PRINCIPAL COMMR. OF INCOME TAX BHD. vs. M/S KISHAN MAL OIL COTTON & GINNING FACTORY

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ITA/315/2017HC Punjab & HaryanaPHHC01117520201707 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The High Court dismissed the appeal as withdrawn with liberty granted to the revenue to file an application for revival of the appeal as prayed for.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 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. An application related to the appeal was also dismissed as withdrawn. The ratio decidendi is that appeals can be withdrawn based on CBDT circulars regarding tax effect, with liberty to revive, and such withdrawal does not prejudice the merits of the case or leave the legal issues undecided for future adjudication.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Bathinda (the revenue) against the order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s Krishan Mal Oil Cotton & Ginning Factory. The tax effect involved in the appeal was ₹14,77,285/-. The appeal was filed for the assessment year(s) not specified in the judgment. The revenue sought to withdraw the appeal based on Circular No. 03/2018 dated 11th July 2018 issued by the Central Board of Direct Taxes, which deals with monetary limits for filing appeals. The revenue also requested liberty to revive the appeal if circumstances warranted.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal in light of CBDT Circular No. 03/2018, and if liberty can be granted to revive the appeal. The revenue argued that due to the tax effect being below the threshold stipulated in CBDT Circular No. 03/2018, they had instructions to withdraw the appeal. They further prayed for liberty to file an application for revival of the appeal if any aspect of the matter survived. The assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-315-2017 (O&M) Date of Decision: 7.8.2018 Principal Commissioner of Income Tax, Bathinda ...Appellant. Versus M/s Krishan Mal Oil Cotton & Ginning Factory, Rampura Phul, Bathinda ...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. Pankaj Jain, Senior Advocate with Mr. Divya Suri, Advocate and Mr. Sachin Bhardwaj, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 14,77,285/-, 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. Application is also dismissed as withdrawn. (AJAY KUMAR MITTAL) JUDGE August 7, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2018.08.08 12:57 I attest to the accuracy and integrity of this document

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