PR COMMISSIONER OF INCOME TAX-2 CHANDIGARH vs. M/S NEWTIME ENGINEERS & BUILDERS LTD

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ITA/317/2016HC Punjab & HaryanaPHHC01110521201619 September 2018Bench: MR. JUSTICE SURINDER GUPTA,LOK ADALAT BENCH - 31 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The court granted the revenue the liberty to file an application for revival of the appeal as prayed for. It was 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 that the revenue intended to raise was left open to be adjudicated in an appropriate future case. The court also stated that this order would dispose of all miscellaneous applications. No specific finding was given on the merits of the ITAT's order.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Chandigarh (the revenue) against M/s Newtime Engineers and Builders Ltd., Chandigarh (the assessee). The appeal challenged an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal was ₹ 24,35,134. 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 (CBDT). The revenue also requested liberty to file an application for revival of the appeal if any aspect of it survived.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal based on the tax effect and the CBDT Circular No. 03/2018. (Question of law) The revenue argued that due to the tax effect being below the threshold stipulated in Circular No. 03/2018, they had instructions to withdraw the appeal. They also sought liberty to revive the appeal if circumstances warranted. The revenue did not present arguments on the merits of the case. The assessee's arguments 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-317-2016 (O&M) Date of Decision: 19.9.2018 Principal Commissioner of Income Tax-2, Chandigarh ...Appellant. Versus M/s Newtime Engineers and Builders Ltd., Chandigarh ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Ms. Urvashi Dhugga, Sr. Standing Counsel for the appellant. Mr. B.M. Monga, Advocate and Mr. Rohit Kaura, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 24,35,134/-, she 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, she 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. This order shall also dispose of all the misc. applications. (AJAY KUMAR MITTAL) JUDGE September 19, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2018.09.25 15:14 I attest to the accuracy and integrity of this document

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