PR. COMMISSIONER OF INCOME TAX-1, CHANDIGARH vs. A.B. SUGARS LIMITED( M/S GURU TEG BAHADUR SUGAR LIMITED)

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ITA/335/2018HC Punjab & HaryanaPHHC01119194201819 September 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dismiss the appeal as withdrawn. The court granted the liberty as prayed for by the appellant-revenue to file an application for revival of the appeal in case something survives therein. The reasoning for withdrawal was based on the revenue's submission that the tax effect was below the monetary limit stipulated by the Central Board of Direct Taxes (CBDT) in its circulars. Since the main appeal was dismissed as withdrawn, any pending Civil Miscellaneous (C.M.) application also stood disposed of. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, can be withdrawn by the revenue, with a possibility of revival under specific circumstances.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1, Chandigarh (appellant-revenue) against M/s A.B. Sugars Limited (respondent-assessee). The assessment year(s) are not specified in the judgment. The appeal challenges an order or action, the nature of which is not detailed. The amount in dispute is not stated. The procedural history is that the revenue, through its counsel, stated that due to the tax effect being below the monetary limit prescribed by CBDT Circular No. 3 of 2018, as amended by Circular No. 17 of 2019, they had instructions to withdraw the appeal. They also requested liberty to revive the appeal if circumstances warranted.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the appellant-revenue, considering the tax effect is below the prescribed monetary limit as per CBDT Circulars No. 3 of 2018 and 17 of 2019. Contentions: Assessee: No arguments were recorded for the assessee as they were not represented. Revenue: The revenue argued that the tax effect involved is less than the monetary limit prescribed in CBDT Circular No. 3 of 2018, further amended by Circular No. 17 of 2019, and therefore, they have instructions to withdraw the present appeal. They prayed for liberty to file an application for revival of the appeal if something survives therein.

AI-generated summary — verify with the full judgment below

ITA No. 335 of 2018 (O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 224 ITA No. 335 of 2018 (O&M) Date of Decision : 19.09.2019 Pr. Commissioner of Income Tax-1, Chandigarh ... Appellant Versus A.B. Sugars Limited (M/s Guru Teg Bahadur Sugar Limited)

....Respondent CORAM:HON'BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE HARNARESH SINGH GILL Present: Mr. Yogesh Putney, Advocate with Mr. Ajiteshwar Singh, Advocate for the appellant. None for the respondent. AJAY TEWARI, J.(ORAL) 1. Learned counsel for the appellant-revenue states that since the tax effect involved is less than the monetary limit as prescribed in Circular No.3 of 2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, further amended vide Circular No.17 of 2019 dated 08.08.2019 read with Letter No.F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019, he has instructions to withdraw the present appeal. However, he prayed that liberty be granted to the appellant-revenue to file an application for revival of the appeal, in case something survives therein. 2. Dismissed as withdrawn with liberty as prayed for. POOJA SAINI 2019.09.20 16:11 I attest to the accuracy and integrity of this document

ITA No. 335 of 2018 (O&M) 2 3. Since the main case has been dismissed, the pending C.M. application, if any, also stands disposed of. ( AJAY TEWARI ) JUDGE ( HARNARESH SINGH GILL ) 19.09.2019 JUDGE pooja saini Whether speaking/reasoned? Yes/No Whether reportable? Yes/No POOJA SAINI 2019.09.20 16:11 I attest to the accuracy and integrity of this document

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