THE COMMISSIONER OF INCOME TAX, JALANDHAR vs. SATINDER PAL SHOOR

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ITA/118/2000HC Punjab & HaryanaPHHC01036291200003 October 2018Bench: MR. JUSTICE SURYA KANT,MR. JUSTICE SUDIP AHLUWALIA1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of CBDT Circular No. 3/2018, which specifies that appeals with a tax effect of less than Rs. 50 lacs should not be pressed, and given that the tax effect in this case is Rs. 6,70,801/-, the appeal is dismissed as not pressed. The Court granted liberty to the Revenue to seek revival of the appeal if circumstances change. The question of law was expressly kept open. The reasoning is based solely on the administrative instruction provided by the CBDT Circular, not on the merits of the substantive tax dispute.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax, Jalandhar (Revenue) against an order concerning Sh. Satinder Pal Shoor (Assessee). The assessment year(s) are not specified. The appeal challenges a decision of the Income Tax Appellate Tribunal (ITAT). The procedural history indicates that the Revenue, represented by its counsel, stated that the tax effect involved in the case is Rs. 6,70,801/-. Due to a recent Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), which sets a threshold for appeals based on tax effect, the Revenue's counsel indicated they did not wish to press the appeal on merits.

What were the issues?

1. Whether the appeal should be dismissed as not pressed, given the tax effect and the CBDT Circular No. 3/2018? (Question of law) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee's counsel. However, the assessee's counsel was present and represented. Revenue's Contentions: The Revenue's counsel stated that the tax effect involved is Rs. 6,70,801/-. Relying on CBDT Circular No. 3/2018, which stipulates that appeals with a tax effect below Rs. 50 lacs should not be pressed, the Revenue's counsel submitted that they did not want to press the appeal on merits.

AI-generated summary — verify with the full judgment below

HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** ITA No.118 of 2000 (O&M) Date of Decision: 03.10.2018 **** The Commissioner of Income Tax, Jalandhar ...Appellant

VS.

Sh. Satinder Pal Shoor

... Respondent **** Coram : Hon’ble Mr.Justice Surya Kant

Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Vivek Sethi, Advocate for the appellant

Mr. Akshay Bhan, Sr.Advocate with

Mr. Alok Mittal, Advocate for the respondent **** SURYA KANT J. (Oral)

(1) Learned counsel for Revenue states that the tax effect involved in this case is Rs. 6,70,801/- and in view of the recent Circular No.3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes, the tax effect being less than Rs. 50 lacs, he does not want to press this appeal on merits. (2) In view of the CBDT Circular, the instant appeal is dismissed as not pressed. As prayed for by learned counsel for the appellant, liberty is granted to the Revenue to seek revival of the appeal, if need be, in the changed circumstances. The question of law is also kept open.

(Surya Kant) Judge

03.10.2018 vishal shonkar (Sudip Ahluwalia) Judge

Whether speaking/reasoned?

Yes/No 2. Whether reportable?

Yes/No V VISHAL 2018.10.06 12:52 I attest to the accuracy and integrity of this document

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