CIT-II vs. M/S QUARK CITY INDIA(P) LTD.

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ITA/250/2010HC Punjab & HaryanaPHHC01093165201016 February 2021Bench: MS. JUSTICE RITU BAHRI,MRS. JUSTICE ARCHANA PURI1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court allowed the application for dismissal of the appeal. The Court's decision was based on a circular (Annexure R-1) dated 10.12.2015, which sets a monetary limit for filing appeals. According to this circular, appeals are not maintainable where the excess tax involved is Rs. 1,00,00,000/- or less. The Court found that the present appeal fell within this category, making it non-maintainable. Consequently, the main appeal filed by the Revenue was dismissed. The Court did not delve into the merits of the original appeal, as the dismissal was purely on procedural grounds related to the monetary limit. The ratio decidendi is that appeals filed by the Revenue must adhere to the prescribed monetary limits, failing which they are liable to be dismissed.

What were the facts?

This matter concerns an appeal filed by the Commissioner of Income Tax II, Chandigarh (the Revenue) against M/s Quarkcity India Private Limited (the Assessee). The appeal was filed against an order passed by the Income Tax Appellate Tribunal (ITAT). The Revenue filed an application (CM-1442-CII-2021) seeking dismissal of the main appeal (ITA-250-2010). The High Court of Punjab and Haryana at Chandigarh was hearing this application. The core of the application was based on a circular issued by the Central Board of Direct Taxes (CBDT) regarding monetary limits for filing appeals.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable in light of the monetary limits prescribed by the CBDT circular? The Revenue, through its counsel, relied on a circular (Annexure R-1) dated 10.12.2015, which stipulates that no appeal is maintainable if the excess tax involved is below Rs. 1,00,00,000/- (Rupees one crore only). The Revenue argued that this circular dictates the maintainability of the present appeal. The Assessee, through its counsel, accepted notice of the application and did not present any arguments against the application's allowance based on the circular.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Sr. No.110/2 CM-1442-CII-2021 IN/AND ITA-250-2010 Date of Decision: 16.02.2021 COMMISSIONER OF INCOME TAX II CHANDIGARH ... Appellant VERSUS M/S QUARKCITY INDIA PRIVATE LIMITED …Respondent CORAM: HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MRS. JUSTICE ARCHANA PURI Present: Mr. Manpreet Singh Kanda, Advocate, for the applicant/respondent. RITU BAHRI, J. CM-1442-CII-2021 Notice of this application. Ms. Urvashi Dhugga, Senior Standing Counsel for the appellant, accepts notice. Keeping in view the circular (Annexure R-1), whereby instructions dated 10.12.2015 have been issued, no appeal is maintainable where the monetary limit of excess tax is Rs.1,00,00,000/- (Rupees one crore only). Hence, the present application is allowed. Main Case Consequently, the appeal is dismissed. (RITU BAHRI) JUDGE (ARCHANA PURI) JUDGE 16.02.2021 himanshu Whether speaking/reasoned : Yes/No Whether reportable : Yes/No SONU 2021.02.17 12:38 I attest to the accuracy and integrity of this document

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