THE PR. COMMISSIONER OF INCOME TAX(CENTRAL), LUDHIANA vs. M/S JAI BHOLE STEEL TUBES(P) LTD, LUDHIANA

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ITA/182/2019HC Punjab & HaryanaPHHC01028359201916 August 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Punjab & Haryana dismissed the appeal as withdrawn. The court granted the liberty to the revenue to file an application for revival of the appeal as prayed for. The court also noted that the legal issue, as claimed by the revenue, is being left open to be adjudicated in an appropriate case. This implies that the merits of the appeal were not decided, and the decision to withdraw was based on administrative instructions (CBDT circular) concerning monetary limits for filing appeals. The ratio decidendi is that appeals with a tax effect below a certain threshold, as per CBDT circulars, can be withdrawn by the revenue, with potential for revival under specific circumstances, and the underlying legal issue remains open for future determination.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central), Ludhiana (the revenue) against M/s Jai Bhole Steel Tubes (P) Ltd., Ludhiana (the assessee). The appeal was filed before the High Court of Punjab & Haryana. The specific assessment year(s) and the order or action under challenge are not explicitly stated in the provided text. The procedural history is limited to the filing of the present appeal. The revenue sought to withdraw the appeal.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the revenue? (Mixed question of law and fact, turning on the applicability of CBDT Circular dated 08.08.2019). The revenue argued that the tax effect involved in the appeal is less than ₹1 crore. Therefore, in view of Circular No. 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT), New Delhi, they have instructions to withdraw the present appeal. The revenue also prayed for liberty to file an application for revival of the appeal if something survives therein. The judgment does not record any arguments from the assessee.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH Sr. No.: 102

ITA No.182 of 2019 (O & M) Date of Decision: August 16, 2019

The Pr. Commissioner of Income Tax (Central), Ludhiana

..... APPELLANT

VERSUS

M/s Jai Bhole Steel Tubes (P) Ltd., Ludhiana

..... RESPONDENT

. . .

CORAM: HON'BLE MR. JUSTICE AJAY TEWARI

HON’BLE MR. JUSTICE HARNARESH SINGH GILL

. . .

PRESENT: - Mr. Rajesh Katoch, Senior Standing Counsel for Income Tax Department – appellant.

. . .

Ajay Tewari, J (Oral)

Learned counsel for the appellant-revenue has very fairly stated that since the tax effect involved is less than ` 1 crore, he has instructions to withdraw the present appeal in view of Circular dated 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes, New Delhi. However, he has prayed that liberty be granted to revenue to file an application for revival of the appeal in case something survives therein. AVIN KUMAR 2019.08.17 12:16 I attest to the accuracy and integrity of this document

ITA No.182 of 2019 [2]

Dismissed as withdrawn with liberty as prayed for. Further the legal issue as claimed by the revenue is being left open to be adjudicated in an appropriate case. (Ajay Tewari) Judge

(Harnaresh Singh Gill) August 16, 2019 Judge avin

Whether Speaking/ Reasoned: Yes/ No Whether Reportable: Yes/ No AVIN KUMAR 2019.08.17 12:16 I attest to the accuracy and integrity of this document

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