PR COMMISSIONER OF INCOME TAX-2 LUDHIANA vs. M/S HERO CYCLES LTD LUDHIANA

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ITA/225/2016HC Punjab & HaryanaPHHC01110419201609 September 2019Bench: MR. JUSTICE KRISHNA MURARI,MR. JUSTICE ARUN PALLI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the liberty to the appellant-revenue to file an application for revival of the appeal as prayed for.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 future case. The Court's decision was based on the revenue's instruction to withdraw due to the tax effect falling below the threshold stipulated in the CBDT circular.

What were the facts?

The appeal was filed by the Pr. Commissioner of Income-Tax-2, Ludhiana (appellant-revenue) against M/s Hero Cycles (respondent-assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The amount in dispute is not explicitly stated, but the tax effect is mentioned as less than ₹50 lacs. The procedural history is that the revenue, citing CBDT Circular No. 03/2018 dated 11.07.2018, sought to withdraw the appeal due to the tax effect being below the threshold. The revenue also requested liberty to file an application for revival of the appeal if something further survived.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn in light of the tax effect being less than ₹50 lacs and the applicability of CBDT Circular No. 03/2018? (Question of procedure/policy) The appellant-revenue argued that due to the tax effect being less than ₹50 lacs, they have instructions to withdraw the appeal in accordance with CBDT Circular No. 03/2018. They further prayed for liberty to file an application for revival of the appeal. The respondent-assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.225 of 2016 (O&M) Date of Decision :09.09.2019 Pr. Commissioner of Income-Tax-2, Ludhiana ......Appellant Versus M/s Hero Cycles ...... Respondent CORAM: HON'BLE MR.JUSTICE KRISHNA MURARI, CHIEF JUSTICE HON'BLE MR.JUSTICE ARUN PALLI, JUDGE Present : Mr. Sandeep Goyal, Advocate and Mr. Chetan Sood, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. KRISHNA MURARI, CHIEF JUSTICE

(Oral)

: Learned counsel for the appellant-revenue states that since the tax effect involved is less than ` 50 lacs, he has instructions to withdraw the present appeal in view of Circular No. 03/2018, dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi. However, he has prayed that liberty be granted to the revenue to file an application for revival 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. (KRISHNA MURARI) CHIEF JUSTICE (ARUN PALLI) JUDGE 09.09.2019

Manoj Bhutani

Whether speaking/reasoned Yes/No Whether reportable Yes/No MANOJ KUMAR 2019.09.10 15:37 I attest to the accuracy and authenticity of this document

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