COMMISSIONER OF INCOME TAX vs. M/S VARDHMAN SPINNING AND GENERAL MILLS

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ITA/147/2002HC Punjab & HaryanaPHHC01011644200229 October 2019Bench: MR. JUSTICE AJAY TEWARI,MRS. JUSTICE ALKA SARIN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The court granted the appellant-revenue liberty to file an application for revival of the appeal, should something survive therein. The reasoning is based on the appellant-revenue's submission that the tax effect was below the monetary limit specified in the relevant CBDT circulars, leading to instructions to withdraw the appeal. The ratio decidendi is that an appeal can be withdrawn by the revenue if the tax effect falls below the prescribed monetary limits, with a possibility of revival under specific conditions. Any pending C.M. Application, if any, was also disposed of as the main case was dismissed.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-I, Ludhiana (appellant-revenue) against M/s. Vardhman Spinning & General Mills, Limited, Ludhiana (respondent-assessee). The assessment year(s) are not specified. The appeal challenges an order or action by an unspecified authority. The amount in dispute is not explicitly stated, but the tax effect is mentioned as being below the prescribed monetary limit. The procedural history is that the revenue has instructions to withdraw the appeal due to the low tax effect, as per CBDT circulars.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the appellant-revenue. (Question of procedure) Contentions: Assessee: Not recorded. Revenue: The appellant-revenue, through its learned counsel, stated that the tax effect involved is less than the monetary limit prescribed in Circular No.3 of 2018 dated 11.07.2018, as amended by Circular No.17 of 2019 dated 08.08.2019 and Letter No.F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019. Therefore, it has instructions to withdraw the present appeal, while praying for liberty to revive it if circumstances change.

AI-generated summary — verify with the full judgment below

449 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.147 of 2002 Date of decision : 29.10.2019 The Commissioner of Income Tax-I, Ludhiana ...... Appellant versus M/s. Vardhman Spinning & General Mills, Limited, Ludhiaha. ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MRS.JUSTICE ALKA SARIN *** Present : Mr.Rajesh Katoch, Advocate for the appellant. Mr.Akshay Bhan, Sr. Advocate with Mr.Akhilesh Barak, Advocate and Mr.Shantanu, Bansal, Advocate for the respondent. *** AJAY TEWARI, J. (Oral) 1. Learned counsel for the appellant-revenue states that since the tax effect involved is less than the monetary limit as prescribed in Circular No.3 of 2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, further amended vide Circular No.17 of 2019 dated 08.08.2019 read with Letter No.F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019, he has instructions to withdraw the present appeal. However, he prayed that liberty be granted to the appellant-revenue to file an application for revival of the appeal, in case something survives therein. 2. Dismissed as withdrawn with liberty as prayed for. 3. Since the main case has been dismissed, the pending C.M. Application, if any, also stands disposed of. (AJAY TEWARI) JUDGE (ALKA SARIN) JUDGE 29.10.2019 raman Whether speaking/reasoned Yes/No Whether Reportable : Yes/No RAMAN KUMAR 2019.10.31 09:41 I attest to the accuracy and integrity of this document

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