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

ITA/83/2008HC Punjab & HaryanaPHHC01080861200823 August 20161 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn with liberty granted to the revenue to file an application for revival of the appeal as prayed. 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 future case. The operative direction was the dismissal of the appeal as withdrawn, with the specified liberty and clarification.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax, Ludhiana-II (the revenue) against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is M/s Highway Cycles Ltd., Ludhiana. The appeal was decided on August 23, 2016. The revenue sought to withdraw the appeal due to a tax effect of Rs. 3,50,000, citing Circular No. 21/2015 dated December 10, 2015, issued by the CBDT. The revenue also requested liberty to file an application for revival of the appeal if circumstances warranted.

What were the issues?

1. Whether the revenue is permitted to withdraw the appeal given the tax effect and CBDT circular, and if liberty can be granted for revival. The revenue argued that due to the tax effect of Rs. 3,50,000, it had instructions to withdraw the appeal in accordance with CBDT Circular No. 21/2015. The revenue also prayed for liberty to file an application for revival of the appeal. The judgment does not record any specific arguments from the respondent assessee on these points, other than their presence through senior counsel.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

Sr. No. 591 (2) ITA-83-2008

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.3,50,000/-, 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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