C.I.T. LDH. vs. M/S MUNJLA SALES CORP.

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ITR/3/1996HC Punjab & HaryanaPHHC01034999199621 July 2016Bench: MR. JUSTICE M.M. AGGARWAL,MR. JUSTICE AVNEESH JHINGAN1 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the reference as withdrawn with liberty granted to the revenue to file an application for revival of the reference. The Court clarified that the withdrawal by the revenue would not be considered an affirmation of the Tribunal's order on merits. Furthermore, the legal issue claimed by the revenue was left open to be adjudicated in an appropriate case. The ratio decidendi is that a reference can be withdrawn by the revenue based on low tax effect as per CBDT circulars, without prejudice to the legal issue being decided in future cases.

What were the facts?

The applicant, Commissioner of Income Tax, Ludhiana (Revenue), filed a reference application before the High Court of Punjab and Haryana at Chandigarh. The respondent is M/s Munjal Sales Corporation, Ludhiana. The reference pertains to an Income Tax Appellate Tribunal (ITAT) order. The tax effect involved in the present reference is approximately Rs. 43,643/-. The Revenue sought to withdraw the reference based on CBDT Circular No. 21/2015 dated 10.12.2015.

What were the issues?

1. Whether the Revenue is entitled to withdraw the present reference application. The Revenue, through its learned counsel, stated that due to the low tax effect of approximately Rs. 43,643/-, it had instructions to withdraw the present reference in view of CBDT Circular No. 21/2015. The Revenue prayed for liberty to file an application for revival of the reference if something survives therein. The judgment does not record any arguments from the respondent-assessee.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR-3-1996 Date of decision:- 21.07.2016 Commissioner of Income Tax, Ludhiana ...Applicant Versus M/s Munjal Sales Corporation, Ludhiana ...Respondent CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICE HON’BLE MR. JUSTICE DEEPAK SIBAL Present:- Mr. Zora Singh Klar, Advocate, for the applicant. * * * * S.J. VAZIFDAR, A.C.J. (ORAL) Learned counsel for the applicant-revenue states that since the tax effect involved is Rs. 43,643/- (approx.), he has instructions to withdraw the present reference 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 reference in case something survives therein. 2. Dismissed as withdrawn with liberty as prayed for. It is, however, clarified that withdrawal of the reference 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) ACTING CHIEF JUSTICE (DEEPAK SIBAL) JUDGE 21.07.2016 Amodh AMODH SHARMA 2016.07.21 16:53 I attest to the accuracy and authenticity of this document chandigarh

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