PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. GHCL LIMITED

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TAXAP/325/2016HC GujaratGJHC24051738201627 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 Revenue to withdraw the appeal. The appeal was dismissed as withdrawn. The Court also granted liberty to the Revenue to revive the appeal in case any discrepancy was noticed at a later stage, acknowledging that human error cannot be ruled out. The decision to withdraw was based on the Revenue's submission that the tax effect was below the monetary limit specified in CBDT Circular No. 3/2018 and the case did not fall under any exceptional categories. No decision was made on the merits of the case.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2 against GHCL Limited. The appeal was before the High Court of Gujarat at Ahmedabad. The Revenue's counsel submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial) instructing 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 Revenue reserved the right to revive the appeal if any discrepancy was discovered later.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the Revenue. (Question of procedure) The Revenue argued that the appeal should be withdrawn as the tax effect was below the monetary limit prescribed by CBDT Circular No. 3/2018 and the case did not meet the criteria for exceptional clauses. The Revenue also sought liberty to revive the appeal if any discrepancy was found later, acknowledging the possibility of human error. The Assessee'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/325/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 325 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus GHCL LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR B S SOPARKAR(6851) 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

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