COMMISSIONER OF INCOME TAX vs. SARASWATI INDUSTRIAL SYNDICATE

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ITA/192/2003HC Punjab & HaryanaPHHC01043765200313 September 2018Bench: MR. JUSTICE SURYA KANT,MR. JUSTICE SUDIP AHLUWALIA1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that in view of CBDT Circular No. 3/2018, which stipulates a monetary limit for filing appeals, and the fact that the tax effect in this case (₹4,55,015/-) was below the threshold of ₹50 lacs, the Revenue did not wish to press the appeal on merits. Consequently, the High Court dismissed the appeal as not pressed. 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, Panchkula (Revenue) against M/s Saraswati Industrial Syndicate Ltd. (Assessee). The assessment year(s) are not explicitly stated. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT), though the specific ITAT order is not detailed. The tax effect involved in the case is ₹4,55,015/-. The procedural history is that the Revenue, citing a CBDT Circular No. 3/2018 dated 11.07.2018, stated that the tax effect was less than ₹50 lacs and therefore did not wish to press the appeal on merits.

What were the issues?

1. Whether the appeal should be dismissed as not pressed, given the tax effect and the CBDT Circular No. 3/2018? (Question of law) Assessee's Contention: The assessee did not present any arguments as the Revenue stated it did not wish to press the appeal. Revenue's Contention: The Revenue argued that the tax effect involved is ₹4,55,015/-, which is less than ₹50 lacs. In light of CBDT Circular No. 3/2018 dated 11.07.2018, the Revenue stated it did not want 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.192 of 2003 (O&M) Date of Decision: 13.09.2018 **** Commissioner of Income-tax, Panchkula

...Appellant

VS.

M/s Saraswati Industrial Syndicate Ltd.

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

Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Yogesh Putney, Advocate for the appellant

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 `4,55,015/- 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, a photocopy whereof is taken on record and is marked as Mark ‘A’, 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

13.09.2018 vishal shonkar (Sudip Ahluwalia) Judge

Whether speaking/reasoned?

Yes 2. Whether reportable?

No V.Vishal 2018.09.17 16:57 I attest to the accuracy and integrity of this document

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