COMMISSIONER OF INCOME TAX-I LUDHIANA vs. M/S VARDHMAN THREADS LTD

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ITA/184/2014HC Punjab & HaryanaPHHC01109313201418 July 2018Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the liberty prayed for by the Revenue to file an application for revival of the appeal. The Court clarified that the withdrawal of the appeal by the Revenue would not be construed as an affirmation of the Tribunal's order on merits. Furthermore, the legal issue, as claimed by the Revenue, was left open to be adjudicated in an appropriate case. The operative direction was the dismissal of the appeal as withdrawn with liberty.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-I, Ludhiana (Revenue) against M/s Vardhman Threads Ltd., Ludhiana (Assessee). The tax effect involved in the appeal was ₹49,33,437. The Revenue sought to withdraw the appeal in accordance with Circular No. 03/2018 dated 11th July 2018, issued by the Central Board of Direct Taxes. The Revenue also requested liberty to file an application for revival of the appeal if any aspect survived. The High Court considered the withdrawal request.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the Revenue in light of CBDT Circular No. 03/2018, given the tax effect involved. Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue, through its learned counsel, stated that due to the tax effect of ₹49,33,437, it had instructions to withdraw the appeal in terms of CBDT Circular No. 03/2018. The Revenue prayed for liberty to file an application for revival of the appeal if any aspect of the matter survived.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-184-2014(O&M) Date of Decision: 18.7.2018 Commissioner of Income Tax-I, Ludhiana ...Appellant. Versus M/s Vardhman Threads Ltd., Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Mr. Rajesh Katoch, Sr. Standing Counsel for the appellant. Ms. Radhika Suri, Senior Advocate with Mr. Manpreet Singh, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 49,33,437/-, he has instructions to withdraw the present appeal in view of Circular No.03/2018, dated 11th July, 2018, issued by the Central Board of Direct Taxes, New Delhi. However, he has 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. (AJAY KUMAR MITTAL) JUDGE July 18, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No Gurbachan Singh 2018.07.20 11:34 I attest to the accuracy and integrity of this document

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