COMMISSIONER OF IT-I vs. M/S EASTMAN INDS
What did the High Court hold?
The High Court allowed the application for dismissal of the appeal. The Court reasoned that the Revenue itself sought dismissal in view of the CBDT Circular No. 3/2018, which sets a monetary threshold for filing appeals before the High Court. The tax effect in this case was confirmed to be ₹26,08,324/-, which is below the ₹50 lacs limit. Therefore, the appeal was dismissed as not pressed. The Court granted liberty to the Revenue to seek revival of the appeal if circumstances changed and kept the question of law open.
What were the facts?
The appeal, ITA No. 524 of 2005, was filed by the Commissioner of Income Tax-I, Ludhiana (Revenue) against M/s Eastman Industries (Assessee). The appeal was filed against an order from the Income Tax Appellate Tribunal (ITAT). The Revenue filed an application (CM-19290-CII-2018) to dismiss the appeal. This application was based on Circular No. 3/2018 dated 11.07.2018 issued by the CBDT, which directs that appeals shall not be filed before the High Court if the tax effect is less than ₹50 lacs. The Revenue confirmed that the tax effect in this case is ₹26,08,324/-.
What were the issues?
1. Whether the appeal filed by the Revenue is to be dismissed in light of CBDT Circular No. 3/2018, which stipulates a monetary limit for filing appeals before the High Court? (Question of law). Assessee's Contention: The assessee did not explicitly argue any points as the Revenue sought dismissal of the appeal. Revenue's Contention: The Revenue argued for the dismissal of the appeal based on CBDT Circular No. 3/2018, as the tax effect of ₹26,08,324/- is below the prescribed limit of ₹50 lacs. The Revenue stated it did not want to press the appeal on merits.
AI-generated summary — verify with the full judgment below
HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** CM-19290-CII-2018 in/and ITA No.524 of 2005 (O&M) Date of Decision: 01.10.2018 **** Commissioner of Income Tax-I, Ludhiana
...Appellant
VS.
M/s Eastman Industries
... Respondent **** Coram : Hon’ble Mr.Justice Surya Kant
Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Rajesh Katoch, Advocate for the appellant
Mr. Rajiv Sharma, Advocate for the respondent **** SURYA KANT J. (Oral)
(1) The prayer in this application is to dismiss the appeal 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 vide which it has been directed that the appeals before the High Court shall not be filed in cases where tax effect is less than `50 lacs. (2) Learned counsel for Revenue has handed over a copy of the communication dated 27.09.2018 from the Income Tax Department to the effect that the tax effect involved in this case is `26,08,324/- and he does not want to press this appeal on merits. (3) In view of the CBDT Circular, the application is allowed and 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
01.10.2018 vishal shonkar (Sudip Ahluwalia) Judge
Whether speaking/reasoned?
Yes/No 2. Whether reportable?
Yes/No V VISHAL 2018.10.06 13:20 I attest to the accuracy and integrity of this document
Recent GST High Court judgments
Search GST case law →- Namita Behera vs. Commissioner Of CT And GST, CuttackOrissa · 14 Oct 2026
- Ratul Boro vs. The Union Of INDIA And 4 OrsGauhati · 14 Oct 2026
- Jashwant Sharma vs. The Union Of INDIA And A4 OrsGauhati · 14 Oct 2026
- Tvl. Jeyarani Shopping Centre vs. The Deputy State Tax Officer -1/The Deputy Commercial Tax OfficerMadras · 14 Oct 2026
- Rohan Tanna vs. Directorate General Of Goods And Services Tax IntelligenceChhattisgarh · 14 Oct 2026
