THE PR COMMISSIONER OF INCOME TAX 2 CHANDIGARH vs. THE ROPAR DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD

Facts

The appeals were filed by the Principal Commissioner of Income Tax-2, Chandigarh (revenue) against the Ropar District Cooperative Milk Producers Union Ltd. (assessee). The assessment years are not explicitly stated. The appeals challenged orders passed by the Income Tax Appellate Tribunal (ITAT). The procedural history involves the revenue's decision to withdraw the appeals. The tax effect involved was less than ₹1 Crore. The revenue sought liberty to revive the appeals if circumstances changed.

Held

The High Court decided to dismiss the appeals as withdrawn, granting the liberty as prayed for by the revenue. The Court noted that the revenue's counsel had instructions to withdraw the appeals based on CBDT Circular No. 17/2019, as the tax effect was less than ₹1 Crore. The Court explicitly stated that the legal issue claimed by the revenue was being left open to be adjudicated in an appropriate case. This implies that no decision on the merits of the underlying tax dispute was made. The pending Civil Miscellaneous applications, if any, were also disposed of as the main case was decided.

Key Issues

1. Whether the appeals filed by the revenue should be withdrawn in light of CBDT Circular No. 17/2019 dated 08.08.2019, given the tax effect is less than ₹1 Crore? (Question of law) Assessee's Arguments: Not recorded. Revenue's Arguments: The revenue, through its counsel, stated that due to the tax effect being less than ₹1 Crore, it had instructions to withdraw the present appeals in view of CBDT Circular No. 17/2019. The revenue also prayed for liberty to file an application for revival of the appeals if something survived therein.