PR. COMMISSIONER OF INCOME TAX-2, JALANDHAR vs. M/S CAPITAL LOCAL AREA BANK LTD.

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ITA/413/2017HC Punjab & HaryanaPHHC01117629201705 September 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The court granted the liberty as prayed for by the appellant-revenue to file an application for revival of the appeal, should something survive therein. The court also noted that since the main case was dismissed, any pending Civil Miscellaneous Application (C.M. Application) also stood disposed of. The reasoning for the dismissal was solely based on the revenue's submission regarding the tax effect and their instruction to withdraw. No decision on the merits of the original dispute was made. The specific ratio decidendi is that appeals can be withdrawn by the revenue under specific circumstances outlined by CBDT circulars, with liberty to revive if warranted.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Jalandhar (the revenue) against M/s Capital Local Area Bank Ltd. (the assessee). The assessment year(s) are not specified in the provided text. The appeal challenges an order or action by an authority, but the specific nature of that order is not detailed. The amount in dispute is also not stated. The procedural history relevant here is that the revenue's counsel, citing CBDT Circular No.3 of 2018 and subsequent amendments, stated they had instructions to withdraw the appeal due to the tax effect being below the prescribed monetary limit. The revenue requested liberty to revive the appeal if circumstances warranted.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn, considering the tax effect is below the monetary limit prescribed by CBDT Circulars. The revenue argued that due to the tax effect being less than the monetary limit stipulated in CBDT Circular No.3 of 2018, as amended by Circular No.17 of 2019 and further clarified by a letter dated 20.08.2019, they have instructions to withdraw the appeal. They further prayed for liberty to revive the appeal if any aspect of the matter survived. The judgment does not record any argument from the respondent-assessee.

AI-generated summary — verify with the full judgment below

ITA No.413 of 2017 (O&M) 1 352 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.413 of 2017 (O&M) Date of decision : 05.09.2019 Pr. Commissioner of Income Tax-2, Jalandhar ...... Appellant versus M/s Capital Local Area Bank Ltd. (Now Capital Small Finance Bank Ltd.) G.T. Road, Jalandhar ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MR.JUSTICE HARNARESH SINGH GILL *** Present : Mr. Vivek Sethi, Senior Standing Counsel and Mr. Varun Issar, Junior Standing Counsel for the appellant. None for the respondent.

*** AJAY TEWARI, J. (Oral) 1. Learned counsel for the appellant-revenue states that since the tax effect involved is less than the monetary limit as prescribed in Circular No.3 of 2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, further amended vide Circular No.17 of 2019 dated 08.08.2019 read with Letter No.F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019, he has instructions to withdraw the present appeal. However, he prayed that liberty be granted to the appellant-revenue to file an application for revival of the appeal, in case something survives therein. 2. Dismissed as withdrawn with liberty as prayed for. POOJA SHARMA 2019.09.10 13:43 I am the author of this document

ITA No.413 of 2017 (O&M) 2 3. Since the main case has been dismissed, the pending C.M. Application, if any, also stands disposed of.

(AJAY TEWARI) JUDGE (HARNARESH SINGH GILL) JUDGE 05.09.2019 pooja sharma-I Whether speaking/reasoned Yes/No Whether Reportable : Yes/No POOJA SHARMA 2019.09.10 13:43 I am the author of this document

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