COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHANDIGARH vs. ST. FRANCIS CONVENT SCHOOL, FATEHGARH CHURIAN PAN: AAFTS5347F

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ITA/299/2017HC Punjab & HaryanaPHHC01117501201723 August 2018Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting liberty to the revenue to file an application for revival of the appeal as prayed for.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 claimed by the revenue was explicitly left open to be adjudicated in an appropriate case. The miscellaneous application (CM-13665-CII-2017) was also dismissed as withdrawn. The ratio decidendi is that appeals can be withdrawn based on tax effect circulars, but such withdrawal does not validate the lower authority's order, and the underlying legal issue remains open for future adjudication.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Exemptions), Chandigarh (the revenue) against M/s St. Francis Convent School, Fatehgarh Churian (the assessee). The assessment year(s) are not specified. The order or action under challenge is an appeal decision by the Income Tax Appellate Tribunal (ITAT). The amount in dispute is ₹24,21,951. The procedural history is that the revenue, citing CBDT Circular No. 03/2018 dated 11th July, 2018, sought to withdraw the appeal due to the tax effect.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the revenue in view of CBDT Circular No. 03/2018, and if so, with what liberty to the revenue. Assessee's Arguments: Not recorded. Revenue's Arguments: The revenue, represented by learned counsel, stated that the tax effect involved was ₹24,21,951. Based on this, they had instructions to withdraw the present appeal in accordance with Circular No. 03/2018, dated 11th July, 2018, issued by the Central Board of Direct Taxes. The revenue prayed for liberty to file an application for revival of the appeal if something survived therein.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-299-2017 (O&M) Date of Decision: 23.8.2018 The Commissioner of Income Tax (Exemptions), Chandigarh ...Appellant. Versus M/s St. Francis Convent School, Fatehgarh Churian ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Mr. Denesh Goyal, Sr. Standing Counsel for the appellant. Mr. Ajay Vohra, Senior Advocate with Mr. Rohit Jain, Advocate and Mr. Aniket D. Aggarwal, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 24,21,951/-, he has instructions to withdraw the present appeal in view of Circular No.03/2018, dated 11th July, 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. 3. CM-13665-CII-2017 is also dismissed as withdrawn. (AJAY KUMAR MITTAL) JUDGE August 23, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2018.08.28 14:55 I attest to the accuracy and integrity of this document

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