COMMISSIONER OF INCOME TAX vs. M/S BLUE PRECISION LTD.

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ITA/523/2008HC Punjab & HaryanaPHHC01080524200814 September 2017Bench: MR. JUSTICE AMIT RAWAL,MR. JUSTICE AJAY KUMAR MITTAL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the application for withdrawal of the appeal. The Court noted that the Revenue's application was supported by an affidavit and a relevant letter from the Principal Commissioner of Income Tax. Consequently, the appeal was dismissed as withdrawn. The Court granted the liberty to the Revenue to file an application for revival of the appeal as prayed for. It was further clarified that the withdrawal of the appeal by the Revenue would not be construed as an affirmation of the Income Tax Appellate Tribunal's order on merits. The legal issue claimed by the Revenue was explicitly left open to be adjudicated in an appropriate future case.

What were the facts?

The Revenue, Commissioner of Income Tax, Faridabad, filed an application under Section 151 of the Code of Civil Procedure seeking permission to withdraw Income Tax Appeal No. 523 of 2008. The withdrawal was sought in reference to Circular No. 21/2015 dated 10.12.2015, issued by the Central Board of Direct Taxes (CBDT). This circular directs the withdrawal of appeals pending before the High Court where the tax effect is below ₹20 Lakhs. The Revenue stated that the tax effect in the present case falls within this threshold. The application was supported by an affidavit and a letter dated 02.05.2017 from the office of the Principal Commissioner of Income Tax, Faridabad.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the Revenue in light of CBDT Circular No. 21/2015, which mandates withdrawal of appeals with a tax effect below ₹20 Lakhs? (Question of law) Contentions: Assessee: Not recorded. Revenue: The Revenue contended that the appeal is covered by CBDT Circular No. 21/2015 as the tax effect is below ₹20 Lakhs, and therefore, it should be withdrawn. They also prayed for liberty to file an application for revival of the appeal if circumstances warranted it.

Which sections of the Income-tax Act were involved?

Section 151

AI-generated summary — verify with the full judgment below

ITA-523-2008 (O&M) - 1 - 102 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA-523-2008 (O&M)

Date of decision : 14.09.2017 Commissioner of Income Tax, Faridabad ... Appellant(s) Versus M/s Blue Precision Ltd. ... Respondent(s) CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE AMIT RAWAL Present: Mr. Rajat Garg, Advocate for Mr. Tajender K. Joshi, Sr. Standing Counsel for the appellant. **** AJAY KUMAR MITTAL

, J. (ORAL)

CM-12828-CII-2017 This is an application under Section 151 of the Code of Civil Procedure for permission to withdraw the ITA No.523 of 2008 in reference to Circular No.21/2015 dated 10.12.2015, issued by the Central Board of Direct Tax (in short 'CBDT'). 2. It has been averred in the application that the CBDT has issued a Circular No.21/2015 dated 10.12.2015, directing to withdraw all the appeals pending before High Court, wherein, the tax effect is below `20 Lakhs. The tax effect in the present case is below ` 20 Lakhs and therefore, the same is covered under the aforesaid circular. It has further been pleaded in the application that a letter dated 02.05.2017 was also received in this Yogesh Sharma 2017.09.20 12:26 I attest to the accuracy and integrity of this document

ITA-523-2008 (O&M) - 2 - regard from the office Principal Commissioner of Income Tax, Faridabad. However, he prayed that liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. 3. After hearing the learned counsel for the applicant/appellant and perusing the averments made in the application, which is supported by an affidavit, the application is allowed and the appeal is ordered to be dismissed as withdrawn with liberty as prayed for. CM stands disposed of accordingly. ITA-523-2008 In view of the order of even date passed in CM No.12828-CII of 2017, the present appeal is dismissed as withdrawn with liberty as prayed for. It is, however, clarified that withdrawal of the appeal by the revenue shall not be taken to be affirmation of order of the Tribunal on merits. Further, the legal issue as claimed by the revenue is being left open to be adjudicated in an appropriate case. ( AJAY KUMAR MITTAL ) JUDGE 14.09.2017 Yogesh Sharma

( AMIT RAWAL)

JUDGE

Whether speaking/reasoned Yes/ No Whether Reportable Yes/ No Yogesh Sharma 2017.09.20 12:26 I attest to the accuracy and integrity of this document

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