COMMISSIONER OF INCOME TAX-II vs. GHCL LIMITED

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TAXAP/1597/2009HC GujaratGJHC24041019200903 December 2018Author: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER1 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court granted the permission as prayed for by the appellant. The appeal was dismissed as withdrawn. The court also granted liberty to the appellant to revive the appeal in case any discrepancy comes to notice at a later stage, acknowledging that human error cannot be ruled out. The reasoning for the decision was solely based on the appellant's submission regarding the tax effect being below the monetary limit prescribed by the CBDT circular and the absence of any exceptional circumstances. No decision on the merits of the original tax dispute was made.

What were the facts?

The appellant, Commissioner of Income Tax-II, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against GHCL Limited. The appeal was filed challenging an order or action, though the specifics of the order and the assessment year(s) are not detailed in this excerpt. The procedural history relevant here is the appellant's submission of a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing the withdrawal of the appeal. This instruction was based on the tax effect being below the monetary limit of Rs. 50,00,000/- and the case not falling under exceptional clauses of CBDT Circular No. 3/2018.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the appellant. This issue turns on the applicability of CBDT Circular No. 3/2018 regarding monetary limits for filing appeals. The appellant argued that the tax effect is below the prescribed monetary limit of Rs. 50,00,000/- and the case does not fall under any exceptional clauses mentioned in the CBDT Circular. Therefore, they sought permission to withdraw the appeal. The respondent's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/TAXAP/1597/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1597 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-II Versus GHCL LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MRS SWATI SOPARKAR(870) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER Date : 03/12/2018

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)

Ms. Mauna Bhatt, learned Senior Standing Counsel for the appellant has submitted a note together with a communication dated 29.10.2018 of the Joint Commissioner of Income Tax (Judicial), for Principal Chief Commissioner of Income Tax, Gujarat, Ahmedabad, instructing her to withdraw the appeal as the tax effect is below the monetary limit of Rs.50,00,000/- and the case does not fall in the exceptional clauses as per the CBDT Circular No.3/2018 dated 11.07.2018, reserving a right to revive the appeal in case any discrepancy comes to notice at a later stage after withdrawal of the appeal as human error cannot be ruled out. She, accordingly, seeks permission to withdraw the appeal with liberty as aforesaid.

Permission as prayed for is granted. The appeal is dismissed as withdrawn with liberty as aforesaid. (HARSHA DEVANI, J) (A. P. THAKER, J) Vijay

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