PRINCIPAL COMMISSIONER OF INCOME TAX - 2 vs. BAHUBALI SHANTILAL SHAH

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TAXAP/461/2016HC GujaratGJHC24051801201627 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 Revenue to withdraw the appeal. The Court noted the submission by the Revenue's counsel that the tax effect was below the monetary limit of Rs. 50,00,000/- and the case did not meet the criteria for exceptional clauses as per CBDT Circular No. 3/2018. The Court allowed the withdrawal with a liberty reserved for the Revenue to revive the appeal if any discrepancies were found at a later stage, acknowledging the possibility of human error. No decision on the merits of the case was made.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - 2 against Bahubali Shantilal Shah. The appeal was filed before the High Court of Gujarat at Ahmedabad. The Revenue sought to withdraw the appeal. The grounds for withdrawal were that the tax effect was below the monetary limit of Rs. 50,00,000/- and the case did not fall under the exceptional clauses as per CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue also reserved the right to revive the appeal if any discrepancy was discovered later, acknowledging the possibility of human error.

What were the issues?

1. Whether the appeal filed by the Revenue should be permitted to be withdrawn. This issue turns on the applicability of CBDT Circular No. 3/2018 and the monetary limits prescribed therein. The Revenue argued that the tax effect was below the prescribed monetary limit and the case did not fall under any exceptional clauses, thus justifying withdrawal. The Assessee's arguments are not recorded in the judgment. The judgment does not record any specific arguments from the assessee's side regarding the withdrawal of the appeal.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/461/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 461 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX - 2 Versus BAHUBALI SHANTILAL SHAH ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(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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