COMMISSIONER OF INCOME TAX-3 LUDHIANA vs. M/S NAHAR CAPITAL AND FINANCIAL SERVICES LTD.
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The High Court dismissed the appeal as withdrawn with liberty granted to the revenue to file an application for revival of the appeal as prayed for.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 considered an affirmation of the ITAT's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate case. The operative direction was the dismissal of the appeal as withdrawn, with specific liberty granted.
What were the facts?
The appeal was filed by the Principal Commissioner of Income Tax-3, Ludhiana (the revenue) against M/s Nahar Capital and Financial Services Ltd., Ludhiana (the assessee). The appeal challenged an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal was ₹ 25,57,341. The revenue sought to withdraw the appeal based on Circular No. 03/2018 dated July 11, 2018, issued by the Central Board of Direct Taxes.
What were the issues?
1. Whether the appeal filed by the revenue should be dismissed as withdrawn in light of CBDT Circular No. 03/2018, considering the tax effect involved. The revenue argued that it had instructions to withdraw the appeal due to the tax effect being ₹ 25,57,341, in accordance with CBDT Circular No. 03/2018. The revenue also prayed for liberty to file an application for revival of the appeal if something survived therein. The judgment does not record any arguments from the assessee's side regarding the withdrawal.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-479-2015 (O&M) Date of Decision: 24.7.2018 The Principal Commissioner of Income Tax-3, Ludhiana ...Appellant. Versus M/s Nahar Capital and Financial Services Ltd., Ludhiana ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Mr. Rajesh Katoch, Sr. Standing Counsel for the appellant. Mr. Sanjay Bansal, Senior Advocate with Mr. Amit Parsad, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 25,57,341/-, he has instructions to withdraw the present appeal in view of Circular No.03/2018, dated 11th July, 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. (AJAY KUMAR MITTAL) JUDGE July 24, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No Gurbachan Singh 2018.07.30 14:11 I attest to the accuracy and integrity of this document
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