PR COMMISSIONER OF INCOME TAX GURGAON vs. M/S TIMES FINVEST & COMMERCE LTD

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ITA/198/2016HC Punjab & HaryanaPHHC01110388201620 September 2017Bench: MR. JUSTICE SURINDER GUPTA,MR. JUSTICE ARUN MONGA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the revenue the liberty to file an application for revival of the appeal as prayed for.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 Tribunal's order on merits. Furthermore, the legal issue, as claimed by the revenue, was expressly left open to be adjudicated in an appropriate case. The operative direction was the dismissal of the appeal with liberty to revive.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central), Gurgaon (the revenue) against M/s Times Finvest & Commerce Ltd. (the assessee). The disputed addition was to the extent of ₹14,57,517/-, with a tax effect of ₹7,67,930/-. The revenue's counsel submitted that given the tax effect, it was below the monetary limit prescribed by the CBDT circular No. 21/2015, dated 10.12.2015. Consequently, the revenue sought to withdraw the appeal, requesting liberty to file an application for revival if circumstances warranted.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the revenue, considering the tax effect is below the monetary limit prescribed by CBDT Circular No. 21/2015. This is a question of procedure and administrative policy. The revenue argued that the tax effect of the disputed addition was less than ₹20 lacs, the monetary limit set by CBDT Circular No. 21/2015, and therefore, it had instructions to withdraw the appeal. The revenue also prayed for liberty to file an application for revival of the appeal if something survived therein. The judgment does not record any arguments from the assessee's side regarding the withdrawal.

AI-generated summary — verify with the full judgment below

ITA No.198 of 2016 {1} IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA No.198 of 2016 Date of decision:20.09.2017 Pr. Commissioner of Income Tax (Central), Gurgaon ... Appellant Vs. M/s Times Finvest & Commerce Ltd. ... Respondent CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE AMIT RAWAL Present:- Mr. Rajesh Sethi, Senior Standing Counsel with Mr. Arun Biriwal, Advocate and Mr. Tushar Gera, Advocate for the appellant. Mr. Pankaj Jain, Senior Advocate with Mr. Sachin Bhardwaj, Advocate and Mr. Divya Suri, Advocate for the respondent. AJAY KUMAR MITTAL, J. (ORAL) 1. Learned counsel for the revenue submitted that the disputed addition is to the extent of `14,57,517/- and tax effect would be `7,67,930/-. It was urged that in such circumstances keeping in view the rate of taxation, the tax effect would be less than `20 lacs, the monetary limit prescribed by the C.B.D.T., New Delhi, vide circular No.21/2015, dated 10.12.2015, therefore, he has instructions to withdraw the present appeal. However, he prayed that liberty be granted to the revenue to file an application for revival Savita 2017.09.25 10:19 I attest to the accuracy and integrity of this document High Court Chandigarh

ITA No.198 of 2016 {2} 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 (AMIT RAWAL)

JUDGE September 20, 2017 savita Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No Savita 2017.09.25 10:19 I attest to the accuracy and integrity of this document High Court Chandigarh

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