PR. COMMISSIONER OF INCOME TAX -2 LUDHIANA. vs. M/S HERO CYCLE LTD., HERO NAGAR G.T.ROAD, LUDHIANA

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ITA/458/2017HC Punjab & HaryanaPHHC01135677201709 September 2019Bench: MR. JUSTICE KRISHNA MURARI,MR. JUSTICE ARUN PALLI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn with liberty granted to the revenue to file an application for revival of the appeal as prayed for.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 construed as an affirmation of the Tribunal's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate case. The specific findings on the merits of the ITAT's order are not discussed as the appeal was withdrawn. The operative direction is the dismissal of the appeal as withdrawn with liberty.

What were the facts?

The appeal was filed by the Principal Commissioner of Income-Tax-2, Ludhiana (appellant-revenue) against M/s Hero Cycles Ltd. (respondent-assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The procedural history is that the revenue, citing Circular No. 03/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, sought to withdraw the appeal due to a tax effect of less than ₹50 lacs. The revenue also requested liberty to file an application for revival of the appeal if something further emerged. The High Court heard the matter on 09.09.2019.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn based on the tax effect and CBDT Circular No. 03/2018? (Question of law) Assessee's Contention: Not recorded. Revenue's Contention: The revenue, through its counsel, stated that the tax effect involved in the appeal was less than ₹50 lacs. In view of Circular No. 03/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi, the revenue had instructions to withdraw the present appeal. The revenue also prayed for liberty to file an application for revival of the appeal in case something survived therein.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.458 of 2017 (O&M) Date of Decision :09.09.2019 Pr. Commissioner of Income-Tax-2, Ludhiana ......Appellant Versus M/s Hero Cycles Ltd. ...... Respondent CORAM: HON'BLE MR.JUSTICE KRISHNA MURARI, CHIEF JUSTICE HON'BLE MR.JUSTICE ARUN PALLI, JUDGE Present : Mr. Sandeep Goyal, Advocate with Mr. Chetan Sood, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. KRISHNA MURARI, CHIEF JUSTICE

(Oral)

: Learned counsel for the appellant-revenue states that since the tax effect involved is less than ` 50 lacs, he has instructions to withdraw the present appeal in view of Circular No. 03/2018, dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi. However, he 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. (KRISHNA MURARI) CHIEF JUSTICE (ARUN PALLI) JUDGE 09.09.2019

Manoj Bhutani

Whether speaking/reasoned Yes/No Whether reportable Yes/No MANOJ KUMAR 2019.09.10 15:37 I attest to the accuracy and authenticity of this document

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