COMMISSIONER OF I.T.(C)LDH. vs. M/S.MAJESTIC AUTO LTD. LDH.

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ITA/67/2001HC Punjab & HaryanaPHHC01042112200126 September 2018Bench: MS. JUSTICE NAVITA SINGH,MR. JUSTICE ASHOK KUMAR VERMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court decided the appeal based on the submission made by the Revenue's counsel. Citing CBDT Circular No. 3/2018, which stipulates that appeals with a tax effect below ₹50 lacs should not be pressed, the Court dismissed the instant 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 kept open. The reasoning is solely based on the monetary limit prescribed by the CBDT circular and the Revenue's decision not to pursue the appeal on merits.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax (Central), Ludhiana (the Revenue) against M/s Majestic Auto Ltd., Ludhiana (the assessee). The appeal pertains to the assessment year(s) not specified in the judgment. The order or action under challenge is not detailed, but the appeal is before the High Court of Punjab & Haryana at Chandigarh. The tax effect involved in the case is stated to be ₹25,43,760/-. The procedural history leading to this appeal is not elaborated.

What were the issues?

The High Court was to decide the appeal filed by the Revenue. The primary issue, as presented to the court, was whether the appeal should be pressed on merits. The Revenue, through its learned counsel, stated that the tax effect involved is ₹25,43,760/-. Relying on Circular No. 3/2018 dated 11.07.2018 issued by the Ministry of Finance, Department of Revenue, Central Board Direct Taxes, which sets a monetary limit for filing appeals, the Revenue indicated it did not wish to press the appeal on merits as the tax effect was less than ₹50 lacs. The assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH **** ITA No.67 of 2001 Date of Decision: 26.09.2018 **** Commissioner of Income Tax (Central), Ludhiana ..... Appellant Versus M/s Majestic Auto Ltd., Ludhiana

..... Respondent CORAM: HONBLE MR. JUSTICE SURYA KANT HONBLE MR. JUSTICE SUDIP AHLUWALIA Present: Mr. Rajesh Katoch, Advocate, for the appellant. Mr. Akshay Bhan, Senior 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 `25,43,760/- 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 26.09.2018

(SUDIP AHLUWALIA) Bhumika JUDGE 1. Whether speaking/reasoned: Yes 2. Whether reportable: No Bhumika Bhati 2018.09.28 13:57 I attest to the accuracy and integrity of this document

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