberty to revive the appeal if something survived. The judgment records no specific arguments from the assessee's side.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80-I,Section 80-IB

AI-generated summary — verify with the full judgment below

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 29.03.2016 Commissioner of Income Tax, Chandigarh-II .......Appellant Versus Sh. Sandeep Poddar Prop. ......Respondent CORAM: HON'BLE MR. JUSTICE RAJESH BINDAL HON'BLE MR. JUSTICE HARINDER SINGH SIDHU Present: Ms. Urvashi Dhugga, Advocate for the appellant. 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 5.7.2007 passed by the Income Tax Appellate Tribunal, Chandigarh Bench (B), in ITA No.236/Chandi/2007, for the assessment year 2003-04, raising the following substantial questions of law: (i) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is justified in holding that the assessee was carrying its business of assembly of computer and publication of books at Parwanoo in the absence of any reliable and cogent evidence by ignoring the material and evidence on record? (ii)Whether on the facts and circumstances o

The order continues below.

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