PR. COMMISSIONER OF INCOME TAX, CHANDIGARH vs. LONGIA ENGINEERS

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ITA/135/2023HC Punjab & HaryanaPHHC01054878202324 January 2024Bench: MR. JUSTICE GURMEET SINGH SANDHAWALIA,MS. JUSTICE LAPITA BANERJI1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal filed by the Revenue was not maintainable. The primary reason for this decision was the tax effect of Rs. 24,00,519/-, which was below the monetary limit stipulated in Circular No. 3 of 2018 of the Central Board of Direct Taxes. The Court found that allowing the Revenue to argue exceptions in every case would effectively nullify the circular itself. Therefore, the appeal was dismissed on the grounds of non-maintainability as per the circular. No other issues were decided on merits. The operative direction was the dismissal of the appeal.

What were the facts?

The Principal Commissioner of Income Tax, Chandigarh (the Revenue) filed an appeal against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is Longia Engineers. The appeal was filed for the assessment year(s) not specified in the judgment. The Revenue's counsel conceded that the appeal was not maintainable due to the tax effect being Rs. 24,00,519/-, which is below the monetary limit prescribed by Circular No. 3 of 2018 of the Central Board of Direct Taxes. The Revenue's contention that the case fell under exceptions to the circular was also rejected.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the tax effect and the CBDT Circular No. 3 of 2018. Assessee's contentions: The assessee did not make any arguments as the Revenue's counsel conceded the appeal's non-maintainability. The judgment does not record any arguments from the assessee. Revenue's contentions: The Revenue argued that the appeal was maintainable despite the tax effect being below the prescribed limit, claiming the case was covered under exceptions to Circular No. 3 of 2018. The Revenue relied on Circular No. 3 of 2018.

AI-generated summary — verify with the full judgment below

Neutral Citation No. 2023:PHHC:009174-DB

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

(110)

ITA-135-2023 (O&M) Decided on : 24.01.2024 Pr. Commissioner of Income Tax, Chandigarh

……Appellant (s)

Versus Longia Engineers

……Respondent(s)

CORAM : HON'BLE MR.JUSTICE G.S. SANDHAWALIA HON'BLE MS.JUSTICE LAPITA BANERJI

Present:- Ms.Pridhi Jaswinder Kaur, Advocate for the appellant (s).

G.S. Sandhawalia, J. (Oral)

Counsel very fairly states that the present appeal is not maintainable keeping in view Circular No.3 of 2018 dated 11.07.2018 of the Central Board of Direct Taxes since the tax effect is only Rs.24,00,519/- which is below the limit. 2.

However, the argument that it is covered under the exceptions cannot be accepted as it would amount to violating the circular itself by the Department in each and every case by making said averments. 3.

In view of the above, the present appeal stands dismissed. All pending application(s) also stand disposed of.

(G.S. SANDHAWALIA) JUDGE

(LAPITA BANERJI) January 24th, 2024

JUDGE sailesh

Whether speaking/reasoned : Yes

Whether Reportable :

SAILESH RANJAN 2024.01.25 16:50 I attest to the integrity/authenticity of this document/order

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