PR. COMMOISSIONER OF INCOME TAX (CENTRAL), GURGAON vs. SMT. RANI VERMA

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ITA/332/2017HC Punjab & HaryanaPHHC01117539201718 September 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The High Court dismissed the appeal as withdrawn with liberty granted to the revenue to file an application for revival of the appeal as prayed for.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 case. The ratio decidendi is that appeals can be withdrawn based on tax effect circulars, but this withdrawal does not prejudice the revenue's right to seek revival under specific circumstances, nor does it validate the lower authority's decision.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Central), Gurgaon (the revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is Smt. Rani Verma (the assessee). The assessment year(s) are not specified. The amount in dispute is ₹ 16,55,313/-. 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, concerning tax effect thresholds for filing appeals. The revenue requested liberty to revive the appeal if necessary.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal based on the tax effect and CBDT Circular No. 03/2018, and if liberty to revive the appeal should be granted. The revenue argued that due to the tax effect of ₹ 16,55,313/-, they have instructions to withdraw the appeal in accordance with CBDT Circular No. 03/2018. They also prayed for liberty to file an application for revival of the appeal. No arguments were recorded for the respondent.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-332-2017 Date of Decision: 18.9.2018 Principal Commissioner of Income Tax (Central), Gurgaon ...Appellant. Versus Smt. Rani Verma ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Mr. Rajesh Sethi, Sr. Standing Counsel for the appellant. None for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 16,55,313/-, 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. (AJAY KUMAR MITTAL) JUDGE September 18, 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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