PRINCIPAL COMMISSIONER OF INCOME TAX GURGAON vs. M/S ZIMMER INDIA PVT LTD

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ITA/9/2016HC Punjab & HaryanaPHHC01110686201604 February 2019Bench: MR. JUSTICE AJAY KUMAR MITTAL,MRS. JUSTICE MANJARI NEHRU KAUL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the Civil Miscellaneous Application, permitting the revenue to withdraw the appeal. The Court noted that the tax effect was ₹27,38,474, which is below the ₹50.00 lakhs limit specified in CBDT Circular No. 03/2018, directing withdrawal of such appeals. The Court explicitly clarified that the dismissal of the appeal as withdrawn shall not be considered an affirmation of the ITAT's order on merits. Furthermore, the Court stated that the legal issue claimed by the revenue was being left open to be adjudicated in an appropriate case. The main appeal (ITA-9-2016) was accordingly dismissed as withdrawn.

What were the facts?

The Principal Commissioner of Income Tax, Gurgaon (the revenue) filed an appeal (ITA-9-2016) against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is M/s Zimmer India Pvt. Ltd. The appeal was filed for assessment year(s) not specified. The revenue filed a Civil Miscellaneous Application (CM-2514-CII-2019) under Section 151 of the CPC seeking withdrawal of the appeal. The tax effect involved in the appeal was ₹27,38,474. The Central Board of Direct Taxes (CBDT) Circular No. 03/2018 dated 11th July, 2018, directed withdrawal of appeals pending before High Courts where the tax effect is below ₹50.00 lakhs. The assessee accepted notice and had no objection to the withdrawal.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal filed against the order of the ITAT, given the tax effect and the CBDT Circular No. 03/2018. (Question of procedure/administrative direction) The revenue argued that the tax effect in the appeal was ₹27,38,474, which is below the ₹50.00 lakhs threshold stipulated in CBDT Circular No. 03/2018. This circular directs the withdrawal of appeals pending before High Courts meeting this criterion. Therefore, the revenue sought permission to withdraw the present appeal. The assessee, through its counsel, accepted notice of the application for withdrawal and stated that it had no objection to the appeal being withdrawn. No specific arguments were recorded for the assessee regarding the merits of the original appeal.

Which sections of the Income-tax Act were involved?

Section 151

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CM-2514-CII-2019 in/and ITA-9-2016 Decided on : 04.02.2019 Pr. Commissioner of Income Tax, Gurgaon . . . Appellant(s) Versus M/s Zimmer India Pvt. Ltd. . . . Respondent(s) CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MRS. JUSTICE MANJARI NEHRU KAUL PRESENT: Tajender K. Joshi, Sr. Standing Counsel for the applicant-revenue. Mr. Ashim Aggarwal, Advocate for the non-applicant/assessee. **** AJAY KUMAR MITTAL, J. (Oral) CM-2514-CII-2019 This is an application filed under Section 151 of the CPC, seeking withdrawal of the writ petition. Notice of this application. Ms. Ashim Aggarwal, Advocate, accepts notice on behalf of non- applicant/assessee and pleads no objection to the withdrawal of the appeal. It has been averred in the application that the tax effect involved in the present appeal is ` 27,38,474 and the Central Board of Direct Taxes, New Delhi, vide its circular No.03/2018, dated 11th July, 2018, has issued directions to withdraw all the appeals pending before the High Courts, wherein, the tax effect is below ` 50.00 lakhs. After hearing learned counsel for the parties and perusing the detailed averments made in the application, which is supported by an affidavit of the learned counsel for the revenue, the Civil Miscellaneous Application is hereby allowed and the applicant-revenue is permitted to withdraw the present appeal. CM stands disposed of. JAWALA RAM 2019.02.06 16:33 I attest to the accuracy and authenticity of this document Chandigarh

CM-2514-CII-2019 in/and ITA-9-2016 - 2 - ITA-9-2016 At the joint request of learned counsel for the parties, the date of hearing in the main case is pre-poned from 19.03.2019 to today. 2. In view of the order of even date passed in CM-2514-CII-2019, the present appeal stands dismissed as withdrawn. It is, however, clarified that dismissal of the appeal 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 February 04, 2019 J.Ram (MANJARI NEHRU KAUL) JUDGE Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No JAWALA RAM 2019.02.06 16:33 I attest to the accuracy and authenticity of this document Chandigarh

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