PR.COMMISSIONER OF INCOME TAX(CENTRAL),GURGAON vs. M/S HEERA MOTI SPICES PVT. LTD., PAN;AABCH4813J

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ITA/146/2017HC Punjab & HaryanaPHHC01117332201718 September 2018Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the revenue the liberty to file an application for revival of the appeal as prayed for. The Court clarified that the withdrawal of the appeal by the revenue would not be construed as an affirmation of the Income Tax Appellate Tribunal's order on its merits. Furthermore, the legal issue that the revenue intended to raise was explicitly left open to be adjudicated in an appropriate future case. The operative direction was the dismissal of the appeal with liberty to revive.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central), Gurgaon (the revenue) against M/s Heera Moti Spices Pvt. Ltd., Chandigarh (the assessee). The tax effect involved in the appeal was ₹2,41,156. The revenue sought to withdraw the appeal in accordance with Circular No. 03/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes, which provides for withdrawal of appeals where the tax effect is below a certain threshold. The revenue requested liberty to file an application for revival of the appeal if circumstances warranted.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn based on the tax effect and CBDT Circular No. 03/2018? The revenue argued that due to the low tax effect of ₹2,41,156, it had instructions to withdraw the appeal in terms of the aforementioned circular. The revenue also prayed for liberty to revive the appeal if any surviving issue warranted it. The judgment does not record any arguments from the assessee's side regarding this specific issue.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-146-2017 Date of Decision: 18.9.2018 Principal Commissioner of Income Tax (Central), Gurgaon ...Appellant. Versus M/s Heera Moti Spices Pvt. Ltd., Chandigarh ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Mr. Rajesh Sethi, Sr. Standing Counsel for the appellant. Ms. Radhika Suri, Senior Advocate with Mr. Manpreet Singh Kanda, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 2,41,156/-, he has instructions to withdraw the present appeal 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 September 18, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2018.09.25 15:14 I attest to the accuracy and integrity of this document

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