THE COMMISSIONER OF INCOME TAX PATIALA vs. M/S INDUSTRIAL CABLES (INDIA) LTD RAJPURA

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ITA/299/2013HC Punjab & HaryanaPHHC01105162201311 February 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The High Court dismissed the appeal as withdrawn. It granted the revenue the liberty 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 construed as an affirmation of the ITAT's order on its merits. Furthermore, the Court explicitly stated that the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate future case. No specific finding was given on the merits of the case, as the appeal was withdrawn before any such adjudication.

What were the facts?

The Commissioner of Income Tax, Patiala (the revenue) filed an appeal before the High Court of Punjab and Haryana at Chandigarh against M/s Industrial Cables (India) Ltd., Rajpura (the assessee). The appeal was against an order of the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal was ₹21,41,370/-. The revenue sought to withdraw the appeal based on Circular No. 03/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes (CBDT). The revenue also requested liberty to file an application for revival of the appeal if something survived therein.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal in view of the tax effect and the CBDT Circular No. 03/2018? (Question of law) The revenue argued that due to the tax effect being ₹21,41,370/-, it had instructions to withdraw the appeal in accordance with CBDT Circular No. 03/2018. The revenue also sought liberty to revive the appeal if circumstances warranted. The judgment does not record any arguments from the assessee regarding the withdrawal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA-299-2013 (O&M) Date of decision:- 11.02.2019

The Commissioner of Income Tax, Patiala ...Appellant Versus

M/s Industrial Cables (India) Ltd., Rajpura ...Respondent

CORAM: HON'BLE MR. JUSTICE KRISHNA MURARI, CHIEF JUSTICE

HON’BLE MR. JUSTICE ARUN PALLI

Present:- Mr. Rajesh Katoch, Advocate,

for the appellant.

Mr. Pankaj Jain, Senior Advocate,

with Mr. Divya Suri, Advocate,

for the respondent. * * * * KRISHNA MURARI, C.J. (ORAL)

Learned counsel for the appellant-revenue states that since the tax effect involved is ` 21,41,370/-, 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 11.02.2019 Amodh Whether speaking/reasoned Yes/No Whether reportable Yes/No

AMODH SHARMA 2019.02.13 12:21 I attest to the accuracy and integrity of this document

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