C.I.T.LUDHIANA vs. M/S VARINDER AGRO CHEMICALS LTD

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ITA/10/2002HC Punjab & HaryanaPHHC01022764200230 October 2019Bench: MR. JUSTICE AJAY TEWARI,MRS. JUSTICE ALKA SARIN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Punjab and Haryana at Chandigarh dismissed the appeal as withdrawn. The decision was based on the submission by the revenue's counsel that the tax effect was below the monetary limit stipulated in the relevant CBDT circulars. The court granted the revenue the liberty to file an application for revival of the appeal in case something survives therein. Pending applications, if any, were also disposed of as a consequence of the main appeal being dismissed. The judgment does not record any decision on the merits of the original dispute.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Central), Ludhiana (the revenue) against M/s. Varinder Agro Chemicals Ltd. (the assessee). The appeal pertains to ITA No. 10 of 2002, decided on 30.10.2019 by the High Court of Punjab and Haryana at Chandigarh. The revenue sought to withdraw the appeal based on a low tax effect, as per CBDT Circular No. 3 of 2018 and subsequent amendments. The revenue requested liberty to revive the appeal if circumstances changed. The High Court dismissed the appeal as withdrawn with the liberty granted.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn, considering the tax effect is below the prescribed monetary limit as per CBDT Circulars No. 3 of 2018 and 17 of 2019. Contentions: Assessee: No specific contentions are recorded in the judgment. Revenue: The learned counsel for the appellant-revenue stated that the tax effect involved is less than the monetary limit prescribed in CBDT Circular No. 3 of 2018, as amended by Circular No. 17 of 2019 and Letter No. F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019. Based on these circulars, the revenue had instructions to withdraw the appeal, while praying for liberty to revive it if necessary.

AI-generated summary — verify with the full judgment below

435 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.10 of 2002 Date of decision : 30.10.2019 The Commissioner of Income Tax (Central), Ludhiana ...... Appellant versus M/s.Varinder Agro Chemicals Ltd, 85, I.A. 'A' Ludhiana ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MRS.JUSTICE ALKA SARIN *** Present : Mr.Rajesh Katoch, Advocate and Ms.Pridhi Jaswinder Sandhu, Advocate for the appellant. *** AJAY TEWARI, J. (Oral) 1. Learned counsel for the appellant-revenue states that since the tax effect involved is less than the monetary limit as prescribed in Circular No.3 of 2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, further amended vide Circular No.17 of 2019 dated 08.08.2019 read with Letter No.F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019, he has instructions to withdraw the present appeal. However, he prayed that liberty be granted to the appellant-revenue to file an application for revival of the appeal, in case something survives therein. 2. Dismissed as withdrawn with liberty as prayed for. 3. Since the main case has been dismissed, the pending C.M. Application, if any, also stands disposed of. (AJAY TEWARI) JUDGE (ALKA SARIN) JUDGE 30.10.2019 raman Whether speaking/reasoned Yes/No Whether Reportable : Yes/No RAMAN KUMAR 2019.11.01 09:33 I attest to the accuracy and integrity of this document

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