PR. COMMISSIONER OF INCOME TAX-2 LUDHIANA vs. M/S AVON ISPAT & POWERS LTD LUDHIANA
What did the High Court hold?
The High Court dismissed the appeal as withdrawn, granting the liberty as prayed for by the revenue. The Court clarified that the withdrawal of the appeal by the revenue would not be considered an affirmation of the ITAT's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate case. No specific finding was given on the merits of the case, as the appeal was disposed of on a procedural ground based on the revenue's instructions and the CBDT circular.
What were the facts?
The Principal Commissioner of Income-Tax-2, Ludhiana (the revenue) filed an appeal before the High Court of Punjab and Haryana at Chandigarh against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed against M/s Avon Ispat & Power Ltd. (the assessee). The appeal was filed for the assessment year(s) not specified in the judgment. The revenue sought to withdraw the appeal citing the tax effect involved being less than ₹50 lacs, in accordance with Circular No. 03/2018 dated 11.07.2018 issued by the CBDT. The revenue also requested liberty to file an application for revival of the appeal if something survived.
What were the issues?
1. Whether the appeal filed by the revenue should be dismissed as withdrawn in light of the tax effect being less than ₹50 lacs, as per CBDT Circular No. 03/2018? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The revenue, through its learned counsel, stated that the tax effect involved in the present appeal is less than ₹50 lacs. In view of Circular No. 03/2018 issued by the CBDT, the revenue has instructions to withdraw the 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 ITA No.302 of 2016 (O&M) Date of Decision :09.09.2019 Pr. Commissioner of Income-Tax-2, Ludhiana ......Appellant Versus M/s Avon Ispat & Power Ltd. ...... Respondent CORAM: HON'BLE MR.JUSTICE KRISHNA MURARI, CHIEF JUSTICE HON'BLE MR.JUSTICE ARUN PALLI, JUDGE Present : Mr. Sandeep Goyal, Advocate and Mr. Chetan Sood, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. KRISHNA MURARI, CHIEF JUSTICE
(Oral)
: Learned counsel for the appellant-revenue states that since the tax effect involved is less than ` 50 lacs, 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 09.09.2019
Manoj Bhutani
Whether speaking/reasoned Yes/No Whether reportable Yes/No MANOJ KUMAR 2019.09.10 15:37 I attest to the accuracy and authenticity of this document
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