THE COMMISSIONER OF INCOME TAX vs. M/S PURE DRINKS

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ITA/69/2004HC Punjab & HaryanaPHHC01051590200413 February 2019Bench: MR. JUSTICE KRISHNA MURARI,MR. JUSTICE ARUN PALLI1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn with liberty granted to the revenue to file an application for revival of the appeal as prayed for. The Court clarified that the withdrawal of the appeal by the revenue shall not be construed as an affirmation of the Tribunal's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate future case. The specific findings on the merits of the case or the ITAT's order were not addressed due to the withdrawal. The operative direction was the dismissal of the appeal as withdrawn with the specified liberty.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Patiala (the revenue) against M/s Pure Drinks (N. Delhi) Ltd. (the assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The procedural history indicates that the revenue sought to withdraw the present appeal. The reason for withdrawal was that the tax effect involved was less than ₹50 lacs, in accordance with Circular No. 03/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi. The revenue requested liberty to file an application for revival of the appeal if something survived therein.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal in light of the tax effect being less than ₹50 lacs and CBDT Circular No. 03/2018? Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The revenue, through its learned counsel, stated that the tax effect involved in the present appeal is less than ₹50 lacs. Consequently, it has received instructions to withdraw the appeal in view of Circular No. 03/2018 dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi. The revenue prayed for liberty to file an application for revival of the appeal in case something survives therein.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA-69-2004 (O&M) Date of decision:- 13.02.2019

The Commissioner of Income Tax, Patiala ...Appellant Versus

M/s Pure Drinks (N. Delhi) Ltd. ...Respondent

CORAM: HON'BLE MR. JUSTICE KRISHNA MURARI, CHIEF JUSTICE

HON’BLE MR. JUSTICE ARUN PALLI

Present:- Mr. Rajesh Katoch, Advocate,

for the appellant.

Mr. Akshay Bhan, Senior Advocate,

with Mr. Alok Mittal, Advocate,

for the respondent. * * * * KRISHNA MURARI, C.J. (ORAL)

Learned counsel for the appellant-revenue states that since the tax effect involved is less than ` 50 lacs, he has instructions to withdraw the present appeal in view of Circular No. 03/2018, dated 11.07.2018 issued by the Central Board of Direct Taxes, New Delhi. However, he has prayed that liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. 2.

Dismissed as withdrawn with liberty as prayed for. It is, however, clarified that withdrawal of the appeal by the revenue shall not be taken to be affirmation of order of the Tribunal on merits. Further, the legal issue as claimed by the revenue is being left open to be adjudicated in an appropriate case.

(KRISHNA MURARI)

CHIEF JUSTICE

(ARUN PALLI) JUDGE 13.02.2019 Amodh Whether speaking/reasoned Yes/No Whether reportable Yes/No

AMODH SHARMA 2019.02.14 12:07 I attest to the accuracy and integrity of this document

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