COMMISSIONER OF INCOME TAX CHANDIGARH vs. M/S CH LEKH RAJ EDUCATIONAL AND CHARITABLE

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ITA/170/2016HC Punjab & HaryanaPHHC01110358201601 October 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 Revenue stated that the tax effect was ₹40.97 lakh, which is below the monetary limit of ₹50 lakh stipulated in CBDT Circular No. 3/2018. Consequently, the Revenue did not want to press the appeal on merits. The Court accepted this submission and dismissed the appeal. Liberty was granted to the Revenue to seek revival of the appeal if circumstances changed. The question of law was also kept open.

What were the facts?

The appeal was filed by the Commissioner of Income-tax (Exemption), Chandigarh (Revenue) against M/s Ch Lekh Raj Educational & Charitable Trust (Assessee). The assessment year(s) are not specified. The order or action under challenge is the appeal itself. The procedural history involves the Revenue stating that the tax effect in the case is ₹40.97 lakh. The Revenue further cited Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which stipulates a monetary limit for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed as not pressed in light of the tax effect being below the threshold specified in CBDT Circular No. 3/2018? (Question of law, relying on CBDT Circular No. 3/2018). Contentions: Assessee: Not recorded. Revenue: The tax effect involved is ₹40.97 lakh. In view of CBDT Circular No. 3/2018, which sets a threshold of ₹50 lakh for appeals, the Revenue does not wish 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.170 of 2016 (O&M) Date of Decision: 01.10.2018 **** Commissioner of Income-tax (Exemption), Chandigarh ...Appellant

VS.

M/s Ch Lekh Raj Educationl & Charitable Trust

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

Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Denesh Goyal, 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 `40.97 lac 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

01.10.2018 vishal shonkar (Sudip Ahluwalia) Judge

Whether speaking/reasoned?

Yes/No 2. Whether reportable?

Yes/No V VISHAL 2018.10.06 13:20 I attest to the accuracy and integrity of this document

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