PR. COMMISSIONER OF INCOME TAX HISSAR vs. M/S MARVEL TEA ESTATE INDIA LTD

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ITA/31/2016HC Punjab & HaryanaPHHC01110513201603 October 2018Bench: MR. JUSTICE SURYA KANT,MR. JUSTICE SUDIP AHLUWALIA1 pages

AI SummaryDismissed

What did the High Court hold?

The Tribunal decided to dismiss the appeal as not pressed. The reasoning was based on the Revenue's submission that the tax effect of ₹14,35,000/- was below the threshold stipulated in CBDT Circular No. 3/2018. This circular guides the Revenue on when to file appeals, and in this instance, the Revenue chose not to pursue the appeal on its merits due to the low tax effect. The Tribunal granted liberty to the Revenue to seek revival of the appeal if circumstances changed. The question of law was also kept open. The operative direction was the dismissal of the appeal.

What were the facts?

The Principal Commissioner of Income Tax, Hissar (Revenue) filed an appeal against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is M/s Marvel Tea Estate (India) Ltd., Hissar. The appeal was filed for the assessment year(s) not specified in the judgment. The dispute concerns an amount of ₹14,35,000/-. The Revenue, through its counsel, stated that the tax effect involved in the case is ₹14,35,000/-. This amount is less than ₹50 lakhs. The Revenue cited Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, as the basis for not pressing the appeal on merits.

What were the issues?

1. Whether the appeal should be dismissed as not pressed in light of the tax effect and CBDT Circular No. 3/2018? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points on merits. However, by not objecting to the Revenue's request to dismiss the appeal as not pressed, it implicitly agreed with the application of the circular. Revenue's Contention: The Revenue argued that the tax effect involved in the case is ₹14,35,000/-, which is less than ₹50 lakhs. In view of CBDT Circular No. 3/2018, the Revenue stated that it did not want to press the appeal on merits.

AI-generated summary — verify with the full judgment below

HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** ITA-31-2016 (O&M) Date of Decision: 03.10.2018 **** Pr. Commissioner of Income Tax, Hissar

...Appellant

VS.

M/s Marvel Tea Estate (India) Ltd., Hissar ... Respondent **** Coram : Hon’ble Mr.Justice Surya Kant

Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Yogesh Putney, Advocate for the appellant

Mr. Akshay Bhan, Senior Advocate with Mr. Alok Mittal, Advocate for the respondent **** SURYA KANT J. (Oral)

(1) Learned counsel for Revenue states that the tax effect involved in this case is `14,35,000/- 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 13:07 I attest to the accuracy and integrity of this document

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