PR. COMMISSIONER OF INCOME TAX-2, CHANDIGARH vs. M/S SML ISUZU LIMITEDN ( FORMERLY SWARAJ MAZDA

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ITA/72/2019HC Punjab & HaryanaPHHC01147657201811 September 2019Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE HARNARESH SINGH GILL1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The court granted the liberty as prayed for by the revenue, allowing them to file an application for revival of the appeal if something survives therein. The reasoning for dismissal was based on the revenue's submission that the tax effect was below the prescribed monetary limit, making further litigation unnecessary as per the CBDT circulars. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, can be withdrawn by the revenue with liberty to revive, subject to specific conditions. Since the main appeal was dismissed, any pending application related to the appeal was also disposed of.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2, Chandigarh (the revenue) against M/s SML Isuzu Limited (formerly Swaraj Mazda Limited) (the assessee). The assessment year(s) are not explicitly stated. The appeal challenges an order passed by an Income Tax Appellate Tribunal (ITAT) or a similar authority, though the specific order and authority are not detailed. The procedural history is that the revenue's counsel stated that the tax effect involved was below the monetary limit prescribed by CBDT Circulars. Consequently, the revenue sought to withdraw the appeal, requesting liberty to revive it if circumstances changed.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn due to the tax effect being below the prescribed monetary limit, as per CBDT Circular No. 3 of 2018 and Circular No. 17 of 2019. The revenue argued that the tax effect involved in the appeal was less than the monetary limit stipulated in CBDT Circular No. 3 of 2018, as amended by Circular No. 17 of 2019, and further clarified by Letter No. F.No.279/Misc/M-93/2018-ITJ dated 20.08.2019. Based on these circulars, the revenue's counsel had instructions to withdraw the appeal. The revenue also prayed for liberty to file an application for revival of the appeal if any aspect of the matter survived. The judgment does not record any arguments from the assessee's side.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 72 of 2019 (O&M) Date of Decision: 11.9.2019 Pr. Commissioner of Income Tax-2, Chandigarh .......Appellant Vs. M/s SML Isuzu Limited (Formerly Swaraj Mazda Limited) .......Respondent CORAM: HON’BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE HARNARESH SINGH GILL Present: Ms. Urvashi Dhugga, Senior Standing Counsel for the appellant. ***** 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, she has instructions to withdraw the present appeal. However, she 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 application, if any, also stands disposed of. (AJAY TEWARI) JUDGE (HARNARESH SINGH GILL) September 11, 2019

JUDGE Gurpreet Whether speaking /reasoned : Yes Whether Reportable : No GURPREET SINGH 2019.09.12 16:51 I attest to the accuracy and authenticity of this document chandigarh

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