COMMISSIONER OF INCOME TAX (TDS) vs. ASHAPURA MINECHEM LTD

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TAXAP/224/2015HC GujaratGJHC24047739201503 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 of Gujarat at Ahmedabad 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 The appeal was dismissed as withdrawn.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 and the CBDT circular regarding monetary limits for appeals. No decision was made on the merits of the original dispute. The principle that can be cited is that appeals can be withdrawn based on administrative instructions and monetary limits, with potential liberty to revive.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (TDS) against Ashapura Minechem Ltd. The assessment year(s) are not specified in the judgment. The order or action under challenge is the appeal itself, filed before the High Court of Gujarat at Ahmedabad. The procedural history involves the appellant's submission of a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing withdrawal due to the tax effect being below the monetary limit of Rs.50,00,000/- as per CBDT Circular No.3/2018. The appellant sought permission to withdraw the appeal with a reservation of right to revive it if discrepancies arise later.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the appellant, the Commissioner of Income Tax (TDS), on the grounds that the tax effect is below the monetary limit prescribed by CBDT Circular No.3/2018 and does not fall within exceptional clauses. The Assessee (Revenue) argued through its counsel, Ms. Mauna Bhatt, that the appeal should be withdrawn. The grounds for withdrawal were based on the tax effect being below Rs.50,00,000/- and the case not fitting any exceptional categories as per CBDT Circular No.3/2018. The appellant also sought liberty to revive the appeal if any discrepancy is discovered later, acknowledging the possibility of human error. The Respondent (Assessee) did not record any arguments in the judgment.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/224/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 224 of 2015 ========================================================== COMMISSIONER OF INCOME TAX (TDS) Versus ASHAPURA MINECHEM LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 HRISHIKESH D WAGHELA(7965) for the RESPONDENT(s) No. 1 MR SHAKEEL A QURESHI(1077) 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)

1.

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.

2.

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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