THE COMMISSIONER OF INCOME TAX vs. M/S SUKHJIT STARCH AND CHEMICALS LTD

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ITA/268/2004HC Punjab & HaryanaPHHC01051412200403 October 2018Bench: MS. JUSTICE NAVITA SINGH,MR. JUSTICE ASHOK KUMAR VERMA1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Punjab and Haryana at Chandigarh dismissed the appeal as not pressed. The Revenue's counsel informed the court that the tax effect was ₹36,58,263/-, which is below the threshold of ₹50 lacs stipulated in CBDT Circular No. 3/2018. Consequently, the Revenue did not wish to press the appeal on its merits. The Court, in view of the CBDT Circular and the prayer made by the Revenue's counsel, 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?

The Commissioner of Income Tax, Jalandhar-II (Revenue) filed an appeal before the High Court of Punjab and Haryana at Chandigarh against an order related to M/s Sukhjit Starch & Chemical Ltd. (Assessee). The assessment year(s) are not specified. The appeal challenges a decision of the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the case is stated to be ₹36,58,263/-. The procedural history leading to this appeal before the High Court is not detailed, other than the Revenue filing the present appeal.

What were the issues?

1. Whether the appeal should be dismissed as not pressed on merits, given the tax effect and CBDT Circular No. 3/2018. (Question of law) Contentions: Assessee: No specific contentions are recorded as the appeal was dismissed as not pressed. Revenue: The Revenue, through its counsel, stated that the tax effect involved is ₹36,58,263/-. In view of CBDT Circular No. 3/2018 dated 11.07.2018, which stipulates that appeals with a tax effect less than ₹50 lacs should not be pressed, the Revenue stated it does not wish to press the appeal on merits.

AI-generated summary — verify with the full judgment below

HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** ITA No.268 of 2004 (O&M) Date of Decision: 03.10.2018 **** Commissioner of Income Tax, Jalandhar-II

...Appellant

VS.

M/s Sukhjit Starch & Chemical Ltd.

... Respondent **** Coram : Hon’ble Mr.Justice Surya Kant

Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Vivek Sethi, Advocate for the appellant **** SURYA KANT J. (Oral)

(1) Learned counsel for Revenue states that the tax effect involved in this case is `36,58,263/- 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

03.10.2018 vishal shonkar (Sudip Ahluwalia) Judge

Whether speaking/reasoned?

Yes/No 2. Whether reportable?

Yes/No V VISHAL 2018.10.06 12:52 I attest to the accuracy and integrity of this document

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