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

ITA/127/2011HC Madhya PradeshMPHC01043660201108 November 20191 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the Revenue's request and dismissed the appeal as withdrawn. The court granted the Revenue liberty to file an application for revival of the appeal. It was clarified that the withdrawal of the appeal would not be considered an affirmation of the ITAT's order on merits. The legal issue claimed by the Revenue was explicitly left open to be adjudicated in an appropriate future case. No specific findings on the merits of the case were made.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Bhopal (the Revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is M/s Enbee Industries. The appeal concerns assessment year(s) not specified in the judgment. 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 warranted. The High Court dismissed the appeal as withdrawn.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn based on the tax effect and CBDT Circular No. 17/2019? (Question of procedure/administrative policy) The Revenue argued that as the tax effect was below the threshold stipulated in Circular No. 17/2019, they had instructions to withdraw the appeal. They also sought liberty to revive the appeal. The judgment does not record any arguments from the assessee.

AI-generated summary — verify with the full judgment below

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THE HIGH COURT OF MADHYA PRADESH

ITA No.127/2011 (Commissioner of Income Tax, Bhopal Vs. M/s Enbee Industries)

Jabalpur, Dated : 08.11.2019

Shri Sanjay Lal, Advocate for the appellant. 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

C. Digitally signed by CHRISTOPHER PHILIP Date: 2019.11.19 16:45:56 +05'30'

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