COMMISSIONER OF INCOME TAX vs. MEGHMANI ORGANICS LTD

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TAXAP/112/2010HC GujaratGJHC24046009201027 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 (Commissioner of Income Tax) to withdraw the appeal. The Court noted the submission that the tax effect was below the monetary limit of Rs. 50,00,000/- and the case did not fall within the exceptional clauses as per CBDT Circular No. 3/2018. The appeal was dismissed as withdrawn with liberty reserved to the appellant to revive the appeal in case any discrepancy comes to notice at a later stage after withdrawal, acknowledging that human error cannot be ruled out. No decision on the merits of the case was made.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax against Meghmani Organics Ltd. The appeal pertains to an assessment year not specified in the judgment. The appellant'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/- as per CBDT Circular No. 3/2018, and the case did not fall under any exceptional clauses. The appellant sought permission to withdraw the appeal, reserving a 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 Whether the appeal should be permitted to be withdrawn by the appellant, the Commissioner of Income Tax, on the grounds of tax effect being below the monetary limit prescribed by CBDT Circular No. 3/2018 and the case not falling under any exceptional clauses. The Assessee (Revenue) did not record any arguments. The Revenue (Assessee) argued that the appeal should be withdrawn as per the instructions from the Joint Commissioner of Income Tax (Judicial), citing CBDT Circular No. 3/2018. The Revenue also sought permission to revive the appeal if any discrepancies were discovered later, acknowledging the possibility of human error. The Assessee (Appellant) did not record any arguments.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/112/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 112 of 2010 ================================================================ COMMISSIONER OF INCOME TAX Versus MEGHMANI ORGANICS LTD ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MRS SWATI SOPARKAR(870) 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) R.S. MALEK

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