PR. COMMISSIONER OF INCOME TAX, JALANDHAR-1, JALANDHAR vs. M/S. MAX INDIA LIMITED

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ITA/8526/2018HC Punjab & HaryanaPHHC01146932201809 February 2023Bench: MS. JUSTICE RITU BAHRI,MRS. JUSTICE MANISHA BATRA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Principal Commissioner of Income Tax. The Court took note of the fact that a previous appeal, C.A. No. 12446 of 2017, involving the same assessee, M/s. Max India Limited, had been dismissed by the Hon'ble Supreme Court on January 6, 2020, on the grounds of low tax effect. The present appeal also concerns M/s. Max India Limited and has a total tax effect of Rs. 80,80,330. Following the precedent set by the Supreme Court and in compliance with Circular No. 17 of 2019 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, the High Court found it appropriate to dismiss the present appeal. No specific issue was left undecided; the appeal was disposed of on procedural grounds related to tax effect and circulars.

What were the facts?

The Principal Commissioner of Income Tax, Jalandhar (the appellant/revenue) filed an appeal against the order of the Income Tax Appellate Tribunal (ITAT), Amritsar Bench, dated June 29, 2018, for the assessment year 2009-10. The assessee is M/s. Max India Limited. The appeal before the High Court concerns a tax effect of Rs. 80,80,330. A previous appeal, C.A. No. 12446 of 2017, involving the same assessee, was dismissed by the Hon'ble Supreme Court due to low tax effect.

What were the issues?

1. Whether the High Court should dismiss the present appeal based on the Supreme Court's decision in a similar case involving the same assessee and a low tax effect, and in light of CBDT Circular No. 17 of 2019. (Question of law and fact) Assessee's Contention: Not recorded. Revenue's Contention: The revenue, through its counsel, informed the Court that a previous appeal (C.A. No. 12446 of 2017) concerning the same assessee was dismissed by the Supreme Court due to low tax effect. The revenue further submitted that the present appeal also involves a low tax effect and should be dismissed in accordance with CBDT Circular No. 17 of 2019.

AI-generated summary — verify with the full judgment below

102 HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-8526-2018 Date of decision:09.02.2023 Principal Commissioner of Income Tax, Jalandhar ....Appellant V/s. M/s. Max India Limited ....Respondent CORAM: HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MRS. JUSTICE MANISHA BATRA Present: Ms. Gauri Neo Rampal, Advocate for the appellant. Mr. Neeraj Kumar Jain, Advocate with Mr. Vishal Gupta, Advocate and Ms. Manisha Sharma, Advocate for the respondent. **** Ritu Bahri, J. (Oral). The appellant has come up in appeal against the order of Income Tax Appellate Tribunal, Amritsar Bench, Amritsar passed in ITA No. 575(ASR) 2015 dated 29.06.2018 for the assessment year 2009-10. Learned counsel for the appellant has informed that C.A. No. 12446 of 2017 has been dismissed on 06.01.2020 by the Hon'ble Supreme Court keeping in view low tax effect. Since the assessee in the present case is also M/s. Max India Ltd., and the total tax is Rs.80,80,330/-, the present appeal is dismissed as per the Circular No. 17 of 2019 passed by Ministry of Finance, Department of Revenue, Central Board Direct Taxes. (RITU BAHRI)

JUDGE (MANISHA BATRA) JUDGE 09.02.2023

Divyanshi Whether speaking/reasoned: Yes/No Whether reportable: Yes/No DIVYANSHI 2023.02.15 11:54 I attest to the accuracy and authenticity of this document/order

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