COMMISSIONER OF INCOME TAX-II LUDHIANA vs. M/S AVON CYCLES LTD LUDHIANA

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ITA/82/2016HC Punjab & HaryanaPHHC01110678201609 September 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The High Court dismissed the appeal as withdrawn with liberty to the revenue to file an application for revival of the appeal as prayed for.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 considered an affirmation of the ITAT's order on merits. Furthermore, the legal issue, as claimed by the revenue, was left open to be adjudicated in an appropriate case. The specific findings or reasoning of the ITAT, which led to the original appeal, are not detailed as the appeal was withdrawn before any adjudication on the merits by the High Court. No specific ratio decidendi for future cases was established on the substantive issues.

What were the facts?

The appeal was filed by the Commissioner of Income-Tax-2, Ludhiana (appellant-revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The respondent was M/s Avon Cycles. The appeal was filed for assessment year(s) not specified in the judgment. The revenue sought to withdraw the appeal based on CBDT Circular No. 03/2018, dated 11.07.2018, as the tax effect was less than ₹50 lacs. The revenue requested liberty to file an application for revival of the appeal if something survived.

What were the issues?

1. Whether the appeal should be dismissed as withdrawn by the revenue in view of CBDT Circular No. 03/2018, dated 11.07.2018, due to the tax effect being less than ₹50 lacs? Assessee's Contention: The judgment does not record any specific contentions from the assessee. The appeal was withdrawn by the revenue. Revenue's Contention: The revenue, through its learned counsel, stated that due to the tax effect being less than ₹50 lacs, it had instructions to withdraw the appeal in accordance with CBDT Circular No. 03/2018. The revenue 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 ITA No.82 of 2016 (O&M) Date of Decision :09.09.2019 Commissioner of Income-Tax-2, Ludhiana ......Appellant Versus M/s Avon Cycles ...... Respondent CORAM: HON'BLE MR.JUSTICE KRISHNA MURARI, CHIEF JUSTICE HON'BLE MR.JUSTICE ARUN PALLI, JUDGE Present : Mr. Sandeep Goyal, Advocate and Mr. Chetan Sood, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. KRISHNA MURARI, CHIEF JUSTICE

(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 09.09.2019

Manoj Bhutani

Whether speaking/reasoned Yes/No Whether reportable Yes/No MANOJ KUMAR 2019.09.10 15:37 I attest to the accuracy and authenticity of this document

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