COMMISSIONER OF INCOME TAX vs. M/S FREEMA MEASURES LTD

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ITA/173/2001HC Punjab & HaryanaPHHC01042019200123 August 20161 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the revenue liberty to file an application for revival of the appeal as prayed for.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 ITAT's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate future case. The specific findings on the merits of the ITAT's order are not discussed as the appeal was withdrawn.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Central), Ludhiana (the revenue) against M/s Freeman Measures Ltd., Ludhiana (the assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The revenue sought to withdraw the appeal because the tax effect involved was below Rs. 20 lacs, in accordance with CBDT Circular No. 21/2015 dated 10.12.2015. The revenue also requested liberty to file an application for revival of the appeal if anything survived therein. The High Court dismissed the appeal as withdrawn with liberty as prayed for.

What were the issues?

1. Whether the appeal can be withdrawn by the revenue due to the tax effect being below the threshold specified in CBDT Circular No. 21/2015, and if liberty can be granted to revive the appeal. (Question of procedure/administrative policy) The revenue argued that as per CBDT Circular No. 21/2015, appeals with a tax effect below Rs. 20 lacs are to be withdrawn. They relied on this circular to seek withdrawal of the present appeal. They also prayed for liberty to revive the appeal. The judgment does not record any arguments from the assessee regarding the withdrawal or the liberty to revive.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

Sr. No. 407 (3) ITA-173-2001

Decided on : 23.08.2016 Commissioner of Income Tax (Central), Ludhiana ..... Appellant

VERSUS M/s Freeman Measures Ltd., Ludhiana ..... Respondent CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, CHIEF JUSTICE HON'BLE MR. JUSTICE DEEPAK SIBAL Present: Mr.Zora Singh Klar, Advocate, for the appellant. Mr.Akshay Bhan, Senior Advocate, with Mr.Alok Mittal, Advocate, for the respondent.

******* S.J. VAZIFDAR, C.J. (Oral) Learned counsel for the appellant-revenue states that since the tax effect involved is below Rs.20 lacs, he has instructions to withdraw the present appeal in view of the circular No.21/2015, dated 10.12.2015, issued by the C.B.D.T., New Delhi. However, he 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.

[ S.J. VAZIFDAR ]

CHIEF JUSTICE 23.08.2016

[ DEEPAK SIBAL ] shamsher JUDGE Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Shamsher Singh 2016.08.24 17:36 I attest to the accuracy and authenticity of this document Chandigarh

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