COMMISSIONER OF INCOME TAX-III, LUDHIANA vs. M/S NAHAR EXPORTS LTD.

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ITA/376/2008HC Punjab & HaryanaPHHC01080361200806 August 2018Bench: MR. JUSTICE SURINDER GUPTA,LOK ADALAT BENCH - 31 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue as withdrawn, with liberty granted to the revenue to file an application for revival of the appeal as prayed for.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 its merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate future case. The Court also ordered the withdrawal of the cross-objections and applications filed by the assessee, as prayed for by their counsel. The judgment did not delve into the merits of the original dispute before the ITAT.

What were the facts?

The Commissioner of Income Tax-III, Ludhiana (the revenue) filed an appeal before the High Court of Punjab & Haryana at Chandigarh against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was filed against M/s Nahar Exports Ltd., Ludhiana (the assessee). The tax effect involved in the appeal was ₹ 22,78,215. The revenue sought to withdraw the appeal and related applications based on Circular No. 03/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes (CBDT). The revenue also requested liberty to file an application for revival of the appeal if circumstances warranted. The assessee also prayed for withdrawal of their cross-objections and associated applications.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal in light of CBDT Circular No. 03/2018, and if so, with what liberty? The revenue argued that due to the tax effect being below the threshold stipulated in CBDT Circular No. 03/2018, they had instructions to withdraw the appeal. They further prayed for liberty to file an application for revival of the appeal if any aspect of the matter survived. The assessee did not present any arguments on the merits of the appeal, but prayed for the withdrawal of their cross-objections and applications.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-376-2008 and X-Obj.No.30-CII-2009 (O&M) Date of Decision: 6.8.2018 The Commissioner of Income Tax-III, Ludhiana ...Appellant. Versus M/s Nahar Exports Ltd., Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Mr. Rajesh Katoch, Sr. Standing Counsel for the appellant. Mr. Sanjay Bansal, Senior Advocate with Mr. Amit Parshad, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Copy of letter dated 30.7.2018/1.8.2018 is taken on record. 2. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 22,78,215/-, he has instructions to withdraw the present appeal as well as the applications 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. 3. 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. 4. Learned counsel for the respondents prays for withdrawal of the cross-objections along with the applications. 5. Ordered accordingly. (AJAY KUMAR MITTAL) JUDGE August 6, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2018.08.09 14:00 I attest to the accuracy and integrity of this document

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