THE PR. COMMISSIONER OF INCOME TAX, GURGAON vs. M/S BMW INDIA PVT. LTD.

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ITA/474/2018HC Punjab & HaryanaPHHC01119347201826 August 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The High Court dismissed the appeal as withdrawn, as requested by the revenue. The dismissal was based on the revenue's instruction to withdraw due to the tax effect being below the threshold specified in CBDT Circular dated 17/2019. The Court granted the liberty prayed for by the revenue to file an application for revival of the appeal, should circumstances warrant it. Furthermore, the Court explicitly stated that the legal issue claimed by the revenue is being left open to be adjudicated in an appropriate case. This means the merits of the underlying tax dispute were not decided, and the revenue's right to pursue the issue in a future, more substantial case was preserved.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Gurgaon (the revenue) against M/s BMW India Pvt. Ltd. (the assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The procedural history indicates that the revenue sought to withdraw the appeal. The reason for withdrawal was that the tax effect involved was less than Rs. One crore, in line with Circular dated 17/2019 dated 08.08.2019 issued by the Central Board of Direct Taxes (CBDT). The revenue requested liberty to file an application for revival of the appeal if something further survived. The High Court considered the tax effect and the CBDT circular.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the revenue in light of the tax effect being below the threshold stipulated by the CBDT circular, and if so, whether liberty should be granted to revive the appeal. Contentions: Assessee: No specific contentions are recorded for the assessee in the judgment. Revenue: The revenue, through its learned counsel, stated that the tax effect involved is less than Rs. One crore and, therefore, it has instructions to withdraw the present appeal in view of CBDT Circular dated 17/2019 dated 08.08.2019. The revenue prayed for liberty to file an application for revival of the appeal in case something survives therein. The revenue also indicated that the legal issue claimed by it is being left open to be adjudicated in an appropriate case.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 474 of 2018 (O&M) Date of Decision: 26.8.2019 The Principal Commissioner of Income Tax, Gurgaon .......Appellant Vs. M/s BMW India Pvt. Ltd. .......Respondent CORAM: HON’BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE HARNARESH SINGH GILL Present: Mr. Tajender K. Joshi, Senior Standing Counsel for the appellant. ***** AJAY TEWARI

, J. (ORAL)

Learned counsel for the appellant-revenue has very fairly stated that since the tax effect involved is less than Rs. One 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. 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 26, 2019

JUDGE Gurpreet Whether speaking /reasoned : Yes Whether Reportable : No GURPREET SINGH 2019.08.27 16:58 I attest to the accuracy and authenticity of this document chandigarh

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