THE PR. COMMISSIONER OF INCOME TAX ROHTAK vs. ATLAS CYCLES (HARYANA) LTD ALAS ROAD INDUSTRIAL AREA SONEPAT

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ITA/266/2017HC Punjab & HaryanaPHHC01117465201726 August 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the liberty to the Revenue to file an application for revival of the appeal as prayed for. The Court noted that the legal issue claimed by the Revenue is being left open to be adjudicated in an appropriate case. Since the main appeal was dismissed as withdrawn, any pending Civil Miscellaneous applications were also dismissed. The ratio decidendi is that appeals with a low tax effect, below the threshold specified in relevant CBDT circulars, can be withdrawn by the Revenue, with liberty to seek revival under specific circumstances, and the underlying legal issues remain open for future adjudication.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Rohtak (the Revenue) against Atlas Cycles (Haryana) Ltd. (the Assessee). The assessment year(s) are not specified. The appeal challenges an order or action of an unspecified authority. The amount in dispute is stated to be less than Rs. 1 crore. The procedural history is that the Revenue's counsel, citing a CBDT circular dated 08.08.2019, sought to withdraw the appeal due to the low tax effect. The Revenue also requested liberty to revive the appeal if circumstances warranted.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn based on the Revenue's submission regarding the tax effect and CBDT circular dated 08.08.2019? (Question of law) Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue's counsel stated that the tax effect involved is less than Rs. 1 crore and, in view of CBDT circular dated 17/2019 dated 08.08.2019, they have instructions to withdraw the present appeal. The Revenue prayed for liberty to file an application for revival of the appeal in case something survives therein.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 350 ITA-266-2017 (O&M) Date of decision :26.08.2019 The Pr. Commissioner of Income Tax, Rohtak ...... Appellant versus Atlas Cycles (Haryana) Ltd., Atlas Road, Industrial Area, Sonepat ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MR.JUSTICE HARNARESH SINGH GILL Present : Mr. Sandeep Goyal, Advocate for the appellant. None for the respondent.

*** AJAY TEWARI, J. (Oral) Learned counsel for the appellant-Revenue has very fairly stated that since the tax effect involved is less than Rs.1 crore. He has instruction to withdraw the present appeal in view of the circular dated 17/2019 dated 8.8.2019 issued by the Central Board of Direct Taxes, New Delhi. However, he has prayed that liberty be granted to Revenue to file an application for revival of the appeal in case something survives therein. Dismissed as withdrawn with liberty as prayed for. Further, the legal issue as claimed by the Revenue is being left open to be adjudicated in an appropriate case. Anuradha 2019.08.29 12:20 I attest to the accuracy and integrity of this document

ITA-266-2017 (O&M) -2- Since the main case has been dismissed as withdrawn, the pending C.M, if any also stands dismissed. (AJAY TEWARI) JUDGE (HARNARESH SINGH GILL) JUDGE 26.08.2019 anuradha Whether speaking/reasoned Yes/No Whether Reportable : Yes/No Anuradha 2019.08.29 12:20 I attest to the accuracy and integrity of this document

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