THE COMMISSIONER vs. C.I. BUILDERS PVT. LTD.

ITA/101/2012HC Madhya PradeshMPHC01027711201208 November 20191 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Madhya Pradesh dismissed the appeal filed by the Commissioner of Income Tax-I, Bhopal as withdrawn. This decision was based on the revenue's submission that the tax effect was less than Rs.1 Crore, aligning with Circular No.17/2019. The court granted liberty to the revenue to file an application for revival of the appeal, should circumstances warrant it. The court clarified that the withdrawal of the appeal would not be construed as an affirmation of the ITAT's order on merits. Furthermore, the legal issue raised by the revenue was expressly left open for adjudication in an appropriate future case. No decision was made on the substantive merits of the appeal.

What were the facts?

The Commissioner of Income Tax-I, Bhopal (appellant-revenue) filed an appeal before the High Court of Madhya Pradesh against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is C.I. Builders Pvt. Ltd. The appeal pertains to ITA No.101/2012. The revenue sought to withdraw the appeal due to the tax effect being less than Rs.1 Crore, in accordance with Circular No.17/2019 dated 8.8.2019. The revenue also requested liberty to file an application for revival of the appeal if circumstances changed. The High Court dismissed the appeal as withdrawn with the liberty granted.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn in light of Circular No.17/2019 and the tax effect involved? (Question of procedure) Assessee's Contention: Not recorded. Revenue's Contention: The revenue, through its counsel, stated that the tax effect involved was less than Rs.1 Crore and therefore, it had instructions to withdraw the appeal in view of Circular No.17/2019. The revenue prayed for liberty to file an application for revival of the appeal if something survived therein.

AI-generated summary — verify with the full judgment below

THE HIGH COURT OF MADHYA PRADESH ITA No.101/2012 (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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