PR. COMMISSIONER OF INCOME TAX, UDAIPUR vs. M/S WESTERN DRUGS LTD.

ITA/78/2018HC Rajasthan27 August 2019Bench: SANGEET LODHA, P.K. LOHRA1 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal granted permission to the appellant (Revenue) to withdraw the appeal. This decision was made in view of Circular No. 17/2019 and its clarification dated 20.08.2019, which govern the withdrawal of appeals based on the tax effect. The Tribunal noted that the tax effect involved in the present appeal was less than Rs. 1 crore. Consequently, the appeal was dismissed as withdrawn. The reasoning is solely based on the administrative instructions provided by the Central Board of Direct Taxes regarding the monetary limit for filing and pursuing appeals. No finding was made on the merits of the original appeal. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Udaipur (the Revenue) against M/s Western Drugs Ltd. (the Assessee). The assessment year(s) are not specified in the judgment. The appeal challenges an order or action passed by an authority below, the specifics of which are not detailed. The amount in dispute is not explicitly stated, but the operative part of the judgment refers to a tax effect less than Rs. 1 crore. The procedural history relevant to the decision is the issuance of Circular No. 17/2019 by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India, dated 08.08.2019, and a subsequent clarification dated 20.08.2019.

What were the issues?

1. Whether the appeal, involving a tax effect less than Rs. 1 crore, should be permitted to be withdrawn by the appellant (Revenue) in light of Circular No. 17/2019 and its clarification. The Revenue, through its learned counsel, sought permission to withdraw the appeal. This request was based on Circular No. 17/2019 and a subsequent clarification, which indicated that appeals with a tax effect below Rs. 1 crore might be withdrawn. The Assessee's contentions are not recorded in the judgment. No specific legal provisions are named in relation to the substantive issue of the appeal itself, as the appeal was withdrawn on procedural grounds related to the tax effect.

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 78/2018 Pr. Commissioner Of Income Tax, Udaipur. ----Appellant Versus M/s Western Drugs Ltd., F-271 A, Mewar Industrial Area, Madri, Udaipur. ----Respondent For Appellant(s) : Mr. K.K.Bissa, Mr. G.S.Chouhan & Mr.H.G.Chanda For Respondent(s) : Mr. Anjay Kothari 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 Director 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. The permission is granted. The appeal is dismissed as withdrawn. (P.K. LOHRA),J (SANGEET LODHA),J 208-RP/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 30/08/2019 at 10:44:46 AM) (Downloaded on 28/10/2026 at 12:51:52 AM)

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