PR. COMMISSIONER OF INCOME TAX-I JODHPUR vs. M/S DERBY TEXTILES

ITA/72/2016HC Rajasthan27 August 2019Bench: SANGEET LODHA, P.K. LOHRA1 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court granted permission to the appellant (revenue) to withdraw the appeal. This decision was made in accordance with Circular No. 17/2019 and its subsequent clarification, which stipulate conditions for filing appeals based on the tax effect. The Court noted that the tax effect in the present appeal was less than Rs. 1 crore, which was the basis for the revenue's request to withdraw. The reasoning is solely procedural, based on the applicability of the CBDT circular. The ratio decidendi is that appeals with a tax effect below the threshold specified in the relevant CBDT circular can be withdrawn upon seeking permission from the court. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The appeal was filed by the Pr. Commissioner of Income Tax-I, Jodhpur (the appellant/revenue) against M/s Derby Textiles, Jodhpur (the respondent/assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The procedural history leading to this appeal before the High Court is not detailed, beyond the fact that the ITAT order was appealed. The amount in dispute is not explicitly stated, but it is implied to be less than Rs. 1 crore.

What were the issues?

1. Whether the appeal can be withdrawn by the appellant in light of the tax effect being less than Rs. 1 crore, as per the CBDT Circular No. 17/2019? Assessee's Contentions: The judgment records no contentions from the assessee. The respondent's position is not detailed. Revenue's Contentions: The appellant (revenue), through its learned counsel, sought permission to withdraw the appeal. This request was based on Circular No. 17/2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India, dated 08.08.2019, as clarified by a communication dated 20.08.2019. The reason for withdrawal was that the tax effect involved in the appeal was less than Rs. 1 crore.

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 72/2016 Pr. Commissioner of Income Tax-I, Jodhpur ----Appellant Versus M/s Derby Textiles, MIA, Basni 2nd Phase, Jodhpur ----Respondent For Appellant(s) : Mr. K.K. Bissa with Mr. G.S. Chouhan and Mr. H.G. Chanda. HON'BLE MR. JUSTICE SANGEET LODHA HON'BLE MR. JUSTICE P.K. LOHRA Order 27/08/2019 In view of Circular No.17/2019 [F.No.279/MISC./142/2007- ITJ (PT.)] dated 08.08.2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India, New Delhi, as clarified vide communication dated 20.08.2019, the tax effect involved in the present appeal being less than Rs.1 crore, learned counsel appearing for the appellant seeks permission to withdraw the appeal. Permission is granted. The appeal is dismissed as withdrawn. (P.K. LOHRA),J (SANGEET LODHA),J 183-DJ/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 27/08/2019 at 06:35:35 PM) (Downloaded on 28/10/2026 at 12:51:34 AM)

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