COMMISSIONER OF INCOME TAX, KOLKATA III, KOLKATA vs. BRITANIA INDUSTRIES LIMITED

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ITA/150/2011HC CalcuttaWBCHCO003232201109 August 2021Bench: HON'BLE JUSTICE RAJESH BINDAL, CHIEF JUSTICE (ACTING),HON'BLE JUSTICE RAJARSHI BHARADWAJ2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court dismissed the appeal as withdrawn. The Court noted that the assessee had settled the dispute with the department and paid the disputed tax amount. Consequently, the appeal filed by the Revenue was disposed of as withdrawn. However, the Court explicitly stated that the substantial questions of law were left open. This means that the merits of the original dispute decided by the ITAT were not adjudicated upon by the High Court, and the withdrawal does not set any precedent on the substantive legal issues.

What were the facts?

The Revenue, Commissioner of Income Tax, Kolkata III, Kolkata, filed an appeal before the High Court at Calcutta (Original Side) challenging an order dated February 11, 2021, passed by the Income Tax Appellate Tribunal (ITAT) 'C' Bench, Kolkata. This order pertained to ITA No.1708 (Kol) of 2008 for the assessment year 2004-05. The appeal was filed by the Revenue against Britannia Industries Ltd. The Revenue's counsel informed the Court that they had instructions to withdraw the appeal. This instruction was based on the assessee having paid the entire disputed tax amount by settling the dispute under the Vivad se Vishwas Act, 2020, and having received Form No. 5. A communication from the JCIT (OSD), Hqrs.-1, Kolkata, dated January 6, 2021, was also referenced, directing the withdrawal of the appeal.

What were the issues?

The Tribunal did not have to decide any issues as the appeal was withdrawn. The primary procedural matter before the High Court was whether to allow the Revenue's request to withdraw the appeal. The Revenue argued that the appeal should be withdrawn because the assessee had settled the dispute under the Vivad se Vishwas Act, 2020, paid the disputed tax, and received Form No. 5, as per a communication from the JCIT. The assessee's contentions were not recorded as they were not required to argue the matter due to the withdrawal.

AI-generated summary — verify with the full judgment below

Serial No. OD - 02 HIGH COURT AT CALCUTTA (ORIGINAL SIDE) ITAT/150/2011 (Through Video Conferencing) COMMISSIONER OF INCOME TAX, KOLKATA III, KOLKATA ………….Appellant(s) Through : Ms. Sucharita Biswas, Mr. Ashok Bhowmik, Advocates v/s BRITANNIA INDUSTRIES LTD. ………….Respondent(s)

Through : Mr. R. K. Murarka, Ms. Sutapa Roychowdhury, Mr. Vivek Murarka, Advocates. Coram: HON’BLE MR. RAJESH BINDAL, CHIEF JUSTICE (ACTING) HON’BLE MR. JUSTICE RAJARSHI BHARADWAJ, JUDGE O R D E R 1. The present appeal has been filed by the Revenue assailing the order dated February 11, 2021 passed by the Income Tax Appellate Tribunal ‘C’ Bench, Kolkata in ITA No.1708 (Kol) of 2008 for the assessment year 2004-05. 2. Learned counsel for the appellant submitted that she has instruction to withdraw the present appeal as the assessee has paid entire amount of disputed tax while settling the dispute under Vivad se Vishwas Act, 2020. Even Form No.5 has been issued. She has also referred to a communication from JCIT (OSD), Hqrs.-1, Kolkata dated January 6, 2021 to the appellant for withdrawal of the appeal.

2 3. As the assessee has already settled the dispute with the department and paid the amount of disputed tax, the present appeal is dismissed as withdrawn, however, leaving the substantial questions of law open. KOLKATA (RAJARSHI BHARADWAJ) (RAJESH BINDAL) 09.08.2021 JUDGE CHIEF JUSTICE (ACTING) akg/s.kumar

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