PR. COMMISSIONER OF INCOME TAX-1, CHANDIGARH vs. M/S SNOWVIEW AUTOMOBILES PRIVATE LIMITED

PDF · subscribers
ITA/37/2020HC Punjab & HaryanaPHHC01146511201907 November 2024Bench: MR. JUSTICE SANJEEV PRAKASH SHARMA,MR. JUSTICE SANJAY VASHISTH2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the ITAT should not have dismissed the appeal on the ground of low tax effect if the issue involved fell within the exceptions provided in Circular No. 5/2024. The Court found that the issue before the ITAT was indeed covered by the exceptions as laid down in clause 3A of Circular No. 5/2024, which relates to provisions of Section 250(6) of the Act. Consequently, the High Court set aside the orders passed by the ITAT and remanded the matter back to the ITAT with a direction to decide the appeal on its merits. The Court also stipulated that the ITAT shall fix a particular date for hearing, and both parties will be given a fair opportunity to present their case.

What were the facts?

This case involves an appeal by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT). The Revenue's contention is that the ITAT should have dismissed the appeal pending before it on the ground of low tax effect. The respondent, M/s Snowview Automobiles Private Limited, argued that the issue involved fell under exceptions to the low tax effect policy, as outlined in Circular No. 5/2024. The High Court noted that the Circular provides for certain contingencies and exceptions when an appeal should not be dismissed solely on the basis of low tax effect. The monetary limits for low tax effect appeals were also mentioned as having been enhanced over time.

What were the issues?

1. Whether the Income Tax Appellate Tribunal (ITAT) could have dismissed the appeal pending before it on the ground of low tax effect, considering the exceptions provided in Circular No. 5/2024. (Question of law) Assessee's Contentions: - The issue involved in the appeal fell within the exceptions to the low tax effect policy as laid down in Circular No. 5/2024. - The Circular provides for certain contingencies and exceptions when an appeal should not be dismissed on the ground of low tax effect. Revenue's Contentions: - The Revenue argued that the ITAT should have dismissed the appeal on the ground of low tax effect. - The judgment does not explicitly record the Revenue's arguments regarding the applicability of the exceptions in Circular No. 5/2024, other than their initial stance that the appeal should be dismissed for low tax effect.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

ITA-37-2020 (O 217

IN TH PR. COMMIS M/S SNOWV CORAM: H

H Present: M

f SANJEEV P

1.

The sho Appella before i present of claus 2. Learned have be 3. We hav liberty Court o Court a O&M) Page 1 of 2 HE HIGH COURT OF PUNJA CHANDIGAR

SSIONER OF INCOME TAX-1 Vs.

VIEW AUTOMOBILES PRIVAT **** HON’BLE MR. JUSTICE SAN HON’BLE MR. JUSTICE SAN **** Mr. Vaibhav Gupta, Standing Co for the appellant/Revenue. Mr. Abhishek Sharma, Advocate Mr. Vishal Gupta, Advocate for the respondent. **** RAKASH SHARMA, J.(Oral) ort point involved in the present ate Tribunal (ITAT) could have it on the ground of low tax effec appeal was with regard to issues se 3.1 (a) and (b) of Circular No.5 d counsel for the respondent subm een brought to the knowledge of th ve considered the submissions an to withdraw or dismiss the appe on account of low tax effect wh and Rs.20 lacs for ITAT, and now AB AND HARYANA AT RH ITA-37-2020 (O&M) Date of Decision: 07.11.2024 , CHANDIGARH . . . . Appellant TE LIMITED . . . . Respondent NJEEV PRAKASH SHARMA NJAY VASHISTH ounsel e for ) case is whether the Income Tax e dismissed the appeal pending ct when the issue involved in the which come within the exception 5/2024 dated 15.03.2024. mits that the said aspect ought to he Tribunal at that time. nd find that the circular granting eals before ITAT and before this ich was upto Rs.1 crore for this w enhanced to Rs.60 lacs for the

) 4 t t x g e n o g s s e MOHIT GOYAL 2024.11.08 13:14 I attest to the accuracy and integrity of this document

ITA-37-2020 (O ITAT conting down in before t ground 4. We are ITAT w under c section 5. Accord passed decide t 6. It goes date, bo decidin 7. Writ Pe 8. All pen

November 07, Mohit goyal 1. Whethe 2. Whethe O&M) Page 2 of 2 and Rs.2 crores for the High gencies and exceptions. The cont n Circular No.5/2024 provide cer the Tribunal or before the High C of low tax effect. satisfied that the issue involved was coming within the four corne clause 3A of Circular No.5/2024 250(6) of the Act). ingly, we set aside the orders d by the ITAT; remand the matte the appeal on merits. without saying that the ITAT sha oth the parties shall be given a fa g the case. etition stands allowed accordingly nding applications also stand disp

(SANJ , 2024 r speaking/reasoned?

Y r reportable?

Y h Court, is subject to certain tingencies and exceptions as laid rtain conditions when the appeal ourt shall not be dismissed on the d in the present appeal before the ers of the exception as laid down 4 (issue relating to provisions of dated 04.09.2018 and 01.07.2019 er back and direct the ITAT to all fix a particular date and on that fair opportunity of hearing before y. posed of. JEEV PRAKASH SHARMA) JUDGE

(SANJAY VASHISTH) JUDGE Yes/No Yes/No

n d l e e n f 9 o t e MOHIT GOYAL 2024.11.08 13:14 I attest to the accuracy and integrity of this document

Latest GST High Court judgments

Search GST case law →