PR. COMMISSIONER OF INCOME TAX HISSAR vs. M/S MARVEL TEA ESTATE INDIA LTD
What did the High Court hold?
The High Court held that in view of CBDT Circular No. 3/2018, which stipulates a monetary limit for appeals, and considering the tax effect of ₹22,96,875/- which is less than ₹50 lacs, the appeal was dismissed as not pressed. The Court granted liberty to the Revenue to seek revival of the appeal if circumstances changed. The question of law was expressly kept open. The reasoning was based on the Revenue's submission that they did not want to press the appeal on merits due to the tax effect being below the threshold specified in the circular. The ratio decidendi is that appeals with a tax effect below the prescribed limit in CBDT circulars may be dismissed as not pressed, with liberty to seek revival and the question of law remaining open.
What were the facts?
The appeal was filed by the Principal Commissioner of Income Tax, Hissar (Revenue) against M/s Marvel Tea Estate (India) Ltd., Hissar (Assessee). The specific assessment year(s) are not mentioned in the judgment. The appeal challenges an order or action by an unspecified authority, with the amount in dispute being ₹22,96,875/-. The procedural history is that the Revenue, through its counsel, stated that the tax effect was below the threshold stipulated in a CBDT Circular.
What were the issues?
1. Whether the appeal should be dismissed as not pressed, given the tax effect and the CBDT Circular No. 3/2018. (Question of law) Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue stated that the tax effect involved in the case is ₹22,96,875/-. In view of CBDT Circular No. 3/2018 dated 11.07.2018, which sets a monetary limit for filing appeals, and since the tax effect is less than ₹50 lacs, the Revenue does not wish to press the appeal on merits. The Revenue relied on Circular No. 3/2018.
AI-generated summary — verify with the full judgment below
HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** ITA-474-2015 (O&M) Date of Decision: 03.10.2018 **** Pr. Commissioner of Income Tax, Hissar
...Appellant
VS.
M/s Marvel Tea Estate (India) Ltd., Hissar ... Respondent **** Coram : Hon’ble Mr.Justice Surya Kant
Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Yogesh Putney, Advocate for the appellant
Mr. Akshay Bhan, Senior Advocate with Mr. Alok Mittal, Advocate for the respondent **** SURYA KANT J. (Oral)
(1) Learned counsel for Revenue states that the tax effect involved in this case is `22,96,875/- and in view of the recent Circular No.3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes, the tax effect being less than `50 lacs, he does not want to press this appeal on merits. (2) In view of the CBDT Circular, the instant appeal is dismissed as not pressed. As prayed for by learned counsel for the appellant, liberty is granted to the Revenue to seek revival of the appeal, if need be, in the changed circumstances. The question of law is also kept open.
(Surya Kant) Judge
03.10.2018 vishal shonkar (Sudip Ahluwalia) Judge
Whether speaking/reasoned?
Yes/No 2. Whether reportable?
Yes/No V VISHAL 2018.10.06 12:52 I attest to the accuracy and integrity of this document
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