COMMISSIONER OF INCOME TAX II vs. GUJARAT AMBUJA EXPORT LTD

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TAXAP/842/2013HC GujaratGJHC24043522201327 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 of Gujarat granted the permission as prayed for by the appellant. Consequently, the appeal was dismissed as withdrawn.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 after the withdrawal, acknowledging that human error cannot be ruled out. The decision to dismiss the appeal as withdrawn was based on the revenue's submission regarding the tax effect and CBDT circular, and no adjudication on the merits of the original dispute took place. The ratio decidendi is that an appeal can be withdrawn by the revenue if the tax effect falls below the prescribed monetary limit and no exceptional circumstances exist, with a possibility of revival if errors are discovered.

What were the facts?

The appeal was filed by the Commissioner of Income Tax II against Gujarat Ambuja Export Ltd. The assessment year(s) are not specified. The order or action under challenge is the appeal itself, filed before the High Court of Gujarat at Ahmedabad. The procedural history involves the appellant's submission of a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing the withdrawal of the appeal. This instruction was based on the tax effect being below the monetary limit of Rs. 50,00,000/- and the case not falling under exceptional clauses of CBDT Circular No. 3/2018. 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 Whether the appeal should be permitted to be withdrawn by the appellant, the Commissioner of Income Tax II, on the grounds that the tax effect is below the monetary limit prescribed by CBDT Circular No. 3/2018 and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 under any exceptional clauses. Assessee's Contentions: The judgment records no specific contentions from the assessee, Gujarat Ambuja Export Ltd. Revenue's Contentions: The revenue, through its learned Senior Standing Counsel, submitted a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing the withdrawal of the appeal. The grounds for withdrawal were 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 into any exceptional clauses. The revenue sought permission to withdraw the appeal, reserving a right to revive it in case of any discrepancy arising from human error.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/TAXAP/842/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 842 of 2013 ========================================= COMMISSIONER OF INCOME TAX II Versus GUJARAT AMBUJA EXPORT LTD ========================================= Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR B S SOPARKAR(6851) 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 : 27/11/2018

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.

Permission as prayed for is granted. The appeal is dismissed as withdrawn with liberty as aforesaid. [ Harsha Devani, J. ] [ A. P. Thaker, J. ] hiren

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