C I T vs. M/S HIGHWAY CYCLES INDS. LTD.

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ITA/82/2008HC Punjab & HaryanaPHHC01080850200823 August 2016Bench: MR. JUSTICE M.M. AGGARWAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn, granting liberty to the revenue to file an application for revival of the appeal as prayed for.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 would not be construed as an affirmation of the ITAT's order on merits. Furthermore, the legal issue, as claimed by the revenue, was explicitly left open to be adjudicated in an appropriate future case. The reasoning for withdrawal was primarily based on the low tax effect, as per the CBDT circular, and the revenue's instruction to withdraw. The operative direction was the dismissal of the appeal as withdrawn with liberty.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Ludhiana-II (appellant-revenue) against M/s Highway Cycles Ltd., Ludhiana (respondent-assessee). The assessment year(s) are not specified. The appeal challenges an order passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in the appeal is Rs. 15,000/-. The revenue sought to withdraw the appeal based on CBDT Circular No. 21/2015 dated 10.12.2015, and requested liberty to revive the appeal if necessary. The High Court dismissed the appeal as withdrawn with liberty as prayed for.

What were the issues?

1. Whether the appeal filed by the revenue should be dismissed as withdrawn based on the tax effect and CBDT Circular No. 21/2015? (Question of law) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. The revenue's counsel stated instructions to withdraw the appeal due to the low tax effect, citing CBDT Circular No. 21/2015. Revenue's Contentions: The revenue, through its learned counsel, stated that due to the tax effect of Rs. 15,000/-, it had instructions to withdraw the appeal in view of CBDT Circular No. 21/2015. The revenue also prayed for liberty to file an application for revival of the appeal.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

Sr. No. 591 ITA-82-2008

Decided on : 23.08.2016 Commissioner of Income Tax, Ludhiana-II ..... Appellant

VERSUS M/s Highway Cycles Ltd., Ludhiana ..... Respondent CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, CHIEF JUSTICE HON'BLE MR. JUSTICE DEEPAK SIBAL Present: Mr.Zora Singh Klar, Advocate, for the appellant. Mr.Akshay Bhan, Senior Advocate, with Mr.Alok Mittal, Advocate, for the respondent.

******* S.J. VAZIFDAR, C.J. (Oral) Learned counsel for the appellant-revenue states that since the tax effect involved is Rs.15,000/-, he has instructions to withdraw the present appeal in view of the circular No.21/2015, dated 10.12.2015, issued by the C.B.D.T., New Delhi. However, he 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.

[ S.J. VAZIFDAR ]

CHIEF JUSTICE 23.08.2016

[ DEEPAK SIBAL ] shamsher JUDGE Whether speaking/reasoned : Yes/No Whether reportable : Yes/No Shamsher Singh 2016.08.24 17:37 I attest to the accuracy and authenticity of this document Chandigarh

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