THE PR. COMMISSIONER OF INCOME TAX, FARIDABAD vs. M/S NUCHEM LTD.

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ITA/12/2019HC Punjab & HaryanaPHHC01147170201810 September 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The court granted the liberty as prayed for by the appellant-revenue, allowing them to file an application for revival of the appeal should circumstances change. The court noted that since the main case was dismissed, any pending C.M. application also stood disposed of. The reasoning for the dismissal was solely based on the revenue's request to withdraw the appeal due to the tax effect falling below the prescribed monetary limits, as per the cited CBDT circulars. No decision on the merits of the original dispute was made. The ratio decidendi is that appeals can be withdrawn by the revenue under specific conditions related to tax effect and monetary limits, with potential for revival.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Faridabad (appellant-revenue) against M/s Nuchem Limited (respondent-assessee). The assessment year(s) are not specified. The appeal challenges an order or action that is not detailed in the provided text. The procedural history is that the revenue sought to withdraw the appeal. The reason for withdrawal was that the tax effect involved was below the monetary limit prescribed by CBDT Circular No. 3 of 2018, as amended by Circular No. 17 of 2019 and further clarified by Letter No. F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019. The revenue requested liberty to revive the appeal if circumstances changed.

What were the issues?

1. Whether the appeal can be withdrawn by the revenue on the grounds of tax effect being below the prescribed monetary limit, as per CBDT Circulars? The appellant-revenue, through its learned Senior Standing Counsel, argued that due to the tax effect being less than the monetary limit stipulated 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, it had instructions to withdraw the present appeal. The revenue also prayed for liberty to file an application for revival of the appeal if circumstances warranted. The respondent-assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

ITA No. 12 of 2019 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 109 ITA No. 12 of 2019 (O&M) Date of Decision : 10.09.2019 Principal Commissioner of Income Tax Faridabad ... Appellant Versus M/s Nuchem Limited

....Respondent CORAM:HON'BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE HARNARESH SINGH GILL Present: Mr. T.K.Joshi, Senior Standing Counselfor 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. POOJA SAINI 2019.09.11 16:57 I attest to the accuracy and integrity of this document

ITA No. 12 of 2019 (O&M) 2 3. Since the main case has been dismissed, the pending C.M. application, if any, also stands disposed of. ( AJAY TEWARI ) JUDGE ( HARNARESH SINGH GILL ) 10.09.2019 JUDGE pooja saini Whether speaking/reasoned? Yes/No Whether reportable? Yes/No POOJA SAINI 2019.09.11 16:57 I attest to the accuracy and integrity of this document

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