COMMISSIONER OF INCOME TAX II vs. MODERN CONSTRUCTION CO. P. LTD.

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TAXAP/565/2014HC GujaratGJHC24044883201427 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 withdraw the appeal as prayed for by the Revenue. The Court noted the submission of the Revenue that the tax effect was below the monetary limit of Rs. 50,00,000/- as per CBDT Circular No. 3/2018 dated 11.07.2018, and the case did not fall under any exceptional clauses. The appeal was dismissed as withdrawn with a liberty reserved for the appellant to revive the appeal in case any discrepancy comes to notice at a later stage, acknowledging the possibility of human error. No decision on the merits of the appeal was made.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax II against an order concerning Modern Construction Co. P. Ltd. The appeal was filed before the High Court of Gujarat at Ahmedabad. The learned Senior Standing Counsel for the appellant submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial). This communication instructed her to withdraw the appeal. The reason for withdrawal was that the tax effect was below the monetary limit of Rs. 50,00,000/- as per CBDT Circular No. 3/2018 dated 11.07.2018, and the case did not fall under any exceptional clauses. The appellant 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 Whether the appeal should be permitted to be withdrawn by the Revenue. This issue turns on the applicability of CBDT Circular No. 3/2018. The Revenue argued that the tax effect is below the monetary limit prescribed in the circular, and the case does not fall within the exceptional clauses, thus justifying withdrawal. The Assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/565/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 565 of 2014 ========================================================== COMMISSIONER OF INCOME TAX II Versus MODERN CONSTRUCTION CO. P. LTD. ========================================================== 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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