COMMISSIONER OF INCOME TAX LDH vs. M/S MAHAVIR SPINNING MILLS

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ITA/226/2003HC Punjab & HaryanaPHHC01049968200329 March 2016Bench: MR. JUSTICE SATPAL,THE TAXING OFFICER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted the submission by the learned counsel for the appellant-revenue that in view of CBDT Circulars No. 21/2015 and No. 279/Misc/M-142/2007-ITJ (Part), the revenue did not wish to press the appeal as the tax effect was less than Rs. 20 lacs. The revenue sought liberty to revive the appeal. The Court dismissed the appeal as not pressed, granting the liberty as prayed for. It was clarified that the withdrawal would not be taken as an affirmation of the Tribunal's order on merits, and the legal issue was left open for adjudication in an appropriate case. The specific finding on the issue of interest under Section 244A in relation to payments under Section 140A was not decided on merits.

What were the facts?

The Revenue, Commissioner of Income Tax-I, Ludhiana, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 25.09.2002 passed by the Income Tax Appellate Tribunal, Chandigarh Bench (B). The appeal pertained to assessment year 1989-90 and concerned the respondent, M/s Mahavir Spinning Mills Ltd. The appeal was filed challenging the Tribunal's decision on a specific legal question. The tax effect involved in the appeal was stated to be less than Rs. 20 lacs.

What were the issues?

1. Whether interest under Section 244A of the Income Tax Act, 1961, is to be allowed in respect of payments made under Section 140A of the Income Tax Act, 1961? The Revenue, through its learned counsel, submitted that in view of Circular No. 21/2015 dated 10.12.2015 and Circular No. 279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, issued by the Central Board of Direct Taxes, it did not wish to press the present appeal due to the tax effect being less than Rs. 20 lacs. The Revenue requested liberty to file an application for revival of the appeal if something survives therein. The judgment records no arguments from the respondent.

Which sections of the Income-tax Act were involved?

Section 260A,Section 244A,Section 140A

AI-generated summary — verify with the full judgment below

ITA No. 226 of 2003 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 226 of 2003 (O&M) Date of Decision: 29.03.2016 Commissioner of Income Tax-I, Ludhiana .......Appellant Versus M/s Mahavir Spinning Mills Ltd. ......Respondent CORAM: HON'BLE MR. JUSTICE RAJESH BINDAL HON'BLE MR. JUSTICE HARINDER SINGH SIDHU Present: Mr. Rajesh Katoch, Advocate for the appellant. RAJESH BINDAL,J. This appeal has been filed under Section 260 A of the Income Tax Act, 1961 (for short 'the Act'), against the order dated 25.9.2002 passed by the Income Tax Appellate Tribunal, Chandigarh Bench (B), in ITA No.610/Chandi/1996, for the assessment year 1989-90, raising the following substantial question of law: (i) Whether interest u/s 244A is to be allowed in respect of payments made u/s 140-A of the Income Tax Act, 1961? Learned counsel for the appellant-revenue submitted that in view of circular No.21/2015 dated 10.12.2015 read with circular No.279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, issued by Central Board of Direct Taxes, he does not wish to press the present appeal, as the tax effect involved is less than ` 20 lacs. However, he prays that REEMA SAINI 2016.04.04 13:52 I attest to the accuracy and authenticity of this document High Court, Chandigarh

ITA No. 226 of 2003 (O&M) -2- liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. Dismissed as not pressed with liberty as prayed for. It is however, clarified that withdrawal of the appeal by the revenue shall not be taken as affirmation of order of the Tribunal on merits. The legal issue as claimed by the revenue is left open to be adjudicated in an appropriate case. (RAJESH BINDAL)

JUDGE (HARINDER SINGH SIDHU) 29.03.2016 JUDGE reema REEMA SAINI 2016.04.04 13:52 I attest to the accuracy and authenticity of this document High Court, Chandigarh

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