THE PRINCIPAL COMMISSIONER OF INCOME TAX, FARIDABAD vs. ESCORTS BENEFIT AND WELFARE TRUST

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ITA/137/2021HC Punjab & HaryanaPHHC01089747202129 January 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that since both parties are ad idem (in agreement) that the tax effect in the present appeal filed by the Revenue is less than Rs. 2 Crore, the appeal should be disposed of as not pressed. This decision is made in the wake of Circular No. 09/2024 dated 17.09.2024, read with Circular No. 5/2024 dated 15.03.2024. The operative direction is that the appeal is disposed of as not pressed. No specific issue regarding the merits of the assessment was decided. The ratio of this decision is that appeals with a tax effect below a certain threshold, as defined by CBDT circulars, will be considered 'not pressed' if both parties agree, leading to their disposal on that procedural ground rather than on merits.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Faridabad (Revenue) against Escorts Benefit & Welfare Trust (Assessee). The assessment year(s) are not specified in the judgment. The order or action under challenge is the appeal itself, filed by the Revenue. The procedural history is that the parties are in agreement that the tax effect in the appeal is less than Rs. 2 Crore. This agreement is based on Circular No. 09/2024 dated 17.09.2024, read with Circular No. 5/2024 dated 15.03.2024.

What were the issues?

1. Whether the appeal filed by the Revenue should be disposed of as not pressed, given that the tax effect is less than Rs. 2 Crore, in light of the prevailing Circulars of the CBDT? Assessee's Contention: The assessee's counsel is ad idem with the Revenue's counsel. The assessee implicitly agrees that the appeal should be disposed of as not pressed based on the tax effect and the Circulars. Revenue's Contention: The Revenue's counsel states that the tax effect in the present appeal is less than Rs. 2 Crore. Therefore, in the wake of Circular No. 09/2024 dated 17.09.2024, read with Circular No. 5/2024 dated 15.03.2024, the appeal should be disposed of as not pressed.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-137-2021(O&M) Date of decision: 29.01.2025 Principal Commissioner of Income Tax, Faridabad … Appellant Versus Escorts Benefit & Welfare Trust … Respondent CORAM: HON’BLE MR. JUSTICE ARUN PALLI HON’BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Varun Issar, Senior Standing Counsel, and Ms. Pridhi J. Sandhu, Jr. Standing Counsel, for the appellant-Revenue. Mr. Vaibhav Sharma, Advocate, for the respondent. *** ARUN PALLI, J. (Oral) Learned counsel for the parties are ad idem that the tax effect in the present appeal filed by the Revenue is less than Rs.2 Crore. Therefore, in the wake of Circular No.09/2024 dated 17.09.2024, read with Circular No.5/2024 dated 15.03.2024, the appeal be disposed of as not pressed. Ordered accordingly. ( Arun Palli )

Judge 29.01.2025 Rajan ( Sudeepti Sharma ) Judge Whether speaking / reasoned: YES/NO Whether Reportable: YES/NO RAJAN KUMAR 2025.01.30 10:34 I am approving this document

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