PR.COMMISSIONER OF INCOME TAX (CENTRAL), GURGAON vs. M/S RENAISSANCE BUILDCON COMPANY (P) LTD. (THROUGH ITS MANAGING DIRECTOR)

Facts

The Revenue, identified as the Principal Commissioner of Income Tax (Central) Gurgaon, filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B'. The assessee is M/s Renaissance Buildcon Company (P) Ltd. The amount in dispute is Rs. 6,81,406/-. The appeal was filed on 12.07.2019. The Revenue's counsel acknowledged that the tax effect was below the monetary limits prescribed by Circular No. 3/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes.

Held

The High Court allowed the Revenue's request to withdraw the appeal. The court noted that the tax effect was below the monetary limits stipulated in CBDT Circular No. 3/2018. Consequently, the appeal was dismissed as withdrawn. Liberty was granted to the Revenue to file an application for revival of the appeal in case any aspect of the matter survives. The legal issues that would have been adjudicated in the appeal were expressly left open for decision in an appropriate future case. No decision was made on the merits of the original dispute.

Key Issues

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by CBDT Circular No. 3/2018? (Question of law) The Revenue argued that the tax effect involved in the appeal is less than the monetary limits fixed by Circular No. 3/2018 and sought permission to withdraw the appeal, requesting liberty to file an application for revival if something survives. The judgment does not record any specific arguments from the assessee.