PR.COMMISSIONER OF INCOME TAX -2 CHANDIGARH vs. M/S KARAN EMPIRE PVT LTD H.N 123 PHASE-3B1 MOHALI

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ITA/436/2017HC Punjab & HaryanaPHHC01117653201731 October 2018Bench: MR. JUSTICE AJAY KUMAR MITTAL,MRS. JUSTICE MANJARI NEHRU KAUL1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. It granted the revenue liberty to file an application for revival of the appeal as prayed for. The Court clarified that the withdrawal of the appeal by the revenue would not be considered an affirmation of the Tribunal's order on merits. Furthermore, the Court explicitly stated that the legal issue claimed by the revenue was being left open to be adjudicated in an appropriate case. No specific finding on the merits of the case was made, as the appeal was withdrawn.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Chandigarh (the appellant/revenue) against M/s Karan Empire Pvt. Ltd., Mohali (the respondent/assessee). The appeal was against an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal was ₹34,37,522. The revenue sought to withdraw the appeal in view of Circular No. 03/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes. The revenue also prayed for liberty to file an application for revival of the appeal if something survived therein.

What were the issues?

1. Whether the revenue is entitled to withdraw the appeal in light of CBDT Circular No. 03/2018, and if so, whether liberty should be granted to revive the appeal. The revenue argued that due to the tax effect being below the threshold stipulated in CBDT Circular No. 03/2018, it had instructions to withdraw the appeal. It further prayed for liberty to file an application for revival of the appeal if any aspect of the matter survived. The assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-436-2017 (O&M) Date of Decision: 31.10.2018 The Principal Commissioner of Income Tax-2, Chandigarh ...Appellant. Versus M/s Karan Empire Pvt. Ltd., Mohali ...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. Mr. Vishal Gupta, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 34,37,522/-, 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. 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. (AJAY KUMAR MITTAL) JUDGE October 31, 2018 (MANJARI NEHRU KAUL) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2018.11.02 16:55 I attest to the accuracy and integrity of this document

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