COMMISSIONER OF INCOME TAX-II vs. JAY CHEMICAL INDUSTRIES LTD

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TAXAP/1433/2011HC GujaratGJHC24045484201103 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 Revenue. Consequently, the appeal was dismissed as withdrawn. The Court also granted the liberty to the Revenue to revive the appeal in case any discrepancy comes to notice at a later stage after the withdrawal of the appeal, acknowledging that human error cannot be ruled out. The reasoning for the decision is solely based on the Revenue's request and the CBDT circular cited, without delving into the merits of the original dispute. No specific finding was made on the substantive issues that led to the original appeal, as the appeal was withdrawn.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-II (the Revenue) against Jay Chemical Industries Ltd (the Assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The Revenue, through its learned Senior Standing Counsel, submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial). This communication indicated that the appeal was to be withdrawn because the tax effect was below the monetary limit of Rs. 50,00,000/- as per CBDT Circular No. 3/2018. The case did not fall under any exceptional clauses. The Revenue sought permission to withdraw the appeal with a reservation of right to revive it if any discrepancy was discovered later.

What were the issues?

1. Whether the Revenue should be permitted to withdraw the appeal, given that the tax effect is below the monetary limit prescribed by CBDT Circular No. 3/2018 and the case does not fall within the exceptional clauses. Assessee's Contentions: The judgment does not record any specific contentions from the Assessee. The Assessee was served with the rule. Revenue's Contentions: The Revenue, through its counsel, submitted a note and a communication from the Joint Commissioner of Income Tax (Judicial). This communication instructed the withdrawal of the appeal due to the tax effect being below the monetary limit of Rs. 50,00,000/- as per CBDT Circular No. 3/2018, and the case not fitting into any exceptional clauses. The Revenue sought permission to withdraw the appeal with liberty to revive it if any discrepancies were later found, acknowledging the possibility of human error.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/TAXAP/1433/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1433 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-II Versus JAY CHEMICAL INDUSTRIES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR TEJ SHAH(5743) for the RESPONDENT(s) No. 1 RULE SERVED(64) 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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