PR. COMMISSIONER OF INCOME TAX-2 LDH vs. M/S AVON CYCLES LTD.

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ITA/149/2016HC Punjab & HaryanaPHHC01110334201609 September 2019Bench: MR. JUSTICE KRISHNA MURARI,MR. JUSTICE ARUN PALLI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn with liberty to the revenue to file an application for revival of the appeal as prayed for.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 considered an affirmation of the Tribunal's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate case. The Court did not decide the substantive merits of the case.

What were the facts?

The appeal was filed by the Principal Commissioner of Income-Tax-2, Ludhiana (appellant-revenue) against M/s Avon Cycles (respondent-assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The amount in dispute is not explicitly stated, but the appeal is withdrawn due to the tax effect being less than ₹50 lacs, as per CBDT Circular No. 03/2018. The procedural history involves the revenue seeking to withdraw the appeal.

What were the issues?

1. Whether the appeal can be withdrawn by the revenue based on the tax effect being less than ₹50 lacs, in accordance with CBDT Circular No. 03/2018? (Question of law) Contentions: Assessee: No arguments recorded as the appeal was withdrawn by the revenue. Revenue: The revenue, through its counsel, stated that the tax effect involved is less than ₹50 lacs and sought to withdraw the present appeal in view of Circular No. 03/2018, dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi. The revenue also prayed for liberty to file an application for revival of the appeal if something survives therein.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.149 of 2016 (O&M) Date of Decision :09.09.2019 Pr. Commissioner of Income-Tax-2, Ludhiana ......Appellant Versus M/s Avon Cycles ...... Respondent CORAM: HON'BLE MR.JUSTICE KRISHNA MURARI, CHIEF JUSTICE HON'BLE MR.JUSTICE ARUN PALLI, JUDGE Present : Mr. Sandeep Goyal, Advocate and Mr. Chetan Sood, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. KRISHNA MURARI, CHIEF JUSTICE

(Oral)

: Learned counsel for the appellant-revenue states that since the tax effect involved is less than ` 50 lacs, he has instructions to withdraw the present appeal in view of Circular No. 03/2018, dated 11.07.2018 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. (KRISHNA MURARI) CHIEF JUSTICE (ARUN PALLI) JUDGE 09.09.2019

Manoj Bhutani

Whether speaking/reasoned Yes/No Whether reportable Yes/No MANOJ KUMAR 2019.09.10 15:36 I attest to the accuracy and authenticity of this document

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