COMMISSIONER OF INCOME TAX,LUDHIANA vs. M/S MAJESTIC AUTO LTD

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ITA/156/2001HC Punjab & HaryanaPHHC01042005200126 September 2018Bench: MS. JUSTICE NAVITA SINGH,MR. JUSTICE ASHOK KUMAR VERMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal as not pressed. The Court noted the submission by the Revenue's counsel regarding the tax effect of ₹2,73,000/- and the applicability of CBDT Circular No. 3/2018, which makes it unnecessary to press appeals with a tax effect below ₹50 lacs. Consequently, the appeal was dismissed on this procedural ground, rather than on its merits. The Court granted liberty to the Revenue to seek revival of the appeal if circumstances changed. The question of law was expressly kept open. No specific finding was given on the substantive issues that might have been before the ITAT.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Central), Ludhiana (Revenue) against M/s Majestic Auto Ltd., Ludhiana (assessee). The assessment year(s) are not explicitly stated. The order or action under challenge is the decision of the Income Tax Appellate Tribunal (ITAT), though the specific ITAT order is not detailed. The amount in dispute, referred to as the tax effect, is ₹2,73,000/-. The procedural history is that the Revenue, through its counsel, stated that due to the tax effect being less than ₹50 lacs, it did not wish to press the appeal on merits, citing Circular No. 3/2018 dated 11.07.2018 issued by the CBDT.

What were the issues?

1. Whether the Revenue should be permitted to withdraw its appeal on the grounds of low tax effect, as per CBDT Circular No. 3/2018, without prejudice to the merits of the case? (Question of law) Contentions: Assessee: No specific contentions recorded as the appeal was not pressed by the Revenue. Revenue: The Revenue, through its counsel, stated that the tax effect involved is ₹2,73,000/-. In view of CBDT Circular No. 3/2018, which stipulates a monetary limit for filing appeals, and since the tax effect is less than ₹50 lacs, the Revenue did not wish to press the appeal on merits.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH **** ITA No.156 of 2001 Date of Decision: 26.09.2018 **** Commissioner of Income Tax (Central), Ludhiana ..... Appellant Versus M/s Majestic Auto Ltd., Ludhiana

..... Respondent CORAM: HONBLE MR. JUSTICE SURYA KANT HONBLE MR. JUSTICE SUDIP AHLUWALIA Present: Mr. Rajesh Katoch, Advocate, for the appellant. Mr. Akshay Bhan, Senior Advocate with Mr. Alok Mittal, Advocate, for the respondent. SURYA KANT J. (ORAL) (1) Learned counsel for Revenue states that the tax effect involved in this case is `2,73,000/- and in view of the recent Circular No.3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes, the tax effect being less than `50 lacs, he does not want to press this appeal on merits. (2) In view of the CBDT Circular, the instant appeal is dismissed as not pressed. As prayed for by learned counsel for the appellant, liberty is granted to the Revenue to seek revival of the appeal, if need be, in the changed circumstances. The question of law is also kept open.

(SURYA KANT)

JUDGE 26.09.2018

(SUDIP AHLUWALIA) Bhumika JUDGE 1. Whether speaking/reasoned: Yes 2. Whether reportable: No Bhumika Bhati 2018.09.28 13:57 I attest to the accuracy and integrity of this document

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