PR. COMMISSIONER OF INCOME TAX-2, LUDHIANA vs. M/S HERO EXPORTS, G.T. ROAD, HERO NAGAR, LUDHIANA PAN: AAAFH8092H
What did the High Court hold?
The High Court dismissed the appeal as withdrawn, as prayed for by the appellant-revenue. The court granted liberty to the revenue to file an application for revival of the appeal if something survives therein. It was clarified that the withdrawal of the appeal by the revenue would not be considered an affirmation of the Tribunal's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate case. The court's decision was based on the revenue's instruction to withdraw due to the tax effect being below the threshold specified in the CBDT circular.
What were the facts?
The appeal was filed by the Principal Commissioner of Income-Tax-2, Ludhiana (appellant-revenue) against M/s Hero Exports (respondent-assessee). The assessment year(s) are not specified. The order or action under challenge is an order passed by the Income Tax Appellate Tribunal (ITAT), the details of which are not provided. The amount in dispute is also not explicitly stated, but the tax effect is mentioned as less than ₹50 lacs. The procedural history is that the revenue, citing CBDT Circular No. 03/2018 dated 11.07.2018, sought to withdraw the appeal due to the low tax effect.
What were the issues?
1. Whether the appeal should be dismissed as withdrawn by the revenue in light of CBDT Circular No. 03/2018, given the tax effect is less than ₹50 lacs? The appellant-revenue argued for withdrawal based on the aforementioned circular. The respondent-assessee's arguments are not recorded. The Tribunal was not asked to decide on the merits of the case, but rather on the procedural aspect of withdrawal. No specific provisions of the Income Tax Act were debated in relation to the substantive issues of the assessment.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.326 of 2017 (O&M) Date of Decision :09.09.2019 Pr. Commissioner of Income-Tax-2, Ludhiana ......Appellant Versus M/s Hero Exports ...... Respondent CORAM: HON'BLE MR.JUSTICE KRISHNA MURARI, CHIEF JUSTICE HON'BLE MR.JUSTICE ARUN PALLI, JUDGE Present : Mr. Sandeep Goyal, Advocate and Mr. Chetan Sood, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. KRISHNA MURARI, CHIEF JUSTICE
(Oral)
: Learned counsel for the appellant-revenue states that since the tax effect involved is less than ` 50 lacs, he has instructions to withdraw the present appeal in view of Circular No. 03/2018, dated 11.07.2018 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. (KRISHNA MURARI) CHIEF JUSTICE (ARUN PALLI) JUDGE 09.09.2019
Manoj Bhutani
Whether speaking/reasoned Yes/No Whether reportable Yes/No MANOJ KUMAR 2019.09.10 15:37 I attest to the accuracy and authenticity of this document
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