THE COMMISSIONER OF INCOME TAX-I CHANDIGARH vs. M/S SHALIMAR INFONET PVT. LTD

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ITA/319/2013HC Punjab & HaryanaPHHC01105185201321 January 2025Bench: MR. JUSTICE ARUN PALLI,MRS. JUSTICE SUDEEPTI SHARMA1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court, in the wake of Circular No. 09/2024 dated 17.09.2024, read with Circular No. 5/2024 dated 15.03.2024, disposed of the appeal as not pressed. The reasoning was based on the consensus between the learned counsel for the parties that the tax effect in the appeal was less than Rs. 2 Crore. The operative direction was to dispose of the appeal accordingly. No specific findings on the merits of the case were made, as the appeal was not pressed. The principle derived is that appeals with a low tax effect, as defined by the relevant CBDT circulars, can be withdrawn or not pressed by the Revenue.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-I, Chandigarh (the Revenue) against M/s Shalimar Infonet Pvt. Ltd. (the Assessee). The specific assessment year(s) and the order or action under challenge are not explicitly stated in the provided text. The procedural history is limited to the filing of the appeal by the Revenue. The amount in dispute is also not precisely stated, but the tax effect is mentioned as being less than Rs. 2 Crore.

What were the issues?

The Tribunal had to decide whether to proceed with the appeal. The parties, through their learned counsel, were ad idem (in agreement) that the tax effect in the appeal filed by the Revenue was less than Rs. 2 Crore. The Revenue's contention, implicitly, was to withdraw or not press the appeal based on the stated tax effect. The Assessee's contention was to agree with the Revenue's position. The issue revolves around the applicability of CBDT Circulars regarding the withdrawal of appeals where the tax effect is below a certain threshold.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-319-2013(O&M) Date of decision: 21.01.2025 The Commissioner of Income Tax-I, Chandigarh … Appellant Versus M/s Shalimar Infonet Pvt. Ltd. … Respondent CORAM: HON’BLE MR. JUSTICE ARUN PALLI HON’BLE MRS. JUSTICE SUDEEPTI SHARMA Present: Mr. Varun Issar, Senior Standing Counsel, and Ms. Pridhi J. Sandhu, Advocate, for the appellant-Revenue. Mr. Vaibhav Saini, Advocate, for the respondent. *** ARUN PALLI, J. (Oral) Learned counsel for the parties are ad idem that the tax effect in the present appeal filed by the Revenue is less than Rs.2 Crore. Therefore, in the wake of Circular No.09/2024 dated 17.09.2024, read with Circular No.5/2024 dated 15.03.2024, the appeal be disposed of as not pressed. Ordered accordingly. ( Arun Palli )

Judge 21.01.2025 Rajan ( Sudeepti Sharma ) Judge Whether speaking / reasoned: YES/NO Whether Reportable: YES/NO RAJAN KUMAR 2025.01.22 11:32 I am approving this document

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