COMMISSIONER OF INCOME TAX vs. EASTMAN INDUSTRIES

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ITA/562/2006HC Punjab & HaryanaPHHC01075298200628 September 2018Bench: MS. JUSTICE NAVITA SINGH,MR. JUSTICE ASHOK KUMAR VERMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court allowed the application filed by the Revenue. The Court held that in view of CBDT Circular No. 3/2018, which directs that appeals before the High Court shall not be filed where the tax effect is less than ₹50 lacs, and considering that the tax effect in this case was ₹39,55,479/-, the appeal was dismissed as not pressed. The Court granted liberty to the Revenue to seek revival of the appeal if circumstances changed. The question of law was also expressly kept open. The operative direction was the dismissal of the appeal.

What were the facts?

The Commissioner of Income-tax, Ludhiana (Revenue) filed an appeal before the High Court of Punjab and Haryana at Chandigarh against an order concerning Eastman Industries (Assessee). The appeal was filed for assessment year(s) not specified in the judgment. The Revenue filed an application to dismiss the appeal. The reason for dismissal was based on Circular No. 3/2018 dated 11.07.2018, issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), which directed that appeals before the High Court should not be filed if the tax effect is less than ₹50 lacs. The Revenue stated that the tax effect in this case was ₹39,55,479/-.

What were the issues?

1. Whether the appeal should be dismissed in view of CBDT Circular No. 3/2018, which mandates that appeals before the High Court shall not be filed where the tax effect is less than ₹50 lacs? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The application for dismissal was made by the Revenue. Revenue's Contention: The Revenue argued that the tax effect in the present case is ₹39,55,479/-, which is less than the threshold of ₹50 lacs stipulated in CBDT Circular No. 3/2018. Consequently, the Revenue stated that it did not wish to press the appeal on merits and sought its dismissal in light of the circular.

AI-generated summary — verify with the full judgment below

HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** CM-20902-CII-2018 in/and ITA No.562 of 2006 (O&M) Date of Decision: 28.09.2018 **** Commissioner of Income-tax, Ludhiana

...Appellant

VS.

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. Sunil Kumar Mukhi, 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 states that the tax effect involved in this case is `39,55,479/- 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

28.09.2018 vishal shonkar (Sudip Ahluwalia) Judge

1.

Whether speaking/reasoned?

Yes 2. Whether reportable?

No V VISHAL 2018.10.01 13:40 I attest to the accuracy and integrity of this document

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