THE COMMISSIONER OF IT - I vs. M/S BHUSHAN INDS. LTD

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ITA/648/2005HC Punjab & HaryanaPHHC01075073200505 November 2019Bench: MR. JUSTICE AJAY TEWARI,MRS. JUSTICE ALKA SARIN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The court granted the appellant-revenue the liberty to file an application for revival of the appeal, as prayed for by their counsel. The reasoning for the dismissal was based on the appellant-revenue's submission that the tax effect was below the monetary limit stipulated in the relevant CBDT circulars, indicating a policy decision by the revenue not to pursue appeals below a certain threshold. The ratio decidendi is that appeals can be withdrawn by the revenue based on monetary limits set by administrative instructions, with potential for revival under specific circumstances. Any pending Civil Miscellaneous Application was also disposed of as a consequence of the main appeal being dismissed.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-I, Chandigarh (appellant-revenue) against M/s. Bhushan Industries Ltd. (respondent). The assessment year(s) are not explicitly stated. The appeal challenges an order or action from a lower authority, the details of which are not provided. The procedural history is limited to the present appeal before the High Court. The appellant-revenue's counsel stated that the tax effect involved was below the monetary limit prescribed by CBDT Circulars No. 3 of 2018 and 17 of 2019, and a related letter. The counsel sought to withdraw the appeal with liberty to revive it if circumstances changed.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the appellant-revenue, considering the tax effect is below the prescribed monetary limit for appeals, and if liberty should be granted to revive the appeal. The appellant-revenue argued that due to the low tax effect, as per CBDT Circulars No. 3 of 2018 and 17 of 2019, and Letter No. F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019, they have instructions to withdraw the appeal, while seeking liberty to revive it. The respondent did not present any arguments as none were recorded.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.648 of 2005 (O&M) Date of decision : 05.11.2019 The Commissioner of Income Tax-I, Chandigarh. ...... Appellant versus M/s.Bhushan Industries Ltd., 3, Industrial Area-I Chandigarh ...... Respondent CORAM : HON'BLE MR.JUSTICE AJAY TEWARI HON'BLE MRS.JUSTICE ALKA SARIN *** Present : Mr.Varun Issar, Advocate for Mr.Kunal Sharma, Advocate 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. 3. Since the main case has been dismissed, the pending C.M. Application, if any, also stands disposed of. (AJAY TEWARI) JUDGE ( ALKA SARIN ) JUDGE 05.11.2019 raman Whether speaking/reasoned Yes/No Whether Reportable : Yes/No RAMAN KUMAR 2019.11.08 09:51 I attest to the accuracy and integrity of this document

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