PRINCIPAL COMMISSIONER OF INCOME TAX BATHINDA vs. M/S ISHAR INFRASTRUCTURE DEVELOPERS PVT LTD BATHINDA

Facts

The appeals were filed by the Principal Commissioner of Income Tax, Bathinda, against various respondents, including M/s Ishar Infrastructure Developers Pvt. Ltd., M/s Euro Infrastructure & Power Ltd., M/s Ram Kumar Bansal, and M/s Kissan Electricals Pvt. Ltd. The appeals involved similar questions of facts and law. The revenue's counsel informed the High Court that due to the tax effect being less than ₹1 crore, they had instructions to withdraw the appeals in accordance with CBDT Circular No. 17/2019 dated August 8, 2019. The revenue also sought liberty to file an application for revival of the appeals if any issue survived.

Held

The High Court of Punjab & Haryana dismissed the appeals as withdrawn, granting the liberty as prayed for by the revenue.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 due to the tax effect being less than ₹1 crore, in line with CBDT Circular No. 17/2019. The Court explicitly stated that the legal issue claimed by the revenue was being left open to be adjudicated in an appropriate case. Therefore, no decision on the merits of the case was made.

Key Issues

1. Whether the appeals should be dismissed as withdrawn in light of CBDT Circular No. 17/2019, given the tax effect is less than ₹1 crore? Assessee's Contention: Not recorded. Revenue's Contention: The revenue, through its counsel, stated that it had instructions to withdraw the present appeals in view of CBDT Circular dated 17/2019 dated 08.08.2019, as the tax effect involved was less than ₹1 crore. The revenue prayed for liberty to file an application for revival of the appeal(s) in case something survived therein.