THE COMMISSIONER OF INCOME TAX vs. M/S SWARAJ ENGINES LTD

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ITA/131/2004HC Punjab & HaryanaPHHC01051253200414 July 2016Bench: MR. JUSTICE RAMENDRA JAIN,MR. JUSTICE JITENDRA CHAUHAN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the liberty prayed for by the revenue to file an application for revival of the appeal. The Court clarified that the withdrawal of the appeal by the revenue would not be considered an affirmation of the ITAT's order on merits. Furthermore, the Court explicitly stated that the legal issue, as claimed by the revenue, was being left open to be adjudicated in an appropriate future case. This implies that the merits of the case were not decided, and the decision was solely based on the revenue's instruction to withdraw due to the tax effect.

What were the facts?

The appeal was filed by the Commissioner of Income-Tax-II, Chandigarh (the revenue) against M/s Swaraj Engines Ltd. (the assessee). The appeal was filed against an order of the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal was ₹13,35,093. The revenue sought to withdraw the appeal in view of CBDT Circular No. 21/2015, dated 10.12.2015, which provides for withdrawal of appeals where the tax effect is below a certain threshold. The revenue also prayed for liberty to file an application for revival of the appeal if something survived therein.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn in view of CBDT Circular No. 21/2015, dated 10.12.2015, considering the tax effect involved. The revenue argued that due to the tax effect being ₹13,35,093, it had instructions to withdraw the appeal in accordance with CBDT Circular No. 21/2015. The revenue also requested liberty to revive the appeal if circumstances warranted. The judgment does not record any specific arguments from the assessee regarding the withdrawal or the circular.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Sr. No.307 ITA No.131 of 2004 Date of decision: 14.07.2016 The Commissioner of Income-Tax-II, Chandigarh ....Appellant versus M/s Swaraj Engines Ltd., SAS Nagar, Mohali ....Respondent CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE DEEPAK SIBAL Present:- Mrs. Urvashi Dhugga, Advocate for the appellant. Mr. Divya Suri, Advocate, for the respondent. * * * * S.J. VAZIFDAR,

ACTING CHIEF JUSTICE (ORAL)

Learned counsel for the appellant-revenue states that since the tax effect involved is ` 13,35,093/-, she has instructions to withdraw the present appeal in view of the circular No.21/2015, dated 10.12.2015 issued by the C.B.D.T., New Delhi. However, she 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. (S.J. VAZIFDAR) ACTING CHIEF JUSTICE (DEEPAK SIBAL) JUDGE July 14, 2016 Jyoti 1 JYOTI SHARMA 2016.07.15 15:29 I attest to the accuracy and integrity of this document

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