THE PRINCIPAL COMMISSIONER OF INCOME TAX, FARIDABAD vs. SHRI PAWAN KUMAR MALHOTRA

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ITA/130/2017HC Punjab & HaryanaPHHC01117315201701 August 2018Bench: MR. JUSTICE SURINDER GUPTA,LOK ADALAT BENCH - 31 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn with the liberty prayed for by the revenue. It was clarified that the withdrawal of the appeal by the revenue would not be considered an affirmation of the Tribunal's order on merits. Furthermore, the legal issue claimed by the revenue was left open to be adjudicated in an appropriate case. The court's decision was based on the revenue's instruction to withdraw due to the tax effect and the relevant CBDT circular, rather than a decision on the substantive merits of the case.

What were the facts?

The Principal Commissioner of Income Tax, Faridabad (the revenue) filed an appeal before the High Court of Punjab & Haryana at Chandigarh against an order of the Income Tax Appellate Tribunal (ITAT). The appeal concerned Shri Pawan Kumar Malhotra (the assessee). The tax effect involved in the appeal was ₹29,04,614/-. The revenue sought to withdraw the appeal and related applications in light of Circular No. 03/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes (CBDT). The revenue also requested liberty to file an application for revival of the appeal if circumstances warranted.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn in view of CBDT Circular No. 03/2018, and if so, with what liberty to the revenue? The revenue argued that due to the tax effect being below the threshold stipulated in CBDT Circular No. 03/2018, it had instructions to withdraw the present appeal and applications. The revenue prayed for liberty to file an application for revival of the appeal in case something survives therein. The judgment records no argument for the respondent-assessee.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-130-2017 Date of Decision: 1.8.2018 The Principal Commissioner of Income Tax, Faridabad ...Appellant. Versus Shri Pawan Kumar Malhotra ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Mr. Tajender K. Joshi, Sr. Standing Counsel for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 29,04,614/-, he has instructions to withdraw the present appeal as well as the applications in view of Circular No.03/2018, dated 11th July, 2018, issued by the Central Board of Direct Taxes, New Delhi. However, he has prayed that liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. 2. Dismissed as withdrawn with liberty as prayed for. It is, however, clarified that withdrawal of the appeal by the revenue shall not be taken to be affirmation of order of the Tribunal on merits. Further, the legal issue as claimed by the revenue is being left open to be adjudicated in an appropriate case. (AJAY KUMAR MITTAL) JUDGE August 1, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No Gurbachan Singh 2018.08.03 14:17 I attest to the accuracy and integrity of this document

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