THE PR. COMMISIONER OF INCOME-TAX PATIALA vs. M/S BABA BALAK NATH STEELS PRIVATE LIMITED

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ITA/40/2020HC Punjab & HaryanaPHHC01146618201914 January 2026Author: MRS. JUSTICE LISA GILL,JUSTICE (TO BE NOMINATED)2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court, upon considering the submission made by the learned counsel for the appellant (revenue), ordered that the appeal be dismissed as withdrawn. The court explicitly noted that the question of law arising in the appeal is being kept open for adjudication in appropriate proceedings. This decision was based on the revenue's instruction to withdraw the appeal due to the tax effect being below the threshold specified in Circular No. 9 of 2024. No decision on the merits of the case was made. The operative direction is the dismissal of the appeal as withdrawn.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central), Gurgaon (the appellant/revenue) against an order dated 06.08.2019 passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh, in ITA No. 44/CHD/2019. The respondent is M/s Baba Balak Nath Steels Private Limited. The appeal was filed under Section 260A of the Income Tax Act. The appellant's counsel, on instructions, sought to withdraw the appeal. The reason for withdrawal was that the tax effect involved was under Rs. 2 Crores, aligning with Circular No. 9 of 2024 dated 17.09.2024 issued by the Ministry of Finance, Department of Revenue, CBDT. However, the appellant requested that the question of law arising in the appeal be kept open for future adjudication.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn in view of the tax effect being below the threshold stipulated in CBDT Circular No. 9 of 2024, while keeping the question of law open for future adjudication. Assessee's Contention: The judgment does not record any specific contentions from the assessee. The appeal is being withdrawn by the revenue. Revenue's Contention: The revenue, through its counsel, submitted that as the tax effect involved in the appeal is under Rs. 2 Crores, it has specific instructions to withdraw the appeal in view of Circular No. 9 of 2024. The revenue also requested that the question of law arising in the appeal be kept open for adjudication in appropriate proceedings.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

-1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 14.01.2026

PR. Commissioner of Income Tax (Central), Gurgaon

..... Appellant

Versus

M/s Baba Balak Nath Steels Private Limited

..... Respondent

CORAM:- HON'BLE MRS. JUSTICE LISA GILL

HON'BLE MR. JUSTICE RAMESH CHANDER DIMRI

Present: Mr. Saurabh Kapoor, Sr. Standing Counsel

Mr. Rana Gurtej Singh, Jr. Standing Counsel

Ms. Muskaan Gupta, Advocate

Ms. Muskaan Chauhan, Advocate

Ms. Tanya Kumar, Advocate

for appellant.

**** LISA GILL, J.

1.

Present appeal has been filed under Section 260A of the Income Tax Act, challenging order dated 06.08.2019 passed by learned Income Tax Appellate Tribunal, Chandigarh, in ITA No. 44/CHD/2019. 2. Learned counsel for appellant on instructions submits that as the tax effect involved in this appeal is under Rs.2 Crores, he has specific instructions to withdraw this appeal in view of circular No. 9 of 2024 dated 17.09.2024 issued by Ministry of Finance, Department of Revenue, CBDT, Government of India. However, question of law as arising in appeal be kept open for adjudication in appropriate proceedings. SANJAY KHAN 2026.01.16 15:10 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh -2-

3.

Appeal is accordingly dismissed as withdrawn with question of law being kept open for adjudication in appropriate proceedings.

Pending application(s), if any, also stand(s) disposed of accordingly.

(LISA GILL)

JUDGE

(RAMESH CHANDER DIMRI) 14.01.2026

JUDGE s.khan

.

Whether speaking/reasoned: Yes/No Whether reportable: Yes/No SANJAY KHAN 2026.01.16 15:10 I attest to the accuracy and authenticity of this document Punjab and Haryana High Court, Chandigarh

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