COMMISSIONER OF INCOME TAX JALANDHAR II vs. JEETU KESHI

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ITA/66/2013HC Punjab & HaryanaPHHC01105277201303 October 2018Bench: MR. JUSTICE SURYA KANT,MR. JUSTICE SUDIP AHLUWALIA1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Punjab and Haryana at Chandigarh, in view of the submission made by the learned counsel for the Revenue regarding the tax effect being ₹2,02,820/- and in light of CBDT Circular No. 3/2018, decided to dismiss the appeal 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 reasoning is based on the administrative instruction provided by the CBDT to avoid litigation where the tax effect is below a certain threshold. The ratio decidendi is that appeals with a tax effect below the prescribed limit in the relevant CBDT circular can be dismissed as not pressed, without prejudice to the Revenue's right to revive the appeal later.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax, Jalandhar-II (the Revenue) against an order concerning Jeetu Keshi (the assessee). The assessment year(s) are not explicitly stated in the provided text. The appeal challenges a decision of the Income Tax Appellate Tribunal (ITAT). The procedural history indicates that the Revenue, through its counsel, stated that the tax effect in this case is ₹2,02,820/-. Citing Circular No. 3/2018 dated 11.07.2018 from the Ministry of Finance, Department of Revenue, Central Board Direct Taxes, which sets a threshold for appeals based on tax effect, the Revenue's counsel indicated a desire not to press the appeal on merits.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per CBDT Circular No. 3/2018? Assessee's Contention: The judgment does not record any specific arguments made by the assessee. However, the outcome suggests the assessee would have benefited from the dismissal of the appeal on the grounds of tax effect. Revenue's Contention: The Revenue, through its counsel, stated that the tax effect involved in the case is ₹2,02,820/-. Relying on CBDT Circular No. 3/2018, which stipulates that appeals with a tax effect below ₹50 lacs should not be pressed, the Revenue's counsel expressed an intention not to press the appeal on merits.

AI-generated summary — verify with the full judgment below

HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** ITA No.66 of 2013 (O&M) Date of Decision: 03.10.2018 **** Commissioner of Income Tax, Jalandhar-II

...Appellant

VS.

Jeetu Keshi

... Respondent **** Coram : Hon’ble Mr.Justice Surya Kant

Hon’ble Mr.Justice Sudip Ahluwalia **** Present: Mr. Vivek Sethi, Advocate for the appellant

Mr. Akshay Bhan, Sr.Advocate with

Mr. Alok Mittal, Advocate for the respondent **** SURYA KANT J. (Oral)

(1) Learned counsel for Revenue states that the tax effect involved in this case is `2,02,820/- and 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, the tax effect being less than `50 lacs, he does not want to press this appeal on merits. (2) In view of the CBDT Circular, 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

03.10.2018 vishal shonkar (Sudip Ahluwalia) Judge

Whether speaking/reasoned?

Yes/No 2. Whether reportable?

Yes/No V VISHAL 2018.10.06 12:52 I attest to the accuracy and integrity of this document

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