PR. COMMISSIONER OF INCOME TAX-1, CHANDIGARH vs. M/S EMBEE FINANCIAL SERVICES LIMITED

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ITA/75/2020HC Punjab & HaryanaPHHC01024738202001 February 2024Bench: MR. JUSTICE GURMEET SINGH SANDHAWALIA,MS. JUSTICE LAPITA BANERJI1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the writ petition and the application for condonation of delay. The Court found that the tax effect of Rs. 2,37,131/- was below the monetary limit prescribed by CBDT Circulars. The revenue's contention that the case fell under an exception (Para 10(b) of the Circulars) did not impress the Court. Therefore, the appeal was deemed not maintainable. The ratio decidendi is that appeals filed by the revenue with a tax effect below the prescribed monetary limits are not maintainable unless the exception carved out in the circulars is demonstrably and convincingly established. The operative direction was the dismissal of the petition and application.

What were the facts?

The Principal Commissioner of Income Tax-1, Chandigarh (appellant/revenue) filed an appeal against an order concerning M/s. Embee Financial Services Ltd. (respondent/assessee). The tax effect involved in the appeal was Rs. 2,37,131/-. The revenue contended that the case fell under an exception to the monetary limit prescribed by CBDT Circulars. The High Court perused the paper book and considered the averments made.

What were the issues?

1. Whether the appeal filed by the revenue is maintainable given the tax effect involved, considering the monetary limits prescribed by CBDT Circulars No. 3 dated 11.07.2018 and No. 17 dated 08.08.2019, as amended on 20.08.2019? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The High Court's decision appears to be based on the tax effect and the circulars. Revenue's Contention: The revenue argued that the case falls under the exception carved out under Para 10(b) of the aforementioned CBDT Circulars, justifying the appeal despite the tax effect being below the prescribed monetary limit.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH 102 2024:PHHC:013564-DB ITA-75-2020 (O & M) Date of Decision: 01.02.2024 Pr. Commissioner of Income Tax-1, Chandigarh .....Appellant(s) Versus M/s. Embee Financial Services Ltd. ...Respondent(s) CORAM: HON'BLE MR. JUSTICE G.S.SANDHAWALIA HON'BLE MS. JUSTICE LAPITA BANERJI Present: Ms. Pridhi Jaswinder Sandhu, Jr. Standing Counsel, for the appellant. G.S.SANDHAWALIA, J. (Oral) 1. A perusal of the paper book would go on to show that the tax effect involved admittedly is only Rs. 2,37,131/-, which is less than the monetary limit as prescribed in the Circular No.3 dated 11.07.2018 read with Circular No.17 dated 08.08.2019 issued by the Central Board of Direct Taxes and its amendment dated 20.08.2019. An averment which has been made that the case would fall under the exception carved out under Para 10(b) of the above said Circular does not impress us in any manner. 2. Accordingly, the present writ petition as well as the application for condonation of delay stand dismissed on account of being not maintainable.

(G.S. SANDHAWALIA) JUDGE 01.02.2024 (LAPITA BANERJI) shivani JUDGE Whether reasoned/speaking Yes Whether reportable No Shivani Gupta 2024.02.06 12:46

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