PR. COMMISSIONER OF INCOME TAX-2, CHANDIGARH vs. M/S SML ISUZU LIMITEDN ( FORMERLY SWARAJ MAZDA LIMITED)

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ITA/452/2018HC Punjab & HaryanaPHHC01119323201811 September 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL1 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The High Court dismissed the appeal as withdrawn.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 revenue, allowing it to file an application for revival of the appeal. The reasoning for dismissal was solely based on the revenue's submission regarding the low tax effect and its desire to withdraw the appeal in accordance with CBDT circulars. The court also noted that since the main case was dismissed, any pending applications would also stand disposed of. The specific grounds for the original appeal or the merits of the case were not considered or decided. The ratio decidendi is that appeals below a certain tax threshold, as per CBDT guidelines, can be withdrawn by the revenue with liberty to revive.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Chandigarh (the revenue) against M/s SML Isuzu Limited (formerly Swaraj Mazda Limited) (the assessee). The assessment year(s) are not specified. The order or action under challenge is the revenue's appeal to the High Court. The amount in dispute is not stated. The procedural history is that the revenue's counsel, citing CBDT Circular No. 3 of 2018 and Circular No. 17 of 2019, sought to withdraw the appeal due to the tax effect being below the prescribed monetary limit. The High Court was asked to grant liberty to revive the appeal if circumstances changed.

What were the issues?

1. Whether the revenue is permitted to withdraw its appeal due to the tax effect being below the prescribed monetary limit as per CBDT Circulars, with liberty to revive the appeal. The revenue's contention, as stated by its counsel, is that the tax effect involved in the appeal is less than the monetary limit prescribed by CBDT Circular No. 3 of 2018, as amended by Circular No. 17 of 2019. Therefore, the revenue seeks to withdraw the appeal. The revenue also prayed for liberty to file an application for revival of the appeal if circumstances warrant it. The judgment does not record any arguments from the assessee's side.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 452 of 2018 (O&M) Date of Decision: 11.9.2019 Pr. Commissioner of Income Tax-2, Chandigarh .......Appellant Vs. M/s SML Isuzu Limited (Formerly Swaraj Mazda Limited) .......Respondent CORAM: HON’BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE HARNARESH SINGH GILL Present: Ms. Urvashi Dhugga, Senior Standing Counsel for the appellant. ***** 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, she has instructions to withdraw the present appeal. However, she 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. 3. Since the main case has been dismissed, the pending application, if any, also stands disposed of. (AJAY TEWARI) JUDGE (HARNARESH SINGH GILL) September 11, 2019

JUDGE Gurpreet Whether speaking /reasoned : Yes Whether Reportable : No GURPREET SINGH 2019.09.12 16:51 I attest to the accuracy and authenticity of this document chandigarh

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