What did the High Court hold?

The High Court permitted the Income Tax Department to withdraw the appeal. Liberty was granted to file an application for restoration if the appeal falls within exceptions to the circular.

The Income Tax Department sought to withdraw its appeal before the High Court. This was based on a CBDT circular allowing withdrawal of appeals with a tax effect below Rs. 1 crore.

What were the issues?

Whether the Income Tax Department can withdraw an appeal based on a CBDT circular regarding tax effect thresholds.

CIT vs Sarvaraya Textilesltd., Kakinada | Andhra Pradesh High Court 2022

HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

THE HON’BLE Mr. JUSTICE AHSANUDDIN AMANULLAH AND THE HON’BLE Ms. JUSTICE B. S. BHANUMATHI

I.T.T.A. No. 53 of 2003

Commissioner of Income Tax, Rajahmundry. …. Appellant Versus Sarvaraya Textiles Ltd., PB No. 63, Beach Road, Kakinada. …. Respondent

Counsel for the appellant

: Ms. M. Kiranmayee,

Senior Standing Counsel, Income Tax

Counsel for the respondent

: ----

ORAL JUDGMENT

Date: 25.01.2022 (Per Hon’ble Ms. Justice B. S. Bhanumathi)

When the matter is taken up, Ms. M. Kiranmayee, learned Senior Standing Counsel, Income Tax, for the appellant submitted that as per the Central Board Direct Taxes Circular No.17 of 2019, dated 08.08.2019, if the tax effect is below Rs.1.00 crore, an appeal can be withdrawn and that the subject matter of this appeal is squarely covered by the Judgment of this Court dated 06.11.2019 passed in ITTA No.163 of 2019 in which the said Circular was considered. Thus, she sought permission to withdraw the appeal in terms thereof.

The Judgment in ITTA No. 163 of 2019 reads as under:

“The learned Standing Counsel for the Income-Tax Department would submit that in terms of the Central Board Direct Taxes Circular No.17 of 2019, dated 08.08.2019, all appeals where the tax effect is below Rs.1,00,00,000/- are

required to be withdrawn and as the value of the present appeal is less than Rs.1,00,00,000/-, the appellant may be permitted to withdraw the appeal. The learned counsel would further submit that liberty may be granted in case it were to be found later that the subject matter of the appeal falls within the exceptions mentioned in the Circular issued by the Central Board to file an application for restoration of the appeal.

Accordingly, the appeal is dismissed as withdrawn with the liberty aforestated. There shall be no order as to costs. As a sequel, Miscellaneous Petitions, if any pending, shall disposed of as infructuous.”

None appeared on behalf of the respondent.

Having regard to the facts and circumstances of the case and considering the submission of learned Senior Standing Counsel, the appeal is dismissed as withdrawn granting liberty to the appellant to file an application for restoration of the appeal, if it were to be found later that the subject matter of the appeal falls within the exceptions mentioned in the Circular No.17, dated 08.08.2019 issued by the Central Board Direct Taxes. No order as to costs.

Miscellaneous Applications, if any pending, also stand disposed of. ________________________________ (AHSANUDDIN AMANULLAH, J)

________________________ (B. S. BHANUMATHI, J) Mjl/*

THE HON’BLE Mr. JUSTICE AHSANUDDIN AMANULLAH

AND

THE HON’BLE Ms. JUSTICE B. S. BHANUMATHI

ITTA No. 53 2003

25.01.2022

Mjl/*

COMMISSIONER OF INCOME TAX, RAJAHMUNDRY vs. SARVARAYA TEXTILESLTD., KAKINADA

What did the High Court hold?

What were the facts?

What were the issues?

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