2017 (1) TMI 1658 - HC - Income Tax

Maintainability of appeal - low tax effect - HELD THAT - The tax effect involved in the present case is ₹ 32,630/-. In view of the order of the Apex Court in 'Commissioner of Income Tax Vs. Dhanalekshmi Bank Lt., 2015 (8) TMI 474 - SUPREME COURT where the Supreme Court had dismissed the appeal without going into the merits of the appeal due to low tax effect leaving the question of law open, the present appeal is dismissed. It is, however, clarified that dismissal of the appeal 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.

Summary

The Punjab and Haryana High Court dismissed the appeal due to low tax effect of Rs. 32,630, following the Supreme Court's precedent in 'Commissioner of Income Tax Vs. Dhanalekshmi Bank Lt., [2015] 373 ITR 526 (SC)'. The dismissal does not affirm the Tribunal's order on merits, and the legal issue raised by the revenue is left open for future adjudication.