COMMISSIONER OF INCOME TAX-II vs. M/S PUNJAB CHEMICALS & CORP

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ITA/762/2008HC Punjab & HaryanaPHHC01080786200830 July 2018Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting the revenue the liberty to file an application for revival of the appeal as prayed for. The Court clarified that the withdrawal of the appeal by the revenue would not be considered an affirmation of the Tribunal's order on merits. Furthermore, the legal issue, as claimed by the revenue, was explicitly left open to be adjudicated in an appropriate case. No specific finding on the merits of the ITAT's order was made.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax-II, Chandigarh (revenue) against M/s Punjab Chemicals & Crop Protection Ltd., Chandigarh (assessee). The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal is ₹10,56,000/-. The revenue sought to withdraw the appeal based on Circular No. 03/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes (CBDT). The revenue also prayed for liberty to file an application for revival of the appeal if something survives therein.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn, considering the tax effect and the CBDT circular? (Question of law). The revenue argued that due to the tax effect being below the threshold stipulated in CBDT Circular No. 03/2018, they have instructions to withdraw the appeal. They also sought liberty to revive the appeal if circumstances warranted. The assessee's arguments 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-762-2008 (O&M) Date of Decision: 30.7.2018 Commissioner of Income Tax-II, Chandigarh ...Appellant. Versus M/s Punjab Chemicals & Crop Protection Ltd., Chandigarh ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE AVNEESH JHINGAN. PRESENT: Ms. Urvashi Dhugga, Sr. Standing Counsel for the appellant. Mr. Viraj Gandhi, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. Letter dated 27.7.2018 is taken on record. 2. Learned counsel for the appellant-revenue states that since the tax effect involved is ` 10,56,000/-, she has instructions to withdraw the present appeal in view of Circular No.03/2018, dated 11th July, 2018, issued by the Central Board of Direct Taxes, New Delhi. However, she has prayed that liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. 3. 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. (AJAY KUMAR MITTAL) JUDGE July 30, 2018 (AVNEESH JHINGAN) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No Gurbachan Singh 2018.08.01 12:52 I attest to the accuracy and integrity of this document

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