CIT JALANDHAR vs. MOHINDER SINGH DAVINDER SINGH AND CO.

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ITA/158/2001HC Punjab & HaryanaPHHC01042007200103 October 2018Bench: MR. JUSTICE SURYA KANT,MR. JUSTICE SUDIP AHLUWALIA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of CBDT Circular No. 3/2018, which stipulates that appeals with a tax effect below ₹50 lacs need not be pressed, the Revenue's submission to not press the appeal was accepted. Consequently, the instant appeal was dismissed 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 The ratio decidendi is that appeals with low tax effect, as per CBDT circulars, can be withdrawn or not pressed, preserving the right to revive if necessary and keeping legal questions open.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Jalandhar (Revenue) against M/s Mohinder Singh Davinder Singh & Co. (assessee). The assessment year(s) are not explicitly stated. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the case is ₹2,98,260. The Revenue, citing Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes (CBDT), stated that the tax effect is less than ₹50 lacs and therefore, did not wish to press the appeal on merits. The High Court granted liberty to the Revenue to seek revival of the appeal in changed circumstances and kept the question of law open.

What were the issues?

1. Whether the appeal should be dismissed as not pressed due to the tax effect being below the threshold stipulated in CBDT Circular No. 3/2018? (Question of law) Assessee's Contention: Not recorded as the assessee's counsel was present, but the appeal was dismissed as not pressed by the Revenue. Revenue's Contention: The Revenue argued that the tax effect involved in the appeal is ₹2,98,260, which is less than ₹50 lacs. In view of CBDT Circular No. 3/2018 dated 11.07.2018, the Revenue stated that it did not want to press the appeal on merits.

AI-generated summary — verify with the full judgment below

HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** ITA No.158 of 2001 (O&M) Date of Decision: 03.10.2018 **** Commissioner of Income Tax, Jalandhar

...Appellant

VS.

M/s Mohinder Singh Davinder Singh & Co.

... Respondent **** Coram : Hon’ble Mr.Justice Surya Kant

Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Vivek Sethi, Advocate for the appellant

Mr. Akshay Bhan, Sr.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 `2,98,260/- 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

03.10.2018 vishal shonkar (Sudip Ahluwalia) Judge

1.

Whether speaking/reasoned?

Yes/No 2. Whether reportable?

Yes/No V VISHAL 2018.10.06 13:00 I attest to the accuracy and integrity of this document

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