PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) vs. M/S MOTISONS BUILDTECH PVT. LTD.

Facts

The Principal Commissioner of Income Tax (Central), Rajasthan, the petitioner, filed D.B. Income Tax Appeal No. 59/2020 against M/s Motisons Buildtech Pvt. Ltd., the respondent. On September 26, 2024, the High Court of Rajasthan, Bench at Jaipur, dismissed the appeal as withdrawn. This decision was based on the appellant's counsel seeking permission to withdraw the appeal due to the tax effect being below Rupees Two Crores, in accordance with a CBDT circular dated September 17, 2024. The court kept the substantial question of law open and granted the Department liberty to move for revival if the matter was not covered by the circular. Subsequently, the applicant (petitioner) filed a miscellaneous application seeking revival of the appeal, contending that the case was not covered by the CBDT circular dated September 17, 2022, and also fell under an exception in the circular dated March 15, 2024.

Held

The High Court allowed the miscellaneous application for revival. The court recalled its previous order dated September 26, 2024, which had dismissed the appeal as withdrawn. Consequently, D.B. Income Tax Appeal No. 59/2020 was restored to its original number. The reasoning was based on the applicant's submission that the case was not covered by the CBDT circular dated September 17, 2022, and fell under an exception in the circular dated March 15, 2024. The court also noted that liberty had been granted for revival. The operative direction is the restoration of the main appeal.

Key Issues

1. Whether the appeal, initially dismissed as withdrawn on September 26, 2024, should be revived based on the applicant's submission that the case is not covered by the relevant CBDT circulars (dated September 17, 2022, and March 15, 2024). Assessee's Contention: The applicant (petitioner) argued that the case is not covered under the CBDT circular dated September 17, 2022, and also falls under an exception within the circular dated March 15, 2024. They further submitted that the court had granted liberty for revival. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding this application for revival. The initial withdrawal was based on the petitioner's counsel's submission regarding the tax effect and a CBDT circular.