COMMISSIONER OF INCOME TAX - I vs. ARVIND FASHIONS LTD

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TAXAP/1222/2010HC GujaratGJHC24046170201027 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 as prayed for by the Revenue. Consequently, the appeal was dismissed as withdrawn.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 The decision to dismiss the appeal as withdrawn was based on the Revenue's submission regarding the tax effect and the CBDT circular. No decision was made on the merits of the original appeal.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax - I against Arvind Fashions Ltd. The appeal pertains to an assessment year not explicitly stated in the provided text. The Revenue, through a communication from the Joint Commissioner of Income Tax (Judicial), instructed its counsel to withdraw the appeal. The reason cited for withdrawal is that the tax effect is below the monetary limit of Rs. 50,00,000/-, and the case does not fall under any exceptional clauses as per CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue also reserved a right to revive the appeal if any discrepancy is discovered later.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the Revenue on the grounds of tax effect being below the monetary limit prescribed by CBDT Circular No. 3/2018. Assessee's Contention: The judgment does not record any specific contentions from the assessee. The assessee is represented by Mr. Vijay S. Ranjan. Revenue's Contention: The Revenue, through its learned Senior Standing Counsel Ms. Mauna Bhatt, 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/- and the case did not fall within the exceptional clauses of CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue also sought liberty to revive the appeal if any discrepancy is found later.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/1222/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1222 of 2010 ================================================================ COMMISSIONER OF INCOME TAX - I Versus ARVIND FASHIONS LTD ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR VIJAY S RANJAN(6126) 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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