THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. THE SABARKANTHA DIST.CENTRAL CO-OP.BANK LTD.
What did the High Court hold?
The High Court granted permission to withdraw the appeal as prayed for by the Revenue. The appeal was accordingly dismissed as withdrawn.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 withdraw was based on the Revenue's submission that the tax effect was below the monetary limit stipulated by the CBDT and the case did not meet the criteria for exceptions under the relevant circular. No decision on the merits of the original appeal was made.
What were the facts?
The appeal was filed by the Principal Commissioner of Income Tax-2 against The Sabarkantha Dist. Central Co-op. Bank Ltd. The appeal was admitted by the High Court of Gujarat. The Revenue, through its 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 under the exceptional clauses of CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue reserved a 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 Whether the appeal should be withdrawn as per the instructions of the CBDT Circular No. 3/2018, considering the tax effect is below the monetary limit and the case does not fall under exceptional clauses? (Question of law and fact, turning on the interpretation and application of CBDT Circular No. 3/2018 and the assessment order). Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue, through its 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/- and the case did not fall within the exceptional clauses as per CBDT Circular No. 3/2018. The Revenue also sought liberty to revive the appeal in case of future discrepancies.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
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) Vijay
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