PR. COMMISSIONER OF INCOME TAX-1, CHANDIGARH vs. M/S PUNJAB STATE COOPERATIVE BANK LIMITED

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ITA/376/2018HC Punjab & HaryanaPHHC01119239201812 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 low tax effect of ₹2,77,400/-. The Court followed the precedent set by the Apex Court in 'Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC)', where an appeal was dismissed without delving into the merits due to a low tax effect, leaving the question of law open. The Court clarified that this dismissal does not constitute an affirmation of the ITAT's order on merits. The legal issue, as claimed by the Revenue, is expressly left open to be adjudicated in an appropriate future case. No specific operative directions like remand or deletion were issued, as the appeal was dismissed on a procedural ground.

What were the facts?

The Principal Commissioner of Income Tax-1, Chandigarh (the Revenue) filed an appeal before the High Court of Punjab and Haryana against an order of the Income Tax Appellate Tribunal (ITAT). The appeal concerned the assessment year(s) not specified in the judgment. The amount in dispute, referred to as the tax effect, was ₹2,77,400/-. The High Court was considering the appeal filed by the Revenue against the assessee, Punjab State Cooperative Bank Limited.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, leaving the question of law open for future adjudication? (Question of law, turning on the High Court's discretion and established practice regarding tax effect). Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue argued for the appeal to be heard on merits. However, the judgment focuses on the tax effect. The Revenue relied on the Supreme Court's decision in 'Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC)' as a precedent for dismissing appeals with low tax effect without deciding on merits.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-376-2018 (O&M) Decided on: 12.03.2019 Pr. Commissioner of Income Tax-1, Chandigarh .... Appellant

Vs Punjab State Cooperative Bank Limited ...... Respondent 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 `2,77,400/-. 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 2019.03.15 14:32 I attest to the accuracy and integrity of this document

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