PR. COMMISSIONER OF INCOME TAX-1, CHANDIGARH vs. SH. RAMESH CHANDER AGGARWAL

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ITA/371/2018HC Punjab & HaryanaPHHC01119234201812 March 2019Bench: MR. JUSTICE AJAY KUMAR MITTAL,MRS. JUSTICE MANJARI NEHRU KAUL1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The decision was based on the tax effect of ₹1,49,597/-. The Court relied on the Apex Court's decision in Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC), where an appeal was dismissed without going into the merits due to low tax effect, leaving the question of law open. The High Court clarified that the dismissal of the appeal would not be considered an affirmation of the Tribunal's order on merits. The legal issue, as claimed by the Revenue, was left open to be adjudicated in an appropriate case. No specific finding was given on the merits of the case.

What were the facts?

The Revenue, Pr. Commissioner of Income Tax-1, Chandigarh, filed an appeal before the High Court of Punjab and Haryana against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed for the assessment year(s) not specified in the judgment. The amount in dispute, referred to as the tax effect, was ₹1,49,597/-. The High Court perused the record and noted the tax effect involved.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, leaving the question of law open for adjudication in an appropriate case? (Question of law) The Revenue contended that the appeal should be heard on merits. The Revenue did not explicitly argue against the dismissal based on low tax effect, but rather sought adjudication of the legal issue. The judgment does not record specific arguments from the Revenue regarding the merits of the case or the applicability of the Dhanalekshmi Bank Ltd. precedent. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-371-2018 (O&M) Decided on: 12.03.2019 Pr. Commissioner of Income Tax-1, Chandigarh .... Appellant

Vs Ramesh Chander Aggarwal

..... Respondents CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MRS. JUSTICE MANJARI NEHRU KAUL Present: Ms. Urvashi Dhugga, Sr. Standing Counsel for the appellant. **** AJAY KUMAR MITTAL

, J (ORAL)

A perusal of the record shows that the tax effect involved in the present case is `1,49,597/-. In view of the order of the Apex Court in 'Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC)', where the Supreme Court had dismissed the appeal without going into the merits of the appeal due to low tax effect leaving the question of law open, the present appeal is dismissed. It is, however, clarified that dismissal of the appeal 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 (MANJARI NEHRU KAUL) JUDGE 12.03.2019

Dinesh Whether speaking/reasoned : Yes/No Whether Reportable : Yes/No DINESH KUMAR 2019.03.13 11:45 I attest to the accuracy and integrity of this document

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