THE PR. COMMISSIONER OF INCOME TAX-2, CHANDIGARH vs. SH. LAKHWINDER SINGH PANAG

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ITA/403/2018HC Punjab & HaryanaPHHC01119270201829 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 dismissal was based on the low tax effect involved, which was ₹1,48,983/-. The Court followed the decision of the Apex Court in Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., where the Supreme Court had dismissed an appeal without delving into the merits due to a low tax effect, leaving the question of law open. The High Court clarified that this dismissal does not constitute an affirmation of the ITAT's order on merits. Furthermore, the legal issue, as claimed by the Revenue, is expressly left open to be adjudicated in an appropriate future case.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Chandigarh (Revenue) against Lakhwinder Singh Panag (assessee). The assessment year(s) are not specified. The order or action under challenge is the order of the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the present case is ₹1,48,983/-. The High Court of Punjab and Haryana at Chandigarh is hearing the appeal.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, following the precedent set by the Supreme Court in Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd. Assessee's Contention: Not recorded. Revenue's Contention: The Revenue, represented by Ms. Urvashi Dhugga, Sr. Standing Counsel, has not explicitly presented its contentions in the provided text. However, the appeal itself indicates a disagreement with the ITAT's order.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 105 ITA No.403 of 2018 (O&M) Decided on : 29.03.2019 The Pr. Commissioner of Income Tax-2, Chandigarh . . . Appellant Versus Lakhwinder Singh Panag . . . 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-Revenue. **** AJAY KUMAR MITTAL, J. (Oral) A perusal of the record shows that the tax effect involved in the present case is ` 1,48,983/-. 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 March 29, 2019 sonia gugnani (MANJARI NEHRU KAUL) JUDGE Whether speaking/reasoned:

Yes/No Whether Reportable:

Yes/No SONIA GUGNANI 2019.04.02 10:39 I attest to the accuracy and integrity of this document

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