THE PR. COMMISSIONER OF INCOME TAX, GURGAON vs. M/S MACHINO POLYMERS LTD.

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ITA/443/2018HC Punjab & HaryanaPHHC01119313201817 August 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dismiss the appeal as withdrawn, granting the liberty as prayed for by the Revenue. The reasoning for withdrawal was explicitly linked to the tax effect being less than ₹1 crore, aligning with the instructions received by the Revenue's counsel from the CBDT Circular dated 08.08.2019. The Court also noted that the legal issue claimed by the Revenue was being left open to be adjudicated in an appropriate case. This implies that the merits of the underlying tax dispute were not decided. The operative direction was the dismissal of the appeal as withdrawn with liberty to revive.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Gurgaon (the Revenue) against M/s Machino Polymers Ltd. (the Assessee). The assessment year(s) are not explicitly stated in the provided text. The appeal challenges an order or action from an unspecified authority. The amount in dispute is also not explicitly stated, but the tax effect is mentioned as being less than ₹1 crore. The procedural history is that the Revenue's counsel, citing CBDT Circular dated 08.08.2019, sought to withdraw the appeal due to the tax effect being below the threshold. The Revenue also requested liberty to revive the appeal if circumstances warranted.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the Revenue in light of CBDT Circular dated 08.08.2019, given the tax effect is less than ₹1 crore? Assessee's Contentions: The judgment does not record any specific contentions from the Assessee. Revenue's Contentions: The Revenue, through its learned counsel, stated that the tax effect involved is less than ₹1 crore. Consequently, it has instructions to withdraw the present appeal in view of Circular dated 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes, New Delhi. The Revenue further prayed for liberty to file an application for revival of the appeal if something survives therein.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH Sr. No.: 205

ITA No.443 of 2018 (O & M) Date of Decision: August 17, 2019

Pr. Commissioner of Income Tax, Gurgaon ..... APPELLANT

VERSUS

M/s Machino Polymers Ltd. ..... RESPONDENT

. . .

CORAM: HON'BLE MR. JUSTICE AJAY TEWARI

HON’BLE MR. JUSTICE HARNARESH SINGH GILL

. . .

PRESENT: - Mr. Tajender Joshi, Senior Standing Counsel for the appellant – Revenue.

. . .

Ajay Tewari, J (Oral)

Learned counsel for the appellant-revenue has very fairly stated that since the tax effect involved is less than ` 1 crore, he has instructions to withdraw the present appeal in view of Circular dated 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes, New Delhi. However, he has prayed that liberty be granted to revenue to file an application for revival of the appeal in case something survives therein. AVIN KUMAR 2019.08.19 16:08 I attest to the accuracy and integrity of this document

ITA No.443 of 2018 [2]

Dismissed as withdrawn with liberty as prayed for. Further the legal issue as claimed by the revenue is being left open to be adjudicated in an appropriate case.

(Ajay Tewari) Judge

(Harnaresh Singh Gill) August 17, 2019 Judge avin

Whether Speaking/ Reasoned: Yes/ No Whether Reportable: Yes/ No

AVIN KUMAR 2019.08.19 16:08 I attest to the accuracy and integrity of this document

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