PR. COMMISSIONER OF INCOME TAX, FARIDABAD vs. M/S K.M. REALTECH LTD
What did the High Court hold?
The High Court dismissed the appeal as withdrawn with liberty to the revenue to file an application for revival as prayed for.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. No specific finding was given on the merits of the case, as the appeal was disposed of on a procedural ground based on the revenue's instructions and the relevant CBDT circular.
What were the facts?
The appeal was filed by the Principal Commissioner of Income Tax, Faridabad (the revenue) against M/s K.M. Realtech Ltd. (the assessee). The assessment years are not specified. The appeal challenges an order of the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal is stated to be less than Rs. 50 lacs. The revenue sought to withdraw the appeal based on Circular No. 03/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi. The revenue also requested liberty to file an application for revival of the appeal if something survives therein.
What were the issues?
1. Whether the appeal can be withdrawn by the revenue based on the tax effect and CBDT Circular No. 03/2018, with liberty to revive. Assessee's contentions: Not recorded. Revenue's contentions: The revenue, through its counsel, stated that the tax effect involved is less than Rs. 50 lacs and, in accordance with CBDT Circular No. 03/2018, it has instructions to withdraw the present appeal. The revenue prayed for liberty to file an application for revival of the appeal in case something survives therein.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA-522-2017(O&M)
Date of decision: 28.03.2019
Principal Commissioner of Income Tax, Faridabad … Appellant Versus M/s K.M. Realtech Ltd. … Respondent
CORAM: HON’BLE MR. JUSTICE KRISHNA MURARI,
CHIEF JUSTICE
HON’BLE MR. JUSTICE ARUN PALLI, JUDGE
Present: Mr. Rajesh Katoch, Advocate, for
Mr. Tajender K. Joshi, Advocate, for the appellant.
*** KRISHNA MURARI, C.J. (Oral)
Learned counsel for the appellant-revenue states that since the tax effect involved is less than Rs.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
28.03.2019 Rajan
( Arun Palli ) Judge
Whether speaking / reasoned:
YES
Whether Reportable:
RAJAN KUMAR 2019.03.29 15:16 I attest to the accuracy and integrity of this document
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