COMMISSIONER OF INCOME TAX vs. M/S DAYANAND INVESTMENT LTD
What did the High Court hold?
The High Court allowed the appeal to be dismissed as withdrawn with liberty granted to the revenue to file an application for revival of the appeal. The Court clarified that the withdrawal of the appeal by the revenue would not be construed as an affirmation of the ITAT's order on its merits. Furthermore, the legal issue, as claimed by the revenue, was expressly left open to be adjudicated in an appropriate future case. The Court's decision was based on the revenue's instruction to withdraw due to the tax effect and the relevant CBDT circular, without delving into the merits of the case.
What were the facts?
The appeal was filed by the Commissioner of Income Tax (Central), Ludhiana (the revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s Dayanand Investment Pvt. Ltd., Ludhiana. The appeal was decided on August 23, 2016. The tax effect involved in the appeal was Rs. 1,08,900/-. The revenue sought to withdraw the appeal based on CBDT Circular No. 21/2015 dated December 10, 2015, which provides for withdrawal of appeals where the tax effect is below a certain threshold. The revenue also requested liberty to revive the appeal if necessary.
What were the issues?
1. Whether the revenue is permitted to withdraw the appeal based on CBDT Circular No. 21/2015, considering the tax effect of Rs. 1,08,900/-, and if liberty should be granted to revive the appeal. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The matter proceeded based on the revenue's submission and prayer. Revenue's Contention: The revenue, through its learned counsel, stated that due to the tax effect of Rs. 1,08,900/-, it had instructions to withdraw the appeal in terms of CBDT Circular No. 21/2015, dated December 10, 2015. The revenue prayed for liberty to file an application for revival of the appeal if something survived therein.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sr. No. 406 ITA-45-2001
Decided on : 23.08.2016 Commissioner of Income Tax (Central), Ludhiana ..... Appellant
VERSUS M/s Dayanand Investment Pvt. Ltd., Ludhiana ..... Respondent CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, CHIEF JUSTICE HON'BLE MR. JUSTICE DEEPAK SIBAL Present: Mr.Zora Singh Klar, Advocate, for the appellant. Mr.Akshay Bhan, Senior Advocate, with Mr.Alok Mittal, Advocate, for the respondent.
******* S.J. VAZIFDAR, C.J. (Oral) Learned counsel for the appellant-revenue states that since the tax effect involved is Rs.1,08,900/-, he has instructions to withdraw the present appeal in view of the circular No.21/2015, dated 10.12.2015, issued by the C.B.D.T., New Delhi. However, he 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.
[ S.J. VAZIFDAR ]
CHIEF JUSTICE 23.08.2016
[ DEEPAK SIBAL ] shamsher JUDGE Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Shamsher Singh 2016.08.24 17:36 I attest to the accuracy and authenticity of this document Chandigarh
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