THE PR. COMMISSIONER OF INCOME TAX ROHTAK vs. ATLAS CYCLES (HARYANA) LTD ALAS ROAD INDUSTRIAL AREA SONEPAT

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ITA/328/2017HC Punjab & HaryanaPHHC01117534201726 August 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the liberty sought by the Revenue to file an application for revival of the appeal if circumstances warranted. The Court explicitly stated that the legal issue claimed by the Revenue was being left open to be adjudicated in an appropriate case. This implies that no decision on the merits of the case was made, and the withdrawal was based on administrative instructions and the tax effect. The pending C.M. (Civil Miscellaneous application), if any, was also dismissed as a consequence of the main appeal being withdrawn.

What were the facts?

The Principal Commissioner of Income Tax, Rohtak (the Revenue) filed an appeal before the High Court of Punjab and Haryana at Chandigarh against Atlas Cycles (Haryana) Ltd. (the assessee). The appeal, bearing number ITA-328-2017 (O&M), was decided on August 26, 2019. The learned counsel for the appellant-Revenue stated that due to the tax effect being less than Rs. 1 crore, they had instructions to withdraw the appeal in accordance with CBDT Circular No. 17/2019 dated August 8, 2019. The Revenue also sought liberty to file an application for revival of the appeal if circumstances warranted it. The High Court noted that the legal issue claimed by the Revenue was being left open for adjudication in an appropriate case.

What were the issues?

1. Whether the appeal filed by the Revenue should be dismissed as withdrawn in light of the tax effect and the CBDT circular. Contentions: Assessee: No arguments are recorded for the assessee as none appeared. Revenue: The Revenue contended that the appeal should be withdrawn as the tax effect involved is less than Rs. 1 crore, citing CBDT Circular No. 17/2019 dated August 8, 2019. They also prayed for liberty to revive the appeal if necessary.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 350-7 ITA-328-2017 (O&M) Date of decision :26.08.2019 The Pr. Commissioner of Income Tax, Rohtak ...... Appellant versus Atlas Cycles (Haryana) Ltd., Atlas Road, Industrial Area, Sonepat ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MR.JUSTICE HARNARESH SINGH GILL Present : Mr. Sandeep Goyal, Advocate for the appellant. None for the respondent.

*** AJAY TEWARI, J. (Oral) Learned counsel for the appellant-Revenue has very fairly stated that since the tax effect involved is less than Rs.1 crore. He has instruction to withdraw the present appeal in view of the circular dated 17/2019 dated 8.8.2019 issued by the Central Board of Direct Taxes, New Delhi. However, he has prayed that liberty be granted to Revenue to file an application for revival of the appeal in case something survives therein. Dismissed as withdrawn with liberty as prayed for. Further, the legal issue as claimed by the Revenue is being left open to be adjudicated in an appropriate case. Anuradha 2019.08.29 12:26 I attest to the accuracy and integrity of this document

ITA-328-2017 (O&M) -2- Since the main case has been dismissed as withdrawn, the pending C.M, if any also stands dismissed. (AJAY TEWARI) JUDGE (HARNARESH SINGH GILL) JUDGE 26.08.2019 anuradha Whether speaking/reasoned Yes/No Whether Reportable : Yes/No Anuradha 2019.08.29 12:26 I attest to the accuracy and integrity of this document

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