THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. GUJARAT MINERAL DEVELOPMENT CORPORATION LTD

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TAXAP/602/2015HC GujaratGJHC24047903201527 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 the permission as prayed for by the Revenue. The appeal was dismissed as withdrawn. The Court also granted liberty to the Revenue 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 Court did not decide the merits of the appeal. The reasoning for the withdrawal was solely based on the administrative instructions from the CBDT regarding the monetary limit for filing appeals and the absence of exceptional circumstances. The principle derived is that appeals can be withdrawn by the Revenue based on administrative circulars and monetary limits, subject to court permission and potential revival under specific conditions.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 (Revenue) against Gujarat Mineral Development Corporation Ltd (Assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The specific assessment year(s) are not mentioned in the provided text. The Revenue, through its counsel, submitted a note along with 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 the exceptional clauses of CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue sought permission to withdraw the appeal, reserving a right to revive it if any discrepancy is discovered later.

What were the issues?

1. Whether the Revenue is permitted to withdraw the appeal based on the tax effect being below the monetary limit prescribed by CBDT Circular No. 3/2018 and the case not falling within the exceptional clauses. Assessee's Contentions: The judgment does not record any specific contentions made by the Assessee. The Assessee was served, and Mr. B.S. Soparkar appeared for the Respondent. However, no arguments from the Assessee's side are detailed. Revenue's Contentions: The Revenue, through its learned Senior Standing Counsel, submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial). This communication instructed the withdrawal of the appeal because 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 meet the criteria for exceptional clauses. The Revenue sought permission to withdraw the appeal, with a liberty to revive it if any discrepancies were later found.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/602/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 602 of 2015 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus GUJARAT MINERAL DEVELOPMENT CORPORATION 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)

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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