COMMISSIONER OF INCOME TAX-II vs. M/S A.K. ALLOYS (P) LTD.

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ITA/131/2012HC Punjab & HaryanaPHHC01099196201211 September 2023Bench: MS. JUSTICE RITU BAHRI,MR. JUSTICE ALOK JAIN2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue. The decision was based on the contention raised by the assessee, supported by Circular No. 17 of 2019 issued by the Government of India. This circular advises against pursuing appeals where the amount involved is less than one crore. As the tax effect in the present appeal was stated to be below this threshold, the Court found it appropriate to dismiss the appeal. The Court explicitly kept open the option for the revenue to pursue the appeal if the case falls within any exceptions to the circular. No specific issue was left undecided; the appeal was disposed of on the grounds of the tax effect and the circular.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-II, Ludhiana (the appellant/revenue) against M/S A.K. Alloys (P) Ltd. (the respondent/assessee). The assessment year(s) are not specified in the judgment. The appeal challenges an order or action passed by an unspecified authority. The amount in dispute is stated to be less than one crore. The procedural history indicates that the appeal was listed for hearing, and learned counsel for the respondent appeared. None appeared for the appellant.

What were the issues?

1. Whether the revenue should pursue an appeal when the tax effect is less than one crore, as per Government of India Circular No. 17 of 2019? The revenue did not present any arguments. The assessee argued that the revenue should not pursue the appeal in this case because the tax effect is less than one crore, citing Circular No. 17 issued by the Government of India in 2019. This circular reportedly states that the revenue is not to pursue appeals involving amounts less than one crore.

AI-generated summary — verify with the full judgment below

2023:PHHC:119070-DB ITA-131-2012

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

220

ITA-131-2012 Date of Decision:-11.09.2023

Commissioner of Income Tax-II, Ludhiana

……Appellant

Versus

M/S A.K. Alloys (P) Ltd. ……Respondent

CORAM: HON’BLE MS JUSTICE RITU BAHRI HON’BLE MR. JUSTICE ALOK JAIN

****

Present: None for the appellant.

Ms. Diksha Verma, Advocate for

Mr. S.K. Mukhi, Advocate

for the respondent.

****

RITU BAHRI, J. (Oral)

Learned counsel for the respondent has referred to the circular No. 17 issued by Govt. of India in 2019 as per which the revenue is not to pursue an appeal in which amount involved is less than one crore and in the present appeal also the tax effect is on the lower side i.e. less than one crore. 2.

In view of the above, since the amount is below than one crore, the present appeal is being dismissed keeping the option open for the PARUL 2023.09.19 15:45 I attest to the accuracy and authenticity of this document

2023:PHHC:119070-DB ITA-131-2012

revenue, if it falls in any exception. 3.

Pending application, if any, also stands disposed of.

(RITU BAHRI)

JUDGE

(ALOK JAIN)

JUDGE

September 11, 2023 Parul

Whether speaking/reasoned:- Yes/No Whether Reportable:-

Yes/No PARUL 2023.09.19 15:45 I attest to the accuracy and authenticity of this document

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