PR. COMMISSIONER OF INCOME TAX-2 CHANDIGARH vs. SURINDER KUMAR SINGAL

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ITA/406/2016HC Punjab & HaryanaPHHC01110618201630 January 2017Bench: MR. JUSTICE SURINDER GUPTA,MRS JUSTICE DAYA CHAUDHARY1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The reasoning was based on the low tax effect of ₹32,630/-. The Court followed the precedent set by the Supreme Court in Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC), where appeals with low tax effect were dismissed without deciding the merits, leaving the question of law open. The High Court clarified that this dismissal does not amount to an affirmation of the ITAT's order on merits. The legal issue raised 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, other than the dismissal of the appeal.

What were the facts?

The Principal Commissioner of Income Tax-I, Chandigarh (Revenue) filed an appeal before the High Court of Punjab and Haryana against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is Sh. Surinder Kumar Singal. The assessment year(s) are not specified. The dispute concerns the tax effect of ₹32,630/-. The High Court noted that the Supreme Court, in Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC), had dismissed an appeal due to low tax effect without deciding the merits, leaving the question of law open. Consequently, the High Court decided to follow this precedent.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, leaving the question of law open for future adjudication? (Question of law, turning on the principle of judicial economy and the precedent set by the Supreme Court). Contentions: Assessee: Not recorded in the judgment. Revenue: The revenue sought adjudication on the merits of the appeal. However, the High Court, in light of the tax effect and the Supreme Court's decision in CIT vs. Dhanalekshmi Bank Ltd., decided to dismiss the appeal without delving into the merits.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA, AT CHANDIGARH 103 ITA-406-2016 (O&M) Decided on : 30.01.2017 The Pr. Commissioner of Income Tax-I, Chandigarh ... Petitioner Versus Sh.Surinder Kumar Singal .. Respondents CORAM : HON'BLE MR.JUSTICE AJAY KUMAR MITTAL HON'BLE MR.JUSTICE RAMENDRA JAIN Present : Ms.Urvashi Dhugga, Advocate for the appellant. Ajay Kumar Mittal,

J. (Oral)

A perusal of the record shows that the tax effect involved in the present case is ` 32,630/-. In view of the order of the Apex Court in 'Commissioner of Income Tax Vs. Dhanalekshmi Bank Lt., [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 30.01.2017 [ Ramendra Jain ] sd Judge Whether speaking/reasoned : Yes/No Whether Reportable : Yes/No Sudhir Kumar 2017.02.01 10:34 I attest to the accuracy and authenticity of this document High Court, Chandigarh

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