COMMISSIONER OF INCOME TAX vs. M/S MAJESTIC AUTO LTD

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ITA/210/2001HC Punjab & HaryanaPHHC01042048200126 September 2018Bench: MR. JUSTICE SURYA KANT,MR. JUSTICE SUDIP AHLUWALIA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal as not pressed. The Revenue's counsel informed the Court that the tax effect in the case was ₹18,80,892/-. Citing CBDT Circular No. 3/2018, which mandates that appeals with a tax effect below ₹50 lacs should not be pressed, the Revenue stated its intention not to pursue the appeal on its merits. Consequently, the High Court, in line with the circular and the Revenue's submission, dismissed the appeal. Liberty was granted to the Revenue to seek revival of the appeal if circumstances changed, and the question of law was expressly kept open.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax (Central), Ludhiana (the Revenue) against an order concerning M/s Majestic Auto Ltd., Ludhiana (the assessee). The assessment year(s) are not explicitly stated in the provided text. The appeal challenges a decision of the Income Tax Appellate Tribunal (ITAT). The procedural history indicates that the Revenue, through its counsel, stated that the tax effect involved in the case is ₹18,80,892/-. This amount is below the threshold stipulated in a recent Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per CBDT Circular No. 3/2018? (Question of law) Contentions: Assessee: Not recorded. Revenue: The Revenue, through its counsel, stated that the tax effect involved is ₹18,80,892/-. In view of CBDT Circular No. 3/2018, which sets a monetary limit for filing appeals, the Revenue does not wish to press the appeal on merits.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH **** ITA No.210 of 2001 Date of Decision: 26.09.2018 **** Commissioner of Income Tax (Central), Ludhiana ..... Appellant Versus M/s Majestic Auto Ltd., Ludhiana

..... Respondent CORAM: HONBLE MR. JUSTICE SURYA KANT HONBLE MR. JUSTICE SUDIP AHLUWALIA Present: Mr. Rajesh Katoch, Advocate, for the appellant. Mr. Akshay Bhan, Senior 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 `18,80,892/- 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 26.09.2018

(SUDIP AHLUWALIA) Bhumika JUDGE 1. Whether speaking/reasoned: Yes 2. Whether reportable: No Bhumika Bhati 2018.09.28 13:57 I attest to the accuracy and integrity of this document

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