THE COMMISSIONER OF INCOME TAX vs. M/S MOHINDER SINGH

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ITA/197/1999HC Punjab & HaryanaPHHC01038309199903 October 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, the appeal is dismissed as not pressed. The court granted liberty to the Revenue to seek revival of the appeal if circumstances change. The question of law was also kept open. The reasoning is based on the Revenue's submission that the tax effect is below the threshold stipulated in the circular, making it not worthwhile to pursue the appeal on merits. The operative direction is the dismissal of the appeal. No issue was expressly left undecided, as the appeal was disposed of on a procedural ground.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax, Jalandhar (the Revenue) against an order passed by the Income Tax Appellate Tribunal (ITAT). The appeal pertains to the assessment year(s) not specified in the judgment. The Revenue states that the tax effect involved in the case is ₹2,98,260. The Revenue's counsel informed the High Court that, in light of Circular No. 3/2018 dated 11.07.2018 issued by the CBDT, they do not wish to press the appeal on merits due to the tax effect being less than ₹50 lacs.

What were the issues?

1. Whether the appeal should be dismissed as not pressed on the grounds of low tax effect, as per CBDT Circular No. 3/2018? (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue, through its counsel, stated that the tax effect involved is ₹2,98,260. Relying on CBDT Circular No. 3/2018, which specifies a monetary limit for filing appeals, the Revenue does not wish to press the appeal on merits as the tax effect is below ₹50 lacs.

AI-generated summary — verify with the full judgment below

HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** ITA No.197 of 1999 (O&M) Date of Decision: 03.10.2018 **** Commissioner of Income Tax, Jalandhar

...Appellant

VS.

M/s Mohinder Singh Davinder Singh & Co.

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

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

Mr. Akshay Bhan, Sr.Advocate with

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 `2,98,260/- 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, 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

03.10.2018 vishal shonkar (Sudip Ahluwalia) Judge

Whether speaking/reasoned?

Yes/No 2. Whether reportable?

Yes/No V VISHAL 2018.10.06 12:52 I attest to the accuracy and integrity of this document

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