THE PR. COMMISSIONER OF INCOME TAX ( CENTRAL) ,LUDHIANA vs. M/S MOTIA CONSTRUCTIONS LTD., CHANDIGARH- DELHI HIGHWAY, ROYALE ESTATE, N.A.C., ZIRAKPUR

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ITA/189/2018HC Punjab & HaryanaPHHC01119031201828 September 2018Bench: MR. JUSTICE R.C. KATHURIA (RETD.),MS. JUSTICE RITU BAHRI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn with liberty granted to the revenue to file an application for revival of the appeal as prayed for.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 Income Tax Appellate Tribunal's order on merits. Furthermore, the legal issue claimed by the revenue was left open to be adjudicated in an appropriate case. The reasoning for withdrawal was based on the tax effect and the CBDT circular, and the court acceded to the revenue's request for withdrawal and liberty to revive.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central), Ludhiana (the revenue) against M/s Motia Constructions Ltd., Zirakpur (the assessee). The appeal was filed before the High Court of Punjab & Haryana at Chandigarh. The tax effect involved in the appeal was ₹40,58,823/-. The revenue sought to withdraw the appeal based on Circular No. 03/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes, New Delhi. The revenue also requested liberty to file an application for revival of the appeal if something survived therein.

What were the issues?

1. Whether the appeal can be withdrawn by the revenue in view of the tax effect and CBDT Circular No. 03/2018? (Question of law) The revenue argued that due to the tax effect being below the monetary limit prescribed in Circular No. 03/2018, it had instructions to withdraw the present appeal. The revenue also prayed for liberty to file an application for revival of the appeal in case something survives therein. The judgment does not record any arguments from the assessee's side.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-189-2018 (O&M) Date of Decision: 28.9.2018 The Principal Commissioner of Income Tax (Central), Ludhiana ...Appellant. Versus M/s Motia Constructions Ltd., Zirakpur ...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. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 40,58,823/-, 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 September 28, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2018.10.03 10:17 I attest to the accuracy and integrity of this document

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