COMMISSIONER OF INCOME TAX vs. C.I. BUILDERS PVT.LTD.

ITA/100/2012HC Madhya PradeshMPHC01027710201208 November 20191 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the liberty to the Revenue to file an application for revival of the appeal as prayed for. The Court clarified that the withdrawal of the appeal by the Revenue would not be considered an affirmation of the Tribunal's order on merits. Furthermore, the legal issue claimed by the Revenue was explicitly left open to be adjudicated in an appropriate case. The decision was based on the Revenue's instructions to withdraw due to the tax effect being below Rs.1 Crore, as per CBDT Circular No.17/2019, and not on the merits of the case.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax-I, Bhopal (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is C.I. Builders Pvt. Ltd. The appeal concerns assessment year(s) not specified in the judgment. The Revenue sought to withdraw the present appeal because the tax effect involved was less than Rs.1 Crore, in accordance with Circular No.17/2019 dated 8.8.2019 issued by the CBDT. The Revenue requested liberty to file an application for revival of the appeal if something further survived. The High Court dismissed the appeal as withdrawn with the liberty granted.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn in light of the Revenue's instructions and CBDT Circular No.17/2019, considering the tax effect is less than Rs.1 Crore? (Question of procedure/policy) Contentions: Assessee: No specific contentions recorded as the appeal was withdrawn by the Revenue. Revenue: The Revenue argued that the appeal should be withdrawn as the tax effect was below the threshold stipulated in Circular No.17/2019, and sought liberty to revive the appeal if necessary. They relied on Circular No.17/2019.

AI-generated summary — verify with the full judgment below

THE HIGH COURT OF MADHYA PRADESH ITA No.100/2012 (The Commissioner of Income Tax-I, Bhopal vs. C.I. Builders Pvt. Ltd.) Jabalpur, Dated :08.11.2019 Mr. Sanjay Lal, Advocate for the appellant. Mr. Mukesh Agrawal, Advocate for the respondent. Learned counsel for the appellant-revenue states that since the tax effect involved is less than Rs.1 Crore, he has instructions to withdraw the present appeal in view of the Circular No.17/2019 dated 8.8.2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Judicial Section), New Delhi. However, he prayed that liberty be granted to the Revenue to file an application for revival of the appeal, in case something survives therein. Accordingly, this 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) (Sanjay Yadav) Chief Justice Judge psm/-

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