PRINCIPAL COMMISSIONER OF INCOME TAX-2, vs. ELCON EXPORTS PVT. LTD.

PDF · subscribers
TAXAP/241/2017HC GujaratGJHC24056871201727 November 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 permission to the appellant to withdraw the appeal. The appeal was dismissed as withdrawn.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 decision to withdraw was based on the instruction from the Joint Commissioner of Income Tax (Judicial) due to the tax effect being below the monetary limit specified in CBDT Circular No. 3/2018 and the case not fitting any exceptional categories. No decision on the merits of the original appeal was made.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2 against an order of the Income Tax Appellate Tribunal (ITAT). The respondent is Elcon Exports Pvt. Ltd. The assessment year(s) are not specified. The appellant's counsel submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial) instructing the withdrawal of the appeal. The reason for withdrawal was that the tax effect was below the monetary limit of Rs. 50,00,000/- and the case did not fall under the exceptional clauses of CBDT Circular No. 3/2018 dated 11.07.2018. The appellant sought permission to withdraw the appeal with a reservation of right to revive it if any discrepancy is found later.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the appellant, the Principal Commissioner of Income Tax-2, on the grounds that the tax effect is below the monetary limit prescribed by CBDT Circular No.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. The Assessee (Revenue) argued for withdrawal, citing the CBDT Circular No. 3/2018 and the low tax effect. The Assessee also sought liberty to revive the appeal in case of future discrepancies. The judgment does not record any arguments from the Respondent (Elcon Exports Pvt. Ltd.).

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/241/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 241 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2, Versus ELCON EXPORTS PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 RULE UNSERVED(68) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER Date : 27/11/2018

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.

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

Recent GST High Court judgments

Search GST case law →