COMMISSIONER OF INCOME TAX-I, LDH. vs. VARDHMAN POLYTEX LTD. LDH.

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ITA/157/2007HC Punjab & HaryanaPHHC01072832200726 September 2018Bench: MS. JUSTICE NAVITA SINGH,MR. JUSTICE ASHOK KUMAR VERMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, in view of the CBDT Circular No. 3/2018 dated 11.07.2018, which stipulates a monetary limit for appeals, and the stated tax effect of ₹40,66,678/- being below the threshold, dismissed the appeal as not pressed. The Court granted liberty to the Revenue to seek revival of the appeal if circumstances changed. The question of law was expressly kept open. The finding is based on the Revenue's submission and the applicability of the CBDT circular, rather than a decision on the substantive merits of the case.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax-I, Ludhiana (the Revenue) against Vardhman Polytex Ltd., Ludhiana (the assessee). The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the present appeal is stated to be ₹40,66,678/-. The appeal was listed for hearing before the High Court of Punjab & Haryana at Chandigarh.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed on the grounds of low tax effect, considering the prevailing CBDT Circulars? (Question of law) The Revenue, through its learned counsel, stated that the tax effect in this case is ₹40,66,678/-. In light of Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), which sets a monetary limit for filing appeals, the Revenue indicated that it did not wish to press the appeal on merits. The assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH **** ITA No.157 of 2007 Date of Decision: 26.09.2018 **** Commissioner of Income Tax-I, Ludhiana ..... Appellant Versus Vardhman Polytex 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 `40,66,678/- 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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