COMMISSIONER OF INCOME TAX-II vs. G M M P FAULDER LTD

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TAXAP/1093/2011HC GujaratGJHC24045344201127 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 withdraw the appeal as prayed for by the Revenue. The appeal was dismissed as withdrawn. The liberty was granted to the Revenue to revive the appeal in case any discrepancy comes to notice at a later stage, acknowledging that human error cannot be ruled out. The decision was based on the Revenue's submission regarding the tax effect and the CBDT circular, and no substantive issue on merits was decided. The operative direction was to dismiss the appeal as withdrawn with the stated liberty.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-II against G M M P FAULDER LTD. The appeal was filed before the High Court of Gujarat at Ahmedabad. The learned Senior Standing Counsel for the appellant submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial). This communication instructed the withdrawal of the appeal. The reason cited for withdrawal was that the tax effect was below the monetary limit of Rs.50,00,000/- as per CBDT Circular No.3/2018 dated 11.07.2018. The case did not fall under any exceptional clauses mentioned in the circular. The appellant reserved the right to revive the appeal if any discrepancy was discovered later.

What were the issues?

1. Whether the appeal should be withdrawn based on the tax effect being below the prescribed monetary limit as per CBDT Circular No.3/2018. The Revenue (appellant) argued that the appeal should be withdrawn as the tax effect was below Rs.50,00,000/- and the case did not fall under any exceptional clauses of CBDT Circular No.3/2018. The Revenue also sought to reserve the right to revive the appeal in case of future discrepancies. The Assessee (respondent) did not record any arguments in the judgment.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/1093/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1093 of 2011 ================================================================ COMMISSIONER OF INCOME TAX-II Versus G M M P FAULDER LTD ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR B S SOPARKAR(6851) 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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