COMMISSIONER OF INCOME TAX, vs. M/S ENBEE FINLEASE LTD.

ITA/126/2011HC Madhya PradeshMPHC01043659201108 November 20191 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the application for withdrawal (I.A.no.13904/2019). Consequently, the appeal was dismissed as withdrawn. The court granted the Revenue the liberty to file an application for revival of the appeal as prayed. Crucially, the High Court clarified that the withdrawal of the appeal by the Revenue would not be considered an affirmation of the ITAT's order on its merits. Furthermore, the court explicitly stated that the legal issue claimed by the Revenue was left open to be adjudicated in an appropriate future case, indicating that the substantive merits of the dispute were not decided.

What were the facts?

The Commissioner of Income Tax, Bhopal (the Revenue) filed an appeal before the High Court of Madhya Pradesh against an order of the Income Tax Appellate Tribunal (ITAT). The appeal, bearing ITA No. 126/2011, concerned assessment years not specified in the judgment. The Revenue sought to withdraw the appeal due to a tax effect of Rs. 68,00,000, citing Circular No. 17/2019 dated 8.8.2019. The Revenue also requested liberty to revive the appeal if circumstances warranted. An interlocutory application (I.A.No.13904/2019) was filed for this purpose.

What were the issues?

The primary issue before the High Court was whether the Revenue should be permitted to withdraw its appeal. The Revenue's contention was based on Circular No. 17/2019, which likely sets monetary limits for filing appeals, and the tax effect of Rs. 68,00,000. The Revenue argued for liberty to revive the appeal. The judgment does not record any specific arguments from the assessee, M/s Enbee Finlease Ltd., on the withdrawal application, nor does it detail the specific ITAT order being challenged or the substantive legal issues that were originally before the Tribunal. The court was asked to decide on the withdrawal and the associated liberty to revive.

AI-generated summary — verify with the full judgment below

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THE HIGH COURT OF MADHYA PRADESH

ITA No.126/2011 (Commissioner of Income Tax, Bhopal Vs. M/s Enbee Finlease Ltd.)

Jabalpur, Dated : 08.11.2019

Shri Sanjay Lal, Advocate for the appellant.

I.A.No.13904/2019 for withdrawal of the appeal. Learned counsel for the appellant-revenue states that since the tax effect involved is Rs.68,00,000/-, 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. In view of above, I.A.no.13904/2019 is allowed. 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

C. Digitally signed by CHRISTOPHER PHILIP Date: 2019.11.19 17:37:46 +05'30'

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