PR. COMMISSIONER OF INCOME TAX-1 CHANDIGARH vs. M/S THUKRAL REGAL SHOES CHANDIGARH

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ITA/404/2016HC Punjab & HaryanaPHHC01110616201631 July 2018Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE AVNEESH JHINGAN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided on two matters. For ITA-404-2016, the appeal was dismissed as withdrawn based on the revenue's submission and the CBDT Circular No. 03/2018, with liberty granted to the revenue to file an application for revival. The Court clarified that this withdrawal does not affirm the ITAT's order on merits and leaves the legal issue open for adjudication in an appropriate case. For X-Obj-84-CII-2018, the cross-objections were dismissed for non-prosecution as the respondent's counsel had no instructions. The ratio for the withdrawal is adherence to CBDT instructions regarding monetary limits for appeals.

What were the facts?

The appeal, ITA-404-2016, was filed by the Principal Commissioner of Income Tax-I, Chandigarh (appellant-revenue) against M/s Thukral Regal Shoes, Chandigarh (respondent-assessee). The assessment year(s) are not explicitly stated. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal is ₹21,44,298. Separately, cross-objections (X-Obj-84-CII-2018) were filed by the respondent. The High Court was hearing both matters on July 31, 2018.

What were the issues?

1. Whether the appeal filed by the revenue should be withdrawn in light of CBDT Circular No. 03/2018, dated 11th July, 2018, considering the tax effect of ₹21,44,298? The revenue argued that due to the tax effect being below the threshold stipulated in the circular, it had instructions to withdraw the appeal and sought liberty to revive it if necessary. The respondent's counsel pleaded no instructions regarding the cross-objections.

AI-generated summary — verify with the full judgment below

ITA-404-2016 (O&M) and X-Obj-84-CII-2018 (O&M) -1- IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-404-2016 (O&M) and X-Obj-84-CII-2018 (O&M) Date of Decision: 31.7.2018 Principal Commissioner of Income Tax-I, Chandigarh ...Appellant. Versus M/s Thukral Regal Shoes, Chandigarh ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Ms. Urvashi Dhugga, Sr. Standing Counsel for the appellant. Mr. B.M. Monga, Advocate and Mr. Rohit Kaura, Advocate for the respondent. AJAY KUMAR MITTAL, J. ITA-404-2016 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 21,44,298/-, she has instructions to withdraw the present appeal in view of Circular No.03/2018, dated 11th July, 2018, issued by the Central Board of Direct Taxes, New Delhi. However, she has prayed that liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. Gurbachan Singh 2018.08.02 13:51 I attest to the accuracy and integrity of this document

ITA-404-2016 (O&M) and X-Obj-84-CII-2018 (O&M) -2- 2. 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. X-Obj-84-CII-2018 (O&M) Cross-objections had been filed by the respondent in person. Learned counsel for the respondent plead no instructions. Dismissed for non-prosecution. (AJAY KUMAR MITTAL) JUDGE July 31, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No Gurbachan Singh 2018.08.02 13:51 I attest to the accuracy and integrity of this document

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