Principal Commissioner Of Income Tax 1 vs. M/S Fine Builders

ITA/37/2016HC Madhya Pradesh18 November 2019Bench: HON'BLE THE CHIEF JUSTICE1 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The court granted the liberty sought by the Revenue to file an application for revival of the appeal if something survives therein. 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 left open to be adjudicated in an appropriate case. No specific finding on the merits of the case was made.

What were the facts?

The appellant, the Principal Commissioner of Income Tax, filed an appeal before the High Court of Madhya Pradesh against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s Fine Builders. The appeal was filed for 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 requested liberty to revive the appeal if circumstances changed. The High Court dismissed the appeal as withdrawn.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn in light of the tax effect being below the threshold stipulated in CBDT Circular No. 17/2019? The Revenue argued that due to the tax effect being less than Rs. 1 Crore, they had instructions to withdraw the appeal as per Circular No. 17/2019. They also prayed for liberty to revive the appeal. The Assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

THE HIGH COURT OF MADHYA PRADESH ITA No.37/2016 (Principal Commissioner of Income Tax Vs. M/s Fine Builders) Jabalpur, Dated :18.11.2019 Mr. Sanjay Lal, Advocate for the appellant. Mr. G.N. Purohit, Senior Advocate with Ms. Uma Parashar, 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) (Vijay Kumar Shukla) Chief Justice Judge psm/-

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