PR.COMMISSIONER OF INCOME TAX -1 CHANDIGARH vs. M/S INTERNATIONAL FRESH FARM PRODUCTS (INDIA )LTD # 3 SEC 5 CHD

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ITA/52/2018HC Punjab & HaryanaPHHC01119381201818 August 2018Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue. The court noted that the tax effect involved was very small, ₹82,032. It referred to the Supreme Court's decision in Commissioner of Income Tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC), where an appeal with a low tax effect was dismissed without going into the merits, leaving the question of law open. The court clarified that the dismissal of the appeal would not be considered an affirmation of the Income Tax Appellate Tribunal's order on merits and that the legal issue claimed by the revenue was left open to be adjudicated in an appropriate case.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1, Chandigarh (revenue) against M/s International Fresh Farm Products (India) Ltd. (assessee). The tax effect involved in the present appeal was ₹82,032. The revenue acknowledged the issuance of CBDT Circular No. 3/2018, dated July 11, 2018, which fixed the monetary limit for filing appeals in the High Court at ₹50,00,000 and stated its applicability to pending appeals. The revenue contended that the present case fell under exception (c) of Para 10 of the circular. The High Court noted the small tax effect.

What were the issues?

1. Whether the present appeal, with a tax effect of ₹82,032, should be dismissed in light of CBDT Circular No. 3/2018, which sets a monetary limit of ₹50,00,000 for High Court appeals. Assessee's Contention: The judgment does not record any specific contentions from the assessee. The appeal was dismissed based on the revenue's submissions and the court's own reasoning regarding the tax effect and circular. Revenue's Contention: The revenue argued that the present case falls under exception (c) of Para 10 of CBDT Circular No. 3/2018, despite the low tax effect. The revenue did not dispute the circular's applicability to pending appeals.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 52 of 2018 Decided on : 18.08.2018 Pr. Commissioner of Income Tax-1, Chandigarh . . . Appellant(s) Versus M/s International Fresh Farm Products (India) Ltd. . . . Respondent(s) CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE AVNEESH JHINGAN PRESENT: Ms. Urvashi Dhugga, Sr. Standing Counsel for the appellant(s)-revenue. **** AJAY KUMAR MITTAL, J. (Oral) A perusal of the case file shows that the tax effect involved in the present appeal is ` 82,032/-. Learned counsel for the appellant-revenue did not dispute that Circular No.3/2018, dated 11th July, 2018, has been issued by the C.B.D.T., New Delhi, whereby, the monetary limit has been fixed for filing the appeals in the High Court, which is `50,00,000/-. It was also not controverted that the aforesaid circular is applicable to all the pending appeals in the High Court. It was, however, claimed that the present case falls under the exception (c) of Para 10 drawn in the aforesaid circular. 2. Be that as it may, the tax effect involved in the present case is very small i.e. `82,032/-. The Apex Court in 'Commissioner of Income tax Vs. Dhanalekshmi Bank Ltd., [2015] 373 ITR 526 (SC)', where the tax effect was low, had dismissed the appeal without going into the merits of the appeal leaving the question of law open. 2. In view of the aforesaid, the present appeal is dismissed. It is, however, clarified that dismissal of the appeal 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 August 18, 2018 J.Ram (AVNEESH JHINGAN) JUDGE Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No JAWALA RAM 2018.08.21 14:12 I attest to the accuracy and authenticity of this document Chandigarh

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