PR. COMMISSIONER OF INCOME TAX-1, PATIALA vs. M/S VISHAL PAPER INDUSTRIES PVT. LTD.

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ITA/203/2022HC Punjab & HaryanaPHHC01068186202223 January 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that both parties were in agreement (ad idem) that as per Circular No. 09/2024, dated 17.09.2024, issued by the Central Board of Direct Taxes, no appeal where the tax effect is less than two crores is maintainable. Consequently, the Court ordered that the present appeal be disposed of, being not pressed. The reasoning is solely based on the parties' consensus regarding the non-maintainability of the appeal due to the tax effect, as per the aforementioned circular. No decision was made on the merits of the original dispute.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Patiala (appellant/revenue) against M/s Vishal Paper Industries Pvt. Ltd. (respondent/assessee). The case was heard by the High Court of Punjab and Haryana at Chandigarh. The specific assessment year(s) are not mentioned in the judgment. The appeal was filed against an order of the Income Tax Appellate Tribunal (ITAT), though the specific order or action under challenge before the High Court is not detailed. The amount in dispute is also not explicitly stated, but the tax effect is a crucial factor in the decision.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the tax effect, in light of CBDT Circular No. 09/2024 dated 17.09.2024? The appellant (revenue) contended that the appeal should be disposed of as not pressed, based on the circular issued by the Central Board of Direct Taxes (CBDT). The respondent (assessee) agreed with this submission. The circular stipulates that appeals with a tax effect below a certain threshold are not maintainable. The parties were ad idem (in agreement) on the applicability of this circular to the present appeal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA-203-2022 (O&M)

Date of decision: 23.01.2025

Principal Commissioner of Income Tax, Patiala

….Appellant

Versus

M/s Vishal Paper Industries Pvt. Ltd.

….Respondent

CORAM: HON'BLE MR. JUSTICE ARUN PALLI

HON'BLE MRS. JUSTICE SUDEEPTI SHARMA

Present: Mr. Varun Issar, Senior Standing Counsel, for the appellant.

Ms. Radhika Suri, Senior Advocate, with Ms. Parmita Singla, Advocate, Mr. Abhinav Narang, Advocate, for the respondent

*****

ARUN PALLI, J. (Oral)

Learned counsel for the parties are ad idem that per circular No.09/2024, dated 17.09.2024, issued by the Central Board of Direct Taxes, no appeal, where the tax effect is less than two crores, is maintainable, therefore, the present appeal be disposed of, being not pressed.

Ordered accordingly.

(ARUN PALLI)

JUDGE

(SUDEEPTI SHARMA)

JUDGE 23.01.2025 Ak Sharma Whether speaking/reasoned Yes/No Whether reportable Yes/No

AMIT KUMAR 2025.01.24 13:23 I attest to the accuracy and authenticity of this document

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