PR. COMMISSIONER OF INCOME TAX, JALANDHAR-2, JALANDHAR vs. M/S CAPITAL LOCAL AREA BANK LTD.

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ITA/536/2017HC Punjab & HaryanaPHHC01117762201705 September 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dismiss the appeal as withdrawn. The reasoning was based on the appellant-revenue's submission that the tax effect involved was less than the monetary limit prescribed in CBDT Circular No. 3 of 2018, as amended by Circular No. 17 of 2019. The court granted the liberty as prayed for by the revenue to file an application for revival of the appeal, should something survive therein. The operative direction was to dismiss the appeal as withdrawn with liberty. Any pending civil miscellaneous applications were also disposed of as a consequence of the main appeal being dismissed.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Jalandhar (the revenue) against M/s Capital Local Area Bank Ltd. (now Capital Small Finance Bank Ltd.) (the assessee). The assessment year(s) are not explicitly stated. The order or action under challenge is the revenue's appeal to the High Court. The procedural history is that the revenue's counsel, citing CBDT Circular No. 3 of 2018 and Circular No. 17 of 2019, stated that the tax effect involved was below the prescribed monetary limit and sought to withdraw the appeal. The High Court was asked to grant liberty to revive the appeal if circumstances changed.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn, considering the tax effect is below the monetary limit stipulated in CBDT Circulars No. 3 of 2018 and 17 of 2019? (Question of law) The revenue argued that due to the low tax effect, as per the CBDT circulars, they had instructions to withdraw the appeal. They also prayed for liberty to revive the appeal if circumstances warranted. The assessee did not present any arguments as none were recorded for them.

AI-generated summary — verify with the full judgment below

ITA No.536 of 2017 (O&M) 1 352 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.536 of 2017 (O&M) Date of decision : 05.09.2019 Pr. Commissioner of Income Tax-2, Jalandhar ...... Appellant versus M/s Capital Local Area Bank Ltd. (Now Capital Small Finance Bank Ltd.) G.T. Road, Jalandhar ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MR.JUSTICE HARNARESH SINGH GILL *** Present : Mr. Vivek Sethi, Senior Standing Counsel and Mr. Varun Issar, Junior Standing Counsel for the appellant. None for the respondent.

*** AJAY TEWARI, J. (Oral) 1. Learned counsel for the appellant-revenue states that since the tax effect involved is less than the monetary limit as prescribed in Circular No.3 of 2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, further amended vide Circular No.17 of 2019 dated 08.08.2019 read with Letter No.F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019, he has instructions to withdraw the present appeal. However, he prayed that liberty be granted to the appellant-revenue to file an application for revival of the appeal, in case something survives therein. 2. Dismissed as withdrawn with liberty as prayed for. POOJA SHARMA 2019.09.10 13:15 I am the author of this document

ITA No.536 of 2017 (O&M) 2 3. Since the main case has been dismissed, the pending C.M. Application, if any, also stands disposed of.

(AJAY TEWARI) JUDGE (HARNARESH SINGH GILL) JUDGE 05.09.2019 pooja sharma-I Whether speaking/reasoned Yes/No Whether Reportable : Yes/No POOJA SHARMA 2019.09.10 13:15 I am the author of this document

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