COMMR. OF INCOME TAX, LDH vs. M/S HIGHWAY CYCLE INDS. LTD., LDH
What did the High Court hold?
The High Court allowed the appeal to be dismissed as withdrawn, with liberty granted to the revenue to file an application for revival of the appeal as prayed. 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 merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate future case. The Court did not decide the substantive merits of the appeal.
What were the facts?
The appeal was filed by the Commissioner of Income Tax (Central), Ludhiana (the revenue) against M/s Highway Cycles Industries Ltd., Ludhiana (the assessee). The appeal challenged an order of the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal was ₹5,37,986. The revenue sought to withdraw the appeal in accordance with CBDT Circular No. 21/2015 dated 10.12.2015. The revenue also requested liberty to file an application for revival of the appeal if circumstances warranted.
What were the issues?
1. Whether the revenue is permitted to withdraw the appeal due to the tax effect being below the threshold stipulated in CBDT Circular No. 21/2015, and if so, whether liberty can be granted to revive the appeal. The revenue argued that the tax effect of ₹5,37,986 was below the monetary limit prescribed by CBDT Circular No. 21/2015, which justified withdrawal. They also requested liberty to revive the appeal. The judgment does not record any arguments from the assessee.
AI-generated summary — verify with the full judgment below
ITA No.305 of 2004 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.305 of 2004 Date of Decision : 04.08.2016 Commissioner of Income Tax(Central), Ludhiana ...... Appellant versus M/s Highway Cycles Industries Ltd., Ludhiana ...... Respondent CORAM : HON'BLE MR.JUSTICE S.J.VAZIFDAR, ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE DEEPAK SIBAL *** Present : Mr. Zora Singh Klar, Senior Standing Counsel, for the appellant-Department. Mr. Alok Mittal, Advocate, for the respondent. *** S.J.VAZIFDAR, ACTING CHIEF JUSTICE (ORAL) Learned counsel for the appellant-revenue states that since the tax effect involved is `5,37,986/-, he has instructions to withdraw the present appeal in view of the circular No.21/2015, dated 10.12.2015 issued by the C.B.D.T., New Delhi. However, he 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 JYOTI 2016.08.05 14:18 I attest to the accuracy and integrity of this document HIGH COURT CHANDIGARH
ITA No.305 of 2004 2 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.
( S.J. VAZIFDAR )
ACTING CHIEF JUSTICE ( DEEPAK SIBAL ) August 04, 2016
JUDGE jt Whether speaking/reasoned Yes/No Whether Reportable Yes/No JYOTI 2016.08.05 14:18 I attest to the accuracy and integrity of this document HIGH COURT CHANDIGARH
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