COMMISSIONER OF INCOME TAX LUDHIANA vs. M/S ORTHONOVA HOSPITAL NAKODAR ROAD JALANDHAR

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ITA/335/2014HC Punjab & HaryanaPHHC01109481201426 September 2018Bench: MR. JUSTICE SURYA KANT,MR. JUSTICE SUDIP AHLUWALIA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court decided that in view of CBDT Circular No. 3/2018, the appeal filed by the Revenue was dismissed as not pressed. The Court granted liberty to the Revenue to seek revival of the appeal if circumstances changed. The question of law was also kept open. The reasoning was solely based on the tax effect being below the threshold stipulated in the CBDT circular, which guided the Revenue's decision not to pursue the appeal on its merits. The ratio decidendi is that appeals with a tax effect below a certain threshold, as per CBDT circulars, may be withdrawn or not pressed by the Revenue.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Central), Ludhiana (appellant/Revenue) against M/s Orthonova Hospital (respondent/assessee). The assessment year(s) are not specified. The appeal challenges a decision of the Income Tax Appellate Tribunal (ITAT), though the specific order or action under challenge and the authority that passed it are not detailed. The tax effect involved in the case is stated to be ₹23,86,716/-. The procedural history is limited to the filing of this appeal before the High Court.

What were the issues?

The primary issue before the High Court was whether the appeal filed by the Revenue should be pressed on merits. The Revenue's contention was based on Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes. The Revenue argued that since the tax effect of ₹23,86,716/- is less than ₹50 lacs, they did not wish to press the appeal on merits. The judgment does not record any specific arguments from the assessee's side regarding the merits of the case, as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH **** ITA No.335 of 2014 Date of Decision: 26.09.2018 **** Commissioner of Income Tax (Central), Ludhiana ..... Appellant Versus M/s Orthonova Hospital

..... Respondent CORAM: HONBLE MR. JUSTICE SURYA KANT HONBLE MR. JUSTICE SUDIP AHLUWALIA Present: Mr. Rajesh Katoch, Advocate, for the appellant. Mr. Akshay Bhan, Senior Advocate with Mr. Alok Mittal, Advocate, for the respondent. SURYA KANT J. (ORAL) (1) Learned counsel for Revenue states that the tax effect involved in this case is `23,86,716/- and in view of the recent Circular No.3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes, the tax effect being less than `50 lacs, he does not want to press this appeal on merits. (2) In view of the CBDT Circular, the instant appeal is dismissed as not pressed. As prayed for by learned counsel for the appellant, liberty is granted to the Revenue to seek revival of the appeal, if need be, in the changed circumstances. The question of law is also kept open.

(SURYA KANT)

JUDGE 26.09.2018

(SUDIP AHLUWALIA) Bhumika JUDGE 1. Whether speaking/reasoned: Yes 2. Whether reportable: No Bhumika Bhati 2018.09.28 13:57 I attest to the accuracy and integrity of this document

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