PR. COMMISSIONER OF INCOME TAX 1, CHANDIGARH vs. M/S. CLEAR 2 PAY INDIA PVT. LTD.

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ITA/123/2019HC Punjab & HaryanaPHHC01011941201903 October 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The revenue's counsel stated that due to the tax effect being below the monetary limit prescribed by CBDT Circular No. 3 of 2018, as amended by Circular No. 17 of 2019 and a subsequent letter dated 20.08.2019, they had instructions to withdraw the appeal. The court granted liberty to the appellant-revenue to file an application for revival of the appeal if something survived therein. The reasoning for the dismissal was solely based on the revenue's decision to withdraw the appeal due to the tax effect falling below the threshold stipulated in the aforementioned circulars. The court did not decide any substantive issue related to the income tax assessment. Any pending civil miscellaneous applications were also disposed of as the main case was dismissed.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1, Chandigarh (the revenue) against M/s Clear 2 Pay India Pvt. Ltd. (the assessee). The assessment year(s) are not specified in the provided text. The appeal challenges an order or action that is not detailed. The procedural history relevant here is that the revenue's counsel, citing CBDT Circular No. 3 of 2018 and Circular No. 17 of 2019, along with a letter dated 20.08.2019, stated that the tax effect was below the prescribed monetary limit. Consequently, the revenue sought to withdraw the appeal, requesting liberty to revive it if circumstances changed.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal due to the tax effect being below the monetary limit prescribed by CBDT Circulars? The revenue argued that the tax effect involved in the present appeal is less than the monetary limit prescribed in Circular No. 3 of 2018, as amended by Circular No. 17 of 2019 and further clarified by a letter dated 20.08.2019. Based on these circulars, the revenue sought to withdraw the appeal. The assessee's contentions are not recorded in the judgment. No specific provisions of the Income Tax Act are named in relation to the core dispute, as the appeal was withdrawn on procedural grounds related to monetary limits for appeals.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.123 of 2019 (O&M) Date of decision : 03.10.2019 Principal Commissioner of Income Tax-1, Chandigarh ...... Appellant versus M/s Clear 2 Pay India Pvt. Ltd. (earlier known as ISTS Infotech Solutions Pvt. Ltd.) Now M/s Fidelity Information Services India Pvt. Ltd. ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MR.JUSTICE HARNARESH SINGH GILL *** Present :- Mr. Yogesh Putney, Advocate and Mr. Ajiteshwar Singh, 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 (HARNARESH SINGH GILL) JUDGE 03.10.2019 pooja sharma-I Whether speaking/reasoned Yes/No Whether Reportable : Yes/No POOJA SHARMA 2019.10.03 16:00 I am the author of this document

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