CIT LUDHIANA vs. SHRI PANKAJ MUNJAL M/S ROCKMAN

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ITR/124/1999HC Punjab & HaryanaPHHC01038555199911 May 20162 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the reference as not pressed. The revenue, citing CBDT Circulars No. 21/2015 and 279/Misc/M-142/2007-ITJ (Part), indicated its intention not to press the reference due to the tax effect being below ₹ 20 lacs. The Court granted liberty to the revenue to file an application for revival of the reference if circumstances warranted. It was clarified that the withdrawal of the reference by the revenue would not be taken as an affirmation of the ITAT's order on merits. The legal issue raised by the revenue was expressly left open to be adjudicated in an appropriate case. Therefore, no finding was given on the merits of the substantial question of law.

What were the facts?

This is a reference filed by the Commissioner of Income-Tax (Central), Ludhiana, against an order of the Income-Tax Appellate Tribunal (ITAT). The reference pertains to assessment years 1985-86 and 1987-88 and arises from two appeals before the ITAT. The core issue involves whether the share of loss from a trust could be set off in the hands of the assessee beneficiaries, after the assessment of the trust was framed under Sections 160, 161, and 166 of the Income-tax Act. The amount in dispute is not explicitly stated but is implied to be below a certain threshold for the revenue to withdraw the reference.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that after assessment having been framed in the case of the trust as per provision of section 160/161 read with 166 of the Income-tax Act, share of loss from the trust was liable for the set off in the hands of the assessee beneficiaries? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The learned counsel for the appellant-revenue submitted that in view of Circular No. 21/2015 dated 10.12.2015 read with Circular No. 279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, issued by the Central Board of Direct Taxes, the revenue did not wish to press the present reference as the tax effect involved was less than ₹ 20 lacs. The revenue prayed for liberty to file an application for revival of the reference in case something survives therein.

Which sections of the Income-tax Act were involved?

Section 160,Section 161,Section 166

AI-generated summary — verify with the full judgment below

ITR No. 124 of 1999 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR No. 124 of 1999 (O&M) Date of Decision: 11.05.2016 The Commissioner of Income-Tax, (Central), Ludhiana .......Appellant Versus M/s Shri Pankaj Munjal

......Respondent CORAM: HON'BLE MR. JUSTICE RAJESH BINDAL HON'BLE MR. JUSTICE HARINDER SINGH SIDHU Present: Mr. Zora Singh Klar, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. RAJESH BINDAL,J. This reference has been filed in RA Nos. 156 and 157/Chandi/97 arising out of ITA Nos.1149 and 1150/Chandi/91, for the assessment years 1985-86 and 1987-88, raising the following substantial question of law: Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that after assessment having been framed in the case of the trust as per provision of section 160/161 read with 166 of the Income-tax Act, share of loss from the trust was liable for the set off in the hands of the assessee beneficiaries?. Learned counsel for the appellant-revenue submitted that in view of circular No.21/2015 dated 10.12.2015 read with circular No.279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, issued by Central Board of Direct Taxes, he does not wish to press the present reference as the tax effect involved is less than ` 20 lacs. However, he prays that REEMA SAINI 2016.05.18 12:43 I attest to the accuracy and authenticity of this document High Court, Chandigarh

ITR No. 124 of 1999 (O&M) -2- liberty be granted to the revenue to file an application for revival of the reference in case something survives therein. Dismissed as not pressed with liberty as prayed for. It is however, clarified that withdrawal of the reference by the revenue shall not be taken as affirmation of order of the Tribunal on merits. The legal issue as claimed by the revenue is left open to be adjudicated in an appropriate case. (RAJESH BINDAL)

JUDGE (HARINDER SINGH SIDHU) 11.05.2016 JUDGE reema REEMA SAINI 2016.05.18 12:43 I attest to the accuracy and authenticity of this document High Court, Chandigarh

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