COMMISSIONER OF INCOME TAX,LUD vs. MUNJAL CASTING

ITR/396/1995HC Punjab & HaryanaPHHC01032468199504 July 20161 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the withdrawal of the reference sought by the appellant-Department. The reasoning was based on the Department's submission that the tax effect was below the threshold of Rs. 20 lacs, as stipulated in Circular No. 21/2015, dated December 10, 2015. The Tribunal held that in view of this circular, the reference was no longer required to be pursued. The operative direction was to dispose of the reference. The principle established is that the Department can withdraw appeals or references if the tax effect falls below a specified limit, as per its administrative circulars. The court explicitly stated that this order would not impact the rights and contentions of the parties in any other appropriate proceedings.

What were the facts?

This matter concerns an Income Tax Reference (ITR) filed by the Commissioner of Income Tax (Central), Ludhiana, against Shri Munjal Castings, Ludhiana. The reference was decided on July 4, 2016, by the High Court of Punjab and Haryana at Chandigarh. The appellant-Department sought to withdraw the reference. The reason cited for withdrawal was that the tax effect involved was less than Rs. 20 lacs, in accordance with Circular No. 21/2015, dated December 10, 2015. The High Court disposed of the reference accordingly. The court noted that this order would not prejudice the rights or contentions of the parties in any other proceedings.

What were the issues?

1. Whether the appeal should be withdrawn by the appellant-Department on the grounds of tax effect being less than Rs. 20 lacs, as per Circular No. 21/2015? (Question of procedure/administrative policy) Assessee's Contention: The judgment does not record any specific contentions from the assessee. The withdrawal was sought by the Department. Revenue's Contention: The appellant-Department argued for the withdrawal of the reference on the ground that the tax effect was less than Rs. 20 lacs, citing Circular No. 21/2015, dated December 10, 2015. This circular likely provides guidelines for the Department regarding the pecuniary limits for pursuing appeals and references.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

Sr. No.302 (6) ITR-396-1995

Decided on : 04.07.2016 The Commissioner of Income Tax (Central) Ludhiana ..... Appellant

VERSUS Shri Munjal Castings, Ludhiana

..... Respondent CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE DEEPAK SIBAL Present: Mr.Zora Singh Klar, Senior Standing Counsel, for the appellant-Department. Mr.Alok Mittal, Advocate, for the respondent.

******* S.J. VAZIFDAR, A.C.J. (Oral) Learned counsel appearing on behalf of the appellant- Department seeks leave to withdraw the reference on the ground that the tax effect is less than the amount of Rs.20 lacs and in view of Circular No. 21/2015, dated 10.12.2015. The reference is accordingly disposed of. Needless to add that this order would not affect the rights and the contentions of the parties on the questions of law or of fact in other appropriate proceedings.

[ S.J. VAZIFDAR ] ACTING CHIEF JUSTICE 04.07.2016

[ DEEPAK SIBAL ] shamsher JUDGE SHAMSHER SINGH 2016.07.08 14:36 I attest to the accuracy and authenticity of this document Chandigarh

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